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ENHANCING QUALITY BRAND OF TOURISM PRODUCTS USING NEW IT
APPLICATION TOOLS
Ruth Rios-Morales1, Lucia Aiello and Claudia Cacia
ABSTRACT
A prominent feature in the recent trends of the tourism industry is emerging in the global
landscape. The new online application tools of Web 2.0 such as Site Web, social media and social
networks are shifting the fundamentals in the way tourists are gaining information about destinations
and services. This development significantly influences the strategic decision process of
tourism firms and of international tourism organizations. Tourist actors must respond to this
change by using marketing strategies tailored to the needs and wants of this new trend. The
purpose of this paper is to analyze new determinant factors influencing quality brand of a tourism
destination and product. Through the identification of those determinant factors emerges a
contribution to theory development. A holistic quality brand model which incorporates
technological tools in the implementation of brand quality in a tourism product or service is
developed. Our conclusions suggest that firms in the tourism industry ought to understand the
dimensions and the potential of Web 2.0 applications on marketing practice and business in
general.
Keywords: Tourism, Web 2.0, social media, social networks, quality brand
1
Corresponding author: Ruth Rios-Morales (PhD), Les Roches-Gruyere, University of Applied Sciences
Switzerland, Rue de l’Ondine 20, CH 1630 Bulle, Switzerland. Tel. 00 41 26 919 7878, Fax 00 41 26 919 7879
e-mail: [email protected].
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INTRODUCTION
The process of globalization and the advent of innovation and communication technologies
are changing the business environment of the tourism industry. The global interconnectedness
has opened a world of opportunities, but has also brought many challenges to the industry’s
actors. There are two most important opportunities for tourism operators: the rapid increase of
the demand in the international market (Papatheodorou, 1999; Divisekera, 2003; Song et al.,
2000 & 2003; Lim et al., 2002; Seetaram, 2010) and the “reduced distance" with potential
customers. Although distances between service providers and their customers have been
shorten due to the new technological advances; consumers nowadays have become more
sophisticated and demanding (Kotler, 2002; Gabaix & Laibson, 2006; Mills & Law, 2004;
Cova & Pace 2006; Compete, 2006; Cooper, 2008; Pantano, 2010). Consumers have access to more
choice; implementing more meticulous research concerning destinations and by seeking more
guarantees from suppliers (Bolton & Drew, 1991; Murray, 1991; Haub & Trifts, 2000; Teas &
Agarwal, 2000; Detlor et al, 2003; Chang & Burke, 2007; Chen & Xie, 2008; Wang, 2008;
Arussy, 2009)
Competition in the tourism industry has become more complex, influencing the strategic
decision making process of tourism operators. The incorporation of IT tools represent
opportunities for distribution to overcome traditional network limitations, but also a challenge
for operators (Marcuseen, 2001; Biella & Biella, 2004; Chen & Xie, 2008; Wang, 2008).
Enduring competitiveness in this business environment for tourism operators goes beyond the
implementation of effective communication with customers. The effects of branding on
consumer choice have become increasingly more important to study as technology has
provided consumers with a constant stream of information. Information comes from an
unlimited number of sources while narrowing the competitive advantage gap between
corporations of varying sizes and their brands (Duncan, 2002; Kitchen, 2005; Arussy, 2009).
In a market where the internet has become an important platform, tourism products or services
must be presented in their full gamut (Scott &Laws, 2006). Branding plays a vital role in the
implementation of an integrated policy in the processes of tourism products and services.
Quality brand is also an important element in international positioning of a product or service
and has been widely recognized as a source of competitive advantage in the tourism industry
(Laws, 2000). Identifying new determinant factors influencing quality brand in the tourism
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industry is key to the design of strategic destination and product. The remainder of this paper
is organized as follows: the next section presents related literature of the role of brand in the
positioning policy. The subsequent section evaluates practical tools based on theories and
scientific literature related to quality brand and its reinforcing role in international positioning.
Then, is Web 2.0 presented as an important element to enhance quality brand. In the
subsequent section, new determinant factors and a holistic quality brand model which
incorporates technological tools in the implementation of brand quality in a tourism product
or service is presented. The last section presents the conclusions of this study.
BRAND POSITIONING POLICY
There is an affluent and diverse scholarly research conducted in the topic of brand.
