Place Management : Collecting definitions and perspectives 9781846639296, 9781846639289

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10/03/2008

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ISSN 1753-8335

Volume 1 Number 1 2008

Journal of

Place Management and Development Place management: collecting definitions and perspectives

The official journal of the Institute of Place Management

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Journal of Place Management and Development

ISSN 1753-8335 Volume 1 Number 1 2008

Place management: collecting definitions and perspectives Editor-in-Chief Professor Cathy Parker

Access this journal online _______________________________

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Editorial advisory board _________________________________

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Extended editorial: place – the trinal frontier Cathy Parker ___________________________________________________

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Editorials _________________________________________

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EAB comments ____________________________________

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Professionalizing business district management for the twenty-first century Fayth A. Ruffin_________________________________________________

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An exploratory study of the contextual stability of SERVQUAL amongst three retail clusters in far North Queensland Darren Lee-Ross ________________________________________________

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CONTENTS

CONTENTS continued

Dubai – a star in the east: a case study in strategic destination branding Melodena Stephens Balakrishnan___________________________________

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Finding one’s place in the place management spectrum James Yanchula ________________________________________________

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Place management as a core role in government John Mant _____________________________________________________

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European shopping centre developments: an industry perspective Hayley Myers, Julie Gore and Katherine Liu __________________________

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Reclaiming customers through a retailer-led TCM scheme in Italy J. Andre´s Coca-Stefaniak, Fabrizio Stasi, Giovanna Codato, Elena Franco and Gareth Roberts __________________________________

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Call for papers ____________________________________ 125

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Journal of Place Management and Development Vol. 1 No. 1, 2008 p. 4 # Emerald Group Publishing Limited 1753-8335

EDITORIAL ADVISORY BOARD David Adams Professor of Management and Innovation, University of Tasmania, Australia Andrew Alexander Reader in Retail Management, University of Surrey, UK Greg Ashworth Professor of Heritage Management and Urban Tourism, University of Groningen, The Netherlands Barbara Askins President and CEO, 125th Business Improvement District, USA David Bennison Research Co-ordinator, MMUBS, Manchester Metropolitan University, UK Jeanette Berggren Managing Director, Svenska Stadska¨rnor, Sweden Jan ver der Borg Associate Professor in Economics of Tourism, University of Venice, Italy Richard Bradley Executive Director, Downtown DC Business Improvement District, USA Jean-Luc Calonger President, l’Association du Management de Centre-Ville, Belgium J. Andres Coca-Stefaniak Senior Lecturer in Place Marketing, School of Creative Enterprise, University of the Arts, London Giovanna Codato President, AGECC, Italy Nelarine Cornelius Director, Centre for Research into Emotion Work (CREW), Brunel University, UK Christine Ennew Professor of Marketing and Dean, Nottingham University Business School, UK John Fernie Head of School of Management and Languages, Heriot-Watt University, UK Christina Goulding Chair of Consumer Research, University of Wolverhampton Business School, UK Tony Hernandez Director of the Centre for the Study of Commercial Activity (CSCA), Ryerson University, Canada Inga Horny Managing Director, Tourism Association, Austria Paul Hyde Heritage Interpretation Officer, Chester City Council, UK

Jenny Inglis City Centre Director, Birmingham City Partnership, UK Kate Joncas President, Downtown Seattle Association, USA Ian Ker Principal, CATALYST (Consulting in Applied Transport, Access and Land use Systems), Curtin University, Australia Greg Kerr Head of Marketing, University of Wollongong, Australia Miki Muraki Associate Professor, Chiba University, Japan Akito Murayama Associate Professor, Nagoya University, Japan Rwelamia Pantaleo Chairman for the South African Council for the Project Management and Construction Management Professions, UNISA, South Africa Stuart Roper Lecturer in Marketing, University of Manchester, UK Antonio P. Russo Assistant Professor in Tourism, University Rovira I Virgili, Spain Pia Sandin Managing Director, Malmo¨ Citysamverkan, Sweden Anne Steffny Director, Kagiso Urban Management, South Africa Ricardo Toledo Silva Professor of Urban and Regional Infrastructure, University of Sao Paulo, Brazil Myfanwy Trueman Project Director, CIMA Research, Bradford University School of Management, UK Gary Warnaby Senior Lecturer in Marketing, University of Liverpool Management School, UK Clive Warren Senior Lecturer in Planning and Property Studies, University of Queensland, Australia Jim Yanchula Manager, Urban Design & Community Development Planning Department, City of Windsor, Canada Tamyko Ysa Assistant Professor of Public Management and Business Policy, ESADE, Spain

Extended editorial: place – the trinal frontier

Extended editorial

Cathy Parker Institute of Place Management, Manchester Metropolitan University, Manchester, UK

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Abstract Purpose – The purpose of this Editorial is to introduce the subject of place management and, more specifically, the Journal of Place Management and Development. Design/methodology/approach – The approach is reflective, reflexive and indulgent. The Editorial examines the background to place management and summarises current practical and theoretical interpretations on the subject, that have been written by the JPMD Editorial Board. Findings – The Editorial establishes the breadth of the topic of place management as well as making some tentative predictions about where research in the subject could or should go in the future. Practical implications – The Editorial calls for more joint research between academics and practitioners, to ensure that research is academically grounded but practically relevant. Originality/value – The Editorial is a good introduction to the subject of place management and should be read by academics or practitioners with an interest in the subject. Keywords Regeneration, Marketing Paper type Viewpoint

The global place management, development and marketing industry is vast. It contains all those involved in town and city centre management and marketing, the management of business improvement districts (BIDs) and trade improvement zones, those involved in regeneration, community development and planning, neighbourhood renewal, urban revitalisation and even national park management and national branding. It “crosses over” into retailing, facilities, land and market management, local, regional and national government, tourism and leisure, festival and event management, transport planning, architecture and design, planning, arts and culture and it includes not only those that are in paid employment, but also those people that work to make places better on a voluntary basis. The Journal of Place Management and Development ( JPMD) has been launched to further our understanding of places – it is the official journal of the Institute of Place Management which exists to support those involved in the important task of making places better. Laudable aims but does the world need another journal? According to Ulrich’s Periodical Directory, there are already over 300,000 academic and scholarly periodicals. Even our publishers, Emerald, publish 179 other journals. There are already titles such as Place Branding and Public Diplomacy, Facilities, Regeneration and Renewal, Journal of Housing and Community Development, Planning, Urban Design International, Journal of Regional Science, Property Management, International Journal of Retail and Distribution Management, Urban Affairs, International Journal of Contemporary Hospitality Management and Tourism Economics, to mention just a few. Nevertheless, as the title of this editorial suggests – “place” is a frontier, on three counts, worthy of further study. It is a boundary shared by many disciplines and at the

Journal of Place Management and Development Vol. 1 No. 1, 2008 pp. 5-14 q Emerald Group Publishing Limited 1753-8335 DOI 10.1108/17538330810865309

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same time, a bit of a wilderness which, in turn, invites further research and development. In a form of meta-commentary, I explore each of these three frontiers in turn, referring to the views, opinions and comments of the JPMD’s new Editorial Board that appear in full at the end of these editorials.

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Frontier 1: place, an interdisciplinary boundary? A boundary indicates the limit or extent of something. Like countries, disciplines and subject areas are delineated, not by geographical boundaries but by their underpinning paradigms, modes of inquiry and norms in dissemination. Geography has the greatest claim on the study of places as the Royal Geographical Society define geography as “the study of the earth’s landscapes, peoples, places and environments” nevertheless the production of place knowledge does not occur exclusively within the boundaries of geography, it also takes place in, to name some other disciplines/subject areas; sociology, psychology, general business and management, retailing, architecture, marketing, political science, public administration, construction, anthropology, urban planning, property management and investment, mining, economics, food, tourism and leisure, health, education, and criminology. From an academic perspective, the object of place is a passport to all these different disciplines and subject areas. For example, “place attachment” or the emotional link formed by an individual to a setting (Milligan, 1998) can be studied in relation to architecture and “of mental representation of attachment to the home” (Giuliani, 1991, p. 113) or in psychiatry and the “(p)sychiatric implications of displacement” (Fullilove, 1996, p. 1516) and, whilst it may not be referred to as “place attachment” a similar phenomenon is under investigation in business and management in the relocation and change management literature (such as, for example, Carter, 1999). Likewise, from a practitioner’s point of view, one cannot start to deconstruct, analyse and make recommendations to improve a place without an appreciation for a host of subject areas. An intervention to reduce crime in a city centre may draw on criminology to understand the motivations of the criminals, education to change their behaviour and retailing to “design out” opportunity for future crime. As Dr Clive Warren notes in our Editorial Advisory Board introduction: . . . [t]he key to sound place management is in identifying those elements which lead to better outcomes for society as a whole and incorporating them into the built environment.

So, there are both epistemological and ontological drivers behind the practical act of building and bringing knowledge about places together in one place, i.e. this journal. Academics and researchers should be well versed in the complexities of finding knowledge with today’s technology (surely it is merely a matter of typing “place” into an electronic resource such as ABI/INFORM?). Nevertheless, such a search returns 289,131 scholarly articles that have the word place in them. Refine that to articles with place in the title and still 1,857 articles are found. The problem is that place is not always the object or the context of study. With a little help from Google, I realise it can also signify rating (first place); the act of putting (place here); abstract location (place in my thoughts); stead (his place); arranging (place a bet); a position (a place on the executive); designated social position (she out stepped her place); a seat (sorry – that is his place); passage in a text (she lost her place on the page); a public square or plaza (Grosvenor Place) or a space (sign your name in the place provided). The editorial objectives of the JPMD (of which more detail are provided later on) are not to publish

articles with the word place in them but to publish articles that further our understanding of places – be they counties, regions, nations, town centres, national parks, BIDs, cities or villages and to build some underlying theories of place – the concept of a physical location that has meaning to people. A deeper understanding of the fundamentals of place is important; because places do not necessary compete with ones that are similar, in terms of size. Later on, Dr Tony Hernadez refers to: . . . the consumer commercial structure [that] includes a range of places, from traditional commercial hubs in the downtown, to diverse inner-urban streetscapes, to suburb satellite communities and small town mainstreets. These commercial places all compete with each other for people’s time, money and their life experiences.

To assist the development of the “principles of place” I hope the JPMD will work as a conduit, helping to bring knowledge and ideas together in one publication. It is my ambition that JPMD is one of the 25 or so journals (Garfield’s Law) that will carry the significant publications in a field that is finding itself in the “spotlight” as Andre´s Coca-Stefaniak points out in his commentary: . . . our ability as a species to manage places in a sustainable way has progressively come under scrutiny as knowledge grows of the effects of the global on the local (and vice versa) from and economic, social and environmental perspective.

Not only will JPMD assist the information-overloaded academic and/or the concerned world-citizen, a collection of the latest-thinking is also useful for the time-poor practitioner. As Greg Kerr comments: Leaders who have knowledge and skills in place management are needed.

The latest-thinking includes innovations, one of which is described by Dr Andrew Alexander: Fair Trade Towns [has] the scope to evolve from an initially local marketing initiative so that now a variety of places, including universities, towns and if plans come to fruition, nations form parts of a complex network aimed to promote “alternative” systems of production, distribution and consumption.

Currently, those who manage and make places better have to search too hard for data, information, answers or “best practice” that will help inform their decisions and/or do their job. The result is that mistakes can be repeated, in different locations or in the same location at different times. Anne Steffny identifies the starting point for managed urban hubs as being: . . . to get the basics right, with an unwavering commitment to issues such as cleaning and maintenance, crime prevention, informal trade management and taxi management.

In some areas, there can appear to be too much information; take regeneration, “(e)veryone has an opinion today on regeneration and as a theme it has become just about as inclusive as it could get” (Diamond and Southern, 2006, p. 189). Huge mega-event-based regeneration projects, such as the Olympics, can be positioned as a resounding success: The promise of worldwide exposure and economic gain has made hosting these major and regularly scheduled sporting affairs a lucrative goal for aspiring cities around the world (Short, 2000, p. 320).

Extended editorial

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Whilst by others complete white elephants: Ex-post studies, however, have consistently found no evidence of positive economic impacts from mega-sporting events even remotely approaching the estimates in economic impact studies (Owen 2008, p. 3).

Local feeling amongst Londoners regarding the 2012 Olympics is just as divided. In matters as important as spending £9.3bn sterling of tax payers’ and lotterypurchasers’ money should not academics, researchers and practitioners be able to assist, in terms of comparative post-event studies or other such useful, publiclyaccessible information? As Jim Yanchula points out in his commentary: . . . [g]iven such competition seems to exist to be the host location for citizen interaction and consumer commerce, it is unsurprising that “place management” has emerged as a specialist endeavour.

The challenge to JPMD is to support this specialist endeavour. Many journals aim to be relevant to both academic and practitioner audiences, but I want the JPMD to be the frontier between both worlds. It is important that theory not only informs practice but that practice informs theory. This inaugural issue demonstrates that those at the sharp end of place management, those people in the field, doing it, have got a lot to say about it! I particularly enjoyed learning about “heritage interpretation” from Paul Hyde (a heritage interpretation professional) and the ways of communicating the history and heritage of places through: . . . guided walks, talks, drama, display, signs, brochures and electronic media . . . public art, self-guided trails, visitor centres, bus, boat and . . . amphibious vehicle tours.

I would urge readers of the JPMD to venture out of their reading “comfort zone” and look at a variety of articles in the publication. For those researching and teaching place management and related fields, you will get access to real-life problems and examples through reading the work of the practitioners. I would also argue that you will get access to quality material for further research and exercises in conceptualisation. I think you will even get some theories and concepts, for further testing or consensus-making. Likewise, our practical readers should not be afraid of reading the academic articles, for purposes of critique and/or application. Referring to the topic of place management, Gareth Roberts suggests: . . . it is precisely this complexity and myriad of contradictory interests and motivations that keep the wheel turning, so to speak, and which make the Journal of Place Management and Development a necessity for providing a point of confluence for differing views and experiences.

Our Practitioner Editor, Simon Quin has high expectations of what collaboration between these interests can achieve: . . . now we need to understand the effect successful local initiatives can cumulatively have on promoting, or otherwise, healthier lifestyles – hence combating obesity; on providing services and facilities for ageing populations; on combating climate change through such things as encouraging walkability and local sourcing; for promoting community cohesions and integration – at a time when large-scale population changes are forecast.

As Editor-in-Chief, I would encourage articles co-written by academics and practitioners and am very happy to discuss research ideas with potential authors and, with the help of my Academic and Practitioner Editors, Editorial Assistant and Editorial Board help “introduce” potential co-authors to each other. A first practitioner/academic match may be Paul Hyde and Dr Gary Warnaby who also raised issues related to the representation of places: If the representation of places is an aspect of their management and control, then perhaps the implications of the massively increased availability and accessibility of a plethora of – possibly conflicting – representations of places is set to be one of the main challenges for those responsible for place management in the future.

Frontier 2: place, a bit of a wilderness? One of the most central concepts to human existence is that of place. We all spend our lives somewhere, in various towns and cities and other locations. Often, this involves the active consumption of places – visitors or tourists having direct “place experiences” as they consume Forth in Tasmania or Manchester in England, for example. At other times, a place provides the context for other experiences (as residents, shoppers or employees for example). A cursory search of the internet demonstrates that people have a lot to say (often negative) about the places where they live, work or play. For example, in the UK, the periodical The Idler asked its readers to nominate their “crap towns” (http://idler.co.uk/category/crap-towns) and there are various international sites (e.g. www.tripadvisor.com) that allow people (in the case of trip advisor approximately 17 million per week) to plan their trips and share their opinions about worldwide destinations. These commentaries range from the prosaic (the best snorkel rental gear in St Lucia) to the profound (marriage and divorce in Senegal). I am a marketer (there – I feel much better now). Marketing is about giving people what they need or want. Marketing “lives” within business and management. Business and management is an applied subject, it aims to improve things. Like medicine should make people better, business and management is about improving performance, profitability, customer satisfaction, etc. In terms of improving places, making sure place users get what they need (or want), the business and management literature is a bit of a wilderness. Although the marketing literature has developed from a pure product focus to one that recognises the importance of consumers’ experiences, paralleling developments in the broader economy (Pine and Gilmore, 1999) it is limited in its applicability to places. Whilst the context of place is recognised in traditional marketing models, such as McCarthy’s (1964) 4Ps of Price, Place, Promotion and Product and the services marketing literature, for example the servicescape (Bitner, 1992) the underlying premises are firstly that the marketer has some level of control over the place in which the consumption experience takes place. Examples of this include manufacturers determining where their goods will be sold, such as luxury cosmetics firms choosing retail outlets perceived to be more “exclusive”. Similarly, within the service environment, hotels that do not deliver an expected level of service are liable to be “dropped” by tour operators offering their accommodation as part of a package holiday. The second premise contained within the marketing literature is that the place is merely the context of a consumption experience, rather than a consumption

Extended editorial

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experience in itself. Marketing has tended to look at the space in which an experience takes place, and the effective management of that space to improve a consumer’s experience, rather than an understanding of a consumer’s experience of that place. Of course, there are exceptions, such as the more recent body of literature related to place marketing (see for instance, Smith, 1994; Ashworth and Voogd, 1994; Ward, 1998) and place branding (which has its own journal – Place Branding and Public Diplomacy). Nevertheless, the marketing of places has often been seen as something you do to those outside a place, rather than those within it. For those that find the time to write why their town is a “crap town” they are often talking as long-time residents, not short-term visitors. Some authors identify the potential that marketing and branding has to places – in a more inclusive sense, for example: . . . [c]ity branding provides, on the one hand, the basis for developing policy to pursue economic development and, at the same time, it serves as conduit for city residents to identify with their city (Kavaratzis, 1994, p. 58).

The potential for the JPMD to carry more work of this nature is echoed by Dr Stuart Roper: I look forward to seeing articles on how branding can help less well known places and give back a sense of pride to residents which may have been damaged by economic decline or other external macro-environmental factors over the years.

Inga Horny’s commentary on place management in Salzburg examines some of these damaging factors: Not enough residents to fill classrooms – schools were shut down; not enough customers for daily goods – retailers closed.

Of course, we are not only reliant upon marketing and business researchers to explore the wilderness alone in a quest to discover what makes places better, not just for visitors and investors, but in terms of everyday quality of life for current inhabitants. As this editorial has already demonstrated, relevant research exists in many other areas, such as geography. But geography, like some other social sciences, more often than not, is not an “interventionalist” subject. It tends to offer critical reflections that make sense of what is happening in specific places and types of places rather than offer recommendations. In comparison, Professor David Adams explores the currency of place management, in relation to public policy and social, economic, human and natural capitals: Since, place is the site where capitals are often formed and where the dynamics are played out the management of place again becomes a public policy issue.

Public policy is intervention on a grand scale and I hope the JPMD will play a role in informing and guiding the policies of the future at local, regional, national and even international level. As Professor Greg Ashworth notes: Current place management policy is struggling to resolve the paradoxes and contradictions that revolve around notions of localism/globalism, hierarchies/networks, heterogeneity/homogeneinaity, competition/cooperation, equity/efficiency and the like.

Criticism of the production and organisation of existing research is nothing new, in their book Gibbons et al. (1994) argued the case for Mode 2 research, or research that

focussed upon solving a specific problem, in a particular context, in an interdisciplinary fashion. Place management is “ripe” for Mode 2-type methods, for example Ian Ker comments:

Extended editorial

. . . places are classic examples of complex systems, characterised by simple “components”. . . and by the emergence of outcomes that cannot be anticipated from knowledge of the parts.

This particular wilderness should not be “claimed” by any subject or discipline and place management should be defined by its focus upon research for the purpose of improving places, in keeping with the expectation of the benefits of action research compared with its more traditional alternative, i.e. “(r)esearch that produces nothing but books will not suffice” (Lewin, 1948, p. 203). As Professor Akito Murayama agrees: . . . [t]he methodology for place management and development should be diverse with different social, economic and cultural backgrounds, but there are many things to learn from each other.

Frontier 3: the place for place (JPMD) A frontier can also be described as being new, in terms of research. I hope that the JPMD does offer something new. Our editorial objective specifies that the JPMD is to be a repository of research in the expanding topic of place management, pulling together theory and practice in the field. Even in more well established fields, such as retailing, Professor John Fernie points out that place management is important: . . . because of the country of origin research in international retailing and supply chain sourcing.

Similarly, Professor Jan van der Borg notes: . . . many new, thriving industries like the ICT sector, the creative industry and the tourism industry are very sensitive to the way place managers are facilitating them.

We have also stated that the JPMD will publish peer-reviewed research articles from international authors researching in multi-national contexts and practically focussed case studies, considering managerial and policy recommendations and implications. We suggested some potential topics that may be covered by the journal: organisational and governance structures in place management; the marketing and branding of places; the consumption of place; design and planning considerations; regeneration; place competitiveness; community engagement and development; sustainable communities; places as locations and destinations; local economic development; tourism; international perspectives upon the definition and practice of place management; best practice in place management, marketing and development; town centre management; neighbourhood and community renewal and location management (for example, shopping centres, airports, etc.). Finally, we identified four key audiences for the journal. Firstly, academics and practitioners in the emerging field of place management. Also, academics and practitioners in the fields of general business and management, property and real estate management, marketing, tourism and leisure, retailing, geography, public administration, sociology, planning and design. Thirdly, policy makers, and finally local government officials. So, how well have we done with our first issue?

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In terms of international authors, in total we have contributions from authors in 11 different countries. We have a mix of contributions; two research articles (the USA and Australia), two case-studies (Dubai and Italy) and three practitioner pieces (Australia, Canada and the UK). Our first article, by Fayth Ruffin “Professionalizing business district management for the 21st century” focuses upon organisational and governance structures in place management by giving a comprehensive account of the rise of the BID as an innovation in public administration. Whilst the model has been widely adopted, not only in the USA but also in Canada, the UK and South Africa, Ruffin identifies the need to “professionalize” the field in relation not only to performance management and evaluation but also the skills and knowledge of BID managers themselves. This research has informed the development of a new education programme at Rutgers University (Business District Management Certification Programme) a very practical outcome indeed! The second article, by Professor Darren Lee-Ross, is very much about place competitiveness and location management. The type of place under investigation in his article is a shopping mall. I started my research career, 14 years ago, investigating the same methodology Darren studies in his paper “An exploratory study of the contextual stability of SERVQUAL amongst three retail clusters in Far North Queensland”. SERVQUAL is a standardised measuring instrument designed to measure service quality. Despite concerns being raised about its applicability in the mid-1990s, it is still going strong! In this particular study just over a third of the measure of service quality is explained by the SERVQUAL dimensions measured in the instrument. This raises questions relating to the value of adopting a standardised measuring instrument which “often take no account of service factors deemed important to customers”. Using standardised measuring instruments such as SERVQUAL may be helping to create and maintain standardised places and experiences. Our final paper in the academic section of the journal is “Dubai – a star in the east: a case study in strategic destination branding” by Dr Melodena Stephens Balakrishnan. The paper uses a the structure of “vision”; “stakeholders”; “product portfolio”; “target customer”; “image/differentiation”; “communication” and “response” to analyse the branding strategy of one of the world’s fastest growing place bands. This is a structure that other place brands could adopt, making it a useful contribution to practitioners as well. There are four other papers of particular interest to practitioners. First is a view point article written by Jim Yanchula, “Finding one’s place in the place management spectrum”. This article introduces the concept of place management evolution when it is practised in specific locations. Beginning with place maintenance, place management organisations can expand their operations and ambitions to attract more visits, invest in improvements to the built environment, attract and retain business and even plan and deliver major redevelopment projects. John Mant’s paper “Place management as a core role in government” looks at how government (especially local government) needs to change to support places achieve outcomes (such as being affordable, safe and healthy places to live) rather than places being merely “where the consequences of systems finish up”; systems such as planning, transport or public policy. John identifies two ways in which government can change ranging from the substantial – complete organisational restructuring – to the

less dramatic – appointment of place managers to support the achievement of outcomes in specific locations. Our third paper by Dr Hayley Myers and Dr Julie Gore and Katherine Lui “European shopping centre developments – an industry perspective” explores the development of shopping centres across Europe. This journal is concerned with the development of places, as well as their management and their paper identifies two seemingly dichotomous trends that are changing the industry. On one hand, there is the growth of the shopping centre format across national boundaries and on the other the increasing demand for differentiation and niche retail brands from consumers. The authors argue that successful shopping places will be those that embed themselves more effectively into a locality and make the most of their “distinguishing local characteristics”. Finally, we get an opportunity to see the interrelationships between places, and how the changing nature and competitiveness of one type of place (the out-of-town shopping centre) has been a catalyst in the development of another (a traditional town centre). The case-study from Andre´s Coca-Stefaniak, Fabrizio Stasi, Giovanna Codato, Elena Franco and Gareth Roberts, “Reclaiming customers through a retailer-led scheme in Italy” demonstrates how the arrival of the type of out-of-town provision reviewed by Myers et al. has impacted upon Il Cuore di Novi. Whilst originally being perceived as a threat, the shopping centres have appeared to galvanise the town-centre traders into the development of a marketing strategy that is regenerating and revitalising the town centre. Future editions of the JPMD can be expected to publish, on average, four academic papers and six practitioner papers. In this edition, we have three academic papers to make room for my extended editorial and our Editorial Board’s commentaries. I would like to take this opportunity to thank those members of the Editorial Board that contributed their thoughts on the state and importance of place management today. I would also like to thank Gareth Roberts, our Editorial Assistant for all his hard work and insight, the JPMD’s other editors, Simon Quin and Dr John Byrom as well as Rob Edwards and everyone else at Emerald that have helped us so much. I will now leave you to enjoy reading about place management and development and look forward to reviewing future submissions and editions. References Ashworth, G. and Voogd, H. (1994), “Marketing and place promotion”, in Gold, J.R. and Ward, S.V. (Eds), Place Promotion: The Use of Marketing and Publicity to Sell Towns and Regions, Wiley, Chichester. Bitner, M.J. (1992), “Servicescapes: the impact of physical surroundings on customers and employees”, Journal of Marketing, Vol. 56 No. 2, pp. 57-71. Carter, S. (1999), “Helping individuals to cope with change: lessons from group move relocation”, Management Research News, Vol. 22 No. 9, pp. 1-17. Diamond, J. and Southern, A. (2006), “Research into regeneration: gaps in our knowledge base”, The International Journal of Sociology & Social Policy: Research into Regeneration: Gaps in our Knowledge Base, Vol. 26 Nos 5/6, pp. 189-93. Fullilove, M.T. (1996), “Psychiatric implications of displacement: contributions from the psychology of place”, American Journal of Psychiatry, Vol. 153 No. 12, pp. 1516-23.

