Cultivating Service Brand Equity

Leonard L. Berry
Texas A &M University

In packaged goods, the product is the primary brand. Folgers Coffee is a division of Procter & Gamble. It is not
However, with services, the company is the primary brand. relevant to the purchase decision. The locus of brand im-
This article, based on primary research with 14 mature, pact is the product. Customers patronizing a Starbucks
high-performance service companies, makes a case for store, however, buy the company brand. Their service ex-
service branding as a cornerstone of services marketing perience with Starbucks figures prominently in their per-
for today and tomorrow. The article presents a service- ception of the brand. Starbucks founder Howard Schultz
branding model that underscores the salient role of cus- (1997) clearly understands the source of brand power in a
tomers'service experiences in brand formation. Four pri- service business:
mary strategies that excellent service firms use to cultivate
brand equity are discussed and illustrated. Branding is not Our competitive advantage over the big coffee
just for tangible goods; it is a principal success driver for brands turned out to be our people. Supermarket
service organizations as well. sales are nonverbal and impersonal, with no per-
sonal interaction. But in a Starbucks store, you en-
counter real people who are informed and excited
about the coffee, and enthusiastic about the
brand . . . . Starbucks' success proves that a
Branding plays a special role in service companies multimillion-doUar advertising program isn't a pre-
because strong brands increase customers' trust of the requisite for building a national brand nor are the
invisible purchase. Strong brands enable customers to bet- deep pockets of a big corporation. You can do it one
ter visualize and understand intangible products. They customer at a time, one store at a time, one market at
reduce customers' perceived monetary, social, or safety a time. (P. 247)
risk in buying services, which are difficult to evaluate prior
to purchase. Strong brands are the surrogates when the This article presents branding as a cornerstone of ser-
company offers no fabric to touch, no trousers to try on, no vices marketing for the twenty-first century. Our natural
watermelons or apples to scrutinize, no automobile to inclination in marketing is to associate branding with
test-drive. goods. Through product, package, and logo design, mar-
In packaged goods, the product is the primary brand. keters leverage the materiality of goods in their branding
However, with services, the company is the primary brand. efforts. They affix the brand name to the product and show
The locus of brand impact differs for services because they the product in advertising, often associating it with distinc-
lack the tangibility that allows packaging, labeling, and tive symbols, signature statements, and people. Nike's
displaying. It is not possible to package and display an swoosh logo on its products, its "Just Do It" signature
entertainment or transportation service in the same way as statement in its advertising, and its subbrands linking the
Kodak packages and displays film. prowess and persona of athletic superstars to the primary
Even more significant is the source of customer value brand illustrate the central role physical products play in
creation. Brand impact shifts from product to company as brand development.
service plays a greater role in determining customer value Branding is just as relevant to services, however. Prod-
(Berry and Parasuraman 1991). Folgers Coffee customers uct intangibility does not mean that brand development is
buy the product brand. Most are probably unaware that less appropriate or important for services than goods, only
that its application differs in certain respects. Brand devel-
Journal of the Academy of Marketing Science.
Volume 28, No. 1, pages 128-137. opment is crucial in services, given the inherent difficulty
Copyright 9 2000 by Academy of Marketing Science. in differentiating products that lack physical differences
 Berry/ CULTIVATINGSERVICEBRANDEQUITY 129

