Brand, Identity and Reputation: Exploring, Creating New Realities ...

How Retail Banks Use Atmosphere to Transform Corporate Image and Identity:
An Exploratory Study
Ming Lim, University of Leicester, U.K.
Clara Gustafsson, Stockholm University, Sweden
Abstract
In this paper we focus on the use of atmosphere in two retail banks in Singapore as a tool for transforming corporate
brand image and identity. An exploratory case study of two leading Singapore banks is undertaken to show how
stakeholders perceive the changing components of atmosphere in these corporate settings. Based upon semi-structured
interviews with two groups of participants, managers and customers, supplemented by observational data, several key
drivers of atmosphere are identified and suggestions for further improvement are made. Findings indicate that banks
are prepared to change their conventionally stern and technocratic image in line with changing consumer tastes and
changing customer demographics.
Keywords: Atmosphere, multisensory marketing, retail banking, Singapore banks
Introduction
The careful, systematic and deliberate manipulation of ‗atmosphere‘ in retail settings is well-established in the corporate
branding literature. Decades ago, Kotler (1973) argued that atmosphere was a vital marketing tool for businesses
seeking a competitive advantage. In recent years, researchers and practitioners have continued to build upon the theory
and implementation of the components of ‗atmosphere‘ in order to increase product differentiation, service
memorability and ensure long-lasting brand memories for stakeholders. Although the retail sector, unsurprisingly
perhaps, has been the focus of research on the use of atmosphere as a marketing tool since its raison d‘etre appears to
be entirely geared to the seduction of the consumer via multisensory means -- aesthetic, visual, sonic and olfactory,
among others – scholars have begun to make welcome inroads into other sectors such as hospitality (Heide, Lærdal and
Grønhaug, 2009) and a host of retail settings.
The financial services sector may not appear to be an obvious site for the use of atmosphere to enhance the brand
experience and brand identity. Traditionally regarded as serious, even intimidating, places where customers visit only
to conduct pecuniary business with a bank officer, manager or other officer, we argue that retail banks, like other
sectors, are beginning to develop a range of multisensory marketing tools to influence the ways in which they are
perceived and accepted by stakeholders. To date, there has been no literature, however, which examines how the retail
banking sector uses various tools of this kind to cultivate brand image and to carve out a different corporate identity in
the minds of shareholders, customers and the media. More empirical studies are, therefore, needed in this area.
Relatedly, there has been no in-depth investigation of how retail banks may be innovating -- rather than simply taking
the lead from other sectors -- in the area of brand atmospherics. Our paper aims to address these gaps in the literature
by presenting the findings of a study into a retail banking group in Singapore and its innovative use of ‗atmosphere‘ in
its branches.
The purpose of our paper, therefore, is to investigate how Asian retail banks are transforming the ways in which they
manage their brand identity through the innovative use of atmosphere and other multi-sensory marketing tools, in line
with changing consumer tastes. The overall objective is to gain insights into how they exploit atmospheric strategies to
appeal to consumers‘ changing tastes and preferences, enhance the experience of banking, manage first and last
impressions and generally create a highly positive brand image and identity in the minds of customers. It is anticipated
that the bank‘s use of multisensory marketing techniques and tools may yield new insights for the field of experiential
brand marketing in other fields.
We report the findings of an exploratory study conducted to gather insights into how two groups of participants –
customers as well as bank employees – perceive the atmosphere in the bank as a set of multisensory categories and their
views of how the atmosphere at their banks contributes to corporate identity and image. Employees‘ views were
included because they are key stakeholders for corporate branding initiatives (Balmer and Gray, 2003; King, 1991). A
synthesis of recent literatures on atmosphere in corporate settings, retail image management, impression management
and corporate brand image and identity is developed in the next section. This is followed by a discussion of our
research methodology. The findings from our empirical investigation are then reported. We analyse and draw out the
implications of these findings before making key managerial as well as theoretical recommendations. Finally, some
caveats of our paper and directions for future research are proposed.
Corporate Branding and Identity
Corporate branding and identity are essential components of how institutions present themselves to a range of
stakeholders (Balmer, 1998). This process is deliberate, systematic and carefully-planned by a range of actors within
and without an organization (Einwiller and Will, 2002). It enhances the reputation of a firm by ―sending signals to all
stakeholders by managing behavior, communication and symbolism‖ (p. 101). All efforts by the organization to
communicate a distinctive brand are aimed at convincing stakeholders of its ability to deliver on a set of promises
(Harris and de Chernatony, 2001).
Essentially, therefore, corporate branding is a communicative process aimed at differentiation and distinction based on
relevance and performance. This is not the full picture, however. There is also increasing evidence to suggest that
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