Conceptual background
A brand can be defined as “a name, term, sign, symbol, or design, or combination of them which is intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors” (Kotler, 1991). The brand becomes an important tool for organisations marketing, as consumers use it as a reminder to recognise product attributes, such as quality and durability.
Brand equity relating to goods has been thoroughly researched throughout the years, in the marketing literature. Aaker (1991) and Keller (1993) have both provided conceptual schemes that link brand equity with various consumer response variables. Specifically, Aaker (1991) identified four major consumer-related bases of brand equity: brand loyalty, name awareness, perceived quality and other brand associations. Keller (1993) proposed a knowledge based framework for creating brand equity based on two elements: brand awareness and brand image.
Similarly, it was proposed that brand knowledge has two sub dimensions of experience and familiarity (Alba and Hutchinson, 1987). The effects of experience and familiarity on consumers’ brand equity perceptions occur at two levels: brand and product category. Whilst familiarity with a brand may directly influence the brand equity of that brand, the knowledge about a product category will influence the brand equity associated with all the competing brands in that product category.
The measurement of brand equity has also been a developing area of study (Cobb-Walgren, 1995; Keller, 1993; Lassar, 1995; Park and Srinivasan, 1994). Generally, there are direct and indirect measures of brand equity. In the direct approach, it is assessed what the value added by the brand to the product is (Farquhar, 1989; Keller, 1993). This approach is closely linked to Farquhar’s definition of brand equity. The indirect approach focuses on the identification of the potential sources of brand equity (Aaker, 1991; Keller, 1993). For example, Aaker (1991) developed a method to measure consumer-based brand equity based on the four dimensions of: loyalty, perceived quality, associations, awareness. While both approaches have merit, Keller (1993) argues that the direct and indirect approaches are complementary and should be used together (Krishnan and Hartline, 2001)
Application Background
In contemporary economic environment, services account for the vast majority of gross national product and total employment in most developed countries. Many service industries such as financial services or telecommunication are facing increasing competition, so they try to differentiate themselves by establishing stronger brands, both for the market, and the customer perception (Bamert and Wehrli 2005).
Services can be classified into two categories, first in plain services which are very little or not linked to goods (financial services, consulting services). Secondly they can be classified in services which are connected with the products (technical support, mechanical servicing) (Harms, 2002). The fundamental difference between goods and services is intangibility. Services cannot be seen, felt, tasted or touched in the same manner in which goods can. Therefore services are an experience. Inseparability of production and consumption is another characteristic of services and involves the simultaneous production and consumption. Products are first produced then sold and later consumed. Heterogeneity is also a typical characteristic of services. The quality and essence of a service can vary from producer to producer, from customer to customer, and from situation to situation. That makes it more difficult to standardise. Another characteristic of services is that they are perishable, which means they cannot be saved or stored. So it is difficult to synchronise supply and demand (Zeithaml, 1985 as at Bamert and Wehrli 2005).
A key to success in services marketing is to ‘make the intangible tangible’ (Berry, 1986; Levitt, 1981). One way to increase the tangible nature of a service is to use an extrinsic cue like a brand. Service brands help reduce consumers ’purchase risk and optimise their cognitive processing abilities’ (Onkvisit and Shaw, 1989).
The key differences between services and products lead to different approaches in marketing of them. These differences suggest the way branding is applied and the way its result is measured may differ between products and services. Mackay (2001) suggests that many of the existing consumer-based measures of brand equity, which have traditionally been used in the consumer good markets, can also be used to capture brand equity in the services markets. In addition, practical applications by Interbrand, A.C. Nielson, Young & Rubicam, etc. do not differ between consumer goods and services in the measurement of brand equity (BusinessWeek, 2003).
The development of mobile communications services is commonly expressed as a series of waves or "generations". Since Vodafone introduced the first analogue mobile network (first generation) back in 1985, continued investment in new technology has greatly improved and enhanced the range of mobile telecommunications services. The launch of the digital network (GSM or second generation) in 1991 led to the first services beyond voice calls with the introduction of text messaging and possibilities such as WAP. In April 2001, Vodafone launched the GPRS (sometimes referred to as 2.5 generation) network which has enabled the introduction of significantly enhanced WAP services and, in December 2001, the Vodafone Internet Access service. Currently, there are over ten main players in the UK’s mobile communications industry (Orange, O2, T-mobile, Virgin, 3G, 3Network, Vodafone, etc). All these companies specialise in providing a service, which generates them a constant supply of monthly income from their customers, by providing services such as twelve, or eighteen month contracts. They all offer similar services, but at the same time, try to differentiate themselves through a variety of branding strategies, in order to be more competitive with their rivals.
Potential for further research
Despite the many important elements that make up the application of branding, the role of brand equity in the marketing of services has not been explored in much detail. Most of what is known about brand equity for services is based on theoretical or anecdotal evidence. This lack of research creates disadvantages, given the fact that services now account for the vast majority of profits and benefits in the UK’s businesses. Due to the natural differences between goods and services, the concept of brand equity may require some adaptation for extension into the context of services marketing (Zeithaml, 1985). Furthermore, the limited understanding of brand equity in services requires more research on brand equity effects and whether this has a different impact on a business, from that of the tangible goods. This is important as many researchers have found differences between services marketing and goods marketing in other areas, but the results are often inconclusive and contradictory (Langford and Cosenza, 1998).