(Zeithaml 1981) and the intense competition within ser- Word-of-mouth (and, increasingly word-of-keyboard)
vice markets, many of which have been deregulated. A communications are common with services due to their
strong brand is "a safe place for customers" (Richards intangible core. When the consequences of selecting the
1998). The invisibility of services makes buying them wrong service supplier are severe, service customers are
from a safe place an appealing proposition for customers. especially eager for unbiased, experience-based informa-
Brand cultivation was found to be a principal success tion. Thus, word-of-mouth activity often is high preceding
driver in a study of 14 mature, high-performance service a customer's choice of a doctor, attorney, automobile
companies in a variety of industries (Berry 1999). These mechanic, or college professor (Berry and Parasuraman
companies use the brand as the foundation for building 1991).
trust-based relationships with customers. Publicity also can be influential in brand develop-
The possibilities for creating a strong service brand ment--for better or worse. The combination of reach or
become clearer when we examine its components. The coverage and authoritativeness can influence not only
next section discusses the principal components of a ser- brand awareness but also brand meaning.
vice brand, their roles, and their relationships. A discus- Typically, external brand communications reach fewer
sion of strategies that service companies use to cultivate people than a company's own marketing communications.
strong brands follows. Moreover, the purpose of presented brand communica-
tions is to strengthen the brand; these efforts by definition
are brand focused. Compared to the bold-line influence of
BRANDING THE COMPANY the presented brand on brand awareness, external brand
communications represent a dotted-line relationship to
brand awareness and meaning. In extreme instances in
A strong service brand is essentially a promise of future
which word of mouth becomes rampant or publicity wide-
satisfaction. It is a blend of what the company says the
spread and attention getting, the dotted lines can turn to
brand is, what others say, and how the company performs
bold.
the service--all from the customer's point of view. A
Brand meaning refers to the customer's dominant per-
brand is perceived. Figure 1 depicts the relationships
ceptions of the brand. It is the customer's snapshot impres-
among the principal components of a service brand: the
sion of the brand and its associations. Brand meaning is
presented brand, brand awareness, external brand commu-
what immediately comes to consumers' minds if you men-
nications, brand meaning, customer experience, and brand
tion Wal-Mart and then Target. Most consumers have dif-
equity. The bold lines indicate primary impact and the dot-
ferent perceptions of Wal-Mart and Target, even though
ted lines secondary impact.
both companies are general-merchandise discounters.
The presented brand is the company's controlled com- Brand awareness is high for both companies; brand mean-
munication of its identity and purpose through its advertis- ing is different. Target's consumer research shows that
ing, service facilities, and the appearance of service pro- Wal-Mart's brand centers on price leadership. Low prices
viders. The company name and logo and their visual are Wal-Mart's main appeal. Target's appeal includes
presentation, coupled with advertising theme lines and bright, comfortable stores, apparel selection, and fast
symbolic associations, are core elements of the presented checkout. As Dayton-Hudson executive Jerry Storch
brand. The presented brand is the brand message a com- (1998) explains, "If we tried to go after Wal-Mart on price,
pany conceptualizes and disseminates. The company's we would compromise our brand. Wide aisles are critical
effective presentation of its brand contributes directly to to who we are, but they cost a lot. It is very expensive to be
brand awareness, which is the customer's ability to recog- Target"
nize and recall the brand when provided a cue. The per- The fundamental difference between brand awareness
centage of customers in New York City who mention and brand meaning is illustrated by Domino's Pizza versus
Dial-A-Mattress when asked "what companies come to Pizza Hut, by Charles Schwab Corporation versus Merrill
mind if you need to buy a mattress?" is a measure of the Lynch, by Southwest Airlines versus Northwest Airlines.
company's brand awareness in the market. These companies all are well known by customers in their
External brand communications refers to information respective markets, yet their images are quite different.
customers absorb about the company and its service that What is the source of brand meaning? Although the
essentially is uncontrolled by the company. Word-of- presented brand and external communications contribute
mouth communications and publicity are the most com- to brand meaning, the primary influence for customers
mon forms of external brand communications. Customers who actually have experienced the service is the experi-
may gain awareness and form impressions about a brand ence. Communications have the most influence with new
not only from company communications but from com- customers who have had little or no direct experience with
munications about the company offered by independent the company's service to shape their impressions. The pre-
sources. sented brand and external communications are a new
130 JOURNALOF THE ACADEMYOF MARKETINGSCIENCE WINTER2000

FIGURE 1
A Service-Branding Model

Company's Presented Brand Awareness

Brand
I

s ~
s ~

External Brand
Communications Brand Equity

Customer Experience
Brand Meaning
with Company

customer's only evidence of what the company stands for. The service-branding model shown in Figure 1 differs
However, as customers experience the company's total in degree, not kind, from a packaged-goods branding
product, these experiences become disproportionately model. The customer's actual experience disproportion-
influential. Customers' experience-based beliefs are pow- ately shapes brand meaning and equity for goods, not just
erful. A presented brand can generate greater brand aware- for services. The principal difference in the two models is
ness, stimulate new customer trial, and reinforce and the salient role of service performance. In labor-intensive
strengthen brand meaning with existing customers. A pre- service businesses, human performance rather than
sented brand cannot, however, rescue a weak service. If machine performance plays the most critical role in build-
customers' service experiences differ from the advertising ing the brand.
message, customers will believe their experiences and not Product intangibility and the salient role of service in
the advertising. As with goods, in services marketing cus- customer value creation focus customer attention on the
tomers' disappointment with the experience closes the company as an entity. A service company becomes its own
door that traditional brand marketing helps to open. brand, for better or for worse. The source of the experience
Brand awareness and brand meaning both contribute to is the locus of brand formation. With breakfast cereal, the
brand equity for experienced customers, but not to the source of the customer's experience may be Cheerios (a
same degree. Just as customer experiences disproportion- brand of General Mills); in snack foods it may be Ritz
ately shape brand meaning, so does brand meaning dispro- Crackers (a brand of Nabisco); in cooking oil it may be
portionately affect brand equity. Brand equity is the differ- Mazola (a brand of the Best Foods Division of CPC Inter-
ential effect of brand awareness and meaning combined on national). However, with services, the company as a whole
customer response to the marketing of the brand (Keller is usually viewed as the provider of the experience. Cus-
1993). tomers become aware of and develop images of American
Brand equity can be positive or negative. Positive brand Airlines, Federal Express, Disney World, MCI, Cable
equity is the degree of marketing advantage a brand would News Network (CNN), and the New York Yankees. How
hold over an unnamed or fictitiously named competitor. can service companies cultivate the development of pow-
Negative brand equity is the degree of marketing disadvan- erful brands? We now turn to a discussion of brand cultiva-
tage linked to a specific brand. Negative brand equity tion strategies.
explains why Holiday Inn sponsored television commer-
cials in 1997 portraying hotel housekeepers using chain-
saws to destroy and then totally refurbish a Holiday Inn BUILDING A SERVICE BRAND
room. Negative brand equity also explains why ValuJet
assumed the name of an acquisition and renamed itself Air Service companies build strong brands through brand-
Tran Airlines in the year following a fatal accident, tempo- ing distinctiveness and message consistency, by perform-
rary grounding by the Federal Aviation Administration ing their core services well, from reaching customers emo-
(FAA), and months of unfavorable publicity. tionally, and by associating their brands with trust.
 Berry/ CULTIVATINGSERVICEBRANDEQUITY 131