Researchers from the marketing, communications and psychology streams have explored this
topic (Banerjee, 2008; Hung, 2008; Koubaa, 2008). A brand can be defined as a psychological
construction of images and relationships which are responsible for product/service
identification and product/service differentiation; which influences customer’s purchase
decisions (Esch, 2004). Branding has an important role in the development of a product or
service in the service sector. A brand enables consumers to visualize and understand the
intangible aspects of the service including the principles of the people who provide the
services. Branding is an effective technique in international marketing in the service sector
(Buhalis & Costa, 2006). However, a brand gets into a different dimension when adding the
international perspective (Bell, 2000). Customers in other country markets may have different
preferences and tastes than in the home markets; therefore, the same messages may come
across differently. Nonetheless, customers are developing a taste for globalized products and
their preferences are becoming more standardized (Kotler et al., 2002; Kapferer, 2004).
Regarding tourism, brand is difficult to develop and manage as many consumer touch points
are not within the controls of the destination marketing organization (Pike, 2007). However,
placing a branding policy is crucial in the implementation of an international tourism product
or service. To optimize this process it is indispensable to implement a planned strategy aiming
to match three components: identity, image and personality. The construction and use of the
strategy implies deep knowledge of those specific concepts. Both identity and image are
based on values, while personality is associated with the brand (Gunn, 1972; Goodrich, 1978;
Bernsterin, 1984; Abratt & Shee, 1989; Gartner, 1993; Fill, 1999; Siano, 2001; Wei, 2002;
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Schults, 2003; Aiello et al., 2009). Identity reflects the view of the marketer or owner;
believes and intends that the service should represent to consumers. While image represents
what customers, users, and the like believe or perceive about the service or what it represents
to them at a given point in time (Schults, 2003; Wei, 2002; Abratt & Shee, 1989). Image exist
exclusively in individuals who are perceived through a series of clues (visual) perception that
leads them to judge subjectively what the organization as well as a destination or a hotel chain
is (Bernsterin, 1984). Image has been verified to be a pivotal factor in travellers' decision
process and destination/hotel chain selection (Gunn, 1972; Gartner, 1993; Goodrich, 1978;
Woodside & Lysonski, 1989; Um & Crompton, 1990). The image that travellers hold about a
destination would be significantly influenced by several information sources. As a result, an
accurate assessment of image is key to designing an elective marketing and positioning
strategy (Reilly, 1990). This position allows affirming that there is often a big difference
between what the organization/tourism product believes or feels about the service and
consumer experiences. On the other hand, personality has in its nature a strong immaterial
component that has to be made explicit through the visual elements, in order to communicate
to the outside and to become perceivable (Siano, 2001). Personality can be considered as the
result of the interpretation of the qualities of the organization/ tourism product, achieved
through a process of self-evaluation (Fill, 1999). By implementing a high-quality
communication policy and brand strategy it is possible to observe the connection between the
tourism product perception and its personality. Therefore, we refer to a communication that
can translate the elements of personality in those visible and perceptible outside elements that
constitute identity. Then, tourism firms must allow recipients to understand their identity by
transmitting visual elements to be perceived by customers; identity can only be created and
transmitted by the firms themselves and should be used to differentiate themselves from
others. Optimizing the relationship between identity and personality, certainly results in the
reduction of the gap between personality and image. However; an excellent brand strategy
policy implies the absolute integration of personality, image and identity; a lack of any of
these three elements would hinder the establishment of a brand (see Figure 1). Positioning a
tourism product or service effectively in the market requires the development of an effective
branding strategy.
Insert Figure 1 about here
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USING QUALITY BRAND TO REINFORCE INTERNATIONAL POSITION
Branding in the services sector is a challenging task due to the lack of physicality until the
service has been performed (Beckwith 1997). A firm that operates in the tourism sector ought
to be supported by policies tailored to ensure that quality is perceived externally as excellent.
These policies should aim toward consumers’ satisfaction; which can be obtained trough the
implementation of price value and absolute quality. The latest is the actual perform of the
service in the marketplace and in relation to other competitive services. Nevertheless, quality
is measure by the customer and it is out of the control of the marketers (Schulz, 2003). For
this reason, perceived quality becomes a vital element in the international positioning of a
tourism product; customer expectations and satisfaction are determinant elements in the
success of a firm.
Doyle (1998) emphasises the importance of going beyond customer expectations through the
provision of an augmented level of added values, which are “difficult for competitors to
imitate” and upholding customer loyalty. Thus, quality brand would make the consumer
perceive that a product or service has superior values and benefits than other products or
services in the market (Lambkin et al., 1994). Customers receive tourism products in their
complexity and integration, these include: means of transport, accommodation, cultural
activities, catering and any other activity carried out related to the tourist destination. Tourists
expect satisfaction in the entire tourist experience not merely with the individual components
of the tourism product. In accordance with the concept of multi-product destination branding
(Scott & Laws, 2006), quality brand should encompass the full gamut of tourism products and
services.