Aims and Objectives
The aim of this research is to assess the impact of business corporate identity and brand equity in the context of the service sector. This will be achieved through critical analysis of the primary and secondary data to recognise any potential effects on the brand equity. This research will be carried out through investigating mobile telecommunication companies in the UK. The end results of this research will lead to a deeper understanding of identity alignment, and brand equity effects on services, as well as some useful implications for management of marketing services.
The following is the list of objectives:
• Identify key players in the mobile communications market in the UK, and their position in the market
• Identify and brake down their corporate identity through primary and secondary research, and identify alignments/misalignments
• Investigate the brand’s perceived identity, by directly approaching their customers, and asking them questionnaires about the companies performance, and their satisfaction
• Provide a detailed evaluation report of the technical, management and user issues of corporate identity alignment, and make recommendations to brand managers as to whether it could potentially effect the brand positively/negatively.
• Manage the project and ensure that it delivers within time and budget.
These are the primary objectives of this investigation. As the research progresses, there will be further sub-objectives surfacing, however they will not be discussed until the final report is produced.
Methodology
The approach that I will adopt in order to carry out my research will be deductive. A deductive approach works from the more general to the more specific. Sometimes this is informally called a "top-down" approach. We might begin with thinking up a theory about our topic of interest which is in this case corporate identity and brand equity. We then narrow that down into more specific hypotheses that we can test. We narrow down even further when we collect observations to address the hypotheses. This ultimately leads us to be able to test the hypotheses with specific data a confirmation (or not) of our original theories.
This investigation will to be developed using both primary and secondary methods of research. The primary research will be carried out while doing business behaviour research and other aspects of ethics. The secondary research has mainly been planned around the case studies of the corporate identities of the chosen mobile communications companies and the remaining secondary data search. Below you can see an outlined research plan, which aims to achieve the research tasks mentioned
Primary research
• Questionnaire survey
A random selection of citizens of London will be approached and be asked to fill in an anonymous questionnaires, to give us an insight to a degree of their satisfaction and relationship they have with their mobile communications company. The survey will cover in-depth series of questions on ethics, satisfaction, promise, pricing, and future relationship with the company.
• Interviews
I plan to conduct anonymous interviews with a selection of staff from the chosen companies, and discuss with them the image they have been asked to portray from their head offices. The results of this survey will be compared with the secondary research done on the companies (see below).
Secondary research
The secondary research will focus on academic journals, books, and articles on the subject such as papers, magazines and the Internet (see further literature). This will be included in the literature review section of the research. It is important to recognize what information or data should be collected during the research in order to meet the research objectives, and to strongly support the dissertation analysis.
Sampling
While conducting primary research, I will be using Random sampling, and Snowballing sampling. A simple random sample is the most basic form of probability sample. In random sampling, each unit of the population has an equal probability of inclusion in the sample. Snowball sampling will involve making contact with a small group of people who are relevant to my research topic, and then use them to establish contacts with others (Bryman, 1999.)
Method of analysis
The data collected in this project will be both quantitative and qualitative. The main method of analysis used in analysing quantitative data will be a univariate analysis. This type of analysis refers to one variable at a time. One of the most common approaches to this analysis is the use of frequency tables. A frequency table provides the number of people and the percentage belonging to each of the categories for the variable in question. It can be used in relation to all of the different types of variable. Diagrams are among the most frequently used methods of displaying quantitative data. Their chief advantage is that they are relatively easy to interpret, and understand. As we will be working with nominal and ordinal variables, the bar chart, and the pie chart will be the two easiest methods to use. I will input the raw quantitative data into the SPSS software, which is the most widely, used computer software for analysis of quantitative data for social scientists.
I will use the analytical induction strategy in order to analyse the qualitative data, which is the most frequently cited approach. Analytical induction begins with a rough definition of a research question, proceeds to a hypothetical explanation of the question, and then continues onto the collection of data.
Industrial contacts
At this stage, I have not yet formed a relationship with any of the senior staff of the companies that I will be researching, however this process will commence upon the approval of this proposal. The provisional objective in terms of industrial contacts is to interview at least one senior staff (in the marketing department) of each of the companies, and discuss with them the desired identity they wish to portray to their customers. The companies that will be approached are (Vodafone, T-mobile, Virgin mobile, and O2).
Possible problems and limitations
I have considered a number of different ethical issues that are in relation to the collection of data, particularly regarding the individual participants privacy. Throughout the research process the participants will be made aware of their option to withdraw at any time. This will not be a problem in this study as the contact between the researcher and the participants will be very limited, and constricted between emails containing the questionnaire. The level of contact will be contained within the agreed access, to prevent any invasion of privacy. I will make best effort to ensure a high level of objectivity throughout the study and all the data collected is accurate. The confidentiality and anonymity of every individual is of the utmost importance to any form of research, and the promise of this in the informed consent was fulfilled. The use of email through collecting data in this study will be appropriate and acceptable. ‘The use of email may constrict long written answers to questions and could cause participants to see others’ (Saunders, 2003) responses. I will make sure that I eliminate these possibilities, by excluding any forwarding addresses, and by conducting short answer questionnaires
Programme of work
Word count: 2,738
References
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