Extended editorial

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Gibbons, M., Limoges, C., Nowotny, H., Schwartzman, S., Scott, P. and Trow, M. (1994), The New Production of Knowledge: The Dynamics of Science and Research in Contemporary Societies, Sage, London. Giuliani, M.V. (1991), “Towards an analysis of mental representation of attachment to the home”, The Journal of Architectural Planning Research, Vol. 8, pp. 113-46. Kavaratzis, M. (1994), “From city marketing to city branding: towards a theoretical framework for developing city brands”, Place Branding, Vol. 1 No. 1, pp. 58-73. Lewin, K. (1948) in Lewin, G.W. (Ed.), Resolving Social Conflicts; Selected Papers on Group Dynamics, Harper & Row, New York, NY. McCarthy (1964), Basic Marketing, Richard D. Irwin, Homewood, IL. Milligan, M. (1998), “Interactional past and potential”, Symbolic Interaction, Vol. 21, pp. 1-33. Owen, J.G. (2008), “Estimating the cost and benefit of hosting Olympic games: what can Beijing expect from its 2008 games”, The Industrial Geographer, Vol. 3 No. 1, pp. 1-18. Pine, B.J. II and Gilmore, J.H. (1999), Experience Economy: Work is Theater and Every Business a Stage, Harvard Business School, Boston, MA. Short, J.R., Breitbach, C., Buckman, S. and Essex, J. (2000), “From world cities to gateway cities: extending the boundaries of globalization theory”, City, Vol. 4, pp. 317-37. Smith, H. (1994), Marketing the City: The Role of Flagship Developments in Urban Regeneration, Chapman and Hall, London. Ward, S. (1998), Selling Places: The Marketing and Promotion of Towns and Cities 1850-2000, Routledge, London.

Editorials Together, we can! The Institute of Place Management has been established to support people committed to developing, managing and making places better. The obvious question is how to define when a place is “better”. The experience of practitioners would suggest that better is not about “disneyfication” the pedestrianisation and public realm improvements in one declining US city centre was notably described by a UK observer as “like putting cosmetics on a corpse” (Falk, 1994). Instead, it is suggested that the most apt definition of better is whether the place better serves the needs of its communities. This, of course, begs another question, who are the “communities”? It is contended that when most place managers think about their communities, they have various groups in mind, depending on what kind of place they are managing. It will normally include the immediate residential community, probably the residents of a far wider catchment area, in some instances day visitors or tourists, as well as the business community. For those managing places as opposed to what Auge (1995) called “non-places” the concept of community is inclusive and therefore the needs of all the community must be met, though not necessarily at the same time. Locality and “localness” are inherent characteristics of place management, even for those locations that seek to attract international visitors, and so it is no surprise that this is the predominant focus of nearly all initiatives. It is contended, however, that the launch of this new international journal provides an opportunity to reflect on the impact place management can have on the global community. There are several thousand town centre management initiatives in Europe, a similar number of downtown initiatives in North America and at least that number elsewhere in the world, plus perhaps tens of thousands of neighbourhood management initiatives, so now we need to understand the effect successful local initiatives can cumulatively have on promoting, or otherwise, healthier lifestyles – hence combating obesity; on providing services and facilities for ageing populations; on combating climate change through such things as encouraging walkability and local sourcing; for promoting community cohesion and integration – at a time when large-scale population changes, in both directions, are forecast; and in promoting community or citizen-driven governance – through initiatives such as business improvement districts or community membership schemes. An international research and practitioner journal gives us the opportunity to make local initiatives more effective and to better understand the local and global impact of place management. This understanding may in turn open new avenues of funding for initiatives as their full effect is understood.

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Simon Quin Practitioner Editor, Chief Executive, Association of Town Centre Management, London, UK and Director, Institute of Place Management, London, UK References Auge, M. (1995), Non-places: An Introduction to the Anthropology of Supermodernity, Verso, London (translated by J. Howe). Falk, N. (1994), unpublished paper.

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As a recent graduate my initial interest in the notion of place management – which is essentially all it was a few years ago – was spurred by learning about the proliferation of BIDs in North America, and the emerging recognition of local, regional and even national economic health being attributed to place marketing, particularly place branding; a subject on which I based my dissertation. The acquisition of this knowledge, coupled with previous employment at a town planning/development economists, has given me the impetus to immerse myself in what has now become an industry that is increasingly recognised as being one of key strategic future significance, not just for the health of our towns and cities, but for all manner of incarnations of the public realm. It has been a real pleasure to make the step from studying and working in place management to actively contributing to its dissemination as a single unified, albeit multi-faceted, discipline. The opportunity to work with some of the leading figures in the industry, both academic and practitioner, has been an invaluable experience. There has been a lot of conjecture in recent times concerning the difficulties incarnate in effective place management, not least the range of disconnected stakeholders involved. The old saying goes that anything worth achieving is never easy, and I think this has never been applied more aptly than to the industry we are working in. Indeed, it is precisely this complexity and myriad of contradicting interests and motivations which keep the wheel turning, so to speak, and which make the Journal of Place Management a necessity in providing a point of confluence for differing views and experiences; in the hope that best practice standards will result. I would like to thank everyone involved in the production of this inaugural issue, particularly the authors and the Editorial Advisory Board, without whose experience and aptitude we would simply not have a journal. Returning to my original point, that place management has evolved dramatically in recent years to become a bona-fide industry of unquestionable importance; I hope that together we can facilitate this evolution further, creating successful places, better places, in the process. Gareth Roberts Editorial Assistant Research Assistant – Institute of Place Management

EAB comments Place management: collecting definitions and perspectives: reflections from the Editorial Advisory Board Place management has a long pedigree and a quick recap of its public policy institutional history will help explain its new currency. Place has always been associated with identity and our early experiences of the world and therefore has an intrinsic “value” to all people. It is the valuing of place that initially led to most forms of organisation being place based. The origins of the organisation of both church and state are rooted in place. In western societies, in particular, churches have historically adopted place-based organisation (diocese/parishes, etc.) and so has democracy (electorates). Following the industrial revolution and growing prosperity, liberal democratic states began to adopt functional forms of organising as a more efficient way of managing state business. Departments of state emerged around health, education, defence, justice and infrastructure. As a rearguard action against the rise of political parties (organised around ideology not place) many democracies created special institutions to represent places (for example the Senate in Australia – at least in principle – represents place-based regions). Whilst functional forms of organising worked spectacularly well for the twentieth century (leaving aside “externalities” such as climate change!) there are now four drivers revitalising the place management debate: (1) The place-based consequences of un-coordinated functional activity playing out for example in 9/11 failures, in long lead times for delivery of services, and perception of governments and public sectors as siloed, aloof and out of touch. (2) In parallel, with (1) the growth of civic renewal doctrines and a more savvy public demanding more localised and responsive services and engagement with governments and the pubic sector. (3) The recognition of place as a “factor of production” that is having agency to shape productivity and innovation. This plays out, for example in the international rush to see cities as economic agents and in the focus on the “liveability” of cities. Globalisation of markets and globalisation of production has thrown a spotlight back on the competitiveness of places not just firms. (4) The revival of community as a valued aspect of wellbeing and of community strengthening as a function of government. This plays out, for example in the numerous regeneration strategies now underway across OECD countries. Theoretically, these drivers are linked to the increasing recognition of the interdependence of the four capitals: social, economic, human and natural. It is as much relations between the capitals that explains phenomenon rather than action within a “capital”. Since, place is the site where capitals are often formed and where the dynamics are played out the management of place again becomes a public policy issue. Professor David Adams, Professor of Management and Innovation, Australian Innovation Research Centre, University of Tasmania

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The focus of my interests has long been on the way places, especially cities, are perceived, imagined and promoted, and particularly how imagined pasts are created in the service of contemporary needs. As a geographer by academic background, I am intrigued by how places are made and remade by creative imaginations to satisfy diverse collective and individual objectives. Current place management policy is struggling to resolve the paradoxes and contradictions that revolve around notions of localism/globalism, hierarchies/networks, heterogeneity/homogeneity, competition/cooperation, equity/ efficiency and the like. In the fields of place promotion, marketing and branding, for example, the desire of places to be unique and different confronts a practice which more often leads to similitude and uniformity. It is also obvious that place management policies operate within societies of increasing plurality of cultures, life-styles, expectations and interventions. Place management has thus become more difficult, complex and unpredictable but equally more necessary, demanding, and indeed fascinating. I hope the journal will reflect these challenges and this diversity. Professor Gregory Ashworth, Professor of Heritage Management and Urban Tourism, Department of Planning, Faculty of Spatial Sciences, University of Groningen, The Netherlands

The potential of the new journal, Journal of Place Management and Development ( JPMD) is clear. Whilst modified by technological and organisational developments, the importance of specific places to our economic geography remains and is in some senses heightened. Coalesced with this are crucial social and cultural considerations of place. The effective management of many places provides significant challenges, not least as a result of the long acknowledged complexity of conceiving of places as a distinct entity when they are frequently comprised of many different elements and agendas. Very noticeably in the case of urban places, there is the stretching of the management realm beyond the public sector. The implications of these challenges remain to be fully addressed and there is scope in this new journal to contribute to the search for effective solutions. My own interests in place management and marketing have emerged from the analysis of the retail sector, with the link perhaps most obvious in relation to the theme of retail-led regeneration. The sector is also directly affected by the innovation and adoption of formal management models and policies intended to improve the performance of places. One example is the business improvement district concept that originated in North America and is now being widely translated at the international scale. Staying for the moment with the retail sector perspective, we can also uncover the potential for the organic development of retail places and localised solutions, see for example the work of some fellow Editorial Advisory Board members on urban quarters, and in the case of fair trade towns the scope for an initially local marketing initiative to evolve so that now a variety of places, including universities, towns and, if plans come to fruition, nations; form parts of a complex network aimed to promote “alternative” systems of production, distribution and consumption. The above examples clearly stem from only one, admittedly narrow perspective on the broad theme of the management and development of places. The journal’s pages will be filled with conceptual and empirical analyses of many different types of places and spaces flowing from a variety of academic disciplines and practices. This in itself represents a

challenge of course, as disciplines too often talk past one another, but by bringing such work together there is a real opportunity for focussed and meaningful debate.

EAB comments

Dr Andrew Alexander, Reader in Retail Management, School of Management, University of Surrey, UK

Place management is an interdisciplinary field that encompasses disciplines such as management, retail, marketing, branding, human geography, sociology, urban planning, finance, psychology, economics, architecture, the arts, environmental sciences, political science and international relations as sources of knowledge and influence in the everyday running of public and private spaces. These may include parks, city centres, rural environments, shopping malls and all spaces that are managed by man. Although all these academic disciplines and professions have evolved over time to create a wide variety of journals and periodicals that disseminate research and, in some cases, provide a forum for practitioners to reflect on current trends, few journals have ever had a focus on something as tangible and relevant to our everyday lives as the JPMD. After all, the association of man with generally managed urban and rural places spans thousands of years of history and has come to form the backbone of our identity, civilisation and wellbeing. In spite of this and of technological advances, our ability as a species to manage places in a sustainable way has progressively come under scrutiny as knowledge grows of the effects of the global on the local (and vice versa) from an economic, social and environmental perspective. The JPMD will help to fill a gap in our understanding of these intricate interactions through its multidisciplinary approach but, more importantly, it will also help us to further our understanding of the role of that great catalyst for change in the morphology of urban and rural landscapes – people. The processes involved in the management of places, their consequences and future implications at local, regional, national and international levels form a discipline in itself that we may only ignore at our own peril. J. Andres Coca-Stefaniak, Senior Lecturer in Place Management, IPM Postgraduate and Post-experience Programmes Manager, Institute of Place Management, UK

Place management is particularly important in the field of retailing because of the importance of country of origin research in international retailing and supply chain sourcing. As my own research has moved more into the fashion supply chain through the George Davies Centre for Retail Excellence at Heriot-Watt University, place management has considerable relevance to our research. In the luxury brands sector, for example, the importance of heritage and the turnaround of famous brands such as Burberry, Pringle and Aquascutum owe much to the values associated with English and Scottish clothing traditions. The launch of the new journal will therefore be welcomed by industry practitioners and academics interested in this exciting area of research. Professor John Fernie, Head of School of Management and Languages, Professor of Retail Marketing, Logistics Research Centre, Heriot-Watt University, UK

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The challenge of place management has increased significantly over the last 25 years as the landscape of “place” has become more complex and competitive. The development of a place management profession coupled with a growing awareness of the importance of place has resulted in an increasingly varied set of stakeholders (public, private and citizens) involved in planning, marketing and managing the “places” in which we work, shop, reside and visit. Recently, the field of place management is populated with a diverse set of interests, concerns and visions. Within this myriad of often conflicting and competing stakeholders the landscape of place emerges. The set of places in which the consumer commercial structure is located provide an example of the competing forces within one part of the place management field. In a North American context, the consumer commercial structure includes a range of places, from traditional commercial hubs in the downtown, to diverse inner-urban streetscapes, to suburb satellite communities and small town main streets. These commercial places all compete with one another for people’s time, money and their life experiences. At a broad level the commercial function (e.g. retail and service offerings) may be essentially quite similar between these places, yet, the sense of place and place experience can provide the critical point of differentiation. The complexity of place is in part played out through the interplay between the various stakeholders involved in commercial structure – main street/business improvement area managers, local municipal and regional planners (inc. economic development, transportation, works, etc.), the provincial/federal government, community groups, property owners, heritage conservation, shopping centre developers, corporate retailers, independent business operators – and of course, the consumer. This mosaic provides the arena for place management research; and through furthering understanding of these inter-linkages, both the theory and practice of place management will be enriched. Dr Tony Hernandez, Director/Eaton Chair in Retailing, Centre for the Study of Commercial Activity, Ryerson University, Toronto, Canada

Place management in Salzburg To be able to understand the severe changes cities have undergone in recent history, let me start with a brief metaphor. Once cities used to be comparable with boiled eggs. The “yolk” was the downtown area where all the functions of the city were concentrated. Schools, administration, stores, handicraft business, market places, etc. could be found downtown whereas the “white of the egg” was the residential quarter. The whole organism was protected by the “egg shell” or in other words the city wall. Nowadays cities look more like scrambled eggs. The reasons for this change are numerous. The social cultural change started with the industrial revolution and the disappearance of traditional handicraft business. Later, with the expansion of the road network and the augmentation of mobility it was no longer necessary for the population to live close to their work places. The dream of the privately owned home in the periphery of the big cities began. Soon policy makers provided the new founded settlements with infrastructure and furthermore business companies supplied the downtown escapees with daily goods. These dramatic changes led to town centres that were continuously thinning out in a vicious cycle: not enough residents to fill the class rooms – schools were shut down; not

enough customers for daily goods – retailers closed; not enough residents to provide a decisive amount of votes – politicians gave up on the town centres and concentrated their force to the peripheral areas where the major part of the city’s inhabitants now reside. This is the point where place management comes into play. It is not our duty to work against the social cultural change over the recent decades, but it is definitely our job to support the city centre’s main functions and respond to emerging trends. In some ways, the city centre is re-inventing itself and we are seeing. The city as a destination. Tourists and visitors bring economic vitality to the city, but they also demand change (different forms of retailing or extension of opening hours, particularly at holiday periods) and create challenges (traffic congestion, pavement blockages and increased demand for cleansing services). The city as a backdrop. Marathons, cycle races, motorsport events as well as large-scale art festivals all seek the internationally recognisable backdrops that can be provided by downtowns. Town and city centres need to have the courage to price such events properly, provide the infrastructure support required and benefit from new opportunities for co-operation. The city as an innovator. Whether it is the regeneration of former industrial areas into trendy quarters that attract a new generation of urban residents, quirky retailers, bars and restaurants, the reuse of buildings to provide flexible and adaptable workspace for new enterprises, or the staging of edgy new events and festivals, city centres are identifying new flagships and icons that enable them to redefine themselves. The city as a community. As public authorities seek new partnerships with the private sector to pay for service delivery or infrastructure investment, there is a growing sense of ownership of projects and spaces by the business community but it is important that this does not lead to privatisation of space that excludes some of the community a centre serves. Place management has an important role to ensure that all the community remains welcome. These new roles for city centres require pro-active management approaches to keep the balance and prevent clashes of function, activities, or visions. City centres will continue to need to reinvent themselves and learning about good practice and research evidence will help those of us engaged in this process to do a better job. Inga Horny, Managing Director, Tourism Association, Austria

As a heritage interpretation professional, I am interested how we can develop places so that there is a sense of what makes them special and distinctive through associated culture or nature. While I work in the UK city of Chester, which has perhaps an obvious rich heritage spanning some 2000 years (including unique rows, almost complete circuit of city walls, Roman amphitheatre and other historic buildings), it should be stressed that every place has a history. Many journal readers may be new to the term heritage interpretation. The Association for Heritage Interpretation in the UK presents it as “the art of helping people explore and appreciate our world”. The Interpretation Australia Association expands on this, defining it as “a means of communicating ideas and feelings which help people understand more about themselves and their environment”. It also notes that there are many different ways of communicating these ideas including guided walks, talks, drama, displays, signs, brochures and electronic media. To this list I would also add

EAB comments

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public art, self guided trails, visitor centres, and bus, boat and (for example, in the case of Liverpool) amphibious vehicle tours. How places are designed overall can also reflect their heritage. A key challenge is to make heritage meaningful to different contemporary audiences including the local community, day trippers and overnight tourists. It must also address issues such as visual intrusion (e.g. through signage), carrying capacity (e.g. through boosting visitor numbers), conservation and other impacts. This can only really be done through proper planning and development with input from across different disciplines and with a range of stakeholders. It also needs to interface with other aspects of planning and development, and also ongoing management and maintenance. The world is littered with interpretive provision that has been installed but not maintained or refreshed – perhaps a failure to recognize that all products, including place products, have lifecycles. The need for an interdisciplinary approach in place management is also obvious as a judge for the Green Flag Award. This scheme applies to parks and other greenspaces and is run by the UK’s Civic Trust. It is based around eight criteria – a welcoming place; healthy, safe and secure; clean and well maintained; sustainability; conservation and heritage; community involvement, marketing; and (overall) management. This exemplifies that greenspace managers need to understand how to co-ordinate all the different aspects into their planning and delivery and the skills to work with other professionals and partnerships. As a former environmental adviser and with ever more evidence of environmental impacts, I feel that environmental sustainability is a fundamental issue for all place managers. In particularly, this includes the challenge of how to deal with carbon dioxide emissions from our hydrocarbon-fuelled economy – especially from transport. How to design-in sustainability and design-out carbon and waste will be critical. Also, key will be tools and approaches to assist and influence all the various players that interact with places so that they can “do their bit”. I am hoping that the journal will help set out research needs, report research findings and, importantly, disseminate best practice to help place managers to be more informed and have enhanced competence to manager their ever complex and demanding world. Paul Hyde, Heritage Interpretation Officer, Chester City Council, UK

The managers of places need to be clear about the future of their place. In the context of places, a “whatever will be” approach (as per the song “a Que Sera Sera”) is ignorant of a truly global world where people, capital and entire businesses can relocate relatively easily and there are often incentives provided to do so. Place managers need to be aware of the competitive environment which now exists between places. Close scrutiny of places by a diverse array of stakeholders and interest groups who have an ability to widely and rapidly communicate their opinions means that lavish yet shallow promotional campaigns are transparent and short lived. Places need to have definite economic and social plans – a blueprint for their future which should be supported by a comprehensive marketing plan and the available resources and capabilities for implementation. Importantly, places need to have strong leadership at both the political and operational levels. Leaders who have knowledge and skills in place management

are needed. The JPMD contributes to satisfying this need. The places with a sustainable future will be those who have place managers whose future is theirs to see!

EAB comments

Greg Kerr, Head of Marketing Discipline, University of Wollongong, Australia Place management, dreams and reality Place management is what land use planning aspires to be. Places are more than an assemblage of buildings, roads and other physical objects. Each of us has our own personal perception of any place – and the primary function of human-created places is for people. Jan Gehl describes a “good city” (and by inference, a “good place”) in the following terms: . a place to walk in and to stay in for a while; . a place for social and cultural exchanges; . a place for talking, watching and experiencing; and . a lively, diverse and safe place to move around in. Such places do not arise from coloured maps or good intentions. Land use planning might have eschewed the “end-state” paradigm for a more developmental approach, but too often it fails to come to grips with the reality of how and why places develop. In Australia (and in other places), there are many examples of what are described as “planned communities” – an oxymoron if ever I heard one. Genuine communities usually develop in the absence of or in spite of, not because of, planning – it is the unexpected that makes communities interesting and attractive to people. Mark Twain wrote that “the reason truth is so much stranger than fiction is that it doesn’t have to be consistent” by which he meant that fiction, to be credible, has to accord with our limited perceptions of reality and what is possible. Truth, on the other hand, knows no such constraints. Similarly with places – planning, almost by definition, aims to produce places that are consistent with our current perceptions of “what works” and too easily fails to acknowledge and benefit from the unexpected. In practice, places are classic examples of complex systems, characterised by simple “components” (not a mass of regulations) and by “emergence” of outcomes that cannot be anticipated from a knowledge of the parts. In my view, place management is the means by which the unexpected can be invited to appear and to be nurtured whilst maintaining and enhancing what is already valued in a place. A “Place Manager” needs to keep the wheels turning while simultaneously making the “impossible” happen, in the sense described by Leszeck Kolakowski (winner of the Kluge Prize, 2003 – given for lifetime achievement in the humanities and social sciences – areas of scholarship for which there are no Nobel Prizes) when he wrote: “It may well be that the impossible at any given time can become possible only by being stated at a time when it is impossible.” Well, perhaps not the impossible – I will settle for the unexpected. Ian Ker, Principal, Consulting in Applied Transport, Access and Land Use Systems (CATALYST), Adjunct Associate Professor in Transport Studies, Curtin University, Australia

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The importance of urban place management in Japan The population of Japan has reached its peak of 128 million in 2004 and is expected to decline to 90 million in 2055. At the same time, the percentage of the elderly population (persons 65 years old and over) will increase from 19.6 per cent in 2005 to 40.5 per cent in 2055. Though the population is beginning to shrink, cities in Japan continue to expand and disperse due to suburban housing and commercial developments. Excessive suburban developments have already spurred the decline of traditional urban centers and neighborhoods, resulting in the loss of great urban places. In order to achieve sustainability and high quality of life for all generations, we need to stop automobile-dependant suburban developments and regenerate existing urban centers and neighborhoods well supported by public transit. One of the major issues of urban regeneration in Japan is that most urban centers and neighborhoods are shaped without clear spatial visions and strategies. Mixed use and vibrant looking vernacular urban places, often praised by European and American planners and urban designers, are merely the accidental results of market economy and loose land use/building regulations, and are actually vulnerable in many ways. Therefore, it is important for urban centers and neighborhoods in Japan to have clear spatial visions and effective strategies to be regenerated to attractive urban places. It goes without saying that various actors including citizens, businesses, governments and non-profit organizations take part in such urban regeneration. We should explore and apply systems, procedures and techniques to make possible the collaborative and sustainable management of urban places by various actors of society. The methodology for place management and development should be diverse with different social, economical and cultural backgrounds, but there are many things to learn from each other. I am looking forward to the international discussions. Akito Murayama, PhD, Associate Professor, Department of Environmental Engineering and Architecture, Graduate School of Environmental Studies, Nagoya University, Japan

My particular area of research interest is in brands and branding. It is interesting to see how places have now become prominent brands in the same way that we have been used to fast moving consumer goods being recognised as brands. The field of branding has widened considerably and place branding is now one of the growth areas in the academic field of branding research. The original place branding campaign was the “I love New York” campaign from the 1970s and its success was such that its iconic image is still recognised, used and imitated today. This campaign helped to start a revival in the fortunes of New York which, at the time was suffering economically, physically and psychologically, with confidence at a low ebb. However, your place does not have to be world famous to benefit from or feel able to engage in place branding. I look forward to seeing articles on how branding can help less well-known places and can give back a sense of pride to residents which may have been damaged by economic decline or other external macro-environmental factors over the years. I am personally involved in a stream of research into “branded litter” and I know that litter is a problem for many professionals in place management as well as for ordinary citizens. I therefore also look forward to contributions in this journal dealing

with micro issues, which if satisfactorily dealt with can revitalise places and provide encouragement and best practice to those who value and have interest in their place. I look forward to the success of this exciting new journal.