Strong-brand companies have high '~mind share" with tar- FIGURE 2

geted customers, which contributes to market share. Fig- Cultivating Brand Equity
ure 2 presents four ways in which service companies build
strong brands. Firms with the strongest brands typically
use all four approaches.

Dare to Be Different

Service companies with the strongest brands reveal a

conscious effort to be different, a conscious effort to carve
out a distinct brand personality. Top brand builders almost
always are mavericks that defy convention and forge new
paths to reach and please customers.
The desire to create a distinct mental picture of the com-
pany for customers manifests itself in the presented brand
and the customers' service experience paths in the
service-branding model.
The branding strategy goal is to reinforce a demonstra-
bly different service experience with a demonstrably dif-
ferent brand presentation.
Strong-brand firms never market their offer as a com-
modity, enacting Tom Peters's (1997) assertion that "com-
modization isn't inevitable" (p. 300). Invention rather than Quick-service restaurant chain Chick-fil-A exempli-
imitation rules branding efforts. Companies such as Star- fies the "dare to be different" principle. Competing against
bucks, Target, Midwest Express Airlines, Enterprise large national television advertisers such as McDonald's,
Rent-A-Car, and Motel 6 use all of the tools at their dis- Burger King, and Wendy's, Chick-fil-A has little choice
posal to craft a separate, integrated identity, including but to try to establish a distinct brand personality. Any con-
facilities design, service provider appearance, core service ventional branding strategy would drown from the sheer
augmentation, advertising content and style, and media advertising weight of much bigger players.
selection. Starbucks could squeeze more tables and chairs Chick-fil-A's branding heritage is in shopping mall
into their stores, but doing so would undermine what they food courts, the company's original distribution strategy.
really are selling: a respite and a social experience. Target In this environment, the company's principal marketing
could operate less-expensive stores with narrower aisles, challenge is to offer food-court visitors a visually distinct
but then it would look more like its competitors. Because alternative to a sea of fast-food eateries. Chick-fl-A prac-
of its two-by-two confguration of leather seats (instead of tices inside-out marketing in its mall stores. The independ-
the more common three-by-three seating), Midwest ent Chick-fil-A operator is the principal marketer with the
Express Airline's all-coach service seems like first class. mandate to bring the store to life as an advertising
Meal service with china plates, cloth napkins, free wine or medium, to leverage the latent marketing power of the
champagne, and freshly baked chocolate chip cookies store front, counter area and menu boards, point-of-
reinforces the perception. The leather seats, meal service, purchase displays, store layout, and the appearance and
and cookies are signature clues that augment the core ser- attitude of employees. Chick-fil-A's mall marketing strat-
vice and differentiate the brand. egy is to transform the store into a television screen that
Enterprise Rent-A-Car customer-contact employees will command shopper attention, encourage trial, and
dress for differentiation. Men wear suits and women stimulate unplanned purchases. "We pay for the customer
dresses or skirts and hose. Customers often are pleasantly traffic that a mall generates and have to capitalize on this
surprised by the professional appearance of Enterprise opportunity" explains Steve Robinson, senior vice presi-
employees who pick them up in an auto repair garage or dent, marketing, for Chick-fil-A. "We continually ask our
serve them in an Enterprise office. The least costly televi- operators: 'What are the messages you are providing from
sion commercial ever made illustrates Motel 6's efficient your store that are distinctive, unique, and compelling?'"
efforts to carve out a distinct brand personality. Mocking To leverage Chick-fil-A's food quality superiority that
the higher prices of competitors, Motel 6's memorable is consistently documented in blind-taste tests with com-
commercial showed a totally dark screen. At the end came petitive products, mall stores regularly invite food-court
this line: "This is what a hotel room looks like when you visitors to sample the product--the venerable small-
are asleep." piece-of-chicken-on-a-toothpick tactic. "We encourage
132 JOURNALOF THEACADEMYOF MARKETINGSCIENCE WINTER2000