Policies of quality brand are an important element in the positioning policy of tourism
products or services. Figure 2 identifies all the necessary components for the implementation
of brand quality and essential policies in the development of a trademark in the tourism
industry. Increasing quality in each “field destinations” would create customer satisfaction
and customer loyalty. However, each activity on the services chain should be monitored and
control. Monitoring is an important element for achieving quality brand objectives which
includes: customer satisfaction, loyalty, increasing numbers of tourists, increase of
internationalization, increased profitability, and increased infrastructure, development of
individual products, increased performance, and increased training. Attaining these objectives
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will enable tourism suppliers to provide a quality brand service or product at a highly
competitive price. Quality brand is the source of competitive advantage which is widely
recognized in the tourism industry (Laws, 2000).
Insert Figure 2 about here
THE ROLE OF WEB TO IN QUALITY BRAND
The Internet represents an embedded high-quality system capable of influencing prices,
consumer preferences, behavior and brands (Singer, 2002). Technology plays a significant
role in the tourism industry, both as a facilitator of growth, and as an enabling factor to
increase and ensure positive experiences for the tourist (Stipanuk, 2001). If we focus on
technologies for ICT, this relationship becomes even more pronounced; in fact the diffusion
of ICT in tourism has affected both communication and distribution (Martini, 2000). The
Internet and computer network have been added to the business model as a support,
communication and sales tools of tourism products (Franch, 1999). A complex product such
as tourism can be represented on a website where its multi-media and hyper-textual potential
can be fully exploited. Tourists who have visited a website to obtain information or to make
reservations online can also be put on an e-mail list, and subsequently, be sent additional
offers or information by means of more traditional media. This process enables the creating of
a lasting relationship with the customer (Go, 1992). At the same time, the advent and
development of automated reservation systems, such as CRS (Computer Reservation System),
and later, GDS (Global Distribution System) have rendered the supply of tourism services
global (Sheldon, 1997; Furini, 2001; Benjamin & Wigand, 1995); thus, completely changing
the structure of distribution channel (Werthner & Klein, 2007). Considering the above,
technologies provide an incentive to generate relationships between businesses, allowing the
creation of expanded network which can pool information about the market; this also enables
supply and demand needs to overlap (Fesenmaier, 1999; Boardman, 2005). Consequently, it
cannot be ignored that effective strategy for using the Internet are key element in achieving
competitive advantage (Detlor et al., 2003). Steady growth that characterizes the digital
segment of travel, one of the most significant on the Web, is in constant growth. Tourists
effectuate the purchase prior to the experience itself, so the information search is a critical
factor in the purchasing process (Steinfield et al., 2001; Hoffman, 1996). In the light of these
considerations, it is evident that the potential success of e-commerce for tourism products is
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linked to the ability to manage information exchange processes and to particular forms of
interactive communication (Camisani Calzolari, 2008). However, the Internet is not just a new
communication tool on which to transfer contents previously conveyed by other media, but
demands new, appropriate communication and customer relation strategies, because of its
contextual product distribution function (see Figure 3).
Insert Figure 3 about here
In today’s business environment the Internet is a point of synergy between communication
and distribution; planning and developing strategies need to consider the role of the Internet.
As we observe in Figure 3, teleshopping and promotional TV/radio messages have a purely
communicative role, while, sales assistance and automatic distributors have a purely
distribution function; the Internet performs both tasks. Through the different tools,
predominance in the objectives is pursued; e.g. the main objective of teleshopping is to
provide the customer with terms and information of the product, sales becomes a secondary
objective. Clearly, the sale process will be perfected later through telephone contact with the
potential customer. Conversely, an employee is mainly focused on product selling but
everything he does or says affects the purchase decision, as does the idea that the actual or
potential customer has about the "seller" - as representative of company - but also about the
product, brand etc. The development and refinement of new technologies and elements to
support and protect the potential and current supply market make the internet perfectly able to
represent an instrument of communication and distribution. The main difference between the
Internet and other "tool" is that communication and distribution are integrated (see Figure 3).
Other valuable features the Internet offers to consumers are: easy access and a platform for
dialogue at any given time. The Internet is an important tool in the demand and supply
dynamics (Atkinson & Coffrey, 2002; Pantano, 2010), while Web 2.0 has become an
important component of modern marketing.