EAB comments

Dr Stuart Roper, Lecturer in Marketing, Manchester Business School, University of Manchester, UK

25 The role of place management in South Africa More and more, what were strictly commercial nodes within cities across South Africa are now becoming mixed-use, multi-tenanted urban hubs competing for business from property owners, tenants, shoppers, residents, and tourists alike. The competitive edge for many of these hubs lies in their ability to create a place that retains and entices business and people. Added to this, growing urbanisation within South Africa and the rapidity of development in and around these spaces brings with it the need to carefully manage the process of growth. From legislative frameworks, land use and transport management, to urban design, spatial planning, and the creation of a “look and feel” for the place, there is a need to create an environment for partnership and intertwine city policy and strategy with the aims and goals of the private sector. City improvement districts (CIDs) and the management of these entities through companies like Kagiso Urban Management (KUM), find themselves ideally positioned to coordinate efforts, intimately understand the DNA of a particular node and the needs of its users and respond accordingly, both in the strategic thinking and implementation. By doing this, these CID’s are able to underpin the asset that is property and commerce, lifestyle and environment. In these managed urban hubs, the starting point is always to get the basics right, with an unwavering commitment to issues such as cleaning and maintenance, crime prevention, informal trade management and taxi management. Ideally, the responsibility for carrying out this work should rest with the city or local authority, with service level agreements drawn up between them and the private sector to ensure the effectiveness of this service. The private sector should then focus on providing supplementary and complementary services such as place-making, social programmes, marketing, and stakeholder communication; in other words, all the initiatives required to create a place that attracts and captivates – drawing people in and ensuring that those who are there stay longer and come again. Establishing and managing CIDs requires a careful understanding of the demarcated area as well as the services needed to develop it into a destination and in the experience of KUM, by creating an environment for partnership where all stakeholders are focused on a common end goal, a managed node is better able to maximise its full potential and plan for what must be a sustainable future. Anne Steffny, Director, Kagiso Urban Management, South Africa Place management and the creative and tourism industries The knowledge economy poses a number of new challenges for the management of places. While, the competitiveness of places in both the industrial as well as the service economy were very much based on the intrinsic and predetermined features (climate, geographic centrality and presence of raw inputs) that these locations possessed, the

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competitiveness of today’s global knowledge economy very much depends on largely reproducible location factors and, as a direct consequence, on the quality of place management. Moreover, place management is a logical evolution of the traditional urban and regional policies, policies that were merely seeking to enhance the use of the earlier mentioned features or to reduce the structural social and economic differences between regions. In practice, this means that urban and regional policy makers have been borrowing extensively from business, adding such things as place marketing, strategic planning, creative local finance and local governance to their toolkits. In fact, many new, thriving industries like the ICT sector, the creative industry and the tourism industry are very sensitive to the way place managers are facilitating them. In particular, attractive and accessible places are more inclined to attract and keep those firms that offer them tremendous development potentials. The attractiveness and the accessibility of places depend, among others, on the quality of the living environment, the availability of educational and cultural facilities, and of transport facilities and infrastructure, all reproducible location factors. The creative and the tourism industries are a special case altogether. Their intensive relationship with the cultural assets a place offers and the fact that these cultural assets are public goods and, hence, are not always optimally allocated, makes the case for adequate place management as a basic condition for their development even more fundamental. The optimal use of public cultural assets in the context of tourism development and the development of the creative industry has been the subject of my studies over the last 20 years. I am honored to help to make the JPMD into a useful international and interdisciplinary platform where both academics as well practitioners may exchange best practices with respect to the management of places. Professor Jan van der Borg, Associate Professor, Erasmus University of Rotterdam, The Netherlands, University Ca’Foscari of Venice, Italy

The management of place, I see as not driven just by design and social issues related to the use of the built environment, but also fundamentally driven by sound economic principals. As a property economist, I inevitably look first to the financial feasibility of any project. I accept that this is often seen by the design and planning professions as a short sighted view which, in a time of economic rationalism, has led to a severe curtailing of good place design and management. I believe the challenge that we face is to move forward with a built environment which is both efficient in economic terms but which also fulfils the human need for a built environment which is rewarding and productive to live in. Economic rationalism does not always provide for productive, liveable places in which to live and work. The key to sound place management is in identifying those elements which lead to better outcomes for society as a whole and incorporating them into the built environment. This is particularly relevant to business which seeks to operate in a competitive global environment and thus the work place must deliver value. In delivering this efficient and effective built environment, the current challenges of sustainable development and the effects of climate change must be considered. It is imperative in the establishment of future place management strategies that we adopt

not only a sustainable approach to construction, delivering buildings which are adaptable to the changing workplace demands, but also increasingly new development must be cognisant of climate change and address the predicted environmental impact of global warming. In an Australian context, this predicted climate change will mean increasing average temperatures and, more significantly, an increased frequency of extreme heat days over 358C. The demands on building services and the effects on our patterns of work are only now being realised. Little has yet been achieved in addressing design and building systems to meet these challenges. My hope is that this journal will provide a forum to discuss and disseminate information on these important aspects of our built environment. Dr Clive Warren, Senior Lecturer, School of Geography, Planning and Architecture, University of Queensland, Australia

In recent years, the competition between places has become ever more intense, partly motivating the need for effective place management. One aspect of this has been the increasing importance of place marketing, a key element of which is the commodification and representation of selected place attributes in order to promote a positive image of the place as a holistic entity. This emphasis on image has been a key focus of much place marketing activity, because how a place is represented inevitably has an impact on its attractiveness to residents, visitors and investors. Whilst place “marketing” is arguably a relatively new phenomenon, place representation is manifest throughout history. For example, maps have provided a representation of the milieu (to use Robinson and Petchenik’s definition) for a variety of purposes, from the earliest of times. Often this representation went hand-in-hand with power and control over the places concerned – Jeremy Black, in his book Maps and Politics, states that maps can often be regarded as “an assertion of sovereignty”. In the recent past, the representation of place through the use of marketing communications activity (often incorporating maps) has been a crucial part of the place marketer’s task. The specific place elements highlighted in such advertising may well reflect the priorities and perspectives of hegemonic groups. Indeed, this aspect of place marketing activity – what Short and Kim in their book Globalisation and the City, have termed the “political economy perspective” – represents a key theme of place marketing research in the geography literature. Even more recently, the importance of the internet in place representation cannot be ignored. Web sites enable places to be represented in a more “active” way than the essentially static map and the majority of place advertising. Such representation is created not only by “official” place marketing agencies, but also increasingly by unofficial agencies and actors as well. The advent of Web 2.0 has facilitated the development of blogs, which their authors use to promote the places in which they live – a recent article in technology guardian (20 December 2007) describes how such activity is being used in a number of UK towns and cities technology – primarily through geographical information systems – has also revolutionised and democratised mapmaking. A recent search in Google images using the keywords “maps” and “advertising” produced over 557,000 results, created by all kinds of organisations, groups and individuals. If the representation of places is an aspect of their

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management and control, then perhaps the implications of the massively increased availability and accessibility of a plethora of – possibly conflicting – representations of places is set to be one of the main challenges for those responsible for place management in the future? Dr Gary Warnaby, Senior Lecturer, University of Liverpool Management School, UK

28 Views on the current state and importance of place management today Canadian Marshall McLuhan is credited with coining the term “global village” which most of us today understand as an irrevocable interconnectedness among people and planet. Yet, our one global village still has more than one “village square”. With global travel happening at levels unmatched in history, with the internet virtually connecting places in an instant, our concepts of “place” as a unique location – especially one serving human interaction – can be both diluted and reinforced. These factors tend to put our global village squares (be they situated nearby one another or half a world away) in competition in how they are perceived and enjoyed (or avoided). Amplifying the effects of our increasing interconnectedness, over the last century or so, many more places in private control and/or ownership have now come to compete to be the crossroads of social interaction, political expression, and commerce. For centuries, regardless of one’s means or position in society, these human interactions traditionally occurred almost exclusively in the public village square. Given such competition seems to exist to be the host location for citizen interaction and consumer commerce, it is unsurprising that “place management” has emerged as a specialized endeavour. Considering the diverse social, environmental, and economic factors affecting the success and sustainability of any place, this is an endeavour requiring multidisciplinary expertise that transcends previously applied limits to what the accepted responsibilities are for municipal governance, the “public good” and “private” enterprise. Place management helps navigate society among the complex realities that affect how, why, and when we visit one of the hundreds of “village” squares that compete for our presence. Management runs the gamut between the decidedly deterministic (e.g. forcing consumer behaviours) to fostering conditions that preserve the serendipitous (e.g. celebrations that erupt after a sports championship). It seems certain place management will continue to be necessary in distinguishing the attributes that retain diversity (countering against repetition) in the places available to us – all of us – not just the globetrotters. Jim Yanchula, Manager, Urban Design and Community Development Planning Department, City of Windsor, Canada

The current issue and full text archive of this journal is available at www.emeraldinsight.com/1753-8335.htm

Professionalizing business district management for the twenty-first century Fayth A. Ruffin

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School of Public Affairs and Administration, National Center for Public Performance Research, Rutgers, Newark, New Jersey, USA and Graduate Division of Global Affairs, Public Administration Concentration, Rutgers, The State University of New Jersey, Newark, New Jersey, USA Abstract Purpose – This paper seeks to explore leading theories and concepts in professionalising the emerging field of business district management. Design/methodology/approach – In the context of globalization and localization, it discusses distinctive place-based elements of business improvement districts (BIDs), such as: law, nomenclature, assessment formulae, and branding; while suggesting and analyzing strategic international application of certain theories and concepts. Findings – As an outgrowth of a literature review of globalizing cities, public administration, urban management, and BIDs together with semi-structured interviews of respondents in connection with doctoral dissertation research and in view of co-designing curriculum for and teaching a business district management certification program; research reveals that public entrepreneurship, social capital, network governance, and performance management can transcend disciplines and cut across sectors to be key theories and concepts for education and training of business district managers worldwide. However, management training is to be contextually developed consistent with branding techniques for the business district. Practical implications – Future research and evaluation of BIDs in the globalizing metropolis can ground theory to inform best practices and professional standards that will enable similarly situated business districts across the globe. Originality/value – Examining BID management is not new, however the thrust toward professionalising the field is new. Keywords Business administration, Governance, Globalization, Public sector organizations, Urban centres Paper type Research paper

Introduction In an age of globalization and neoliberalism, localized business district management becomes increasingly important as the human population becomes more urbanized. Given the proliferation of sub-local business districts all over the world, often as a tool of urban revitalization, professionalizing the place-based management becomes crucial. One business district management model is the business improvement district (BID). The Hoyt (2005a) study identifies the existence or emergence of BIDs Paper prepared for the: International Downtown Association 53rd Annual Conference and World Congress, 2007, New York, NY.

Journal of Place Management and Development Vol. 1 No. 1, 2008 pp. 29-45 q Emerald Group Publishing Limited 1753-8335 DOI 10.1108/17538330810865327

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and BID-like organizations in countries such Australia, Austria, Belgium, Canada, Denmark, France, Germany, Japan, The Netherlands, New Zealand, Norway, Portugal, Spain, South Africa, Sweden, the UK and the USA. Originating in Canada in 1971, the BID model now spans multiple continents and on-going research continues to inquire into the speedily rising number of business district management organizations across the globe. Hence, business districts, as a form of sub-municipal public/private governance, need best practices and standardized yet local and contextual methods to cooperate and compete, particularly in the contested urban terrain. Strategic and pragmatic application of theories and concepts of public entrepreneurship, social capital, network governance, and performance management together with many subsets of relevant topics therein transcend disciplines and cross sectors to stand out as pillars of education and training for business district managers so as to help professionalize the field of business district management. First, we examine the interaction of forces of globalization and localization (glocalisation) as they pertain to BIDs in globalizing metropolis. We next analyze how multiply defined and cross disciplined theories and concepts of public entrepreneurship, social capital, network governance, and performance management can draw universal management concepts in the face of local distinctions so as to better manage business districts such as the BID model. Finally, recognizing that the field of business district management is a new profession, we consider future research initiatives to better orchestrate place management. Localized place management in a global context To professionalize the field of business district management in the twenty-first century we must take into account globalism, transnational urbanism, and the transmission of theories and concepts to BID managers that are universal on an international scale yet contextually localized. Globalism can be defined as a state of the world involving networks of interdependence at multi-continental distances (Keohane and Nye, 2002). Contrary to common perception, the word “economy” does not alone define globalism; other forms of globalism are equally important. Globalism is a phenomenon with ancient roots and globalization is the process of increasing globalism, now or in the past. Globalization is the process by which globalism becomes increasingly thick (Keohane and Nye, 2002, p. 195). Globalization can be defined as the latest stage in a long accumulation of technological advance giving human beings the ability to conduct their affairs across the world without reference to nationality, government authority, time of day, or physical environment. Activities may be commercial, financial, religious, cultural, social, or political, nothing is barred (Langhorne, 2001). In an ever-globalizing society, the human population throughout the world is shifting from rural to more urban metropolitan areas. It is anticipated that by 2015, some four billion people will live in cities, 53 percent of the world population (The Global Campaign on Urban Governance, 2002, p. 7). By 2030 it is believed that some 60 percent of the world’s people will live in cities, consequently localization is multiplying the range of policy environments as globalization shrinks the world (Rosenau, 2003, p. 8). As globalization and localization interactively play

themselves out, there is a fragmentation of norms, ideologies, values and institutions on one hand (Kettle, 2000, pp. 490-2) and an integration where new sectors of society interact in new and innovative ways, possibly through policy networks comprised of diverse groups (Denhardt, 1999). BIDs are within that range of new policy environments or policy networks that Rosenau and Denhardt reference. The BID model is a public administration innovation (Mitchell, 1999) to be more fully placed in the context of public administration (Wolf, 2006). The proliferation of BIDs through urban revitalization policy entrepreneurs over the globe during the last two decades (Hoyt, 2005a, 2006) exemplifies the powerful trans-border force of localization, particularly in metropolitan areas. Policy transfer is the transborder sharing of knowledge and ideas about institutions, programs, policies and how they work in other jurisdiction (Dolowitz and Marsh, 2000). Specifically, a BID is a publicly sanctioned yet privately directed multi-sector organization that supplements public services to improve shared geographically defined, outdoor public spaces (Hoyt, 2005a). BIDs are deeply embedded polities in urban governance processes on the sub-municipal level (Stokes, 2006; Mitchell, 2001a, b) and, as nested organizations within intergovernmental systems (Hawkins et al., 1996). The rule of law confers upon BIDs geographical parameters, nomenclature, duration, powers, accountability, and other varied obligations and entitlements flowing from enabling statutes and/or particularized by city ordinances (Meek and Hubler, 2006). Legislation may grant BIDs specific powers or broad encompassing authority to “do everything necessary to effectuate the plan of improvement” (Arkansas, sec. 14-184-115); to further district goals (Connecticut Gen. Stat., sec. 7-339n) or benefit public facilities in the managed district (Nebraska Rev. Stat., sec. 19-4019. In Washington, D.C., enabling legislation is amended to create each BID, and its powers appear to lie in its own by-laws (D. C. Code, sec. 2.215.08) (Justice and Goldsmith, 2007). Georgia BIDs are constitutionally established local governments with land use and planning authority (Morc¸o¨l and Zimmerman, 2006a, b). Courts have upheld BID voting schemes (Kessler v. Grand Central District Management Association, 1998), assessment formulae (2nd Roc-Jersey Associates et al. v. Town of Morristown et al., 1999), and internal by-laws (de Castro, 2005) on one hand and have ruled against BIDs for failure to follow legal proscriptions (Archie v. Grand Central Partnership, District Management Association, 1998) on the other. The literature suggests that, while BIDs vary jurisdictionally, fulfilling different development functions (Gross, 2005; Segal, 1997), they all engage in a type of cooperative capitalism with the power of government behind them (Houston, 2004; Justice, 2003). As local power relations and inequalities become inscribed in urban planning projects like BIDs (Schaller and Modan, 2005; Pack, 1992), BIDs continue to alter the urban landscape (Symes and Steel, 2003; Briffault, 1999). While underrepresented groups raise concerns about private sector organization expansion into performance of local government activities (Steel and Symes, 2005), BIDs redefine borders between public and private; promising in the USA to rewrite the rules of politics (Briffault, 1999). BIDs generate public policy (Justice and Goldsmith, 2006) but not in an isolated fashion (Levy, 2001). Rather, policies underlying local service delivery networks spark policy entrepreneurs to deliberately transfer the innovatory polity around the world (Hoyt, 2006; Ward, 2006; Lloyd et al., 2003) suggesting the

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unfolding of a transnational discourse community. The literature reveals that a BID’s emerging role in channeling social capital (OECD, 2001) to manage the post-industrial globalizing metropolis (Mallett, 1995, p. 108; Harvey, 1989) calls for its re-conceptualization in the framework that network governance theories offer (Morc¸o¨l and Patrick, 2006). As the population in metropolitan areas has grown, significant literature has emerged on transnational urban systems of which this author believes BIDs are a part. Theorists opine about global or globalizing cities (Sassen, 2001, 2000; Borja and Castells, 1997; Brenner, 1998; Eade, 1997; Marcuse and van Kempen, 2000; Oncu and Weyland, 1997; Smith, 1995, 1998). Likewise, there is the conceptualization of world cities (Boyle et a1., 1996; Chua, 1998; Godfrey, 1996; Friedmann, 1998; King, 1995; Wallerstein, 2004). Sassen distinguishes world cities from global cities by level of generality and historical specificity. That is, the world city has a certain kind of timelessness attached to it where the global city model marks a specific socio-spatial historical phase (Sassen, 2001, p. 394). Sassen (2001, p. 350) argues that global cities such as New York, London, and Tokyo have emerged as a function of network. The cities are partly deterritorialized when it comes to digital networks and partly territorialized in the locales constituting the network. The growth dynamic in the global city is not toward an expanding middle class but a deepening stratified spatiality (Sassen, 2001, pp. 362-3). The new production line in a post-Fordist world is finance and specialized services with centrality as its benchmark (Sassen, 2001). Smith (1998, pp. 485-6) describes a world of crisscrossing articulations of global and local within which all cities are viewed in the fullness of their particular linkages with the worlds outside their boundaries. He contends that there is no solid object known as the global city appropriate for grounding urban research, only an endless interplay of differently articulated transnational networks and practices. In contrast, Marcuse and van Kempen (2000, pp. xvii, 270-1) argue that the question revolves not around the creation of a new spatial order or whether a city is at the top or bottom of the world hierarchy but that it is the nature and extent of the influence of the globalization process upon a city that matters. Hence, their use of the term: “globalizing cities.” This research uses the term “globalizing cities” as well, recognizing that most cities have been touched by globalization and marking (not unlike Sassen) a time-specific socio-spatial phase, here, of emerging BIDs on the metropolitan landscape. Understanding that economic globalization is not to be privileged in the literature over other forms of globalization, theorists observe that also nestled in the globalizing metropolis is a high density of “new” social and cultural transnational practices, relations, networks and sensibilities, propagating a “new urban politics” across “a disjointed terrain” of global media flows. Therein state-centered and multi-centric actors side with and oppose global actors, multi-locational entrepreneurs, and multilateral political institutions (Smith, 1998). Bislev et al. (2002) identify a trend toward transnational discourse communities (TDCs) inclusive of at least non-governmental organizations, international organizations, and broader networks. These TDCs brand management techniques for various layers and institutions of government. The governance techniques diffused are based upon substantial use of private-sector rationales and are rendered unmediated by conventional nation-state

politics thereby demonstrating a potentially globalizing force. The proliferation of internationally diffused ideas; the links between ideas and politics are driven by regional and global policy networks (Stone, 2002). Even democratic social justice movements are being found better negotiated within the matrix of the global/local process rather than from a national to a global platform (Yar, 2000). Against this backdrop of the interplay and interaction between globalization and localization, and in light of the utility of BIDs as a tool of urban governance in the globalizing metropolis (Briffault, 1999; Wolf, 2006; Morc¸o¨l, 2006; Morc¸o¨l and Zimmermann, 2006a, b; Morc¸o¨l and Patrick, 2006) emerges the need to professionalize the field of business district management. BIDs and BID-like organizations are increasing at an accelerated rate. Mitchell (2001a) shows in a national survey of the USA conducted in the 1990s, 264 independently managed BIDs operating in 43 states. By the late 1990s there are as many as 1200 BIDs in the USA and Canada combined (Morc¸o¨l and Zimmermann, 2006a, b). During her international study, Hoyt (2006) identifies 398 non-American BID or BID-like organizations on three continents. Local distinctions yet fitting for universal management concepts Although known by many different names throughout the USA, such as special improvement districts in New Jersey, community improvement districts (CIDs) in Georgia, neighborhood improvement districts or downtown improvement districts in Pennsylvania, special services areas SSAs in Illinois, and abroad: business improvement areas in Canada, and City Improvement Districts (2003) (CIDs) in South Africa, BID organizations have enough in common to standardize some internationally applicable management practices. To be sure assessment formulae are jurisdictionally specific and non-uniform, for instance: in Hawaii (Rev. Stat., sec. 46-80.1) and Michigan (Comp. Laws, sec. 125.985) the basis for assessment is whether the property is improved or otherwise benefits from the special improvement. The formula may be fixed by ad valorem taxes upon the assessed value (Louisiana Rev. Stat. Ann., sec. 33:2740.80); or per front foot or per square foot analysis (Maryland Code Ann. 24, sec. 9-1301, Mississippi Code Ann., sec. 21-43-123). Or, the formula may be in proportion to benefits received among the properties assessed (Delaware 22 Del. Code, sec. 1505; Montana Code Ann, sec. 7-12-1133); or any combination of these or other equitable means (US State Survey in Justice and Goldsmith, 2006b). California state law requires the assessment formula to be fair, balanced, and commensurate with benefits received however, the assessments of BIDs cannot be based on a percentage of the assessed valuation of property given the tax initiative Proposition 13 (Meek and Hubler, 2006). Some statutes leave the fixing of formulae for assessments charged BIDs to the governing municipality (e.g. Nebraska, Oklahoma, South Dakota, and West Virginia). In Cape Town, Western Cape Province, South Africa the BID levy is calculated as a cent-in-the-rand of the valuation base (a property database prepared by the municipality) and the BID budget (www. capetownpartnership.co.za). Yet neither the diverse nomenclature nor the mix of assessment formulae for BIDs deter us from providing managers with a knowledge and skill set commensurate with the location-specific needs of BIDs. BIDs are place-based yet transnational. It is the location that brands the BID and determines its function; in this regard we have an

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abundance of theorists from which to draw in providing combined pragmatic education, training and research infrastructure for business district managers. Bradley (1995) examines the historical functions of BIDs, and along with (Mitchell, 2001b), the BID’s new roles in beneficially enhancing downtown and commercial districts. BIDs are considered special district governments (Hudson, 1996), public-private governments (Mallett, 1995), private governments (Justice and Goldsmith, 2006; Baer and Feiock, 2005; Pack, 1992), privatization by the back door (Lavery, 1995) or the front door (Steel and Symes, 2005). BIDs are deemed sources of urban governance and/or metropolitan governance (Briffault, 1999; Wolf, 2006; Morc¸o¨l, 2006; Morc¸o¨l and Zimmermann, 2006a, b; Morc¸o¨l and Patrick, 2006). Some theorists present BIDs as self-help capitalist tools (Houston, 2004), as agents of urban regeneration (Symes and Steel, 2003; Stokes, 2006; Lloyd et al., 2003), tools for economic development (Segal, 1997), and tools of public policy (Justice and Goldsmith, 2006). Other theorists see these polities as functional sources of policy transfer (Hoyt, 2005a, b, 2006; Peel and Lloyd, 2005; Ward, 2006). Still other theorists see BIDs as land-use planners and authorities (Deutsch and Tarlock, 2000; Morc¸o¨l and Zimmerman, 2006), exercising influence and control over their domain to satisfy BID values. Stark (1998) explores them in terms of their juxtaposition to rising gated communities in the globalizing metropolis and the dual social segregation emanating therefrom. Baer and Feiock (2005) as well as Justice (2003) use transaction resource theory and institutional analysis to each shed light on the problems of collective action to deliver public goods and how certain communities resolve those problems. Although nomenclature varies, legal formation differs, assessment formulae are non-uniform, and the function and brand of a BID is purely place-specific; elements of management for the BID model of a public-private partnership are universal. By understanding the global context of BIDs, universal management theories take on deeper meanings and concepts can be better disaggregated so as to be contextually applied. For example, all BID managers must engage stakeholders whose perspectives may be divergent. Stakeholder engagement is a running theme throughout such universal BID management theories and concepts as public entrepreneurship, social capital, network governance, and performance management. We will briefly examine each one in turn. There is no consensus in the literature as to a definition of public entrepreneurship. Components of public entrepreneurship include risk-taking (Cohen, 1988; Kingdon, 1984) and introduction and development of new ideas (Polsby, 1984; Doig and Hargrove, 1987). Drawing from Schumpeter’s (1939) premise that the function of the entrepreneur is innovation and that innovation is a change in the production function, Roberts (1992) defines public entrepreneurship as the generation of a novel or innovative idea and the design and implementation of the innovative idea into public sector practice. This definition is easily applicable to BIDs. Not only are BIDs a public administration innovation (Mitchell, 1999), but also the BID manager is constantly changing the sub-local service delivery function by creating, designing, and implementing new ways of goal achievement that require knowledge of architecture, business, economic development, law, management, marketing, planning, psychology, urban affairs, and many other disciplines. So, the twenty-first century BID manager becomes a public entrepreneur out of necessity when it comes to addressing business recruitment and retention, capital

improvements, economic development, consumer marketing, maintenance, nighttime economy issues, parking and transportation, policy advocacy, public space regulation, retailing, sanitation, security, social development, tourism and other services that the BID delivers. Public entrepreneurship, however, does not come from the BID manager alone. Rather, while the BID manager may be a public entrepreneur, she/he is separate from the new production function that amounts to public entrepreneurship. Public entrepreneurship unfolds when a sufficient number of key stakeholders buy into the new idea that is emerging, are engaged in the design of it and are motivated to help implement, and if necessary, adjust it as the context requires (Roberts, 1992, p. 56). In other words, social capital works hand in hand with public entrepreneurship for BID management in the twenty-first century. Again there is no consensus in the literature as to a definition of social capital. From some theorists we learn that: “it is the aggregate of the actual or potential resources, which are linked to possession of a durable network of more or less institutionalized relationships of mutual acquaintance and recognition” (Bourdieu, 1985, p. 248). Or, it is the value of resources emanating from and usable by the autonomous actors to collectively realize their interests or goals through the combination of their actions (Coleman, 1990, pp. 300, 305). It is the ability of people to work together for common purposes in groups and organizations (Fukuyama, 1995, p. 10). Made up from networks with shared norms, values, and understandings that facilitate cooperation within or among groups (OECD, 2001), trust is an essential element of social capital (Putnam, 2000). Here, we define it simply as that property of relations among individuals and/or organizations which at once emerges through interaction on one hand and facilitates collective action of goal achievement by actors involved, on the other hand. The BID manager’s ability to recognize its existence and to mine the social capital inherent in BID stakeholders can make or break the BID. Social capital involves conduits, bridges, and vertical and horizontal designations (Adler and Kwon, 2002; Oh et al., 2004) that fuel network governance. Not unlike public entrepreneurship and social capital, there is no consensus in the literature defining network governance. The fact that there are many definitions of public entrepreneurship, social capital, and network governance is helpful when it comes to defining these theories and concepts in direct relation to BIDs. It enables us to bring the multidisciplinary and interdisciplinary nature of BIDs to light in the very definition of terms . . . universal enough to apply to BID management around the world, yet flexible enough to be contextual in a particular locale. Sorensen and Torfing (2005) define network governance as: . a relatively stable horizontal articulation of interdependent, but operationally autonomous actors; . who interact through negotiations; . which take place within a regulative, normative, cognitive and imaginary framework; . that to a certain extent is self-regulating; and . which contributes to the production of public purpose within or across particular policy areas.

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Network governance of a BID requires the manager to pull from both public and private sector organizational theories. To further complicate or intrigue matters (depending upon your perception) the contract at hand or the services to be delivered may shift modes of governance for a BID during the lifetime of an agreement or transaction. It may shift in various directions to and from a hierarchical, market, or network mode of governance (Lowndes and Skelcher, 1998; Ysa, 2006). Public administration (O’Toole, 1997), public policy-making (Kickert et al., 1997), and service delivery (Considine, 2005) are taking place in networks consisting of various actors, none of which possesses the power to determine the strategies or to compel compliance of the other actors. Unlike the BID public manager who deals daily with public and private sector notions, the traditional public management network would exclude mere formal hierarchies and perfect markets, but include a wide range of structures in between. Authority bonds and exchange relations may glue networked ties and coalitions based on common interest, all within a single multiunit structure (O’Toole, 1997). In terms of commercial enterprise, upon finding those Japanese firms seem to rely extensively on network forms of organization, Western scholars and practitioners began to question the extent to which reliance upon network forms of organization is itself a determinant of competitive success (Podolny and Page, 1998; Lincoln et al., 1996; Gerlach, 1992). Podolny and Page distinguish network forms of organization from hierarchy and market. They define network governance as any collection of actors that pursue repeated, enduring exchange relations with one another and, at the same time, lack a legitimate organizational authority to arbitrate and resolve disputes that resolve the exchange. These theorists distinguish the market form of governance as engaging relations that are enduring but episodic, formed only for the purpose of a well-specified transfer of goods and resources and ending after the transfer. Hierarchies exist where longer enduring relations extend beyond an episode and where a clearly recognized, legitimate authority exists to resolve disputes that arise among the actors (Podolny and Page, 1998, p, 59). In their view, among the three, network governance, inter alia, fosters learning, yields attainment of status or legitimacy; provides a variety of economic benefits; and facilitates the management of resource dependencies. To be sure, Jones et al. (1997) argue that network governance provides a comparative advantage as a form of governance over market and hierarchy. They integrate transaction costs economics and social network theory to help firms and non-profit agencies identify conditions under which network governance is likely to emerge as well as the social mechanisms that allow it to coordinate and safeguard customized exchanges in a rapidly changing market (Jones et al., 1997, p. 913). Jones et al. (1997) define network governance as involving a select, persistent, and structured set of autonomous firms as well as non-profit agencies engaged in creating products or services based on implicit and open-ended contracts to adapt to environmental contingencies and to coordinate and safeguard exchanges. The contracts are socially, but not legally binding (Jones et al., 1997, p. 914). By combining elements of public and private sector network forms of organization, we can teach business district managers how to better grapple with the complex and multitude of issues that arise, the problem solving that must be undertaken, and the trust and relationship-building that can take place among and between network actors.