the operators to use every possible method to get the taste not use. Enterprise Rent-A-Car focused on serving local
of the product in people's mouths" adds Robinson. people whose personal cars were temporarily unavailable
Chick-fil-A's branding challenge both intensified and to them and built a business in the replacement market.
changed when the company expanded distribution beyond While Hertz, Avis, and National Car Rental emphasized
the mall with freestanding street stores. Now the company airport locations to target travelers, Enterprise targeted
truly is competing against the major fast-food brands. Mall people whose cars were in the shop and quietly built a
shoppers select from on-site restaurants. Consumers in rental fleet bigger than any other rental car company.
their homes, workplaces, or cars have a wider choice set Strong-brand service companies also perform the ser-
and creating mind share becomes an imperative for the vice effectively. They not only fill a need, they fill it well.
company. McDonald's, Burger King, Wendy's, Pizza Hut, Performing a needed service and performing it better than
and Tact Bell have compelling reasons to spend signifi- competitors is a powerful brand-building combination.
cant dollars on advertising. Chick-ill-A, with fewer stores, Chick-fil-A's food not only is healthier than some com-
regional distribution, and a network of independent store petitive products but also it tastes better. Ratings that are at
operators who fund the advertising, cannot spend nearly as least 1 scale point higher than that of competing entries in
much. Creating a distinct, appealing brand personality is taste tests based on 5-point scales are typical. In Zagat's
the only way to break through the clutter of competitive (1997) survey of 60 of the world's largest airlines on com-
advertising. fort, service, timeliness, and food, Midwest Express
Media selection contributes to the differentiation strat- ranked 1st in the United States and was the only U.S. air-
egy. Chick-fil-A is a committed billboard marketer line to place in the world's Top 10.
because in most markets it cannot afford broadcast media In essence, service companies with strong brand equity
alternatives. It would rather dominate one medium than provide a service that customers truly value; perform it
spread its advertising resources thinly in multiple media. better than competitors; and effectively tell their story
Billboards are the medium, however, not the message, and through communications that create awareness, stimulate
they require unique creative content to be effective. trial, and reinforce customers' experiences. Over time,
Chick-fil-A's creative breakthrough came in the form of these companies become famous for their defining excel-
cows who urge consumers to "Eat Mor Chikin" (See Fig- lence, aided not only by their own controlled messages but
ure 3 for samples of the billboard execution.) The Chick- also by customers' experiences and word-of-mouth
fil-A cows remind consumers "that they don't have to eat a communications.
hamburger t o d a y " and present Chick-fil-A as the Dial-A-Mattress is a company that has determined its
alternative. own fame. Dial-A-Mattress sells bedding over the tele-
What began as a billboard campaign became the center- phone 24 hours a day, 7 days a week, and delivers orders as
piece of the company's presented brand. The best-brand soon as customers want them--within 2 hours if desired.
marketing gives customers a return on their investment of The company removes the customer's old mattress at no
time and attention; it gives customers something back additional cost. Explains founder, president and CEO
(Gordon 1998). This is what the Chick-fil-A cows do. Napoleon Barragan, "Buying a mattress is not a pleasur-
They are fun, humorous, different. They are understated, able experience; it's a chore. If you can make it easy for
just like Chick-fil-A. They do not intrude. These animals consumers, if you give them what they want, the way they
put a smile on consumers' faces while giving a quick- want it, and when they want it, you can do business,'
service restaurant chain a more distinct and personable Thirty percent of Dial-A-Mattress's customers are
identity. referrals. The company's core service strategy makes it so
simple to acquire a new mattress that many first-time cus-
Determine Your Own Fame tomers are astonished. Instead of having to find the time
and energy to visit furniture stores, to test multiple mat-
A strong-brand service company stands for something tresses by lying or bouncing on them, to sort fact from fic-
that is important to targeted customers; the brand not only tion in the selling process, and to arrange for delivery in 3
differs from competitive brands, it represents a valuable or 4 days, customers can telephone Dial-A-Mattress,
market offer. The brand conveys the company's reason for speak with a bedding consultant who has participated in a
being. It captures and communicates what the company 6-week training regimen, receive their mattress within 2
wishes to be famous for with customers. hours if desired, and send it back with the driver if not fully
Service companies strengthen brand equity by focusing satisfied. The astonishment factor stimulates customer
on underserved market needs. They enhance the custom- word of mouth, which Dial-A-Mattress encourages by
ers' experience by doing something that needs doing. giving purchasers discount coupons for their friends.
Charles Schwab Corporation gave investors who knew Dial-A-Mattress advertises on television and radio with
what stocks they wanted to buy or sell the opportunity to a consistent message: buy Scaly, Serta, or Simmons
do so without paying full commissions for advice they did brand-name mattresses over the telephone, subject to your
 Berry/ CULTIVATINGSERVICEBRANDEQUITY 133

