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.
Highlights
In mature markets, customers perceive little differences among competing offers and exhibit low levels of brand loyalty (Christopher, 1996)
In Egypt, the growth rate of mobile service subscribers is declining the last two years indicating a mature market. Operating in such a mature, fully saturated market, drives companies to understand the process of building brand equity and rethinking untraditional ways to build brand equity and defend brand loyalty
This research is an attempt to fill the gap in branding literature, by examining the relationships between brand experience, brand equity components, brand trust, and brand loyalty
Summary
Customers perceive little differences among competing offers and exhibit low levels of brand loyalty (Christopher, 1996). Full reliance on loyalty programs as the only means for retaining customers, might be risky (Capizzi & Ferguson, 2005). In such markets, the role of advertisements as a means to enlarge market share is believed to be costly and of minimal effect (D’Souza & Rao, 1995). In Egypt, the growth rate of mobile service subscribers is declining the last two years indicating a mature market. Operating in such a mature, fully saturated market, drives companies to understand the process of building brand equity and rethinking untraditional ways to build brand equity and defend brand loyalty. This research aims at guiding marketers and practitioners through the process of building brand equity in highly competitive mature markets
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