Branding Services in Mature Markets: Evidence from Egypt

Abstract

Branding of services is a challange due to services characteristics. It is even more challanging in mature markets. In mature markets, customers show low levels of brand loyalty, with minimum perceived differences among competing offers. All of these factors raise the complexity of branding services in mature highly competitive markets. This research provides guidance for branding services in such markets. To fulfill the research main aim, Aaker’s (1991) model of branding is extended to include variables of importance, as detected from literature, and confirmed by practitioners. Direct and indirect relationships are tested in the extended model to provide detailed guide to practitioners. To fulfill the aim of this research, quantitative tools were employed through surveying mobile service industry customers. Confirmatory factor analysis and path analysis were used to test hypotheses of direct and indirect relationships among Aaker’s (1991) model of branding, and variables derived from services marketing literature. All hypotheses were accepted except one. Direct and indirect relationships are justified. This implies that branding in mature markets should be considering direct relationships, as well as, indirect relationships among variables tested. Results of this research are not only of valuable contributions to academics, but also serve as guidance for service marketers operating in similar contexts.