FIGURE 3
Brand Personality at Chick-fiI-A, Inc.

, ~ i | i

' ~I ~_._
i

Advertisements courtesy of Chick-filM, Inc.

approval, save money, and receive your mattress when you The combination of frequent television and radio
want it, within 2 hours if you wish. The advertising often advertising, a consistent message, word-of-mouth com-
ends with the tag line: "Dial 1-800-MAT'I'RES, and leave munications, and publicity generate awareness of the
the last 's' off for savings" Dial-A-Mattress brand. Late-night talk show host David
134 JOURNALOF THE ACADEMYOF MARKETINGSCIENCE WINTER2000

Letterman once called Dial-A-Mattress on camera during Indiana. Renowned for their ball-handling wizardry,
the show, requesting that a mattress be delivered to his car comical routines, and old-fashioned silliness, the Globe-
in Manhattan. Dial-A-Mattress made the delivery on trotters make an emotional connection to the customer.
camera. The Harlem Globetrotters is a magical brand--a brand
The company's name also contributes to brand aware- that evokes images of fun and laughter, respect and
ness. Dial-A-Mattress is a great name because it simply, decency, hard work, and good values. Globetrotter players
yet distinctively, conveys what and how the company sells. are graded by the team owner on their charisma, punctual-
Because of the powerful influence of customers' actual ity, and ability to promote the brand. Cursing, pouting, and
service experiences on brand meaning and brand equity, a rudeness are forbidden. Players sign autographs after the
service company can overcome a mediocre name. How- games. "We're all aware of how precious the brand is,"
ever, a good one certainly helps. says Paul "Showtime" Gaffney, who performs the clown
The Midwest Express brand also captures and commu- prince role once played by Meadowlark Lemon. "Each
nicates a valuable market offer. Midwest Express wants to and every night, the people in the stands don't care if you
be famous for "the best care in the air," its signature state- just stepped off a 10-hour bus ride. They want you to be
ment in all advertising. The company's advertising strat- your best, and we want to be our best" (Thurow 1998 :A8).
egy includes clearly stating, as often as possible, factual Great brands always make an emotional connection
support for this assertion. Advertising consistently refers with the intended audience. They reach beyond the purely
to the airline's nonstop, single class of premium service rational and purely economic level to spark feelings of
with comfortable leather seats; no middle seats; delicious closeness, affection, and trust. Consumers live in an emo-
food; and caring, personal attention. Advertising usually tional world; their emotions influence their decisions.
mentions the airline's top ranking by independent organi- Great brands transcend specific product features and bene-
zations, such as the Zagat Airline Survey or Conde Nast fits and penetrate people's emotions (Webber 1997). As
Traveler. The company also stresses its competitive fares Charlotte Beers (1998), chairman of J. Walter Thompson,
that are comparable to the regular coach fares of other air- writes: "The truth is, what makes a brand powerful is the
lines; this message counteracts impressions that Midwest emotional involvement of customers" (p. 39).
Express must be expensive because of its high-quality Brands that connect with customers' emotions are those
service. that reflect customers' core values. In effect, the brand cap-
Midwest Express likes to advertise on television in tures and communicates values customers hold dear. Cor-
local markets. Explains Advertising Manager Jim Rei- porate values cannot be faked in service branding. The
chart, "Our differences translate well into television. We company's true values emerge in the customer's actual
like to show coach--the leather seats, the smiling faces, experience with the service. Marketing communications
the great food, and the glass and silverware" cannot establish nonexistent values.
Unlike Dial-A-Mattress, the Midwest Express name is Enterprise Rent-A-Car connects emotionally with
not ideal. The airline flies from midwestern hubs to the employees of local body shops, auto repair firms, and
Southwest, Southeast, and both coasts. Moreover, the insurance companies by taking donuts to them week after
word Express suggests a commuter airline, which defi- week, by building personal relationships, and most of all,
nitely is not Midwest Express. The company's advertising by keeping their service promises. Chick-fil-A's cows
typically includes pictures of one of its jets--with its sig- invite the customers' affection, but the effort is negated if
nature dark-blue-on-white color motif and distinctive logo customers' experiences with the service contradict the
on the t a i l - - t o counteract the commuter airline feeling. Midwest Express could portray chocolate chip
impression. cookies in its advertising, but far more powerful is actually
Although Midwest Express is not a great name, it is a baking them onboard for passengers and serving them
great brand. No service company better illustrates the dis- with a warm smile.
proportionate impact of customers' service experiences on Brands that connect emotionally are authentic summa-
brand meaning and equity. Among passengers who have tions of a company with a soul. As Starbucks' founder
experienced the airline's service, an ordinary corporate Howard Schultz (1997) writes, "The most powerful and
name evokes the image of first-class seats, good food, enduring brands are built from the heart. They are real and
chocolate chip cookies, and caring personal service. The sustainable. Their foundations are stronger because they
name holds rich, differentiated meaning and the company are built with the strength of the human spirit, not an ad
is not about to change it. campaign" (p. 248).
Given the prevalence of price-oriented advertising in
Make an Emotional Connection service markets, the minimal role of price messages in the
advertising of many strong-brand service companies is
In January 1998, the Harlem Globetrotters played their notable. Companies that emphasize price in their advertis-
20,000th basketball game in the small town of Remington, ing forfeit the opportunity for an emotional connection
 Berry/ CULTIVATINGSERVICEBRANDEQUITY 135