Central to network governance is stakeholder engagement, effectiveness, efficiency, transparency, and democratic accountability. Contemporarily, government focus in our globalizing society shifts from a vertical, bureaucratic, top-down, command-control to a horizontal, cross-section, de-centered, network type of governance. The vertical field of the public manager in the city, for example, may include one or more regional, state, or federal agencies. The horizontal field may more expansively include county government, townships, non-governmental organizations; and in a policy field like economic development, financial institutions, developers, businesses, public-private partnerships and more (Agranoff and McGuire, 1998, 2003). This collaboration amounts to “a network” (Chisholm, 1989) and networks are particularly telling in terms of economic development (Barnett and Rodriguez, 2006) by BIDs. True, the BID model derives its intergovernmental status from its public-private partnership with the municipality and other levels of government. At the same time, however, it works across a myriad of networks with public agencies and the private sector to deliver services and, beyond that, to build relationships. For example, the Ironbound Business Improvement District (IBID) works across networks with the Prudential Arena to cultivate urban tourism and to build and support the nighttime economy in Newark, New Jersey (Grossman, 2007). Andrew Boraine of the Cape Town Partnership (CTP), which manages several CIDs in that locale, spearheaded the Cape Town Business Areas Network which includes information sharing, a learning environment, and a platform for not just CIDs but any business district or shopping center managers who can benefit from such workshops and walking tours. This network creates cooperation rather than competition among the business sectors (Boraine, 2007). Although these BIDs are continents apart, application of network governance in the globalizing metropolis is translocal. In addition to public entrepreneurship, social capital, and network governance, performance management is yet another key topic area for business district managers worldwide. Performance management transcends that public and private sector divide so once again the business district manager will need to draw from principles and traditions of each sector and even from organizational distinctions within each sector. Performance management for the twenty-first century BID manager needs to include at least performance measurement, program evaluation, and performance-based budgeting. Morc¸o¨l and Patrick (2006, p. 163) argue that typical evaluation methods and studies do not address all the issues relative to BIDs. In line with the network governance research of Mandell and Keast (2006) and Mandell (2001, 2000)), BIDs work in cooperation, coordination, and collaboration in networks with other entities. The fact that BIDs seldom operate as stand-alone organizations further complicates issues of accountability which make standard evaluation and studies ineffective (Mandell and Keast, 2006; Mandell, 2001, 2000). At the time of Mitchell’s (1999) study only half of the 264 BIDs identified measured the performance of these services. Of those, a mismatch existed between services provided and the manner in which performance is measured. He identified a need for setting benchmarks of performance noting also that BIDs can learn to rely upon surveys, focus groups, and public hearing to elicit citizen engagement (Mitchell, 1999, p. 28). Pushing forward, Caruso and Weber (2006) advocate a performance management system whereby performance measures are negotiated, evaluated, and required for

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annual budget renewals as a first step toward BID accountability. This is tantamount to performance-based budgeting. These two theorists argue that performance measures are necessary to manage the potentially negative consequences of privatizing the delivery of public services and requiring that these services be “self-financed” (Caruso and Weber, 2006, p. 215). In proposing a framework for connecting performance indicators to specific organizational objectives, Caruso and Weber posit that once BIDs distinguish and prioritize their missions, appropriate performance indicators will flow from these decisions. Then, municipal and oversight commissions can work with these service providers to customize indicators to benchmarks reflective of the organization’s goals, budget, and capacity (Caruso and Weber, 2006, p. 216). At the same time, as we see from network governance, BIDs are not stand alone organizations. Therefore, to the extent that traditional performance measures are geared toward single organizations, they will not be useful in gathering data and measuring or evaluating it when BIDs accomplish goals across networks in conjunction with other actors. Collaborating networks are calling for a shift in consciousness away from performance measurement and program evaluation as we have known it so that the ideas of competition, control and authority no longer apply. According to Mandell and Keast (2006), to measure results in a collaborating network requires an analysis of not only what rules are established in a network that will serve to govern its operation, but also the impact of these rules on changing the values and attitudes altering the perceptions of the members of the network. These theorists call for the use of non-traditional measures of performance such as network analysis and participatory evaluations. Rather than looking at the attributes or characteristics of individuals within the network, network analysts look instead at the linkage and structural properties of types of social relationships (Mandell and Keast, 2006, p. 14; Kilduff and Tsai, 2003; Scott, 1991; Wellman, 1981). The idea behind participatory evaluations is to include stakeholders in the process so as to enhance relevance, ownership, and results utilization (Mandell and Keast, 2006, p. 16; Quinn-Patton, 1997; Cousins and Whitmore, 1998). Various methods include action-learning teams, focus groups, story telling, and personal interviews (Mandell and Keast, 2006, p. 16; Montgomery, 2004; Sydow, 2004). Non-traditional methods of performance measurement and evaluation are well suited for BIDs. While it is very important for a BID to demonstrate how many tons of refuse are collected, how many arrests are made, or how many vacancies were filled in office space, it is also important to discover performance information that goes to the success or lack of success in relationship-building across networks for collective action. A BID manager is often too pre-occupied with day-to-day matters to contrive an elaborate system of traditional performance measures. However, a manager could align performance indicators to network activity in conjunction with other actors and collect performance information as the collaborative network proceeds. There are many uses for performance information including performance-based-budgeting. Once again, BID managers would have to pull back from traditional budgeting systems in order to link performance with budget allocations (Andrews and Hill, 2003). To do so, would enable to the BID to approach budgeting as an investment in the very community in which the BID is nestled.

Conclusion In drawing to a close, examining BID management is not a new phenomenon. Mitchell (1999) found in his national study of BIDs that: . management approaches are not uniform, and may be supervisory, public servant, or entrepreneurial in nature; . attributes of the manager, management styles, and knowledge and skills requirements for management are central to BIDs; and . organizational design is meaningful as it may affect how BID managers approach their jobs and the provision of services by BIDs. We took these and many other available findings into consideration at Rutgers University – Newark in the USA when we developed the curriculum for our Business District Management Certification Program. Our focus is the practical application of theory; curriculum developed for practitioners by practitioners (who just happen to be academics). Registrants already in the field share their own experiences through a threaded discussion through Blackboard online and learn from the experience of others. This method allows us to crystallize theories for better application to diverse BID environments. While examining BID management is not new, the thrust toward professionalizing the field is new. Strategic application of these four theories and concepts: public entrepreneurship, social capital, network governance, and performance management together with the many subsets of relevant topics within them transcend disciplines and sectors standing out as pillars of education and training for BID managers so as to professionalize the field. To augment business district management training and education the twenty-first century and beyond, we will need to conduct on-going research and evaluation about BIDs in an effort to ground theory that speaks directly and contextually to the design and contours of the BID model. This multi-method research initiative is two fold. First, it will enable us to quantitatively measure the existence and assess the nature of business district management practices across multiple continents. Through rigorous qualitative research we can evaluate and ground theory while establishing informed and stakeholder driven standards which we can adjust as necessary in accordance with quantitative and qualitative research findings that are contextualized and citizen-driven. Secondly, this research initiative will enable other BIDs similarly situated to draw from the experience and findings of others which will deliver more consistency and better orchestrate place management. In view of globalization, or in our case, glocalisation, we are no longer worlds apart, wherever we live. Instead, we are bound transnationally by virtual communities through the internet and other forms of mass communication and transportation and by our common thread of living, working, shopping, touring and otherwise having a stake in the outcome of business districts at home and abroad.

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Ysa, T. (2006), “Back to the process in local collaborative public management: sustainability and local strategic partnerships”, paper presented at the Urban Affairs Association, Annual Conference Montreal, CA, April 22. Further reading Cigler, B. (2001), “Multiorganisational, multisector, and multicommunity organisations: setting the research agenda”, in Mandell, P. (Ed.), Getting Results through Collaboration: Networks and Network Structure for Public Policy and Management, Quorum Books, Westport, CT, pp. 71-85. Coleman, J.S. (1988), “Social capital in the relation of human capital”, The American Journal of Sociology, Vol. 94, pp. 95-120, Supplement: Organizations and Institutions: Sociological and economic Approaches to the Analysis of Social Structure. Garodnick, D.R. (2000), “What’s the BID deal? Can the grand central business improvement district serve a special limited purpose?”, University of Pennsylvania Law Review, Vol. 148 No. 5, pp. 1733-71. Holzer, M. and Lee, S. (2004), Public Productivity and Performance Handbook, Marcel Dekker, Inc., New York, NY. Keast, R., Mandell, M. and Brown, K. (2006), “Mixing state, market and network governance, modes: the role of government in ‘crowded’ policy domains”, International Journal of Organization Theory and Behavior, Vol. 9 No. 1, pp. 27-50. Keast, R., Mandell, M.P., Brown, K. and Woolcock, G. (2004), “Network structures: working differently and changing expectations”, Public Administration Review, Vol. 64 No. 3, pp. 363-71. Mandell, M.P. (1994), “Managing interdependence through program structures: a revised paradigm”, American Review of Public Administration, Vol. 24, I, pp. 99-121. Smith, M.P. and Guarnizo, L.E. (Eds) (1998), Transnationalism From Below, Transaction Publishers, Brunswick, NJ. Traub, J. (1996), “Can associations of businesses be true community builders?”, Responsive Community, Vol. 6, pp. 29-38. van Waaren, F. (1992), “Dimensions and types of policy networks”, European Journal of Political Research, Vol. 21, pp. 29-52. Corresponding author Fayth A. Ruffin can be contacted at: [email protected]

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An exploratory study of the contextual stability of SERVQUAL amongst three retail clusters in far North Queensland Darren Lee-Ross School of Business, James Cook University, Cairns, Australia Abstract Purpose – This study seeks to assess the psychometric properties of SERVQUAL, a prevalent instrument for measuring service quality within the “place” context of a shopping mall. Since, appearing in the management and marketing literature, this instrument has proved popular amongst researchers and practitioners. However, evidence supporting or refuting the tenets of the “gap” model and the dimensionality of the questionnaire is equivocal. Design/methodology/approach – Modified versions of the questionnaire were used as a basis for interviewing customers of three retail clusters in the region of far North Queensland (n ¼ 782). Findings – Analysis of data failed to support the generic five-factor structure of service quality amongst these retail outlets. Service quality was perceived to be context-specific and less multi-dimensional than contended by the original SERVQUAL authors. Furthermore, little support was found for the concurrent validity of the instrument. Moreover, notions of service quality may have been confused due to the separate perspectives of three retail clusters within the overall context of a shopping mall. The multi-dimensional nature of intangible service quality and dynamic expectations of customers and clients therefore presents significant challenges for place managers. Research limitations/implications – A practical decision was made to maximize the generalizability of the research by aggregating individual retail outlets into three overall clusters. Some measure of internal validity may therefore have been sacrificed. Practical implications – It is recommended that future research begins with 360-degree qualitative analyses of contexts from which new constructs and instruments may be developed. Originality/value – The retail industry in far North Queensland is a previously under researched area in terms of the SERVQUAL instrument. The new factor structures found for clusters should improve service-quality management and impact on tourism-related business in the region. Keywords SERVQUAL, Customer service quality, Retailing, Australia Paper type Research paper

Journal of Place Management and Development Vol. 1 No. 1, 2008 pp. 46-61 q Emerald Group Publishing Limited 1753-8335 DOI 10.1108/17538330810865336

Introduction According to Green and Zappala (2000) the concept of place management emerged as a direct result of the increasingly complex governmental task of integrating and allocating resources. Moving from the earlier models of “welfare” and “community” place management has underlying principles of self-help, consultation, collaboration, co-management and changing systems with locus of power being shared by a place manager, community and government (p. 2). Stuart-Weeks (1998) considers place management from a number of perspectives and understandably explains in various ways depending on the situational context. The present study does similar using his original definition:

Place management refers to a shift in the structure and design of public governance and management from functional or output units to a focus on outcomes. In its simplest, it is about a concern with ends and not means (p. 1).

In the current instance, the idea of “place” is a shopping mall in a particular geographical region where retail outlets together provide a single “systemic” outcome or output of goods and services. The issue at hand here is a composite of retail service delivery from a number of different providers in a newly refurbished mall for the benefit of the host community and tourists in a broader place of an international tropical tourist destination. A further notion embedded in the above definition is that of collaboration and co-management. Thus, the physical layout and design of the centre exploits the tropical theme with individual retailers managing the delivery of their service accordingly, consistent with an overarching mall management philosophy. Thus, the output is a synergy of individual retailers within a broader holistic framework designed to achieve a particular outcome.

Contextual stability of SERVQUAL 47

SERVQUAL and context The original instrument was specifically designed to measure service quality from a customer perspective. Essentially, Parasuraman et al. (1988) consider it to be the “gap” between perceptions and expectations measured by subtracting an impression of preand post-service experience. The instrument contains 22 pairs of Likert-type statements said to represent five key service dimensions shown in Table I. Since, the initial conceptualisation and subsequent empirical testing of Parasuraman et al. (1985) SERVQUAL instrument, it has generated significant debate. In part, this is due to a relentless search for the “Holy Grail” of competitive advantage (through quality) in an ever increasingly globalized and competitive society where profit maximization is best achieved through customer satisfaction rather than profit maximization per se. An increasingly discerning customer base has driven many companies to manage their service delivery more carefully. Unsurprisingly, “new” models and techniques for measuring service quality were always bound to be popular amongst researchers and industrialists, especially if they were simple and convenient. SERVQUAL is often cited as a popular tool for measuring quality and van Dyke et al. (1999, p. 1) claim that it is: “ . . . one of the pre-eminent instruments for measuring the quality of services as perceived by the customer”. Parasuraman et al. (1985) model influenced the development of other subsequent but related constructs including Haywood-Farmer (1988) – attribute service quality model; Brogowicz et al. (1990) – synthesized model of service quality; Cronin and Taylor (1992) – performance only model; Broderick and Vachirapornpuk (2002) – internet banking model; Zhu et al. (2002) IT-based model; and Santos’ (2003) model of e-service quality. SERVQUAL and derivatives have been used in a wide variety of service contexts ranging from banking Tangibles Reliability Responsiveness Assurance Empathy

Physical facilities, equipment and appearance of personnel Ability to perform the promised service dependably and accurately Willingness to help customers and provide prompt service Knowledge and courtesy of employees and their ability to inspire trust and confidence Caring, individualised attention the firm provides its customers

Table I. Service dimensions

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(Newman, 2001), healthcare (Babakus and Mangold, 1992) and tourism (Saleh and Ryan, 1991) to department stores (Zhao et al., 2002), hotels (Juwaheer, 2004) and web sites (van Iwaarden et al., 2003). Despite its popularity, SERVQUAL is not without criticism. Buttle (1995) categorises these as theoretically and operationally-based. The first, questions the underpinning construct of SERVQUAL and its dimensionality (Carman, 1990; Brown et al., 1993; Teas, 1993). Despite Parasuraman et al. (1991) assertion that their 22-item scale and dimensions are stable and consistent across a range of service industries, the psychometrics of SERVQUAL have yet to be established convincingly. Writers such as Asunbonteng et al. (1996) concur recommending further research to explore the tenets of the instrument. Buttle’s second category scrutinizes issues including the reliability of Likert scales, appropriateness of reversed polarity of questions, lengthy administration of the questionnaire and the questionable assumption that individuals share common perceptions of “good” and “bad” service quality. Mindful of the above “weaknesses” and consistent with other research approaches (Lam and Woo, 1997), the present study aims to assess the reliability and validity of the SERVQUAL instrument across several contexts. The intent is to replicate and extend earlier work where possible thereby contributing to the further development of SERVQUAL. Here, the instrument is used in the retail sector of Far North Queensland, which relies to a large extent on income from tourism. This is the largest employer in Cairns and is estimated to provide 30,000 jobs and generate $2.7AUD billions per annum (Connolly, 2006). Given the wealth creating-potential of tourism, accurate measurement and management of service quality is essential for sustainable future development of the region. The present study seeks to assess the generic qualities of the SERVQUAL instrument across a number of retail outlets. That is, to see whether SERVQUAL dimensions are consistent across contexts. The expectation was that results would be context-specific following Asunbonteng et al. (1996) contention rather than the original position taken by Parasuraman et al. (1991). The instrument Statements have a 1 – strongly disagree, to 7 – strongly agree, format and subtraction of expectations from corresponding perceptions results in a gap score (gap 5). This is said to represent an indication of perceived service quality; the wider the gap the less satisfied the customer. The SERVQUAL instrument is based on the gap analysis model shown in Figure 1. Asunbonteng et al. (1996, p. 917) explain the gaps shown above as: . Gap1. Difference between customer’s expectation and management’s perceptions of those expectations, that is, not knowing what customers expect. . Gap2. Difference between management’s perceptions of customer’s expectations and service quality specifications, that is, improper service-quality standards. . Gap3. Difference between service quality specifications and services actually delivered, that is, the service performance gap. . Gap4. Difference between service delivery and the communications to customers about service delivery, that is, whether promises match delivery. . Gap5. Difference between customer’s expectation and perceived service. This gap depends on size and direction of the other four gaps.

Word of mouth communication

Personal needs

Past experience

Expected service

Contextual stability of SERVQUAL 49

Gap 5 Perceived service

Consumer

Service delivery (incl. pre and post contacts)

Gap 4

External communications to the consumer

Marketer Gap 3 Translation of perceptions into service quality specifications Gap 2 Management perceptions of the consumer expectations Source: Parasuraman et al. (1985)

The SERVQUAL questionnaire was revised in 1991 and 1994. Minor changes were made to some question wordings and the 22 statements reduced to 21; dimensions remained unchanged (Seth et al., 2005). Method A letter was sent to several retail outlets in the Cairns region to seek permission for the study to take place. The researcher subsequently visited those that agreed where a full explanation of the project and confidentiality were discussed with mangers to ensure a minimum disruption of the operations of each business. Following the advice of Asunbonteng et al. (1996), a copy of the questionnaire was given to each manager for review. The aim was to ensure that question-specifics were appropriate to their retail outlets[1]. This was deemed an appropriate procedure to optimise face validity working within the practical constraints of the project. Additionally, researchers visited each store for a similar purpose using an informal observation technique to gather further information for question customisation. Managers later signed a formal “research agreement”. Researchers subsequently carried out the data-gathering phase of the study. Without exception, researchers were positioned adjacent to outlets with necessary

Figure 1. The gap analysis model

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facilities to carry out SERVQUAL-based interviews (desks, chairs, etc.). As all stores were housed in one mall this arrangement was not problematic. A systematic random sampling technique was used whereby every ninth customer was approached for interview. Interviewees were presented with a card detailing the nature and purpose of the research, an assurance of anonymity and contact details should they have any further questions. Interviews took place outside stores prior to customer entry and immediately afterwards to enable both expectation and experience questions to be completed. Data were collected from a total of 13 retail outlets from 782 customers. These organizations were divided into three representative clusters: (1) mart-type stores; (2) banks; and (3) restaurants. Results A number of procedures were used to assess the reliability and validity of the SERVQUAL instrument across several retail contexts. First, Cronbach’s a coefficients were computed to determine the internal reliability of statements for each dimension. Second, dimensionality was measured using multiple correlations of questionnaire items (Bagozzi, 1981; and van Dyke et al., 1999). Third, given the equivocal nature of the factor structure of SERVQUAL (Babakus and Boller, 1992), an exploratory factor analyses was conducted using principle components method with an oblique rotation due to the correlatedness of the factors. Factors with eigenvalues less than one were not retained. Fourth, concurrent validity relating to the extent of SERVQUAL scores’ association with conceptually related measures was examined. Similar to the earlier study of Woodside et al. (1989) behavioural intent was measured using correlations with global items. The present study used questions measuring overall service quality and satisfaction. In line with the recommendations of many authors including Anderson and Gerbing (1991), Shewchuck et al. (1991), Cronin and Taylor (1992), Boulding et al. (1993), Taylor and Cronin (1994), Buttle (1995), Kettinger and Lee (1997), Carr (2002) and Chan et al. (2003), only customer perceptions of service quality were considered as appropriate indicators of service quality. First, reliability of SERVQUAL was considered beginning with Table II showing a coefficients for all three retail clusters by dimension. The a above range from 0.62 for responsiveness (banks) to 0.93 for reliability (banks). This suggests that inter-item reliability of scales across all retail clusters is generally acceptable if 0.80 is taken as an adequate rule of thumb (Nunnally, 1978). The concurrent validity of SERVQUAL was next examined using multiple regression. Two global items were regressed against all SERVQUAL dimensions. This technique accounts for the effect of several independent variables in predicting the dependent variable. To account for the inevitable increase in controlled variance when more than one independent variable is present the adjusted R 2 was used as it takes some account of this effect. Table III shows the results for items: . overall, how was the level of service quality you received from this retail organization; and . overall, please state your level of satisfaction with the services you received from this retail organization.

Organization cluster

Dimension

Banks (n ¼ 170)

Tangible Reliability Responsiveness Assurance Empathy All Tangible Reliability Responsiveness Assurance Empathy All Tangible Reliability Responsiveness Assurance Empathy All

Marts (n ¼ 301)

Restaurants (n ¼ 311)

Global item Service quality Satisfaction

a 0.88 0.93 0.62 0.89 0.91 0.93 0.86 0.92 0.89 0.92 0.91 0.94 0.87 0.85 0.89 0.86 0.87 0.92

Banks (n ¼ 170)

Marts (n ¼ 301)

Restaurants (n ¼ 311)

0.29 0.35

0.37 0.30

0.29 0.38

Notes: Multiple regressions of SERVQUAL dimensions with two global ratings across retail clusters

A maximum of only 37 per cent (marts) of the global measure of service quality’s variation is explained by SERVQUAL dimensions. If . 0.50 represents adequate validity (Fornell and Larcker, 1981) the above suggests that concurrent validity of the instrument is questionable. Similarly for satisfaction, all coefficients fall below . 0.50. However, for banks and restaurants, the explained variance exceeds that of service quality. Parasuraman et al. (1988) insist that SERVQUAL measures service quality not satisfaction. The above indicates, that their instrument is a better predictor of overall satisfaction. A similar pattern was also observed by van Dyke et al. (1999) in their study of information systems services[2]. Dimensionality of the instrument was next assessed across the three retail clusters. First, correlation matrices were constructed to show the inter-item relationships. According to Bagozzi (1981) items representing specific dimensions should correlate strongly with each other whereas their relationship with other items should be weaker. Tables IV-VI show results for marts, banks and restaurants; coefficients greater than 0.40 are italicized. With the exception of question 11, all items are significant at the 0.01 level in Table III suggesting that clear convergence upon and discrimination between items is equivocal. In particular, there appears some confusion between tangibles and reliability; and assurance and empathy items. Parasuraman et al. (1991) five-dimensional model is not supported. Table IV shows that almost all correlations

Contextual stability of SERVQUAL 51

Table II. Reliability analysis of SERVQUAL item scales using Cronbach’s a

Table III.

Tan1 Tan2 Tan3 Tan4 Rel5 Rel6 Rel7 Rel8 Rel9 Res10 Res11 Res12 Res13 Assu14 Assu15 Assu16 Assu17 Emp18 Emp19 Emp20 Emp21 Emp22

Table IV. Banks – inter-item correlation matrix using Pearson coefficients (n ¼ 170)

1 0.55 0.47 0.50 0.40 0.33 0.40 0.32 0.41 0.31 20.30 0.25 0.29 0.33 0.32 0.32 0.24 0.33 0.17 0.34 0.18 0.22

1 0.81 0.83 0.77 0.67 0.79 0.68 0.74 0.37 20.27 0.36 0.37 0.27 0.29 0.33 0.29 0.41 0.12 0.36 0.17 0.25

Tan2

1 0.75 0.70 0.63 0.70 0.68 0.73 0.37 20.16 0.46 0.48 0.34 0.25 0.42 0.37 0.44 0.21 0.44 0.22 0.28

Tan3

1 0.81 0.75 0.74 0.65 0.69 0.37 20.27 0.34 0.34 0.32 0.25 0.31 0.27 0.32 0.17 0.29 0.12 0.26

Tan4

1 0.68 0.75 0.71 0.79 0.41 20.23 0.49 0.47 0.46 0.39 0.47 0.41 0.45 0.32 0.46 0.31 0.44

Rel5

1 0.79 0.75 0.65 0.40 20.21 0.41 0.41 0.26 0.28 0.39 0.46 0.33 0.19 0.36 0.22 0.31

Rel6

1 0.76 0.76 0.34 20.18 0.35 0.41 0.35 0.34 0.36 0.38 0.35 0.25 0.37 0.24 0.35

Rel7

1 0.70 0.36 20.17 0.40 0.38 0.31 0.28 0.34 0.39 0.28 0.23 0.34 0.19 0.32

Rel8

1 0.45 2 0.18 0.56 0.52 0.49 0.43 0.45 0.50 0.45 0.29 0.51 0.36 0.44

Rel9

1 0.21 0.67 0.68 0.47 0.43 0.59 0.50 0.49 0.31 0.42 0.44 0.48

Res10

1 0.11 0.14 0.04 0.02 0.10 0.01 0.03 0.06 0.03 0.15 0.04

Res11

1 0.75 0.55 0.53 0.60 0.63 0.58 0.36 0.55 0.52 0.55

Res12

1 0.55 0.56 0.68 0.60 0.63 0.46 0.60 0.59 0.61

Res13

1 0.68 0.70 0.60 0.54 0.68 0.65 0.67 0.75

Assu14

1 0.71 0.67 0.66 0.54 0.63 0.67 0.76

Assu15

1 0.71 0.73 0.53 0.75 0.73 0.70

Assu16

1 0.69 0.49 0.73 0.69 0.70

Assu17

1 0.52 0.83 0.68 0.71

Emp18

1 0.59 0.71 0.66

Emp19

52

Tan1

1 0.77 0.77

Emp20

1 0.75

Emp21

1

Emp22

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Tan1 Tan2 Tan3 Tan4 Rel5 Rel6 Rel7 Rel8 Rel9 Res10 Res11 Res12 Res13 Assu14 Assu15 Assu16 Assu17 Emp18 Emp19 Emp20 Emp21 Emp22

1 0.71 0.60 0.61 0.55 0.57 0.59 0.55 0.52 0.25 0.22 0.27 0.17 0.14 0.15 0.18 0.22 0.21 0.28 0.21 0.20 0.21

Tan1

Tan3

1 0.53 0.51 0.49 0.50 0.57 0.49 0.16 0.14 0.18 0.13 0.18 0.17 0.21 0.24 0.18 0.24 0.21 0.20 0.16

Tan2

1 0.50 0.68 0.50 0.58 0.59 0.51 0.47 0.15 0.18 0.15 0.12 0.10 0.11 0.12 0.20 0.15 0.27 0.17 0.18 0.14 1 0.52 0.58 0.58 0.53 0.48 0.18 0.20 0.19 0.13 0.10 0.16 0.13 0.20 0.15 0.25 0.17 0.19 0.15

Tan4

1 0.69 0.72 0.69 0.68 0.33 0.26 0.28 0.25 0.20 0.27 0.23 0.29 0.23 0.40 0.26 0.29 0.28

Rel5

1 0.73 0.71 0.64 0.35 0.34 0.29 0.30 0.22 0.27 0.25 0.31 0.27 0.37 0.30 0.35 0.35

Rel6

1 0.75 0.76 0.39 0.33 0.33 0.25 0.20 0.22 0.19 0.29 0.28 0.37 0.29 0.32 0.32

Rel7

1 0.69 0.36 0.28 0.25 0.25 0.25 0.25 0.24 0.27 0.23 0.41 0.25 0.27 0.29

Rel8

1 0.38 0.31 0.26 0.24 0.20 0.23 0.19 0.26 0.29 0.37 0.28 0.26 0.31

Rel9

1 0.70 0.66 0.61 0.45 0.54 0.47 0.50 0.48 0.47 0.46 0.51 0.51

Res10

1 0.70 0.69 0.45 0.54 0.54 0.56 0.57 0.45 0.59 0.56 0.53

Res11

1 0.67 0.52 0.58 0.60 0.61 0.57 0.43 0.63 0.61 0.59

Res12

1 0.56 0.62 0.56 0.55 0.57 0.50 0.60 0.59 0.57

Res13

1 0.78 0.72 0.67 0.66 0.48 0.65 0.66 0.66

Assu14

1 0.75 0.71 0.66 0.48 0.63 0.70 0.67

Assu15

1 0.79 0.68 0.44 0.70 0.69 0.66

Assu16

1 0.71 0.54 0.76 0.76 0.73

Assu17

1 0.47 0.79 0.73 0.72

Emp18

1 0.56 0.55 0.52

Emp19

Emp21

1 0.82

Emp20

1 0.78 0.79

1

Emp22

Contextual stability of SERVQUAL 53

Table V. Marts – inter-item correlation matrix using Pearson coefficients (n ¼ 301)