The Internet is also a tool for comparing competitors in real time: this is the case of “theme”
search engines such as www.prontohotel.it, www.booking.com. The advantage of new
technologies is to achieve an integration of key marketing levers in the face of greater
flexibility and lower costs which translate into increased efficiency and effectiveness for the
company. Undoubtedly, the opportunity for integration is not the only advantage given by the
Internet which also contributes to reaching higher levels of integration. The map in Figure 4,
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illustrates ways and means that enable the integration between distribution and
communication processes. Figure 4 also shows the scale of integration defined from the first
rectangle representing the area of “no integration” where traditional media are placed to the
area of “total integration” referring to portals for e-commerce. In that light, we can suggest
that the Internet as a point of synergy, enabling firms to move into a field of higher
effectiveness and efficiency, the new technologies create a process of integration with the
benefit of more efficient and effective policies that tend to raise the perceived value of
tourism product offering and accordingly, to create new sources of competitive advantage.
Insert Figure 4 about here
The role of the Internet as point of synergy is illustrated in the Figure 5, where four areas have
been identified. The first is the "interaction/sharing" area. In this area, we find tools that
enable the interaction and sharing only of operational policies. For instance, trade fairs enable
different tools to share space and costs to advertise your products, but their primary aim is not
to implement actual integration. The second area, which of "no synergy", is characterized by
the lack of interaction and sharing of two levers – an example is advertising in newspapers.
The third area of "integration" refers to any tool which, while allowing for integration
between communication and distribution, does not guarantee operational interaction and
sharing. This is a complex situation, because integration does not obviate operational
interaction and sharing. The last area is defined as "full synergy", the internet serves as point
of synergy between the two operational policies: operational sharing and operational policies
integration. In this area, the Internet is the "perfect" amalgamation between distribution and
communication. The tools (e-mail, chat, wiki) represent a mode used by different firms in the
tourism chain.
Insert Figure 5 about here
NEW DETERMINANT FACTORS OF QUALITY BRAND IN THE TOURISM
INDUSTRY
The growing importance of Web 2.0 applications in the tourism industry is changing the
determinant factors influencing quality brand of a tourism destination and product. Although a
number of studies have acknowledged the positive ways in which technological applications
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are contributing to the rapid change of customer behaviour (García-Crespo et al., 2008), there
is only few studies that have appraised the technological factors influencing quality brand of a
tourism product or service (Constantinides & Fountain, 2008). According to the concept of
multi-product destination branding (Scott & Laws, 2006), quality brand should encompass the
full gamut of tourism products and services. Quality brand policy is an important element for
the international positioning of a touristic product or service. Quality brand has been widely
recognized as a source of competitive advantage in tourism (Laws, 2000).
In this highly competitive business environment where consumers’ expectations are raising
continually, brand quality ought to incorporate the use of different e-business mechanisms.
This may require that e-retailers need to go beyond the bottom-line profit thinking in order to
differentiate themselves from competitors and to gain competitive advantage based on esatisfaction, e-loyalty and trust. Building trusting relationships with customers is key to longterm effective communication. Evidences indicate that customers’ reviews posted in different
forums or online communities such as Web-blogs and podcasts are much more powerful as
marketing tools than expert product reviews (Gillin, 2007); the influence of blogs and
podcasts is increasing because of the rapid expansion of the audiences and contributors
(Constantinides & Fountain 2008).
Implementing a brand quality strategy in this highly technological environment is a complex
process. It involves the management of a number of elements that develop awareness and
customer loyalty (Nykiel, 2006). Quality brand of an international tourism product would
encompass a supportive strategy that optimizes the quality of the tourism product or service.
The development of brand quality would also require the optimization in the relationship
between identity, personality and image. As we observe in Figure 6, developing brand quality
is a process that starts with the integration of identity, personality and image. Image is key to
what we would like to communicate. Identity represents the brand / product category (e.g.
number of stars for a hotel), while, personality is the nature of the product/service itself. The
implementation of quality product/service where monitoring would make possible to attain is
achieving quality brand objectives need to be implemented. Developing brand quality would
also support the international positioning of a tourism product or service (see Figure 6). The
internet is undoubtedly a fitting arena for tourism businesses to develop value-added services
for customers (McKinsey, 2007). Social media, ‘social shopping’ and other online platforms
where consumers contact other consumers to exchange information (i.e. Buzzillions,
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Crowdstorm, Ebay, Neighborhoods, Kaboodle, ShopMedia, Stylehive, TheNext, Trusted
Opinion, Viewpoints, Wishpot, Friendster, Tripadvisor) is a new determinant factor to be
considered in brand quality.
The use of appropriate e-business tools would increase an added value of a tourism product or
service by providing customers with superior customer value delivery (García-Crespo et al.,
2008). ICT applications for instance have been acknowledged to have influential effect on the
consumption of tourism products (Karger & Quan, 2005). Marketing research indicates that
social network sites (SNSs) are growing in popularity worldwide (comScore, 2007).