with their customers. Price-dominated marketing mes- worse. Service providers make or break a brand, for the
sages ring the emotional bell of few customers. Price customers' actual experiences with the service always pre-
advertising may be about economic value, but it is not vail in defining the brand for them. With their on-the-job
about human values; it does not stir the soul. As Donald performances, service providers turn a marketer-
Hudler (1996), who helped build the Saturn automobile articulated brand into a customer-experienced brand.
into an emotionally rich brand, states, "When you talk Negative customer experiences are difficult for a com-
about price, you lose the opportunity to talk about yourself pany to overcome in its branding efforts, no matter how
and build a brand" (also see Aaker 1996, chap. 2). effective its marketing communications. Superior cus-
The St. Paul Saints, a minor-league baseball team in St. tomer experiences are difficult for competitors to imitate,
Paul, Minnesota, sells out every home game and has a long no matter how effective their marketing communications.
list of people on the season-ticket waiting list. The St. Paul As Peters (1997) writes, "It seems that you can knock off
Saints illustrate the emotional content of a strong brand. To everything.., except awesome service" (p. 457).
most of its fans, the Saints are far more than just a profes- Services are just as intangible for employees as they are
sional baseball team. The Saints are part of the town's cul- for customers. Branding is not only an opportunity to
ture; a spirited community citizen; a maverick organiza- establish a mental picture of the service and its reason for
tion with a heart; an organization whose top management being for customers; it also is an opportunity to do this for
greets fans as they enter the ballpark; a team with a blind service providers. The more providers internalize the con-
radio announcer; a team that in 1997 signed the first female cept and values of the service, the more consistently and
pitcher, Ila Borders, ever to pitch on a regular basis for a effectively they are likely to perform it. As David Aaker
professional men's baseball team. points out in an interview with Leader to Leader magazine
The core of the Saints' presented brand is its basic ("Strategic Lessons" 1998), a common misconception
value: "Fun is good." From sumo wrestling to fans racing about brands is that they are strictly for external purposes
around the bases in a contest, minievents occur during when, in fact, the role of a brand is to communicate inside
breaks in the game action. The Saints not only have a pig as the company also: "When a brand identity and position are
the team mascot, they hold an annual contest for elemen- clear, they help all employees--from customer service
tary school children to name the pig. One thousand school- representatives to new product developers--gauge their
children participated in the 1998 name-the-pig contest; the actions in terms of a central strategy" (p. 55).
winning entry was "The Great Hambino" The Saints hold Berry and Parasuraman (1991) describe the concept of
a "Dead of Winter Tailgate Party Recipe Contest" in their internalizing the brand:
parking lot to raise funds for a nonprofit community
Internalizing the brand involves explaining and sell-
organization. An RBI (Reading Books Is Fun) Club
ing the brand to employees. It involves sharing with
attracted 1,000 fourth- and fifth-grade students in 1998 to
employees the research and strategy behind the pre-
participate in a reading program. Children plant flowers in sented brand. It involves creative communication of
the "Reading Tree" area of the stadium, and children and the brand to employees. It involves training employ-
players paint murals on the stadium fence. The team holds ees in brand-strengthening behaviors. It involves re-
a charity golf tournament. warding and celebrating employees whose actions
The Saints care, and the community knows it; caring is support the brand. Most of all, internalizing the
integral to its brand. The St. Paul Saints connect emotion- brand involves involving employees in the care and
ally with their fans and the fans with each other. "Going to nurturing of the brand.
a Saints game is like going to your high school reunion," Employees will not feel part of nor act out the
brand unless they understand it and believe in it.
explains General Manager Bill Fanning. "You may not
Marketers need to verbalize and visualize the brand
know the people sitting next to you when the game begins,
for employees, so that employees will verbalize
but they are old friends by the time it ends." The St. Paul and visualize the brand for customers. Brand inter-
Saints epitomize every branding principle discussed thus nalization must be an ongoing process, just as
far: the company dares to be different, clearly defines its brand building is an ongoing process with custom-
reason for being, and connects emotionally. For these and ers. (P. 129)
other reasons, the St. Paul Saints may be the best known
minor-league baseball team in America. Just as advertising is a principal brand-building tool ex-
ternally, so is it a principal tool internally. Enterprise
Internalize the Brand Rent-A-Car and Midwest Express are two companies that
specifically consider employees to be a key audience for
Service performers are a powerful medium for building all of their advertising. They view advertising as a primary
brand meaning and equity. Their actions with customers means for motivating and educating employees, a view-
transform brand vision to brand reality for better or point supported by research that clearly shows employees
136 JOURNALOF THE ACADEMYOF MARKETINGSCIENCE WINTER2000