Tan1 Tan2 Tan3 Tan4 Rel5 Rel6 Rel7 Rel8 Rel9 Res10 Res11 Res12 Res13 Assu22 Assu15 Assu16 Assu17 Emp18 Emp19 Emp20 Emp21 Emp22

Table VI. Restaurants – inter-item correlation matrix using Pearson coefficients (n ¼ 311)

1 0.71 0.58 0.62 0.47 0.52 0.59 0.43 0.52 0.08 0.10 0.16 0.15 0.07 0.11 0.15 0.21 0.16 0.12 0.16 0.10 0.14

1 0.57 0.59 0.48 0.56 0.57 0.47 0.53 0.08 0.14 0.18 0.11 0.05 0.06 0.18 0.19 0.20 0.11 0.20 0.11 0.15

Tan2

1 0.63 0.44 0.48 0.43 0.53 0.35 0.08 0.08 0.04 0.01 20.01 0.08 0.12 0.14 0.14 0.10 0.12 0.04 0.12

Tan3

1 0.48 0.40 0.50 0.48 0.38 0.07 0.06 0.09 0.06 0.03 0.06 0.09 0.20 0.10 0.11 0.15 0.11 0.13

Tan4

1 0.56 0.51 0.46 0.40 0.03 0.07 0.07 0.01 0.01 0.03 0.09 0.14 0.07 0.05 0.10 0.14 0.09

Rel5

1 0.66 0.52 0.51 0.09 0.17 0.15 0.10 0.10 0.07 0.12 0.19 0.11 0.04 0.11 0.08 0.11

Rel6

1 0.57 0.58 0.12 0.17 0.18 0.16 0.16 0.11 0.19 0.24 0.21 0.13 0.18 0.13 0.21

Rel7

1 0.50 0.11 0.12 0.05 0.02 0.07 0.07 0.12 0.14 0.15 0.10 0.08 0.08 0.08

Rel8

1 0.05 0.16 0.12 0.14 0.10 0.15 0.16 0.21 0.19 0.06 0.22 0.12 0.19

Rel9

1 0.72 0.60 0.63 0.40 0.43 0.55 0.43 0.48 0.39 0.43 0.41 0.42

Res10

1 0.66 0.72 0.51 0.54 0.59 0.51 0.56 0.38 0.51 0.47 0.54

Res11

1 0.68 0.52 0.54 0.60 0.56 0.56 0.43 0.50 0.45 0.53

Res12

1 0.55 0.54 0.55 0.57 0.58 0.40 0.56 0.49 0.58

Res13

1 0.65 0.62 0.61 0.60 0.38 0.62 0.59 0.64

Assu14

1 0.63 0.53 0.58 0.41 0.58 0.54 0.60

Assu15

1 0.62 0.61 0.55 0.59 0.63 0.64

Assu16

1 0.59 0.34 0.61 0.56 0.59

Assu17

1 0.40 0.73 0.57 0.68

Emp18

1 0.40 0.45 0.49

Emp19

1 0.67 0.71

Emp20

54

Tan1

1 0.68

Emp21

1

Emp22

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are significant at the 0.01 level plus there is some disorder for items comprising the dimensions of responsiveness, assurance and empathy. Similarly, the SERVQUAL-specified five-dimension structure is not supported in this retail cluster. Table V shows a moderate improvement for convergence and discrimination but there still remains uncertainty about dimensions of tangibles and reliability; and assurance and empathy. Little support for the five-dimensional structure of SERVQUAL is found amongst the restaurants cluster. An exploratory factor analysis was also applied to the data replicating the technique used originally by Parasuraman et al. (1988). A principle-axis factoring was used with oblique rotation to extract factors with eigenvalues greater than one. Given the respective sample sizes, a stringent factor loading of 0.60 was considered appropriate (italicized in tables). The results for each retail cluster including variances are shown in Tables VII-IX. The oblique rotation shows that only three factors with eigenvalues greater than one were extracted as opposed to the five proposed by Parasuraman et al. (1988). According to Lewis (1984) any quantum of factors is acceptable (within reason) so long as a minimum of 60 per cent of variance is explained. Obviously, more would be better but given that the third factor only explains an extra 5 per cent, its retention would be inappropriate as it is relatively meaningless. No a priori solutions are shown as no items loaded exclusively on respective factors. Items representing both assurance and empathy loaded heavily onto one factor with a pattern similar for items of tangibility and reliability. All of these were negative. Table VIII shows the results for the marts cluster.

Items Tan1 Tan2 Tan3 Tan4 Rel5 Rel6 Rel7 Rel8 Rel9 Res10 Res11 Res12 Res13 Assu14 Assu15 Assu16 Assu17 Emp18 Emp19 Emp20 Emp21 Emp22 Cumulative variance

1

Factors 2

3

0.24 20.00 20.00 20.00 0.13 20.00 20.00 20.00 0.16 0.24 20.00 0.38 0.46 0.82 0.84 0.76 0.73 0.77 0.85 0.86 0.93 0.91 48.9

20.45 2 0.94 2 0.86 2 0.93 2 0.82 2 0.86 2 0.89 2 0.85 2 0.79 20.36 0.28 20.33 20.29 20.00 0.00 20.11 20.12 20.11 0.14 20.00 0.17 0.00 66.1

20.31 20.00 0.00 20.00 20.00 0.00 20.00 0.00 0.00 0.59 0.77 0.48 0.45 20.00 20.00 0.17 0.12 0.00 20.13 20.00 0.00 20.00 71.9

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Table VII. Factor structure of SERVQUAL items – banks

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Table VIII. Factor structure of SERVQUAL items – marts

Items Tan1 Tan2 Tan3 Tan4 Rel5 Rel6 Rel7 Rel8 Rel9 Res10 Res11 Res12 Res13 Assu14 Assu15 Assu16 Assu17 Emp18 Emp19 Emp20 Emp21 Emp22 Cumulative variance

Items

Table IX. Factor structure of SERVQUAL items – restaurants

Tan1 Tan2 Tan3 Tan4 Rel5 Rel6 Rel7 Rel8 Rel9 Res10 Res11 Res12 Res13 Assu14 Assu15 Assu16 Assu17 Emp18 Emp19 Emp20 Emp21 Emp22 Cumulative variance

1

Factors 2

3

0.00 0.00 0.16 0.00 20.00 0.00 20.00 20.00 20.00 0.16 0.30 0.44 0.43 0.88 0.81 0.90 0.90 0.84 0.44 0.87 0.85 0.82 45.3

0.81 0.81 0.73 0.80 0.79 0.79 0.83 0.81 0.76 0.13 0.00 0.00 20.00 20.00 20.00 20.00 0.00 0.00 0.24 0.00 0.00 0.00 64.7

0.11 0.19 0.27 0.14 20.15 20.15 20.23 20.15 20.26 2 0.75 2 0.67 20.52 20.54 0.00 20.00 0.00 0.00 20.00 20.21 20.00 20.00 20.00 70.0

1

Factors 2

3

0.00 0.00 0.00 0.00 0.00 20.15 20.00 20.00 0.00 20.00 0.00 0.20 0.24 0.80 0.69 0.65 0.64 0.72 0.55 0.90 0.90 0.89 37.0

0.80 0.81 0.74 0.75 0.71 0.77 0.79 0.73 0.68 2 0.00 0.00 0.00 2 0.00 2 0.00 2 0.00 0.00 0.11 0.00 0.00 00 2 0.00 0.00 58.2

0.00 0.00 20.00 20.13 20.00 0.18 0.00 0.00 20.00 0.90 0.83 0.70 0.70 0.00 0.14 0.24 0.15 0.12 0.00 20.00 20.12 20.00 63.3

Similar to Table VII, only three factors with eigenvalues greater than one were extracted in contrast to those proposed by Parasuraman et al. (1988). In contrast to Table VII, there may be grounds for retaining factor three as it is loaded significantly by two responsiveness items. Table VIII shows no exclusive item loadings onto specified factors. Assurance items and almost all empathy items load onto factor one. All tangible and reliability items load onto factor two. Table IX shows the results for the restaurants cluster. Although the same number of factors is extracted here as in Tables VI and VII there is a stronger case for retaining the third. First, factor three raises the cumulative variance explained above the 60 per cent benchmark (Lewis, 1984). Second, the a priori solution is shown for responsiveness items on the third factor unlike factors one and two. Assurance and empathy items load the first heavily. Similarly, tangible and reliability items load strongly onto factor two. Overall, a priori solutions did not emerge with any retail cluster excepting responsiveness items loading cleanly onto factor three for restaurants. Therefore, Parasuraman et al. (1988) proposed dimensionality does not exist amongst any retail cluster in the present study. Discussion and conclusions The present study aimed to assess the reliability and validity of the SERVQUAL instrument across a number of contexts. The original intention was to mirror and extend earlier work in an attempt to contribute to the ongoing discourse on service quality management. The data were analysed from three retail clusters in Far North Queensland Australia. Given earlier evidence elsewhere, the expectation was that results would be context-specific rather than subscribing to Parasuraman et al. (1991) contention that service quality is a global cross-industry construct. Across the retail sectors of marts, banks and restaurants findings showed some consistency in that the originally proposed five-factor structure of service quality was roundly unsupported and thus context specific. As predicted the five-factor solution was not found, rather a two-dimensional configuration emerged for two retail clusters with three dimensions extracted for restaurants. Amongst the first (banks), a third factor contributed marginally to cumulative variance onto which only one responsiveness item loaded significantly. Similarly, a third factor emerged for the second cluster (marts) having only two responsiveness items loading significantly. However, these items were negative. Inverse affiliations were also evident for all items loading upon factor two for banks. These relationships are difficult to explain at this stage although question wording may have a role to play. Indeed, this is a problem already identified elsewhere as a “method” factor rather than one that is conceptually meaningful (Buttle, 1995). Of all three retail clusters, restaurants was the only one onto which all significant item loadings were positive across three dimensions. Although negative item loadings cloud the issue, it would appear that a simpler more holistic abstraction of service quality forms the basis of customer perceptions for banks and marts. Intuitively, this makes sense because of the nature of service in these organizations. For example, customer contact is usually confined to one interaction, that is, when items are purchased. Services offered by banks are similar but with more scope given the nature and necessity for information giving by the teller. On the other hand, the nature of service experienced in restaurants is ongoing rather than a one-off purchase or

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exchange of information. It also has the potential for more customisation than the standard services offered by banks and marts. In other words, customers have more opportunity to become “involved” in the customisation process. It would therefore be reasonable to expect more than a uni- or bi-dimensional perception of service quality amongst restaurant customers. However, even here results suggest that the perception of service quality is simpler than Parasuraman et al. (1991) contend. Service quality appears to be understood as a two-dimensional construct with overlaps between tangibility and reliability and assurance and empathy. In short, the instrument has questionable dimensionality although some consistency was found amongst the first two factors extracted across banks and marts. Given the overwhelming evidence, it would appear that service quality depends to some extent on organization type. Simply, some experiences are quite different to others by virtue of situational and context specifics such as technical differences between services, the nature and frequency of customer/provider interactions and the need for service customisation. The apparent heterogeneity of services may therefore require new explanations and measures. Discriminant and convergent validity were also found to be equivocal. For example, several tangible, reliability, assurance and empathy items failed to converge cleanly or discriminate adequately from other SERVQUAL items. Similarly, concurrent validity was also questionable as SERVQUAL was a better predictor of overall satisfaction rather than overall service quality. These results suggest that the instrument has serious design weaknesses or significant theoretical flaws (or both) in that the five dimensional model is inappropriate or that SERVQUAL fails to target dimensions adequately in the retail sector of Far North Queensland. It would appear psychometrically questionable and inappropriate for the measurement of service quality perceptions of customers. This is a key factor in the practice and theory of place management. Instruments such as SERVQUAL by virtue of standardization, often take no account of service factors deemed important by customers. Indeed, it could be argued that they may in fact introduce variables about which customers have no idea or believe to be unimportant. The sometimes heterogenous nature of retail outlets within shopping malls (banks, department stores, opticians and chemists) requires careful micromanagement of service quality for reasons outlined above. The challenge for managing the mall as a place effectively is resolving these expectation/experience differences in a cohesive manner so that service experiences in each outlet type are complimentary; or at least ensuring that the management of overall place service quality has a more significant impact on customers so that contingencies such as service recovery may be applied. Clearly this is difficult to achieve and would be an ongoing iterative process. However, this task may arguably be easier to achieve compared with shopping in the “high street” where place management often co-resides with local council and where existing buildings and infrastructure are key determinants of non-tangible atmospheric variables of service quality. In short, new models should be favoured rather than continuing the process of adaptation from one context to another. This may lead to a more comprehensive understanding of how perceptions of service quality are formed by customers. Until service quality-related research efforts adopt a different paradigm, data and information generated from SERVQUAL will continue to provide equivocal results and retail mangers will continue to make ill-informed decisions about excellent service

delivery. In all service areas a comprehensive understanding and management of service quality is paramount for business success. This is especially the case in the tourism industry of Far North Queensland where service is a key enabler of product differentiation and competitive advantage. Future research into service quality should consider using more qualitative approaches from which new models may subsequently be constructed and developed. Preliminary information would need to be collected on a 360-degree basis from all potential respondents including: . retail managers, supervisors and employees; . customers who have experienced the service and from those who have not; and . purchasers and end-users with a range of demographic characteristics. Moreover, given the multiplicity of shopping sites such as malls, town centres, high streets, tourism centres and cultural heritage sites, future research should focus on service organizations in different regions to identify key issues of service quality which place managers must address. Notes 1. Similar to the approach taken by Carman (1990) when adapting SERVQUAL for three service setting contexts (tyre retailer, business school placement centre and a dental school patient clinic). 2. However, their adjusted R 2 for quality and satisfaction were significantly higher at 0.58 and 0.61, respectively (van Dyke et al., 1999, p. 8). References Anderson, J. and Gerbing, D. (1991), “Predicting the performance of measures in a confirmatory factor analysis with a pretest assessment of their substantive validities”, Journal of Applied Psychology, Vol. 76 No. 5, pp. 732-40. Asunbonteng, P., McCleary, K.J. and Swan, J.E. (1996), “SERVQUAL revisited: a critical review of service quality”, The Journal of Services Marketing, Vol. 10 No. 6, pp. 62-81. Babakus, E. and Boller, G.W. (1992), “An empirical assessment of the SERVQUAL scale”, Journal of Business Research, Vol. 24, pp. 253-68. Babakus, E. and Mangold, W.G. (1992), “Adapting the SERVQUAL scale to hospital services: an empirical investigation”, Health Service Research, Vol. 26 No. 6, pp. 767-86. Bagozzi, P.R. (1981), “Evaluating structural equation models with unobservable variables and measurement error: a comment”, Journal of Marketing Research, Vol. 18, pp. 375-81. Boulding, W., Kalra, A., Staelin, R. and Zeithaml, V.A. (1993), “A dynamic process model of service quality: from expectations to behavioural intentions”, Journal of Marketing Research, Vol. 30 No. 1, pp. 7-27. Broderick, A.J. and Vachirapornpuk, S. (2002), “Service quality in internet banking: the importance of customer role”, Marketing Intelligence & Planning, Vol. 20 No. 6, pp. 327-35. Brogowicz, A.A., Delene, L.M. and Lyth, D.M. (1990), “A synthesized service quality model with managerial implications”, International Journal of Service Industry Management, Vol. 1 No. 1, pp. 27-44.

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Brown, T.J., Churchill, G.A. and Peter, J.P. (1993), “Improving the measurement of service quality”, Journal of Retailing, Vol. 69 No. 1, pp. 127-39. Buttle, F. (1995), “SERVQUAL: review, critique, research agenda”, European Journal of Marketing, Vol. 30 No. 1, pp. 8-32. Carman, J.M. (1990), “Consumer perceptions of service quality: an assessment of the SERVQUAL dimensions”, Journal of Retailing, Vol. 66 No. 1, pp. 33-55. Carr, C. (2002), “A psychometric evaluation of the expectations, perceptions and difference-scores generated by the IS-adapted SERVQUAL instrument”, Decision Sciences, Vol. 33 No. 2, pp. 281-96. Chan, C., Entrekin, L. and Anderson, C. (2003), “Psychometric assessment of the perception of service quality”, Research and Practice in Human Resource Management, Vol. 11 No. 1, pp. 65-74. Connolly, M. (2006), private communication to the author, Tropical Tourism North Queensland. Cronin, J.J. and Taylor, S.A. (1992), “Measuring service quality: a re-examination and extension”, Journal of Marketing, Vol. 6, pp. 55-68. Fornell, C. and Larcker, D.F. (1981), “Evaluating structural equation models with unobservable values and measurement error”, Journal of Marketing Research, Vol. 18, pp. 39-50. Green, V. and Zappala, G. (2000), “From welfare to place management: challenges and developments for service delivery in the community sector”, Research and Advocacy Briefing Paper No. 2, September, pp. 1-4. Haywood-Farmer, J. (1988), “A conceptual model of service quality”, International Journal of Operations & Production Management, Vol. 8 No. 6, pp. 19-29. Juwaheer, T.D. (2004), “Exploring international tourists’ perceptions of hotel operations by using a modified SERVQUAL approach – a case study of Mauritius”, Managing Service Quality, Vol. 14 No. 5, pp. 350-64. Kettinger, W.J. and Lee, C.C. (1997), “Pragmatic perspectives on the measurement of information systems service quality”, MIS Quarterly, Vol. 21 No. 2, pp. 569-85. Lam, S.S.K. and Woo, K.S. (1997), “Measuring service quality: a test-retest reliability investigation of SERVQUAL”, Journal of Marketing Research Society, Vol. 39 No. 2, pp. 381-96. Lewis, R.C. (1984), “Isolating differences in hotel attributes”, The Cornell HRA Quarterly, November, pp. 64-77. Newman, K. (2001), “Interrogating SERVQUAL: a critical assessment of service quality measurement in a high street retail bank”, International Journal of Bank Marketing, Vol. 19 No. 3, pp. 126-39. Nunnally, J. (1978), Psychometric Theory, 2nd ed., McGraw-Hill, New York, NY. Parasuraman, A., Berry, L.L. and Zeithaml, V.A. (1985), “A conceptual model of service quality and its implications for future research”, Journal of Marketing, Vol. 49, pp. 41-50. Parasuraman, A., Berry, L.L. and Zeithaml, V.A. (1991), “Refinement and reassessment of the SERVQUAL scale”, Journal of Retailing, Vol. 67 No. 4, pp. 420-50. Parasuraman, A., Zeithaml, V.A., Valerie, A. and Berry, L. (1988), “SERVQUAL: a multiple-item scale for measuring consumer perceptions of service quality”, Journal of Retailing, Vol. 64 No. 1, pp. 12-40. Saleh, F. and Ryan, C. (1991), “Analysing service quality in the hospitality industry using the SERVQUAL model”, The Service Industries Journal, Vol. 11 No. 3, pp. 324-43.

Santos, J. (2003), “E-service quality: a model of virtual service quality dimensions”, Managing Service Quality, Vol. 13 No. 3, pp. 233-46. Seth, N., Deshmukh, S.G. and Vrat, P. (2005), “Service quality models: a review”, International Journal of Quality & Reliability Management, Vol. 22 No. 9, pp. 913-49. Shewchuck, R.M., O’Connor, S.J. and White, J.B. (1991), “In search of service quality measures: some questions regarding psychometric properties”, Health Services Management Research, Vol. 4 No. 1, pp. 65-75. Stuart-Weeks, M. (1998), “Place management: fad or future?”, paper presented at the Institute of Public Administration Australia (NSW Division). Taylor, S.A. and Cronin, J.J. (1994), “Modeling patient satisfaction and service quality”, Journal of Health Care Marketing, Vol. 14 No. 1, pp. 34-44. Teas, K.R. (1993), “Expectations, performance evaluation and consumers’ perceptions of quality”, Journal of Marketing, Vol. 57, pp. 18-34. van Dyke, T.P., Prybutok, V.R. and Kappelman, L.A. (1999), “Cautions on the use of the SERVQUAL measure to assess the quality of information systems services”, Decision Sciences, Vol. 30 No. 3, pp. 1-15. van Iwaarden, J., van der Weile, T., Ball, L. and Millen, R. (2003), “Applying SERVQUAL to web sites: an exploratory study”, International Journal of Quality & Reliability Management, Vol. 20 No. 8, pp. 919-35. Woodside, A.G., Frey, L.L. and Daly, R.T. (1989), “Linking service quality, customer satisfaction”, Journal of Health Care Marketing, December, pp. 5-17. Zhao, X., Bai, C. and Hui, Y.V. (2002), “An empirical assessment and application of SERVQUAL in a mainland Chinese department store”, Total Quality Management, Vol. 13 No. 2, pp. 241-54. Zhu, F.X., Wymer, W.J. and Chen, I. (2002), “IT-based services and service quality in consumer banking”, International Journal of Service Industry Management, Vol. 13 No. 1, pp. 69-90. About the author Darren Lee-Ross is an Associate Professor, currently teaches and researches at James Cook University, Australia. His areas of research interest include service quality, entrepreneurship and organizational cultures. He is widely published in the area of services management having authored and edited five educational texts and over 70 academic papers. He has taught across a wide range of service-based areas internationally at both undergraduate and postgraduate levels. Currently, he is a Foundation Director of the Centre for Tropical Tourism and Hospitality, School of Business, James Cook University. Darren Lee-Ross can be contacted at: darren.leeross@jcu. edu.au

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Dubai – a star in the east A case study in strategic destination branding Melodena Stephens Balakrishnan

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University of Wollongong in Dubai, Dubai, United Arab Emirates Abstract Purpose – Worldwide approximately 200 national economies are competing in the destination market. In 2006, global government and capital expenditure exceeded US$1,480 billion making destination branding an important concept that still remains fragmented and unplanned. Dubai, an emirate of the UAE in the Middle East has been chosen as a case study to explain some elements of successful destination branding. This paper aims to apply a framework developed by Balakrishnan to explain areas of caution when competing in an international market where success is also partially dependent on the macro-environment. Design/methodology/approach – The framework was developed by reviewing literature on destination, place, corporate, product portfolio and service branding. The framework was tested using case study methodology. Secondary research was primarily used to develop the case. Findings – There is a strong fit with the model suggesting that destinations can use this as a basis for continuity in strategy even as governments change. Based on the analysis and review; a checklist for destination branding strategy was recommended. Research limitations/implications – Since, this study depends on secondary research there is some limitations as data in this region is not easily available. Originality/value – Destination branding differs in challenges vis-a`-vis product and service branding. This paper depicts steps essential for creating a successful branding strategy which can be applied in a real world context to maximize returns for the destination. Keywords Brand management, Dubai, Marketing, Tourism, Brand image Paper type Case study

Journal of Place Management and Development Vol. 1 No. 1, 2008 pp. 62-91 q Emerald Group Publishing Limited 1753-8335 DOI 10.1108/17538330810865345

Introduction Tourism and destination branding: a symbiotic relationship Worldwide destinations are spending an estimated US$1,480 billion on attracting tourism through both capital and government expenditures (WTTC, 2007a), making this a lucrative product where very little organized academic research exists (Pike, 2005). According to Blain et al. (2005), execution of destination branding is often confined to logo design and development. It is estimated that more than US$2 billion is earned per day through international tourism. What makes this a complex topic is that the success of a destination is not always dependent on controllable factors in the microenvironment but that it is also dependent on uncontrollable macro-environmental factors. Earthquakes, tsunamis, disease other competing government policies and terrorist attacks can disrupt tourism earnings (WTTC, 2007b). As information and travel becomes more accessible, customers have a greater variety of destinations to choose from. As a tourist, there is a choice of approximately 200 nations and 2 million destinations to visit. How does a destination stand out, attract its target customer and generate sufficient earnings to ensure its economy grows? Classical marketing points to successful branding strategies (Fan, 2006; Matear et al., 2004). This paper discusses how those strategies can be adopted in a “destination” context.

