Threats to brand integrity in the hospitality sector: evidence from a tourist brand

Abstract

This paper investigates the threats to brand integrity in the hospitality sector where the brand owner is separated from the service provider and runs the risk of falling foul of cheating behaviour. It takes the case of the Shamrock bed and breakfast brand in the Irish tourist market. The analysis uses both the perceived risk literature and the “lemons” model developed by Akerlof to highlight potential dangers to the brand emerging on both the demand and supply sides of the bed and breakfast market. The findings suggest that quality variations may encourage the suppliers of high quality services to exit the brand, thereby reducing the average level of quality within the brand. The analysis also demonstrates that as consumers’ perceptions of quality variations increase, their trust in the Shamrock diminishes.