are influenced by their company's advertising (Gilly and and headquarters staffis to help operators become more ef-
Wolfinbarger 1998). fective. Accomplishing this role involves educating the
Enterprise Rent-A-Car first advertised on national tele- store operators about brand marketing. The operators can
vision in 1989. The company has honed a consistent pre- withhold marketing funds or ignore the brand marketing
sentation of its brand in television advertising: a customer team's advice if they so choose. Internalizing the brand
in an auto repair shop phoning Enterprise for a rental car, through education, market-specific research, customized
the theme line "We'll pick you up," the signature advising, and tracking each market's performance is criti-
"cloaked" car, the distinctive white-on-green E logo. The cal. Chick-fil-A's Steve Robinson explains,
message is clear, and brand awareness is increasing. From
1989 to 1997, aided brand awareness for Enterprise Rent- Brand-building requires that we educate the opera-
tors on why----or they won't do it. This is why we
A-Car increased fourfold according to company research.
have put more marketing talent in the field. We don't
Increasing brand awareness was not the main purpose in
demand. We don't prescribe. We try to persuade by
advertising, however. The purpose was to build employee showing how they and Chick-fil-A will benefit. We
pride in the company. In 1989, company founder Jack Tay- have to do our homework, do the market research,
lor asked his son Andy a decisive question: "You know, show the operators why, and ultimately, show results.
Andy, how would we feel if a rental car company half our We cannot use marketing to drive the business unless
size came on television and promoted the [car] replace- we are willing to engage operators in the process.
ment service?" The seed for the company's inaugural
national advertising effort was planted with this simple Adds Kenneth Bernhardt, a longtime Chick-fil-A
question. "Our advertising has had a fabulous impact on consultant:
our employees," comments CEO Andy Taylor. "Our exist-
ing employees are proud and prospective employees are A key marketing step at Chick-fil-A has been getting
impressed when they see that company advertising on '60 the operators to take ownership of building the
brand. The cows give the brand a distinct personality
Minutes' or a National Football League game"
across markets, and the operators are strengthening
Midwest Express shares Enterprise Rent-A-Car's phi- the brand in their local markets. It is a powerful one-
losophy of internalizing the brand through advertising. two punch.
Says Brenda Skelton, senior vice president of marketing
and customer service for Midwest Express,
CONCLUSION
Our employees are the most important audience for
our marketing efforts. It is easy to market when we Positive brand equity is the marketing advantage that
just have to generate customer trial. Our employees accrues to a company from the synergy of brand awareness
keep the customers coming back. Our national repu- and brand meaning. Despite the predisposition to think of
tation has grown mainly through our reputation for branding in the context of tangible products, brand cultiva-
service. tion is just as critical for services. Strong brands increase
customers' trust of invisible products while helping them
No company more ardendy internalizes its brand than to better understand and visualize what they are buying.
Chick-ill-A. Chick-fil-A invests significant resources to Strong-brand service companies consciously pursue dis-
help independent store operators cultivate the Chick-fil-A tinctiveness in performing and communicating the ser-
brand in their local markets. The company organizes brand vice, use branding to define their reason for being, connect
marketing teams to work with operators in specific mar- emotionally with customers, and internalize the brand for
kets where it is opening many freestanding stores. The service providers so that they will build it for customers.
teams consist of marketing, advertising, and public rela- Dial-A-Mattress, Chick-ill-A, Midwest Express Air-
tions specialists from the company's headquarters staff lines, Enterprise Rent-A-Car, and the other service compa-
and the marketing firms with which it works. The process nies discussed in this article are their own brands. This is
begins each year with market-specific brand-equity re- the reality of creating value for customers primarily
search for Chick-fil-A and its principal competitors. The through service: the company becomes the brand. Market-
company holds operator workshops in individual markets ing and external communications help build the brand, but
to present the research and discuss its branding implica- nothing is more powerful than the customers' actual expe-
tions. The team then works with operators to develop riences with the service. Being served freshly baked
brand-building strategies for their markets on the basis of chocolate chip cookies as you relax in a comfortable
the research. leather seat on a Midwest Express jet defines brand mean-
Chick-fil-A views the local store operator as the pri- ing and builds brand equity more powerfully than any
mary brand marketer; the role of the brand marketing team advertisement.
 Berry / CULTIVATINGSERVICE BRAND EQUITY 137