Destination branding: academic foundation for framework development Places are products but existing branding frameworks cannot be directly applied to the destination context (Hosany et al., 2007; Hankinson, 2005). Some of the reasons why are: . past history; . geographical constraints (location, weather, resources, infrastructure and people); . inherited names; . stakeholders – destinations are run by governing bodies which often report to their citizens and are influenced by other stakeholders limiting the decisions they can take (Stokes, 2006; Hankinson, 2005); and . personal, consumer, business and government service dependency (McDougall and Levesque, 2000). The destination branding framework can be developed looking at place and destination marketing theories, services, product, portfolio and corporate branding strategies. Some of the frameworks and theories reviewed to develop the destination branding framework were the HEADS2 framework ( Balmer, 2001) which looks at corporate branding; the BAM strategy for increasing brand value (Davis, 2002), the Double Vortex brand model that looks at brand components (de Chernatony and Riley, 1998); brand portfolio strategy (Aaker, 2004); product and service brand dimensions (O’Cass and Grace, 2003) and the service branding model ( Berry, 2000). Destination cases like Bradford, UK (Trueman et al., 2004), Scotland (Donnelly, 2004), Singapore (Wong et al., 2006), Kerala, India (WTTC, 2003), Sydney Olympics, Australia (Woodside et al., 2002) and New York (Rangan et al., 2006) were used to increase the fit of the destination branding framework in the international context. Academic work by Lee-Kelly et al. (2007), Assiri et al. (2006), Koch and Nieuwenhuizen (2006), Box and Platts (2005), Øvretveit (2005) and LaBonte (2003) were extrapolated from the business context to the destination context. Dubai, a star in the Middle East This paper focuses on Dubai, an emirate of the UAE. UAE lies in the heart of the Middle East (ME) and is one of the world’s fastest growing economies with a per capita income of US$31,000 (IMD, 2005). Worldwide, in 2006, the ME Travel and Tourism economy was ranked number nine in terms of absolute size (US$150 billion) and is expected to grow to US$280 billion by 2020 (WTTC, 2007a; Husain, 2007a). UAE ranks 18th in the world and number one in the Arab world, according to the global tourism competitiveness report by the World Economic Forum (Rahman, 2007a, b). Global Futures and Foresight, a British think tank expects the investment in tourism and infrastructure for the ME to be about US$3 trillion by 2020, with current investments standing at US$1 trillion which is much higher than what is considered current global expenditure (Husain, 2007a). As a country brand, UAE is known as the 4th best for conventions and 3rd best for business, but, it still does not feature in the top ten country brands (Future Brands, 2006). Abu Dhabi and Dubai are the main economic contributors out of the seven emirates (formally known as the Trucial States) that make up the UAE. Non-oil revenues contribute 63 percent to the GDP (UAE Interact, 2007a). Abu Dhabi contributes 59 percent to the GDP of UAE (56 percent which is oil dependent) while

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Dubai contributes 29 percent (5 percent is oil dependent). Dubai contributes over 80 percent of the non-oil assets (Middle East Monitor, 2007). Dubai is very strategically placed. It lies at the confluence of the ME, Asia, Western Africa and Central/Eastern Europe. It is in a bed of ancient civilizations, a birthplace of three major religions and a transit point for onward journeys. See Figure 1 to see Dubai’s location. Dubai, an emirate of UAE, is spearheading the destination branding revolution in this area which is why it was chosen as the focus of this research. This paper applies a strategic destination branding framework developed by Balakrishnan (2007) to Dubai (Figure 2). A brief literature review: discussion of key elements Branding of a destination can take some cues from corporate and service branding. The branding of a destination begins with the strategic vision of that place as a strong vision results in performance (LaBonte, 2003). Vision, as a driver should facilitate trade and investments (Hankinson, 2005). Strategic vision of any destination can look at five drivers for their branding strategy: economics, tourism, retail, services and transit hub drivers. These drivers are derived from destination case studies and research work by Jamrozy (2007), Eraqi (2006), Wong et al. (2006), Hankinson (2005), Gonza´lez and Bello (2002) and Warnaby and Davies, (1997, see city servuction model p. 207). Vision must be focused, yet consider the diversity of stakeholder needs (Pike, 2005) often looking for commitment from inhabitants to get performance (Hwang et al., 2005). Stakeholders can be internal like people/citizens (Aaker, 2004), business/governing bodies and influencers like media or they can be external governments, NGOs, businesses, or influencers. When looking at internal stakeholders; heritage, citizen values and priorities, level of citizenship and ethnocentric tendencies need to be

Figure 1. Strategic location of Dubai

Source: http://www.ssqq.com/archive/images/map.jpg

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CRM VISION Networking Customer Targeting

Product Portfolio

65 COO

Positioning / Differentiation

Ingredient Branding

Image Emotions

Communication Strategy People/ Population

WOM

Tangibilizing Evidence Quality DELIGHTED CUSTOMER Successful Branding Strategy Source: Balakrishnan (2007)

considered (Aaker, 2004; Javalgi and White, 2002). With respect to external stakeholders which might influence or contribute to the destination branding, factors like the country of origin (COO) effect, destination product portfolio performance, ability to match/contribute to international quality and delivery of services, and information are some of the factors that must be considered (Aaker, 2004; Javalgi and White, 2002). Governing bodies can exploit existing networks or forge dynamic alliances and partnerships between key stakeholders and influencers to add value to the brand (Ferguson and Hlavinka, 2006; Wallis et al., 2004; Knox, 2004; Morgan et al., 2003). With respect to a destination, often a portfolio of products is developed and then offered to a targeted segment. Product portfolios must take advantage of natural assets, past history, culture, developed infrastructure and facilities (Future Brands, 2006; Hankinson, 2004). What is most easy to exploit is past history and the natural advantage of a strategically placed location. Hence, a destination can act as a transit point for trade, logistics and even people. When segmenting the target customer, a destination brand must be able to match customer needs. The needs for visiting can be business travel, family or friend visits, trips based on health, education, rest, recreation or retail (Gonza´lez and Bello, 2002; Gamage and King, 1999); exploring regions, experiencing culture, history, lifestyle, nightlife, and enjoying natural geographical assets, infrastructure and entertainment (Future Brands, 2006; Hankinson, 2004). A study by Chen and Gursoy (2001) found that destination loyalty (level of tourist perceptions of a destination as a recommendable place) was significantly dependent on safety, perceived cultural differences and perceived convenience of transportation. These were augmented product services required by the target customer.

Figure 2. Strategic branding of a destination: success drivers

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When positioning and differentiating the destination, COO effect or heritage must be considered as both residents’ and customers’ perceptions and attitudes can be changed only after the negative COO effect is corrected (Aaker, 2004; Thakor and Lavack, 2003; Piasecka, 2001). The image of the brand must be carefully designed as it must take into account: . past associations of the place; . alignment and consistency of brand image and attitude with customer perceptions of themselves and with other users; and . the usage occasions (Grace and O’Cass, 2003; de Chernatony and Segal-Horn, 2003). An interesting study by Carpenter et al. (1994) found that irrelevant attributes can be used to differentiate brands and even create value but its impact is dependent on competition. Destinations are products with a heavy dependency on services which act as a destination differentiator, increasing brand value (Kalafut and Low, 2001; McDougall and Levesque, 2000). Vision, which needs to be translated into the brand promise, needs to be clearly communicated to all stakeholders to gain a competitive advantage (Trueman et al., 2004; Sohal, 1994). The value of a brand can be increased by using any ingredient brand of greater value (McCarthy and Norris, 1999; Javalgi and Moberg, 1997). Hence, governments can use consumption at FMCG, luxury, infrastructure, macro-environmental and business levels to increase perceived brand value of the destination (Balakrishnan, 2007). The consumer trust and comfort level increases when they see brands familiar to them in a place. Though destinations use the entire range of media vehicles, there is still a significant amount of dependency on word of mouth (WOM) generated through friends, family and travel agents (Future Brands, 2006). Also when using advertising, it has been found that emotional advertising helps in the initial brand contact and influences the decision to visit again (Grace and O’Cass, 2003; Mattila, 1999). The destination experience itself, which leads to positive WOM must be a sensory delight, using sights, sounds, smells and taste (Roberts, 2005; Trueman et al., 2004) that ideally must reinforce the “flavor” of the place. Making services tangible affects impressions of the brand (Bang et al., 2005). However, services are people dependent (de Pablos, 2002; Spithoven, 2000; Eastgate, 2000). Though various communication tools can be used to convey destination positioning, one of the most important methods is the people of the destination. They are involved in the service process, affect brand associations and help customers form emotional attachments with the brand (Grace and O’Cass, 2003; Katzenbach, 2003). According to Simon Anholt, the Founder of the Anholt-GMI City Brand Index, immigration as a strategy does affect the nations branding strategy (Shikoh, 2006). Immigrants are more likely to invest than transient labor who are perceived as “outsiders” (Timberlake, 2005; Bontis, 2004). Transient labor will repatriate assets out of the destination which means loss of potential financial investments. Branding must often start with the people of that destination – the feeling of pride, the essence of the place and maybe even sufficient knowledge to create a positive association for visitors with the destination. Pride is considered one of the greatest motivational factors (Katzenbach, 2003). The positive associations with the destination experience and its people will contribute to positive WOM which will increase the brand image of the destination (Wangenheim and Bayo´n, 2004; Grace and O’Cass, 2002).

A simplified version of the destination branding framework is shown in Figure 3 as a simplified seven step process. Methodology A case study research methodology was used. The case was Dubai. The objective of the research was to apply the branding strategy framework developed by Balakrishnan (2007) – see Figures 2 and 3, and test its fit to the case. Most of the historic background and reports were obtained through secondary research using government reports, published international research and books, newspaper press releases and articles. Confidential interviews with organizations like Emirates Airlines, JAFZA and Dubai Tourism and Commerce Marketing (DTCM) were used as a basis to collect additional secondary research and information. Primary research based on conversations with residents, looking at the reasons why they came to Dubai and their recollections were used as a basis for further secondary research. The information was categorized by the author into the relevant subheadings for analysis. This study is an exploratory study where case study analysis depends largely on secondary sources of information.

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Analysis: a case study: branding of Dubai as a destination A historical perspective Dubai was a sleepy fishing and pearl diving village that had over the years survived on the bounty of the sea. Through visionary leadership, it used its strategic location to grow into a trading centre, and overnight transformed into an economic beacon for the ME. Sheikh Rashid Bin Saeed Al Maktoum (1958-1990), facilitated this change. In 1958,

4. Target Customer

5. Image/ Differentiation

1. VISION n

tio

ica

n mu

m

6.

Co

2. Stakeholders 3. Portfolio of products

Source: Adapted from Balakrishnan (2007)

7. Response

Figure 3. Key components for destination branding

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he borrowed millions of dollars from Kuwait to have the creek (the original trading souk) dredged. The chance discovery of black gold (1966) further financed his vision: in 1970 he began the Jebel Ali port project which today is the world’s largest man-made port (Figure 4). In 1971 when the British left, the warring tribes of the Trucial States were brought under one banner by the creation of UAE. It enabled synergistic pooling of the resources. The rapid pace of development in Dubai was initially fueled by oil but today this forms less than 6 percent of the overall GDP. Sheikh Rashid’s mantle was eventually succeeded by his youngest son, the current ruler of the emirate, HE Sheikh Mohammad Bin Rashid Al Maktoum, UAE Prime Minister and Vice President and Ruler of Dubai. HE Sheikh Mohammed (2007) is known to be a perfectionist and reviews key projects personally. He plans surprise visits – to reprimand, reward and identify new talent for key projects (Molavi, 2007). Dubai has some unique advantages. First and foremost its leadership has been strong and endowed with great vision. They have constantly taken advantage of the strategic location and been proactive to global change. Historically and geographically, Dubai is a transit point, but the refocus is to make it much more. To forget the barren desert, Dubai has encouraged trade, business, shopping, lifestyle and tourism. Projects have been completed at a rapid pace. For example, the city metro was conceptualized from a survey in 1997 and by 2009 will carry 1.86 million passengers daily. The Airport which was created in 1961 today has 25 million passengers transiting per annum. A new airport being built in Jebel Ali will handle 120 million passengers and 12 million tonnes of cargo. Nakheel (a part of Dubai Worlde), is one of the world’s largest privately held real estate developers. It takes credit for planning over 1,000 km of coastline through its Palm Trilogy, World and Waterfront projects and will develop over 2 billion sq.ft. of land (see Figure 4 for dramatic cityscape changes). But there are some inherent disadvantages Dubai has to work with. History of this region has always been distorted and September 9-11, 2001 made things worse with the ME region being clubbed as one area of political instability and terrorism. The average global citizen viewed his Middle Eastern counterparts as backward or threatening. Arab leaders said in a survey that the two largest external factors affecting leaders were the political situation (35.56 percent) and international perception of ME (26.77 percent) (Survey of Arab Leaders, 2005). The negative COO impacted the DP World (a part of Dubai Worlde) takeover of the 6 P&O managed USA ports. American public pressure was strongly against having a company from the ME managing their ports though the US Government including President George Bush vouched for DP World. Another potential disadvantage is that 82 percent of Dubai’s population is expatriates. With a service dependent economy, people play a very important role in the perception of service satisfaction. A majority of the cheap labor is male and they live without their families; this makes for very skewed demographics. Sheikh Zayed Road, the main feeder road that runs the length of Dubai in the 1990s, had very little building construction along it, but that no longer remains true (see Figure 5 – figure circled is the World Trade Centre, which in the 1990s, was the tallest building in Dubai). Parking, the huge number of apartments and villas that will hit the market by 2010, and maintaining security when tourists will outnumber residents by 4: 1 are areas of worry.

Original Creek Settlement

JAFZA

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Dubai – 1970s*

City starts expanding

Dubai – 2000s*

Dubai – 1990s*

Redefining the coastline: Palm Trilogy, The World

Dubai – 2007* Dubai – The Future

Sources: *Photos courtesy of the US Geological Survey; photo: Dubai – The Future, courtesy of Nakheel

Strategic vision Vision must take destination limitations into consideration. Besides, perceptions about the place, Dubai needs to look at future revenue. It lies in the heart of the desert and oil which is a critical economic contributor to most GCC countries is less than 6 percent of Dubai’s GDP. It is estimated that oil will exhaust itself in 20 years (Middle East Monitor,

Figure 4. Changing face of Dubai

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Dubai in 2005

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Dubai in 1990

Figure 5. Dubai cityscape changes (1990-2005)

Sources: www.skidubai.com; www.businessfacilities.com

2007). Hence, there is an overwhelming need to diversify Dubai’s assets (see Figure 6 for 2005 GDP breakup). This fact is realized in the government’s vision as outlined in the 2015 Strategic Plan, which is to make Dubai a “globally leading Arab city” and a “Global City” (HE Sheikh Mohammed, 2007) with services being a key contributor to its growth. Dubai has identified tourism, transport, trade, construction and financial services as the key drivers of its economy in its 2015 Strategic Plan. Vision – economic drivers Economic drivers look at welfare of its citizens and investors. Dubai as of 2005 had a GDP of US$37 billion with a per capita income of US$31,000. The 2015 vision is to increase GDP to US$108 billion and GDP per capita to US$44,000. However, the

Oil 6%

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Rest / Hotel 4%

Services 9%

Wholesale / Retail 21%

71 Finance 10% Manufacturing 15% Real Estate 10%

Construction 11%

Utlities / logistics 14%

Source: Ministry of Economy (2006)

economic welfare of residents need not equate to nationals who form a shrinking minority. The median income of its average expatriate citizen is less than US$700 and in response to recommendations of UN experts, the Ministry of Economy has begun UAE’s first household income and expenditure survey to form a consumer price index (Gulf News, 2007a). Looking at businesses, Dubai has been able to attract foreign direct investments (FDI) through incentives like no tax, free zones and the revised property ownership laws. The World Competitive Yearbook ranks Dubai 5th in terms of positive image abroad with respect to encouraging business development (IMD, 2005). There is still a long way to go though UAE has joined WTO in 1996. International laws as of yet do not apply uniformly across the entire Emirate – only in free trade zones. There is nepotism when you look at national companies which makes real business performance harder to evaluate. Information is not very easy to obtain in Dubai especially from business organizations as there is no need to disclose financials. With the booming economy, inflation is an issue as the Dirham is pegged to the dollar. As of May 2007, the US dollar was devaluing compared to the Euro. For residents this was a problem but for European investors it was a boon. Cost of living within the city is high with rents comparable to Singapore (IMD, 2005). There is disparity between official figures of inflation (7 percent) and banking reports (12-15 percent) (Baik, 2007). Another issue Dubai faces due to its population composition is the remittance of money (12.5 percent of global remittance) where the flow of money is outwards (Gulf News, 2006). Currently imports are higher than exports so this is one area of refocus. Small- and medium-sized enterprises have been identified as engines for economic growth, but this region has a deficit of venture capitalists. Programs like Bedaya funds new ventures but target only Emiratis (Elewa, 2007).

Figure 6. Dubai GDP sector contributions (2005)

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Vision – encouraging tourism Tourism in the ME region is booming post 9-11. The World Travel and Tourism Council (WTTC) predicts the UAE travel and tourism industry will grow at 5 percent (2007-2016), which is higher than the ME average of 4.4 percent and the world average of 4 percent. UAE T&T industry attracts one in every 8.5 jobs whereas the world average is one in every 11.5 jobs (Rahman, 2007b). A lot of the UAE activity is primarily due to Dubai. As of 2006, 6.5 million people visited the emirates excluding visitors staying with friends and family (Rahman, 2007b). Tourism according to DTCM’s Director, Mohammad Khamis Bin Hareb, currently contributes 18 percent to Dubai’s GDP directly and 29 percent indirectly (Al Hakeem, 2007). Current destination focus seems to be on individuals: the lifestyle, business conferencing, sports (17 golf courses, dhow racing, horse racing, and tennis), entertainment and shopping. Future sports attractions range from cricket, football, formula one racing and the development of the “Sports City” make it an ideal venue for future Olympics. Dubailand will also host the Bawadi – a hotel strip similar to Las Vegas and the world’s largest Ski Dome which will attract an additional 200,000 visitors per day (Husain, 2007b). The “family” is partly the focus with Dubailand’s Universal theme park however these are expensive options. Dubai should look at culture and historical exploration as other areas for development. By becoming a cruise terminal, it could do just that. Medical tourism exceeds US$56 billion worldwide in 2006 and is growing at 15 percent pa according to a report by the Abu Dhabi Chamber of Commerce and Industry (Al Deen, 2007). Within the UAE it is expected to generate AED 7 billion (US$1.9 billion) by 2010. The focus is to attract 6 million of the 600 million tourists with special needs and get residents to use medical facilities within the emirate rather than going abroad. Education is another potential area for tourism. HE Sheikh Mohammad announced an AED 37 billion fund (US$10.8 billion) for education and knowledge-development in the region (Zawya, 2007). Vision – retail spending According to the 2006 Global Retailer Development Index, UAE ranks 16th with respect to Gross Leasable Area (GLA) (see Table I for GLA per capita estimates). The GCC itself will be home to five out the eight largest malls in the world by 2012 (Thompson, 2006; Retail ME, 2006a). Average daily private consumption spending in UAE is at US$26.80 making it the highest in the Arab world where others spend an average of US$3.50 on consumer items (Kawach, 2004). People spend over US$700 million per annum in the Dubai Duty Free alone, which is the third largest in

Table I. Dubai retail market estimates (2005-2015)

Year

Estimated mall GLA (m2)

Estimated total GLA (m2)

GLA per capita (Dubai population) (m2)

GLA per capita (population including tourists) (m2)

2005 2010 2015

1,103,463 4,820,320 11,630,347

1,379,463 5,670,964 12,922,608

0.98 2.73 4.23

0.51 1.25 1.66

Note: A healthy GLA per capita is below 2.5 m2 Source: GRMC retail services Ditcham (2007)

term of turnover next to Heathrow (London) and Incheon (Korea) (Retail ME, 2006a, b). In 2006, the average spend of Dubai visitors amounted to AED 6,429 (US$1,785.8) per day (Ditcham, 2007). In order to support the retail industry successfully, spending per capita has to rise from US$3,000 to 7,000 by 2010 (this will decrease by 40 percent with tourist influx), which means retail will contribute 50 percent to GDP (PRZoom, 2007; Davis, 2006). Dubai has positioned itself as a home of luxury brands. Damac Properties, the largest private master developer in the ME has a tag line “Live the Luxury”. But besides the rich and super-rich, resident consumption must increase. Dubai has been able to do that also. For example, summer is a low-retail month due to harsh weather conditions and the fact that most expatriates leave for annual vacations. For the last ten years, Dubai has tried to revive this period through the Dubai Summer Surprise – a ten week shopping, child-focused extravaganza. In 2006, 1.87 million tourists came during that period (Gulf News, 2007b). During every winter, The Dubai Shopping Festival takes place and in 2006 attracted over 3.6 million tourist contributing 8 percent to the overall GDP (Gulf News, 2007c). The Dubai shopping festival, Dubai summer surprises and Ramadan initiatives account for nearly two-thirds of annual gold and diamond jewelry sales (Dubai Gold and Jewelry Group, 2007). This marks a change in tourist attitude: in survey conducted during 1998-1999 by the DTCM, it was found that the main reason people came to Dubai was primarily leisure (44 percent) and business (39 percent), with shopping being a low priority (4 percent) (DTCM, 2007). Vision – strengthening services Services contribute 74 percent to Dubai’s GDP and have a CAGR of 21 percent. Services must look at business government and consumer services; intellectual, social and human capital; welfare; quality of life and security (Balakrishnan, 2007). One of the areas the Dubai strategic plan focuses on is people management. Dubai faces brain drain, has issues attracting competent skilled labor, and scores very low on remuneration, productive labor relations, worker motivation and employee training (IMD, 2005). Hence, intellectual capital is low. According to the World Competitive Yearbook, the people of Dubai work the hardest of the 60 regions surveyed clocking 2,298 h per year versus an average of 1,922 h per year (IMD, 2005). Of a population of 1.4 million (growing at 7 percent pa), 85 percent is employed. Of the employed, 97 percent is foreign labor. This means over 82 percent of the population is expatriate, mostly Asian with a majority working in the construction industry (Dubai Healthcare City, 2007). Services currently account for 85 percent of the employment of nationals who are less than 2 percent of workforce. A key driver is Emiratisation where the emphasis is to balance demographics and responsibility (create greater ownership), reinforce culture and knowledge management through a quota system for nationals. Services are not only people dependent but also on rules/policies and infrastructure. Dubai embraces the latest technology (UAE has one of the highest mobile penetrations and internet usage in the Arab world) and is currently integrating eServices of all 24 government offices. Not only does it allows electronic payment of bills but also allows access to information on fines, utility bills and business queries. Hotlines like Al Ameen (a security hotline for suspicious activities not in the general purview of the police) have been launched to improve government services. The government

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constantly benchmarks itself against other cities and nations. The Department of Economic Development of the Government of Dubai partnered with the IMD World Competitiveness Centre to identify a competitive framework. The 2005 World Competitive report compares Dubai with 51 countries and nine regions on 314 criteria (IMD, 2005). USA, Hong Kong and Singapore led the survey in that order and Dubai is benchmarking itself against the best (Table II).

74 Vision – facilitating the transit hub The ME, which is strategically placed in terms of resources and location, is able to facilitate trade (Siddiqi, 1999). When the UAE joined the Customs Union in 2003, it helped Dubai become a major port of entry for the ME and Africa. In addition, it has become both a sea and air transit point. In 2006, Dubai processed 1.5 million tons of cargo and 28.7 million passengers through the Dubai International Airport according to the Airports Council’s International Report (Rahman, 2007c). The Jebel Ali port with 67 berths is attached to JAFZA (Jebel Ali Free Trade Zone), which is home to 5,500 companies from over 120 countries. Dubai’s seaport is currently the 9th busiest in terms of container traffic (DMCC, 2007). The proximity of JAFZA and the new Jebel Ali Airport (stated to be the largest in the world) will lead to an economic free zone with access to sea, road and air. Emirates, Dubai’s flagship airline files to 83 different destinations. Today Emirates is the 4th largest airline in the world (in terms of passenger traffic) with its 18th consecutive year of profit. Dubai’s open sky policies and facilities have encouraged over 112 airlines to connect via Dubai to more than 165 destinations (Emirates Airlines, 2007). Dubai has historically been associated with trade. More than 80 percent of the UAE’s AED 510 billion (US$139 billion) merchandise trade is conducted through Dubai (Rahman, 2007b). Dubai is currently the third largest re-export centre in the world serving a massive regional market (DMCC, 2007). Dubai’s strategic location is not only geographical but also in terms of time zones as it falls more comfortably between Europe and the Far East which makes it a potential financial centre. To ensure the growth of trade and to become a trading hub, Dubai has initiated bodies like the Dubai Multi Commodities Centre (formally known as Dubai Metal and Commodities Centre). It was set up in 2002 to facilitate trading of gold and precious metals, diamonds and coloured stones, energy and other commodities. It is rated “A” by Standard & Poor’s and has over 850 registered businesses (DMCC, 2007). Dubai’s construction boom has seen approximately 8.1 million tonnes of iron and steel traded through Dubai (the world produced 1.8 billion metric tonnes of steel in 2006) and it is expected that this demand will rise by 8.4 percent to 43.6 million tones (Dow Jones Evaluation criteria

Table II. Dubai ranking in the World Competitive Yearbook 2005

Overall ranking Economic performance Government efficiency Business efficiency Overall infrastructure Source: IMD (2005)

No. of criteria

Ranking

314 77 73 69 95

17 6 9 21 32

Report, 2007). Dubai has the highest per capita gold consumption in the region at 30 grams (19 percent of world consumption) and in a survey conducted by AC Nielsen, it was found that tourists account for 52 percent of the gold and jewelry sales in Dubai (Dubai Gold and Jewelry Group, 2007; Husain, 2007c). In terms of diamond trade, in 2006, Dubai was the 5th largest trading centre in the world (Husain, 2007c). Dubai is trying to replicate its success in metals and commodities by trying to become a regional flower trading hub with the Dubai Flower Centre which was created in 2004. The Dubai Urban Development Framework was created in August 2007 to look at both the environmental and social aspects of urban development and to facilitate integration between government, quasi government and private stakeholders. This is of importance as already 50 percent of the emirate’s land is under urban planning (Rahman, 2007d) and as more businesses move to this region, coordination between them and government for smooth functioning is paramount. When looking at the strategic vision of Dubai (Figure 7), you see a good fit with the model. Areas for development are highlighted with an asterix. A big caution area for Dubai is the rapid pace of development which may not give sufficient time to learn from mistakes. The free trade zones and the multiple real estate projects have put demands on existing basic infrastructure and transportation. Road upgrades are happening at a frantic pace. Will it be sufficient? This is yet to be seen once all real estate properties are occupied as parking and free space seems to be at a shrinking as vacant dunes disappear under concrete and glass. Water is at a premium as 70 percent (about 24 million cu. Meters per day) of the UAE’s water comes from

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Economic Returns for Stakeholders Travel – open skies; port; cruise

Trade Key area

*Implied as Finance is key area Economic Prosperity per capita GDP increase by 42%

Logistics and Supply Management – trade (JAZFA/ DAZFA) Transit Hub

*Immigration

Economic

Dubai Vision 2015 Global Arab City

*Business Government Services

Investments Tax free, Investment zones, Real estate Business – Yes (ranks high as convention/exhibition centre)

Tourism

Health - Health City Education – Academic city

*Consumer Rest and Recreation – Beaches, Golf, Entertainment,

Retail

*Intellectual Capital

Retail – Big brands, retailers, duty free, Shopping Festival

*Social/Human Capital *Welfare/ Quality of Life/Security

Locals

Tourists

* - Areas of Refocus

*Family *Exploration/Culture/Experience

Figure 7. Strategic vision of Dubai – an analysis

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desalination plants and UAE has the 3rd highest water consumption per capita with USA and Canada ahead (ME Electricity, 2007). Most higher education still focuses on business degrees though as an area this region can encourage archeological, geological, architecture, engineering, energy, science and medical education. Dubai is still seen by many as an “earning transit point.” To encourage intellectual and social capital, and balance demographics, immigration can be used as an alternative. Security though one of the strongest in this region will need to be strengthened as tourists numbers start increasing. Dubai has a strong vision but needs to integrate and balance the pace of progress of all components of its vision. Vision: discussion and recommendations Vision should be the starting point of any destination strategy. Vision must be well-rounded with all components integrated. The key questions practitioners must ask are: . What benefit is there for the people of the location? . Why should visitors come to the location and spend/invest their money? . What policies/infrastructure/investments are required from the governing side to encourage the first two questions? . Is there a mind-set change that needs to be facilitated among the residents to encourage tourism? There are also several caution areas: . maintaining continuity with change of governing bodies; . integrating elements for better synergy; . keeping vision current with changing world expectations; and . moderating pace of development. A strong vision takes advantage of its history and geographic areas and builds infrastructure to make it more accessible. It must balance all stakeholder needs to gain the momentum needed to make the destination branding strategy a success. Stakeholders Dubai, the most liberal emirate of the UAE has to balance its culture with the more conservative dictates of the ME and hence its ambition to be a “Global Arab City” has to have a strong grounding in its heritage. This has to be balanced by integrating and educating expatriates and residents to deliver best practices in services and products. Balancing the Arab traditional laws with international laws is not very easy. The great diplomacy and skill of the ruler of Dubai, who also holds the Vice President and Prime Minister’s office for UAE has been recognized to this effect. As of 2007, he has been given overall responsibility for developing and implementing UAE’s strategy. This should help facilitate change and bring some synergy into the regions plan. With Dubai’s success – each emirate has been replicating the real estate and free trade zone formula which reduces differentiation and causes confusion as the distances between emirates is small. It is estimated that in this region over US$1,200 billion worth of real

estate projects are under development with US$600 billion in UAE, 50 percent of which is Dubai’s (Hussain, 2007a, b). Nationals are a key area of focus as not only do they form a small percentage of the population, they control sizeable assets and have a huge unemployment rate. Other key stakeholders are residents, individual investors from the ME, Europe and Asia; corporate investors and businesses (some details are covered in the section on target customers); governments and other international bodies that can add to the credibility of Dubai. Growing demand is coming from overseas expats including returning short-stayers (tourism). This includes rich Muslims from the West, rich GCC and South Asian citizens, upper middle income groups from Western and Central Europe who want a home in Dubai for visits and/or investment. Though expatriates are the majority and the economy depends on them, it was only in the last decade that they were allowed to own properties in designated areas and get a residency visa with it. Residency visas are normally employer-sponsored which meant in the past expatriates with children over 18 years had no way to keep their children with them. Now with education visas and property ownership, the situation is changing. The past policies encouraged illegal immigrants and led to violation of human rights. To combat this, in 2007 under the government’s amnesty program, more than 184,000 applications were received for repatriation without consequences (Gulf News, 2007d). Jeff Swystun, the Global Director of Interbrand says: Place Branding is actually a misnomer, it’s actually about people branding. It’s about branding the people that represent the region because there are actually very few differentiators that you can hang your hat on from a geographic basis . . . .it’s the people who populate [the place] that [make] it unique. [Dubai]. . . should be a global center, but not a transient one – one that attracts and makes people loyal” (Shikoh, 2006).

