Enhancing Quality Brand of Tourism Products Using New It Application Tools

2012Cambridge Business & Economics ConferenceISBN : 9780974211428

ENHANCING QUALITY BRAND OF TOURISM PRODUCTS USING NEW IT APPLICATION tools

Ruth Rios-Morales[1],Lucia Aiello andClaudia Cacia

ABSTRACT

A prominent feature in the recent trends of the tourismindustry 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 analyzenew determinant factorsinfluencing quality brand of a tourismdestination and product. Through the identification of those determinant factorsemerges 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

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 theindustry’s actors. There are two most importantopportunities 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; consumersnowadays have become more sophisticated and demanding (Kotler, 2002; GabaixLaibson, 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; HaubTrifts, 2000; TeasAgarwal, 2000; Detloret al, 2003; ChangBurke, 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 ofeffective 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 isalso animportant 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 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 presentsthe 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 (Kotleret 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 matchthree components: identity, image and personality. The construction and use of the strategy impliesdeep 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; AbrattShee, 1989; Gartner, 1993; Fill, 1999; Siano, 2001; Wei, 2002; 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; AbrattShee, 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 iskey 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, personalityhas 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 theconnection 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, tourismfirms 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 usedto 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.

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Using quality brand to reinforce international position

Branding in the services sectoris a challenging task due to the lack of physicality until the service has been performed (Beckwith 1997). A firm that operates in the tourism sectorought to be supported by policies tailored to ensurethat 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 expectationsand satisfaction are determinant elements in the success of a firm.

Doyle (1998) emphasises the importance of going beyond customer expectations through the provision ofan 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 identifiesall the necessarycomponents for the implementation of brand quality and essential policies inthe development of a trademark in the tourism industry. Increasing quality in each “field destinations” would create customer satisfactionand 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 will enable tourism suppliers to provide a quality brand service or product at a highlycompetitive price. Quality brand is the source of competitive advantage which is widely recognized in the tourism industry (Laws, 2000).

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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; BenjaminWigand, 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 (Detloret al., 2003). Steady growth that characterizes the digital segment of travel, one of the most significant on the Web, is in constantgrowth. Tourists effectuate the purchase prior to the experience itself, so the information search is a critical factor in the purchasing process (Steinfieldet al., 2001; Hoffman, 1996). In the light of these considerations, it is evident that the potential success of e-commerce for tourism products is linked to the ability to manage information exchange processes and to particular forms of interactive communication (CamisaniCalzolari, 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).

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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, salesbecomes 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 Internetis an important tool in the demand and supply dynamics (AtkinsonCoffrey, 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 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, 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 thatlight, 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.

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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.

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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 are contributingto the rapid change of customer behaviour(García-Crespoet al., 2008), there is only few studies that have appraisedthe technological factors influencing quality brand of a tourism product or service(ConstantinidesFountain, 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).