ACKNOWLEDGMENTS Peters, Tom. 1997. The Circle oflnnovation. New York: Knopf.
Richards, Stan. 1998. "Building a Brand" A speech at Texas A&M Uni-
versity's Center for Retailing Studies Fall Symposium, Dallas, Octo-
This article is based on a subset of findings from origi- ber 8.
nal research conducted by the author with a sample of 14 Sehultz, Howard. 1997. Pour YourHeart Into It. New York: Hyperion.
high-performance service companies. More than 250 peo- Storch, Jerry. 1998. "Building a Brand at Target Stores." A speech at
Texas A&M University's Center for Retailing Studies Fall Sympo-
ple from the sample c o m p a n i e s - - f r o m CEOs to frontline sium, Dallas, October 8.
service p r o v i d e r s - - w e r e interviewed. The full study is "Strategic Lessons From the World's Best Brands?' 1998. Leader to
reported in Leonard L. Berry (1999), Discovering the Soul Leader 10 (Fall): 54-56.
Thurow, Roger. 1998. "A Sports Icon Regains Its Footing by Using the
o f Service: The Nine Drivers o f Sustainable Business Suc- Movesof the Past?' WallStreetJournal, January 21, pp. A 1and A8.
cess (New York: Free Press). Portions o f the article are Webber,Alan M. 1997. "What Great Brands Do--An Interview of Scott
drawn or adapted from material first appearing in this Bedbury" Fast Company 10 (August-September): 96-100.
Zeithaml, ValarieA. 1981. "How Consumer Evaluation Processes Differ
book, especially from chapter 10. Individuals quoted with-
Between Goodsand Services."In Marketing of Services.Eds. JamesH.
out citation in this article were interviewed as part of the Donnellyand William R. George. Chicago: American Marketing As-
study. The author expresses appreciation to all of the par- sociation, 186-189.
ticipating companies.

ABOUT THE AUTHOR

REFERENCES
Leonard L. Berry holds the JCPenney Chair of Retailing Stud-
Aaker, David A. 1996. Building Strong Brands. New York: Free Press. ies and is a Distinguished Professor of Marketing and Director of
Beers, Charlotte. 1998. "Building Brands Worthyof Devotion"Leader to the Center for Retailing Studies at Texas A&M University. A
Leader 11 (Winter): 39-42. former national president of the American Marketing Associa-
Berry, Leonard L. 1999. Discovering the Soul of Service: The Nine Driv-
ers of Sustainable Business Success. New York: Free Press. tion, he is the author of Discovering the Soul of Service and On
- - and A. Parasuraman. 1991. Marketing Services: Competing Great Service and coauthor of Marketing Services and Deliver-
Through Quality. New York: Free Press. ing Quality Service, all published by Free Press (New York). He
Gilly, Mary C. and Mary Wolfinbarger. 1998. "Advertising's Internal received the 1996 Career Contributions to Services Marketing
Audience?' Journal of Marketing 62 (January): 69-88.
Gordon, Seth. 1998. "Permission Marketing?' Fast Company 14 (April- Award from the American Marketing Association. He also has
May): 198-212. been recognized twice with the highest honors Texas A&M be-
Hudler, Donald W. 1996. "Leadership With Enthusiasm?' A speech at stows on a faculty member: the Distinguished Achievement
Texas A&M University's Center for Retailing Studies Fall Sympo- Award in Teaching (in 1990) and the Distinguished Achievement
sium, Dallas, October 17. Award in Research (in 1996). He is a board member of
Keller, Kevin Lane. 1993. "Conceptualization, Measuring, and Manag-
ing Customer-Based Brand Equity?' Journal of Marketing 57 (Janu- CompUSA, Genesco Inc., Hastings Entertainment, and Lowe's
ary): 1-22. Companies, Inc.