There has been a change in the government’s outlook with respect to the average citizen. In the past, government programs like Tanmia focused on a quota system where even private sectors companies like banks needed to hire Nationals, today the focus is on development where Nationals will have to compete on equal footing with expatriates which is a tremendously progressive step to take. Dubai has identified its key stakeholders well and is actively pursuing them to influence and spearhead change. An additional refocus on ALL residents will create a greater feeling of pride, loyalty and unity and encourage social, human and intelligence capital. Stakeholders: discussion and recommendations Stakeholder identification is derived from the vision itself. Governing bodies need to ask themselves the following key questions. Who/which bodies will be responsible for: . Sanctioning? . Investing? . Implementing/coordinating? . Promoting/influencing vision? Stakeholders need to be identified, convinced to participate and to influence other stakeholders to make a vision succeed. Destinations should look at domestic, regional and international stakeholders. These can be government, public and the private

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sector enterprises. At the micro-level, an important category of stakeholders are the residents who help indirectly implement destination branding as we will see later in the case study. Portfolio of products Immediately following the aftermath of September 9-11, investments that would have gone to the west were redirected back into the region after the negative impression and treatment of people with Arabic profile. Taking advantage of its strategic location Dubai has started several free trade zones. The portfolio of products is diverse (there are 23 free trade zones) ranging from IT/media; education; health; trade of commodities, gold, diamonds and gemstones; logistics; manufacturing and finance. With the opening of the Dubai International Financial Centre in March 2000 more than 250 players have come to Dubai. There are over 58 brokerages which mean there is nearly one brokerage firm per company listed in the stock exchange. Still, there is a long way to go. GCC’s share of global banking assets is less than 1 percent. However, there is some positive movement forward as more multi-national banks adopt Islamic financing to woo their Arab customers. Islamic finance assets are worth over US$250 billion and even the British government is trying to woo this neglected cash-rich source with its first Sharia-compliant bond (Reuters, 2007). The hotel industry is growing with the real estate industry. There are 285 hotels and 135 service apartment blocks according to DTCM in 2006 (Rahman, 2007a). According to Jones Lang LaSalle Hotels, ME investment in hotel sector is to exceed US$7 billion in 2007 and with UAE investors like Nakheel, Emaar and Tameer accounting for more than 76 percent of MENA regional hotel investments (Shuey, 2007). Real Estate is booming: Nakheel projects are expected to contribute 25 percent to Dubai’s tourism GDP (Nakheel Advertisement, 2007). Dubai Holding is developing the Bawadi project which is a Las Vegas type hotel strip and a Universal Studio operating over 6.5 million sq. ft. which will open by 2010. Dubai has a well diversified portfolio targeted at the high-end customer. Being a transit destination and a purely expatriate dominated destination means it cannot cater to the lower-middle income groups which maybe a neglected sector. In business there are some international systems (labour and legal laws) that need to still be put in place but efforts are underway to that effect. Portfolio of product: discussion and recommendation As with brand portfolios, consistency is important. That means not only must the products have consistency across the range (if you offer world class hotels, other services must also match up) but also tourism does depend on the how clearly you can segregate brand identities. Often destinations will attract the low-budget traveler, the business traveler and the wealthy jet set. Each has different needs and requirements. Hence, the clearer the portfolio of products, the easier it is to identify the target audience. The advantage of diversifying the portfolio, is that you reduce the investment risk. The moment a destination becomes a transit hub, you must be able to provide a range of destination products from middle income levels onwards. When designing the destinations portfolio, there are two key perspectives: (1) infrastructure; and (2) revenues.

Long term infrastructure investments that need to be funded with foreign capital becomes a destination product though often the initial capital outlay will be funded from the destination itself. Revenue generating activities like hospitality, retail and business are some activities that need to be supported by destination information services, banking, transportation, security and even cultural activities (museums, entertainment, etc). Target customers Who are the customers that Dubai focuses on? An interesting fact is that over 50 percent of the investment comes from the private sector. Within the ME Subcontinent, North Africa to the Caspian region, there are more than 544 million people with a GDP income of over US$1,000 (Gulf News, 2007e). It is estimated according to the Hedge Fund Report that the value of the potential Middle Eastern capital available for investment (private wealth and institutional funds) is approximately US$4.1 trillion (Rahman, 2007e), which makes this a lucrative segment to focus on. Kuwaitis are the largest owners of land in Dubai (29 percent), followed by Saudis (27 percent), Omanis (19 percent), Qatar (13 percent) and Bahrainis (12 percent) which shows that FDI is mostly regional at this point (Zahid, 2006). With the relaxation on property ownership, and increase in business investment, the population has grown to 1.422 million, adding a total of 800 people daily in 2006 (Ahmed, 2007). The challenge would be to make the composition of investors more international. Key trading partners in terms of exports are also regional – India, Pakistan, Iran and Kuwait. In terms of re-exports, key countries were India and Iran and in terms of imports it was China then India. Dubai is looking at more countries to form strategic alliances as seen by the spate of foreign travels HE Sheikh Mohammad has made in 2007 alone. The visitor composition has changed (Table III). The tourist numbers have more than doubled since 1999 and more Europeans are being wooed with Dubai’s lifestyle, weather and facilities. According to DTCM’s (2007) One Stop Information Centre, though hotel occupancy has increased from 66.8 percent (in 1999) to 82 percent (in 2007); average guest nights have not increased significantly (2.5 nights in 1999 to 2.7 nights in 2007), Hence, Dubai is not considered a long-stop location, it is more a transit point. This raises an interesting question as it is not a very economical transit point. These two opposing sides of the equation need to be balanced. Studies like the one conducted by Gonza´lez and Bello (2002) should be conducted to offer insights on tourist consumer behaviour to increase length of stay keeping in mind in 2010 many new hotels will be opened. Very often target customer segmentation is by geographic area or income but a study by Woodside and Ronkainen (1978) shows that though demographic profiles of tourists can be same across geographic areas, the psychographic profile will differ. This highlights the importance of matching the personality of the brand to the target customer (Hosany et al., 2007), especially as brand “Dubai” moves westwards. Year

Total visitors

Arabs (percent)

Asian (percent)

Europeans (percent)

1999 2006

3,026,734 6,441,670

39 30

22 22

28 31.7

Source: DTCM One Stop Information Centre (2007)

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Table III. Visitor composition (Dubai)

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Target customers: discussion and recommendation Though the target customers outside the destination are crucial to bring in revenue, it is the residents that will help make it happen. Somehow that part often gets lost in wooing customers. Dubai is no exception. The key questions destinations need to address are: . Who is your target market (looking at psychographic profiles also)? . What kind of revenues are you looking from them? . Who are the influencers for this group of customers? . Are these groups of customers homogeneous across regions or does the regional differentiation need special services? . How can you profile this group of customers yet have one common theme that attracts all of them? . What are these target groups of customers looking in terms of service interactions from your residents? Image, differentiation, communication and response Dubai actively pursues ingredient branding. There are over 400 international brands in Dubai. Its no direct tax policy encourages investment. Its open skies policies allow any airline to land, increasing transit traffic. It has been the promoter of the Dubai Shopping Festival which has spurred retail sales and resulted in the world’s best brands being found here. Its free trade zones have many Fortune 500 companies setting up offices (Microsoft, Nokia, CNN, Pepsi), Banks (Credit Suisse; Merrill Lynch; Deutsche Bank, etc.) and Hotels (Sheraton, Hyatt, Meridian, Raffles, etc.). Home brands like the Jumeira International Group (hotels), Emaar, Nakheel and Dubai Holding (real estate), Dubal (Aluminum) Emirates Airlines and DP World (port management) are among its brand ambassadors. Many of its home grown brands are superlatives (Table IV). It is Media proclaimed 7 star hotel The world’s highest hotel The world’s largest hotel The world’s first underwater hotel World tallest building The world’s tallest building built to be bigger than The Burj The World’s richest horse race The self proclaimed 8th wonder of the world The world’s largest waterfront development Dubai Marina World’s first purpose-built sports city The world’s largest mall

Table IV. Some of Dubai’s superlatives

World’s largest gold souk The world’s largest amusement park The world’s largest man-made port The world’s largest airport Regions largest logistic hub

Burj Al Arab The Burj al Alum Asia-Asia Hydropolis The Burj The Al Burj The Dubai Cup “The Palm –The World” Dubai Waterfront World’s largest man-made marina Dubai Sports City Mall of Arabia, which will be bigger than Dubai Mall which will become the world’s largest mall In Dubai Mall Dubailand of which Universal studios is a part Jebel Ali Jebel Ali airport at Dubai World Central Dubai World Central

estimated that in order to promote the “Dubai” brand, the Department of Tourism and Commerce’s unofficial marketing budgets are to exceed US$32 million. However, when you add the projected spend of quasi-government organizations like the above, the amount will exceed US$275 billion for the year 2010 (UAE Interact, 2007b). Emirates Airline is a Brand Ambassador for Dubai like Singapore Airlines was for Singapore or Lord of the Rings was for New Zealand. It is the world’s youngest and fastest growing airline (it will accept delivery of an aircraft every month for the next eight years) and the strongest brand in the UAE and the second strongest in the ME (Dore, 2007). Its association with FIFA as the principal sponsor has helped change the image of Dubai. Emirates Airlines is perceived as a global carrier. During the 2005 FIFA World Cup campaign, their emphasis was “We all speak the same language” (implying football) which helped negate the negative COO effect. Today, over 120,000 UK citizens and 5,000 Germans have established residency in the UAE, plus over 1 million UK visitors and 30,000 Germans come every year (Anastasiou, 2007; Zahid, 2006). Their current campaign “Keep Discovering” encourages people to explore through emirates. Dubai has used its international exhibitions and its “transit hub” status to facilitate travel. It featured on the cover issue of the January, 2007 National Geographic issue. It was used as a movie backdrop for Academy Awards Winner Syrianna. It has associations with celebrities who have “homes” here like football legend David Beckham; actors like Michael Owen and Indian superstar Shah Rukh Khan (Nakheel, 2007). Dubai features in special documentaries on its mega construction projects to create a “Buzz”. There are cautions. The “tallest, biggest, richest, unique” are all short-lived differentiators and when building destination images, it is better to build it on the promise of something more tangible and concrete than a passing title. Though Dubai is associated by so many images, not all images encompass the image of Dubai totally. There is no single logo or symbol representing Dubai. Singapore has the Merlion, the Singapore Airlines fabric, New York has its “I Lkve NY” logo, the Statue of Liberty and the “City that Never Sleeps” campaign, Egypt is associated with the pyramids but Dubai has yet to decide what will be its key image differentiator. Most tourists buy a camel as a souvenir which is alright if that is a part of the branding strategy, but more likely it is an entrepreneur’s interpretation of a destination. Image also needs to be linked to an emotion. What emotional experience does the Destination want to engineer? These are areas that Dubai needs to work on branding. Services are the driver for the “Dubai brand.” The portfolio of products Dubai has to offer: real-estate, business investment, financial services, lifestyle, tourism, shopping, healthcare and education have a strong dependency on people and other auxiliary systems like laws, regulations, infrastructure and social support to ensure that the overall “image” is reinforced. How can the response be managed? Though Dubai uses a variety of components of the communication mix as seen above, there still has to be: . consistency; and . feedback. Dubai needs to synergize its media and branding strategy across government, quasi government and private sector companies. Also with respect to market information,

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there is lack of access of to data. Companies are reluctant to give information as are their employees (perhaps due to low job security). Another caution area is the promises so heavily advertised on which the brand Dubai stands for are still being completed. This can cause disappointment in investors and tourists. One traveler said “I was surprised to see so many buildings that were un-finished”. If we look at the brand strategy framework, Dubai focuses on most of the key elements but there are a few areas that can be strengthened. The vision is clear, but it needs to be focused. Dubai is associated with too many images which makes it confusing. City of Dreams is too vague. To build a brand image sometimes we need to focus on a few key elements at least in the initials stages to get greater recall, association and usage. Dubai is building a destination with the right brand equity blocks. What they do not have in-house they are not afraid to ask for from outside. Since, people are the key drivers, they all need to own the vision and this is a challenge given the size of the expatriate population. At his historic speech in front of key influencers of the nation, Sheikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai said: . . . It is common knowledge that it is far easier to build financial capital than it is to build intellectual, psychological and moral capital. Building a road, or a bridge, may take a year or two, but building a person takes a lifetime. We live, today, in the ever changing era of knowledge, requiring continuous learning which does not end at a certain level, or by attaining a . . . certain expertise.

Pride is a good way to start. The pride “of belonging” and “visiting” a destination. All this together will make Dubai a truly “global city.” Image, differentiation, communication and response: discussion and recommendations How do you create a positive image? When looking at ingredient branding, international brands give the tourist and business investor some immediate sense of affiliation and trust. A study by James et al. (2006) finds that the more similarity between brand alliances (looking at functional and emotional aspects of the brand) exists, the greater likelihood of consumers purchasing that product. The destination must also export “home” grown brands as most tourists are looking for the “unique” destination experience. So the key question is how do you differentiate regions? Destinations need to identify which tangible and intangible components their target customers’ value. For example, O’Cass and Grace (2004) and de Chernatony and Riley (1998) have identified a detailed list of brand dimensions important for customers. Images based on destination attributes (Correira et al., 2007; Hankinson, 2004, 2005; Pawitra and Tan, 2003; Leisen, 2001) need to be matched to the customers perceptions and self image (Jamal and Goode, 2001). Destinations need to balance tangibles/functional attributes with emotional/ambience components (Hankinson, 2005) and can use methods like “Mood” marketing (Pritchard and Morgan, 1998). On the other hand negative images of a destination need to be assessed as they affect overall image. For example, a study by Pawitra and Tan (2003) found that negative images of Singapore arose from the expensive price of goods and unfriendly people. In today’s technology based world, tourists still prefer traditional distribution channels, especially for visiting new destinations though the net is used to supplement information (Law et al., 2004). Results of a survey conducted by Future Brands (2006),

a Simon Anholt group found that tourists preferred to depend on friends and family recommendations prior to choosing a destination 29 percent of the time and then they used the web 66 percent of the time post selection to get information. The net will become a formidable medium and it is important to keep track of its growing importance. Studies like the one conducted by Martin et al. (2007) show netnography as a way of getting firsthand feedback on perceptions of travelers to destination. It also is a useful way to find ways of uncovering the real “flavor” of a place and positioning the brand in a language they are comfortable with. The communication mix must look at the target customer behavior patterns and also must be able to display consistency of information and easy networking between various sites. Findings and future recommendations The analysis of the case study found a strong fit with the model. Some recommendations were also derived from the analysis. A key constraint of this study is the availability of sufficient information which is still limited in the UAE. This would affect the interpretation of the result. Dubai is truly a Star shining in the East with respect to destination marketing. They still need to continue focusing on new trends. They need to continue identifying new tourist segments, for example, China will become a key source of outbound tourism by 2020, supplying 100 million travelers (WTO, 2007). In addition Dubai needs to focus on Stages 6 and 7 of the branding framework model (Figure 3) where they need a clearer unified brand promise and a few select representative images. Responses must be engineered, so positive WOM can increase. This is a new area of research. This model can be applied to several destinations to test its fit. A survey tool on customer perceptions can be developed to further help cities in their branding strategies. This means looking at internal and external customers. External customers will be of two types – visitors and people who have never visited. This can help remove the negative COO effect and reinforce positive brand elements. Since, people are a key driver of services and destination marketing and brand perception, more research can be conducted about understanding how a government can take onus for its population and the impact they have on key drivers like tourism and business. National pride can be reinforced in service delivery to make more positive experience outcomes. The communication mix can be researched looking at well-established destinations and emerging destinations. WOM is a strong influencer for shortlisting countries (29 percent dependency) hence reference generation must be an activity pursued (Future Brands, 2006). Research suggests that simplifying positioning based on the visitors experience of features in a destination can improve the branding (Foley and Fahy, 2004). Caldwell and Freire (2004) recommend that countries focus on emotive parts of brand identity due to their diversity, while regions and cities can focus more on functional attributes. This paper contributes to the overall body of academic knowledge and provides a constructive guideline in the development of destination branding. As more economies move towards a service economy the distinction between one destination and another blurs. As one customer joked “Everything is made in China so what is unique about the place?” Destinations must start focusing on the service experience and all customer touchpoints especially the people as they help deliver the experience. The checklist in Table V is developed looking at the literature review (destination and business context),

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Table V. Destination branding – the six Ps: a checklist

Concept

What is the objective behind destination branding? What values will you hold? How will you share and create ownership of vision across various stakeholders especially residents? How will the vision also improve social and economic prosperities of residents? What are key factors on which vision hinges on (resources available, investments costs, revenue returns, intellectual/social/process capital)? People Who will benefit (internal and external)? Who are the key internal stakeholders needed to be aligned for the strategy to succeed (government/(s), publics, media, influencer, private sector – domestic and international)? Who are potential external stakeholders that can facilitate the strategy (influencers like media, governments, NGOs, financial bodies, transportation companies, etc.)? Who is the strategy targeting? What resources and how much time is required to change mind-set? Performance What is the current status (SWOT)? How do you wish to change that perception building on your strengths? What are the performance guidelines you will use to measure change? Who will monitor and be responsible for the change? How do you cascade, communicate and align the performance objectives across government departments, private firms and publics? How will you keep performance expectations abreast with changing world situations? What other destination will you use as a benchmark and why? Product What portfolio of products will you offer for which you need to create a brand strategy? Which products will bring revenues into your destination? Which products will be used to increase prosperity of your residents? Which products will build your brand/image? How will investments in these products change in the future and how easily replicable are they? Which of these products take advantage of your core competencies – geographical location, history or people? How will be products be synergized across product types, customers, services and policies, infrastructure requirements, stakeholders and media? Positioning What are your key attributes (physical, business, emotional, cultural, etc.)? What do your target customers value? Is it unique and not easily replicable? Are the brand components – name, slogan, color, trademark/logo, personality, image, service performance/benefits, representations (corporate/human), culture, messages, and emotions – reinforcing each other? How are you monitoring these components? Process What system change do you need? How can you synergize information and processes (for speed, service, security, information and convenience)? Can you create one-stop information and process handling points for target customers? What technology/infrastructure do you need to keep your destination brand promise? Who will be accountable? Are your systems leading to intellectual capital generation in the case of extended product ranges? Through what systems/channels/processes will you offer your destination product portfolio and how will you control and integrate these systems to reach your correct target?

the case studies and especially Dubai. It can be used to help develop a strong brand strategy for the destination. It focuses on six Ps crucial to destination branding: (1) purpose of the destination brand design and promise; (2) people that will be affected, influencers and target of branding; (3) performance expected after a realistic audit; (4) products offered under the destination portfolio and their management; (5) positioning expected and ways to reinforce it and finally; and (6) process of ensuring the brand promises are delivered as effectively and efficiently as possible. This is the start into the study of a topic that will continue to gain more importance as borders blur and revenue from destination branding continues to increase. References Aaker, D.A. (2004), Brand Portfolio Strategy – Creating Relevance, Differentiation, Energy, Leverage and Clarity, The Free Press, New York, NY. Ahmed, A. (2007), “Dubai population makes big surge”, Gulf News-Nation, March 1, p. 9. Al Deen, M.E. (2007), “Medical tourism in UAE to generate Dh7b by 2010”, Gulf News, April 29, p. 38. Al Hakeem, M. (2007), “Tourism contribute 18% of Dubai GDP per year”, Gulf News, available at: http://archive.gulfnews.com/articles/07/02/14/10103984.html (accessed February 14, 2007). Anastasiou, A. (2007), “Collaboration in new areas strengthens ties”, Gulf News, available at: http://archive.gulfnews.com/articles/07/10/23/10162212.html (accessed October 23, 2007). Assiri, A., Zairi, M. and Eid, R. (2006), “How to profit from the balanced scorecard”, Industrial Management & Data Systems, Vol. 106 No. 7, pp. 937-52. Baik, D.A. (2007), “Playing policy instruments to curb flying inflation”, Gulf News – Comments & Analysis, February 13, p. 51. Balakrishnan, M.S. (2007), “Strategic branding of destinations: Dubai”, paper presented at the 5th International Business Research Conference, Dubai, April 26-27. Balmer, J.M.T. (2001), “Corporate identity, corporate branding and corporate marketing – seeing through the fog”, European Journal of Marketing, Vol. 35 Nos 3/4, pp. 248-91. Bang, H., Raymond, M.A., Taylor, C.A. and Moon, Y.S. (2005), “A comparison of service quality dimensions conveyed in advertisements for service providers in the USA and Korea: a content analysis”, International Marketing Review, Vol. 22 No. 3, pp. 309-26. Berry, L.L. (2000), “Cultivating service brand equity”, Journal of Academy of Marketing Science, Vol. 28 No. 1, pp. 128-37. Blain, C., Levy, S.E. and Ritchie, J.R.B. (2005), “Destination branding: insights and practices from destination management organizations”, Journal of Travel Research, Vol. 43 No. 4, pp. 328-38. Bontis, N. (2004), “National intellectual capital index: a United Nations initiative for the Arab region”, Journal of Intellectual Capital, Vol. 5 No. 1, pp. 13-39. Box, S. and Platts, K. (2005), “Business process management: establishing and maintaining project alignment”, Business Process Management Journal, Vol. 11 No. 4, pp. 370-87.

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WTTC (2007b), Progress and Priorities 2006-07, World Travel and Tourism Council, London, available at: www.wttc.travel/bin/pdf/temp/progresspriorities06-07.html Zahid, K.H. (2006), “What about the Dubai real estate boom?”, ArabNews, (21, Shawwal, 1427), available at: http://arabnews.com/?page ¼ 6§ion ¼ 0&article ¼ 88769&d ¼ 13&m ¼ 11&y ¼ 2006 (accessed November 13, 2006). Zawya (2007), “Sheikh Mohammed Bin Rashid Al Maktoum launches foundation to promote human development with Dhs. 37 billion endowment”, Zawya, available at: www.zawya. com/story.cfm/sidZAWYA20070519133828 (accessed May 19, 2007). Further reading Menon, S. (2007), “Dubai-India trade rockets 336% in five years”, Gulf News, available at: http:// archive.gulfnews.com/articles/07/02/27/10107232.html (accessed February 27, 2007). Corresponding author Melodena Stephens Balakrishnan can be contacted at: [email protected]

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Finding one’s place in the place management spectrum James Yanchula

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Urban Design & Community Development, Windsor, Canada Abstract Purpose – The paper’s objective is to help place management practitioners (particularly downtown managers) evaluate where their work fits in the scope of possible activities which they may undertake, and whether the nature of experience and resources available to them are a good match for those activities. Design/methodology/approach – Observations made based on the author’s experience and conversations with professional colleagues are presented in a hierarchy of activity categories using the analogy of spectral optics to identify each. A basic overview of the types of available resources to place managers and their interrelationships supplements the defined activity categories. Findings – Posits that certain place management activities are foundational, implying that experience and cultivating a reputation for success in these prepares a place management organization for, but does not necessarily predict its future success in, other “higher order” activities. Research limitations/implications – While the presented hierarchy of activity categories have a basis in logic, and offer examples of typical activities, the information should be considered an hypothesis untested by supporting research. Practical implications – While not serving as a predictive diagnostic tool, this information is a quick and concise method that place management organizations and practitioners can use to determine their position relative to the activities they undertake and the resources they have (or need) to do so. Originality/value – Both existing and incipient place management organizations will find value in the easily understood and aptly illustrated concepts in the paper. Keywords Organizational culture, Change management Paper type Research paper

Journal of Place Management and Development Vol. 1 No. 1, 2008 pp. 92-99 q Emerald Group Publishing Limited 1753-8335 DOI 10.1108/17538330810865354

Introduction With place management now well established for over 50 years in the North American context, and gaining adherence quickly elsewhere in the world, it seems useful to have a sense of where one’s place management organization stands, both in terms of its current competence and in planning how it wishes to grow. The purpose of this paper is to lay out how the activities of place management organizations can be understood in a hierarchical nature, in an effort to assist an organization in answering questions such as: are we doing what we say we do? Are we doing enough? Are we doing too much? Having a sense of where an organization is and where it might move towards (or where it has been and why it is no longer there) may be a useful orientation device for assisting organizations and those interested in establishing organizations. This organizational overview is presented as a “spectral pyramid” (Figure 1). “Where does my organization fit within the spectrum of the possible?” is defined by the various bands in the spectrum. The bands help to identify the nature of place management activities, their purpose and the organizational structure typically involved in them. The pyramid identifies the relative hierarchy of these activities. This model was developed based on the author’s perspectives gained through eight years of managing a municipally led downtown revitalization program in Windsor,

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What does the organization do?

Why?

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MARKETING & DECORATIONS

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RE-DEVELOP DOWNTOWN

RE-OCCUPY DOWNTOWN

RE-MAKE DOWNTOWN

MANAGEMENT ORGANIZATION

INCREASE ORGANIZATION'S LEGACY INCREASE ORGANIZATION'S REPUTATION

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ACTIVITY

RAISE AWARENESS RAISE EXPECTATIONS

RE-FAMILIARIZE/RECLAIM DOWNTOWN

MEET BASIC EXPECTATIONS MATHC COMPETITIONS OFFERINGS

Ontario, Canada; through contacts with downtown organization leaders involved with the International Downtown Association; and through current monitoring of eight business improvement areas of various sizes and means in the author’s home town. The paper is an orientation to the scope of activities possible. The bands should not be construed as an “if/then” formula. Put another way, the bands in the pyramid may blend rather than be a precise line between one layer and the next. What is more important to consider is whether an organization is involved in an upper tier activity before it has sustained accomplishments in a lower tier activity. What does the organization do? Why? Band 1 It has become established that the first activity of any place management organization is place maintenance. Continuing with the example of downtowns as the particular type of place, this spectrum of activity is the “clean and safe” mantra. It is imperative that places which intend to be comfortable enough to be visited, are at the very least presentable in terms of cleanliness and have a feeling of personal security that would deem them to be safe places. The reason for this activity is largely to meet consumers’ basic expectations. Succeeding in this spectrum really only allows the place to match the offerings of its better regarded competitors. Yet without succeeding at this basic level, there is little to build on in terms of encouraging visitation to the place.

Figure 1.