Information across SNSs has been confirmed to be a useful tool use by tourists to reduce risk
and uncertainty (Urban, 2003). Inevitable, building quality brand in the tourism sector would
necessitate deep understanding of e-business tools.
Insert Figure 6 about here
CONCLUSIONS
The international tourism literature has identified the importance of technological tools in the
implementation of brand quality in a tourism product or service, but little is been said about
the new determinant factors and their integration in the structure of quality brand. This study
attempts to identify these new determinates related to the technological activities in the
tourism sector. By using practical tools based on theories and scientific literature, we have
analysed different elements influencing “quality brand” in the tourism sector. From this
analysis emerges a holistic quality brand model which incorporates e-business tools to
advance understanding of a complex process in today’s business environment. The paper has
also important implications for a firm’s international positioning strategy and attempts to
contribute to theory development.
The growing popularity among consumers of the use of Web 2.0 applications raises
responsiveness for further close examinations of this topic. Further studies may appraise
empirically our model. It is essential for marketers to look at IT tools as strategic tools. Firms
in the tourism industry ought to understand the dimensions and the potential of Web 2.0 on
marketing practice and business in general. Understanding the sources of customer value and
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consumer motivation in using these applications are the first steps to enhance user experience,
meeting customer information needs and helping customers become satisfied will be the keys
to future success. Further studies may also analyze the use of mobile applications to set
dynamic and durable firm-customer relationship. Finally, we trust that this paper provides a
contribution that leads to a better understanding of consumer behaviour and customer
consumption experience in an online social shopping context.
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FIGURES
Figure 1: The Brand as integration of image, personality and identity
Personality.
What tourist
product/Brand is
Image
How tourist
product is perceive
Identity
How the tourist
product is visible
outside/identifiers
BRAND
Source: Aiello & Cacia (2009).
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Cambridge, UK
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2012 Cambridge Business & Economics Conference
ISBN : 9780974211428
Figure 2: Step for a Quality Brand
Fields Destination
Process
Hospitality
Breakdown of the
individual activities of
the facilities to be
monitored. (reception,
night passing, and others)
1.customer satisfaction
2.loyalty
3.Internationalization
4.Increased flows in
terms of additions and
Attendance
Breakdown of individual
activities to access the
destination track (the
tourist information
offices, markings, and
others)
1.customer satisfaction
2.loyalty
3.Internationalization
4.Increased flows of
visitors
Breakdown of the
individual activities of
the cultural infrastructure
to be monitored
(Museums, theatres, and
others)
1.customer satisfaction
2.loyalty
3.Internationalization
4.Increase in visitors
5.Presence of national
and international visitors
1.Increase in number of
activities
2.Increased number of the
structures and cultural
infrastructure
3.Increased the flow of
visitors
4.Return Customers
5.Increase in performance
Breakdown of the
individual activities of
the economic
infrastructure to be
monitored (banking
offices, and others)
6.customer satisfaction
7.loyalty
8.Internationalization
9. local actors satisfaction
1.Increase in number of
infrastructure
2.Increase in service users
3.Increase in performance
Increase in performance
Breakdown of the
individual activities of
transport companies to
track. (transportation,
signage, information,
ticketing, and others)
1.customer satisfaction
2.loyalty
3.Internationalization
4.Increased flows of
passengers
1.Questionnaires customer
2.Increase in number of
infrastructure
3.Increase in national and
international flows
Return Customers
4.Increase in performance
Accessibility
Cultural
infrastructures
Economic
infrastructures
Transport
Objective
Control
1.Questionnaires customer:
2.Increase in the number of
facilities;
3.Increase in national and
international flows;
4.Return Customers;
5.Increase in performance
1.Increase in the number of
infrastructure and service
2.Increase in performance
Source: Aiello & Cacia (2009).
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Cambridge, UK
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2012 Cambridge Business & Economics Conference
ISBN : 9780974211428
Figure 3: Communication and distribution: the internet role
Source: Singer et al., (2010).
Figure 4: Map of vehicles-means of distribution and communication
Source: Singer et al., (2010).
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Cambridge, UK
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2012 Cambridge Business & Economics Conference
ISBN : 9780974211428
Figure 5: Internet as Point of synergy
Source: Singer et al., (2010).
Figure 6: Adding Value to Quality Brand
Quality Brand
Use of e-business tools:
e-satisfaction, e-loyalty & trust
Implementation of Quality
tourism product/service Policy
Integration of image-identitypersonality Tourism
product/service
___________________
Source: our elaboration
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