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Band 2 Having established a place is clean and safe, the next step in the hierarchy is to produce or encourage time-limited events and festivals that create or supplement reasons for visiting the place. In the case of a downtown, this allows people who for a long time have not visited, or have not felt it was part of their local experience, to refamiliarize themselves or reclaim that territory as part of their “geographical mind space.” The place is populated because something has been contrived to “populate” it. Band 3 The third step in the hierarchy starts to raise more awareness, as well as expectations, for the place. Typical activities in this spectrum are marketing the place’s attributes and decorating the place. These are done so that even if a person is not attending a festival or event, but merely is passing through the place, there is a sense that it is “lived in” even if not populated as heavily as it would be during a staged festival or event. More importantly, these efforts can trigger positive memories of visitation that a consumer has had because of attending a festival or event in the past. Decorations can include plantings, banners on street-light poles, seasonal illuminations and so on. Marketing understood in the strictest sense, consists of understanding who are the consumers that have been attracted to the place, what their spending habits are, what their wants and needs are, etc. Having this information potentially amplifies the means of tailoring for consumers what already exists (periodically or continuously) in the place, and later sounding out consumers on what the organization plans to stage/achieve in the future. A word or two on “promotion”. It is worth noting that in this spectrum “marketing” is not synonymous with “promotion”. Promotion is an activity that needs to happen throughout the various spectra of activities. It involves “telling the story” of what is happening, even if it be in “mundane” matters like making a place cleaner and safer or reporting on event attendance. The “pro” in promotion opts for telling truths rather than overselling something about a place that has yet to be, or worse – may not even have a hope of becoming. Having succeeded in activities associated with lower bands, place management organizations can start to rely on a reputation for achievement. Having such a foundation, organizations can move into other higher order activities but in doing so must not abandon the lower activities on which this foundation rests. Band 4 The next spectral band can be termed “beautification.” This remakes a place (in this paper, a downtown area) not merely by installing seasonal decorations but by making some relatively lower order capital improvements which are clearly understood to be investments for decades rather than years. Examples can include streetscape improvements, new public squares, public art and so on. Band 5 Moving up the pyramid, business retention and recruitment is next. By this point, the organization should have established itself as a clean, safe, friendly and beautiful place to be. Indeed, by now, many businesses who have been able to withstand a downturn in the place’s fortunes should have already seen this to be so. Having established that the place commands visitation on a reliable basis, there is enough “there” there to be able to

credibly convince existing business owners and prospective recruits the value of occupying the place over the longer term. This duration means, for example, the term of a five-year lease, or in the best case scenario, purchasing a property for business occupancy. Band 6 Nearing the top of the spectrum with other activities competently undertaken, the next step is involvement in development projects for the express purpose of redeveloping the area. The development project takes the successes made in steps four or five and applies them over a still longer term or a wider geographical area. A development project may be the rehabilitation of an entire district or neighbourhood. It may be a non-place specific project such as finding affordable housing for the homeless, proper services for indigents, etc. Band 7 By the time an organization has run through the spectrum of activities in bands one through six, it will have acquired a level of influence that leads it to become an effective advocate for sustained transformational change: change that repositions the place. This, for example, would denote organizations which can effectively lobby senior orders of government to approve funding for major capital infrastructure such as a concert hall or major programs such as job training and business development which moves a place from historically being a manufacturing center to becoming an entertainment and hospitality locale. Who does what Taken together, the first three bands in the pyramid identify organizations that can be categorized as mainly management organizations. Moving through the activities in band one through three helps to increase that organization’s reputation, either as a start-up or as an organization which needs to rejuvenate itself. Management organizations defined by activities in Bands 1-3 of the pyramid are business improvement areas, business improvement zones, business improvement districts or business revitalization zones, to name a few. Typically in North America, these are defined as “membership” based. This membership occurs through some piece of enabling legislation provided by a senior order of government. The organization is defined by geographical boundaries. All classes of property stipulated by the legislation that are within the geographically defined area belong to the organization and pay dues into the organization. It can be said that all belonging to the organization “participate” in it, even if that participation is only through the paying of dues as a result of accessing legislation confirming that a majority wish to do so (Figure 2). Downtown organizations found in the middle of the pyramid are constituted as downtown management districts or downtown development authorities or place-specific authorities such as Canada’s Forks Partnership in Winnipeg. Often, these kinds of organizations include the previously described management organizations. However, sometimes these second tier organizations may run parallel with the management organization but are governed by a separate body. Organizations in this category are usually established again through legislation for a defined purpose, but that defined purpose may go beyond what might be considered as

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Figure 2.

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“nuts and bolts” maintenance. For example, the organizations may be authorized to provide publicly funded incentives to private entrepreneurs for defined public goals. The last grouping of organizations is coalitions and partnerships. As shown in Figure 2, these also may be nested within or run parallel to either of the two previously described categories of organizational types. Taken together, the upper part of the spectral pyramid defines what can be categorized as development organizations. These are organizations that have successfully used their reputations to make transformative change and thereby are able to leave a legacy of tangible and admired improvements of a physical, social and economic nature. This last grouping of organizations is characterized principally by a membership that is defined less by “conscription” (that is, the legislatively required payment of dues) and more by “shared avocation.” These are organizations that are developed around those who see, and who will fund or otherwise support, a compelling vision of transformative change that is borne out in measurable results over a longer term (incidentally, the how, the why, the what of measuring, is a worthy subject of another article and applies across the pyramid). It should be no surprise that this type of organization is conceived at the top of the pyramid since such organizations normally coalesce after enough momentum has been seen and felt in and about a place. This means that the management organizations have built a reputation that is enough of a “foundation of confidence” (and competence) to be able to leverage more sustained

participation of interested groups, individuals and foundations who might not normally by law be required or even eligible to be part of more strictly defined development organizations, and yet see a shared reason to align themselves together. How does the organization operate? Knowing where one’s organization is, and what type of activity it might be expected to be involved in, the next area of activity to consider is: how does it conduct itself with the resources it has? A simple way to do this is to address the time-tested triumvirate of the aspects of time, talent and treasure (Figure 3). This too is visualized as a pyramid. Taking note of Figure 3, the top of the pyramid gets its stability by having all three sides (time, talent and treasure) mutually supporting one another and preventing the organization from collapsing. Talent is the “people factor”. It answers the question: what expertise do we have within the organization? . . . within paid staff? . . . in our volunteers[1] and “voluntolds[2]”? Are there effective leaders in the organization – those that can act as champions for the organization? Having people is not enough. The second “t” is treasure: the finances of the organization. Here, one considers what the organization can earn through means such as levies, dues, donations, and profits and surpluses from sales of merchandise or through the production of festivals and events. Also, to consider is what activities in the spectral pyramid the organization would spend its money on, and what proportion of its funds it directs to internal activities or needs of the organization (e.g. administration, staff

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RESOURCES (THE 4 T's) What does the organization have to work with?

TALENT What expertise do we have?

TIME How long do we have?

within/beyond organization; payroll v.net 'generals' amd 'soldiers' in proportion volunteers want to contribute; 'voluntolds' are forced to leadership in organization; champions for organization

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statutory limits of organization organization's self-imposed deadlines ("we meet goals") politically 'inspired' deadlines

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TRUST TREASURE What money can we... Earn? Spend? Save? on ACTIVITIES levies "in-kind" dues one-off 1 through 7 donations on administration per series/pgm/ profits/surpluses of ACTIVITIES, activity of ORGANIZATION continuous/perpetual

Confidence in leadership administration each other (membership) Can modify the proportions used/required of others Hard to cultivate and maintain

Figure 3.

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development or board development, etc.) Not to be dismissed is what the organization can save by securing donations that are valuable but are not strictly speaking cash, especially “in-kind” services. The third “t” in the resources pyramid considers time limits – either defined or self-imposed. Those that are defined can be defined in legislation or can be defined by order of an organization or a political group such as a municipal council which the organization may have a reporting relationship with. However, it can also include self-imposed deadlines that the organization strives to meet to prove that it can set a goal and reach a goal. Time is an important element and often is the most overlooked of the three t’s. A telltale signal of poor time management is burnout of the organizational membership, or threats of disbanding the organization from those who govern it. The “bonus t” which may modify the other three t’s is “trust”. Though hard to cultivate and maintain, when trust is present within and among the leadership, its administration and even in the “rank and file” membership, the possibility of reaching optimal efficiencies is significantly increased. The healthiest organizations are so comfortable in their leadership (governance) and in the competency of their administration (and/or contracted help as the case may be) that they can apply trust to shore up or substitute one or more of the sides of the resource pyramid. With trust, there can be savings. Trust can save time, that is, it can make activities the organization wants to proceed with go faster. Trusting boards of management or governance are confident in the selection of their administration or their contractees to be able to delegate decision making. In other words, the governing body can spend time on goal-setting and monitoring, rather than on choosing banner colours or plant materials. Often, the local notables which a place management organization may want to have on its board of directors, are the types of people who are experienced in and desire to spend their volunteer time doing the former rather than activities such as the latter. “Trusting organizations” can save money or make it go further. For example, a place management organization which produces a program of annual events may find a sponsor, it can trust to have the year-long cash flow and appropriate fit with event attendee demographics to support a series of varied events, instead of limiting one sponsor to only one festival for one type of attendee. A place management organization can then save money in producing and then reusing promotional collateral material of the sponsor which can be displayed/distributed through many events instead of using the money to produce it only for display/distribution at one event. It is also true that “trusting organizations” may be “trusted organizations” wherein the sponsor in this example can be confident that the event attendee demographics collected by the place management organization are reliable. Trust can also apply available talent in a focused way. Among board governance trust in specific skills and attributes of one board member over another may be applied to the advantage of the entire organization. For example, if the board has a sense that one of its members will apply with personal integrity, its talents on behalf of the whole organization, it may delegate responsibility and feel comfortable with the delegation of that responsibility to advance the organization. This could take place by allowing a board member with particular charisma that reflects enthusiasm of the organization to be a spokesperson in the local media even if that person is not the chair of the governing body. Otherwise there could be a board member who has particular contacts

that can “open doors” that the organization may otherwise find it difficult to open. Akin to trust saving money, trust can help to “save talent” by avoiding burnout in volunteers (or voluntolds) by ensuring there is trust in the individual’s skills being usefully applied. A brilliant retired or semi-retired banker for example, might be able to keep the books in tip top shape for an organization but cannot flip a hamburger at an event to save his life. Trusting him to do the former should not immediately be an assumption of trusting him to do the later. Conclusion Is my organization new and needs to establish a path of direction? Is my organization “tired” and needs to rejuvenate itself? Where is it going? Does it have the resources to get there or is it overextended? This paper assists in answering questions like these by providing a method of identifying what an organization does and why it does it, defining the category of organization that is usually involved in the doing of it, and offering a guidepost on the types of resources (“the four t’s”) that the organization needs to consider in how it will proceed. Lower tier management organizations can work to develop and increase their reputations. Having done so they can partner with or become development organizations that can increasingly leave a legacy of great or greatly improved places. Notes 1. Volunteers can be described as community service organizations, faith-based organizations, community do gooders and retirees who wish to remain active and involved in their localities. 2. Voluntolds may be described as people on social assistance required to provide community services, students in work programs, people from the judicial system being reintegrated in their communities, etc. Corresponding author James Yanchula can be contacted at: [email protected]

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Place management as a core role in government John Mant Mant Consulting Pty Limited, Paddington, Australia

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Purpose – This paper aims to deal with place management, not as an additional function to traditional silo organisations, but as a core part of a government that has been restructured to achieve complex outcomes, such as place management. The work is based on the author’s experience over the last couple of decades, both as a departmental head and a change management consultant. Design/methodology/approach – Instead of government consisting essentially of functional departments, each one consisting of a different group of professionals pursuing specialist inputs and outputs, an outcomes focused government is structured around the three core aspects of governance – effectiveness (outcomes), efficiency (services) and transparency (standards). The three parts have different ways of operating and different types of performance measure. Findings – Place management along with systems management are the essential responsibilities of the outcomes organisation. Research limitations/implications – Rather than advocate traditional inputs and outputs, outcome managers are free to pursue a wide range of solutions from a number of different providers. Being highly visible to the community place managers especially provide a clear point of contact for all those with an interest in the place, whilst buck passing opportunities are limited. Budgeting can be shifted to the funding of outcomes rather than inputs or outputs, with increased power for elected officials to review a wider range of expenditure. Outcomes management provides opportunities for bottom-up solutions, rather than reliance on top-down coordinating committees of silo organisations. Originality/value – The paper should provide those struggling with the limitations of place management in traditional structures with a model for the more effective governance of places. Keywords Management, Organisational change, Cost effectiveness Paper type Conceptual paper

Introduction Place management has been practiced in various parts of Government in Australia[1]. Mostly place managers have been appointed in ad hoc and essentially short-term positions to deal with crisis situations – such as an area with a high-crime rate. However, several organizations have undergone fundamental restructuring with a view to making place management a central responsibility and putting place managers at the core of the organization, rather than the periphery.

Journal of Place Management and Development Vol. 1 No. 1, 2008 pp. 100-108 q Emerald Group Publishing Limited 1753-8335 DOI 10.1108/17538330810865363

Place management is a species of outcome management Inputs produce outputs, which lead to outcomes[2]. Organizations should strive to be efficient in the production of outputs and ensure that the resultant outcomes are effectively achieving the objectives sought by the organization and its stakeholders. Outcomes can be divided into either system or place outcomes. System outcomes are public policy outcomes that do not have a strong place focus – catchments, economic development, learning, healthiness, accessibility and the like.

Places are where the consequences of systems finish up. A place manager is an officer who has been given clear responsibility and accountability “to do what is needed” to achieve the outcomes for a place[3]. Place management is a species of outcome management. Allocating responsibility for place management provides an officer who can, at the very least, mediate the consequences for places of the application of system policies.

Place management

101 Contrast with input and output responsibilities In Australia, State and Local Governments were organised and funded to provide specialists inputs or outputs. Most state and local government organizations were designed in colonial days[4] to facilitate the employment of particular professionals. This is why they have been described as “guild” or “silo” organizations. Until recently, entry into these organizations was restricted to those with particular professional qualification – foresters in the forest commission, road engineers in roads, town planners in planning departments, and so on. The professional qualification was “essential” rather than merely “desirable”. Although managerial positions now are advertised to permit people with a wider range of skills to apply, the guild cultures tend to live on, which is not surprising given there has been relatively little fundamental change to the nature of the traditional organizations and their traditional outputs. In governments organised and funded to produce inputs or outputs, it is difficult for anyone, other than a central government agency, to be responsible for the achievement of complex outcomes – such as the functioning and quality of a place. Each guild organization will tend to pursue solutions that reflect their particular specialised output. The road agency will push a road solution to accessibility; whatever the issue, the town planning agency will usually suggest the making of a new plan or set of development controls. The inability to allocate clear responsibility for outcomes tends to lead to a proliferation of top-down interdepartmental committees and reports. Unfortunately, this type of “joined-up government” tends to exist only at the top and probably only for as long as there is strong political support. In the end, someone will be needed to take responsibility for achieving recommendations reached by report writers or “co-ordination” meetings[5]. In the absence of real authority for implementation, anything that requires complex solutions tends not to happen. More paving can be achieved, but significant community building is difficult to sustain. This paper argues that moving from the traditional input or output forms of management to outcomes management, while useful for all levels of government, can especially advantage local government. Being a single corporate body with a wide range of functions, local government can improve its effectiveness and efficiency by moving, firstly, to identify clearly the core outcomes it is pursuing and, secondly, to arrange its resources so that the achievement of those outcomes is managed. The recent reform agenda in government Over the last 20 years, largely driven by managerialist theories, there have been some significant changes in the functioning of government, especially in the State of Victoria and in New Zealand (Chapman and Duncan, 2007).

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There has been a shift in budgeting from funding inputs (engineers and tarmac; teachers and buildings) to funding outputs (roads; schools and student places). There has been some talk, but little action, about budgets based on an outcomes format. Some changes in the structure of government have occurred, with organizations separating into purchaser and provider divisions driven by demands that the provision of services be market tested. Generally, the purchasers have been seen as contract administrators rather than outcome managers. The concept of outcome management, which includes place management, builds on these purchaser/provider changes but not necessarily for the purpose of compulsory contracting out of the provision of services. Services can still be provided from within the organization, even though an outcomes approach has been taken[6]. The advantages of outcome management As mentioned above, outcome management can be seen as either system or place management. The advantages in shifting to an outcomes form of management include. Governing rather than just supplying services Allocating responsibility for outcomes recognises that government is about more than merely contracting for the supply of certain services or administering regulation. It recognises that government is not just a series of nationalised businesses and that the regulated are not “customers”. Wider range of solutions likely The effective achievement of an outcome is likely to require the responsible outcomes officer to “do whatever it takes” to fulfil his or her responsibilities. This may require a wide range of initiatives; consultation, empowerment of local communities, facilitating, planning, programming, lobbying other agencies of government, improving regulation, as well as arranging for the supply of services. Unlike the member of a “guild” organization, an outcomes officer is freed from the institutional imperative of the pursuit of just guild solutions. For example, an organization funded and empowered to achieve accessibility outcomes (rather than, say, roads) should be freer to explore a wide range of transport and other connecting solutions, as well as land use policies that assist in encouraging different uses to locate together and thereby reduce the need for travel. Regulation as a means to an end With an outcomes approach the role of regulation as a means to an end is clearer. Regulation can be seen as only necessary if other solutions will be ineffective. The outcome manager cannot dodge responsibility With an input or output organization structure, the community can find it difficult to identify who in government is responsible for dealing with a problem. Complex issues, particularly, can fall between cracks in responsibility or rest with several officers who may “buck pass”. An outcomes officer finds it difficult to deny responsibility in the first instance. The task of the outcomes officer is finding a solution and ensuring that those who are

responsible for providing the relevant inputs or outputs carry out those responsibilities. The outcome officer is visible. This is especially so with place managers whose position and area of responsibility are clear to members of the community. Outcomes management enhances strategic planning Effective outcomes management demands good strategic planning if the outcomes selected are to be realistic and of real concern to government and the stakeholders. Given the flexibility of the outcomes approach, the organization can be adjusted easily to suit the outcomes being sought. An outcome officer can be appointed to take responsibility for each of the outcomes identified. By contrast, the main driver for input and output organisations is the continuation of the provision of inputs and the production of outputs. Strategic planning therefore tends to be an ex post facto rationalisation of what is being done. The planning process firstly defines what the organization is designed and funded to produce and then seeks to explain why. Strategic planning for an outcomes organization should closely involve elected officials and stakeholders as it is intended to both inform and involve them and so increase their ownership of the outcomes and their commitment to the process. An outcomes budget increases the power of elected officials Most input or output budgets leave little to the discretion of elected officials and interested stakeholders when it comes to budget decisions. Much of the budget is already allocated to keep the inputs employed and the traditional outputs produced. Budget decisions may involve only 5-10 per cent of the available expenditure and be limited to marginal increases and decreases of expenditure under various headings and the selection of new projects from a list provided by the various input and output managers. With an outcomes budget, the total amounts being spent on achieving the core outcomes are exposed. This potentially provides elected government with an enhanced scope for re-allocating expenditure and resources in accordance with the outcomes identified in the strategic plan. Compared to the traditional guild organisation, a structure-based around outcomes responsibilities can make it easier to realign staff resources to the new priorities. Models for outcome management Two models of outcome management are presented: (1) where there has been a substantial change from a guild structured organization, such as the traditional local government body, to an outcome-focused organisation[7]; and (2) where an ad hoc place manager position has been added to a traditional guild structure. A substantial change to create an outcomes-focused organisation Structure An organisation designed to achieve outcomes will have four main organizational components:

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(1) Governance. Responsibility for strategic and corporate planning, the budget process, audit of performance and servicing of elected government. (2) Effectiveness. This is the outcomes responsibility. The outcomes division should be a flat structured organization with a series of outcome officers, each with perhaps no more than one assistant and some support staff. Positions should have generalist qualifications with broad-banded positions, which permit a wide salary range. In local government, place managers would be appointed to take responsibility for every part of the council’s area, not just the commercial centres. The size of each area would reflect the complexity of issues in the various areas. (3) Efficiency. The services division is the location for a wide range of specialists producing inputs or outputs. It consists of a series of what are essentially small businesses each invested with as much self-management as possible. Depending on the extent to which best value or tendering is used to encourage efficiency, so the relationship with the outcomes organization can be a negotiated partnership or a contractual relationship. This, in turn, will determine if the budget allocations go direct to the service organizations, or whether the outcome responsibilities will be funded in the first instance. If the budget allocations go to the service units then the outcome officers have to negotiate with those units to adjust priorities to achieve their outcomes. The allocation of some small amounts of untied funds for each outcome officer can assist these negotiations. (4) Transparency. This division is responsible for the exercise of the regulatory responsibilities. An outcomes officer “doing whatever it takes” to achieve the desired outcomes would have a conflict of roles if he or she was also to be responsible for the administration of regulatory powers. And as regulation is not a “business” the regulatory responsibilities also should be separate from the services side of the organization. Performance measurement Given that their mode of operating is quite different, so the performance measures for the outcomes, services and regulatory organizations are different: . Outcomes. Performance measures relating to the achievement of outcomes – the quality of the place, the assessment of design qualities, safety/crime figures, economic performance, level of literacy, quality of the water at the end of the pipe, mode share, travel times, etc. The community’s evaluation of the organisation’s performance? . Services. Performance of contracts, returns on assets employed and other financial and human resource measures. . Regulatory. Level of complaints, appeals results, satisfaction surveys of the regulated and the beneficiaries of regulation, and, provided care is taken as to what judgements are to be drawn, cost and timeliness. It is likely that the performance of the governance organization will be reflected in compliance with legislation and financial performance and in election results.

Organisational change implications Moving from a traditional input/output structured organization to an output-focused organization does not require great upheaval, although the manner in which the existing parts of the organization operate may change significantly. Most staff should stay more or less in their existing positions. The services and regulatory organizations will not change greatly, but there might be rearrangements of the separate units. Some service units should have greater autonomy of action. It should be possible to reduce levels of management. In the outcomes organization, the positions will all be new but there will not be many, given that there will be a flat organization with few supporting staff[8]. These new positions should not lead to an expansion of the numbers of total staff as there could be savings possible overall. The process of change should adopt the following principles: .

An assurance that everyone will remain employed although his or her job description may change.

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An assurance that internal applicants will have “first go” at any new positions, with external advertising only if there are not adequate internal applicants.

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The advertising of all positions in outcomes, rather than lateral transfers. Outcome jobs should not be restricted to members of function-based professions/guilds.

Problems with the outcomes model There can be consequences for staff in the outcomes division, due to the nature of their positions in a flat, structured organisation: These include: .

As holders of the outcome positions do not directly manage staff, a key experience requirement for high-level management positions may not be available to outcome managers. After some time in an outcome position, to gain the necessary experience, officers may need to be placed in a services or regulatory role where there are line staff to manage.

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Even if the outcome manager positions have a deep range of salary points that permit a holder to be rewarded for service over a period of time without having to apply for a higher-level position, eventually the holder has to move on. The writer’s experience is that many outcome officers achieve rapid promotion given the excellent understanding of the business of government that such positions provide. Officers should be encouraged to move on and the temptation should be resisted of trying to retain officers by creating a level of management between the outcome officer and the manager of an outcomes division.

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Being full time on the job over several years can provide a place manager with too high a profile within the community and lead to friction with the elected officials for the area. Close watch needs to be kept on any tendencies to become the de facto mayor of the area. The flexibility of the outcome positions should enable officers to be transferred to another outcomes position if need be.

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The appointment of ad hoc place managers An alternative to a fundamental restructure along outcomes lines is to appoint place managers as ad hoc positions in the central part of government. This has occurred in recent years within the Government of the State of New South Wales. The advantage of the appointment of ad hoc place manager is he or she can be appointed to an existing structure without the need for fundamental organisational change. The disadvantage is that the positions seldom survive for long without a strong and legal partnership. Structure Most place managers have been appointed in response to a crisis. Essentially, the input/output structure remains unaltered and an outcome manager is appointed to “project manage” particular outcome, such as a place. There are a number of issues to be resolved: . To which of the existing divisions/departments is the place management responsibility allocated? For example, in local government the case can be made for the place managers to be with the planning, the engineering/works, or the community development division. Even a corporate services division could be considered as it could provide more of a professionally “neutral” home. The problem is that, whichever division/department the place manager is allocated to, the other professional divisions will see that person as representing that particular input or output and will seek to limit their role accordingly. The place manager can be made directly responsible to the head of the premier’s department, but if there is more than a couple then there will be a need to employ a manager of the place managers. This leads inevitably to an “Outcomes Division” and the kind of significant change described in the section above. . If there is not to be a restructure, but merely the appointment of a few place managers, which places will have managers appointed to take responsibility for them? For example, what are the selection criteria? The places that have special problems, the places with major upgrading projects? Places that do not get place managers may well feel that they are being ignored. Communities may seek to over-dramatise their situation in order to have a place manager appointed. Those that have a place manager because of special problems may not solve those problems so as not to lose their place manager. . The life of an outcomes officer can be difficult in an organization designed around specialist input and outputs. If the officer overly interferes with input/output priorities, or is seen to be highly successful, the rest of the organization are likely to resent him or her and work to sideline or abolish the position. If the officer works quietly behind the scenes, letting the line officers take the credit, then the organization will start to question the worth of having a position that does not seem to add value. Experience tends to show that a couple of outcome officers in a traditional input/output organization structure have an effective life of around two years,

unless they are clearly responsible to, and constantly supported by, the CEO. While there can be significant achievements in that time, it has to be recognised that this form of organisational reform is unlikely to be sustainable. Paradoxically, the greater the success the more likely it is that it will not be sustainable. Conclusion A move to outcomes management for places can be part of a fundamental change to the design of government, or as an “add on” to a government with a traditional input and output structure. The “add on” experiments are easy to achieve and can assist in addressing a crisis situation or managing a particular program of regeneration to a place. But only by fundamentally changing to an outcome-focused organization can effective, efficient and transparent government be achieved; where there are clear responsibilities allocated for achieving, over the long term, excellent system and place outcomes. Notes 1. Thompson (2003) provides a good summary of the place focused initiatives in Australia in recent decades. 2. An objective (outcome) to increase accessibility between activities may be achieved by joining them with a road, or by putting them together in the first place. These two strategies require different outputs (a road, or a new set of land use regulations) and therefore different inputs (engineers, or statutory planners). 3. Although they may have some similar characteristics, a distinction can be drawn between a place and a project manager. A place manager is a permanent position with on-going responsibility for an area. The issues will change over time but the responsibility remains. A project manager usually has a design to achieve on time and on budget. When the project is complete, the job is done. 4. Australia only became a nation in 1901. Before that government was by separate sovereign states, ultimately responsible to the Crown and the British Colonial Office. The tasks of the colonial governments were to hold and distribute the “Crown Lands” and other natural resources, build the infrastructure, provide education and health services and maintain law and order. 5. Co-ordinating meetings usually result in solutions at the margin as each guild organization represented vetos solutions that would result in a loss of power for their agency. 6. For example, the outcomes-structured Fairfield City Council (an outer Sydney Local Government Body) has had a long-standing policy of providing in-house services when possible. 7. The web site of Fairfield City Council describes the outcomes-focused organization structure of the council, one devised by the author in co-operation with staff and councillors using the process described in this paper. This structure has operated for over 15 years fundamentally unchanged from when it was established. The web site also contains the outcome-focused strategic plan which details the outcomes for which managers have been made responsible and provides an outcomes-based budget (the management plan; www.fairfieldcity.nsw.gov.au). 8. It is likely that outcome officers should not have any more than an assistant. The object is for them not “to do” but to arrange things for others to do.

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References Chapman, J. and Duncan, G. (2007), “Is there a New Zealand model”, Public Management Review, Vol. 9 No. 1, pp. 1-25. Thompson, A. (2003), “Your place or mine”, Evaluation of the Brisbane Place Project Final Report, University of Queensland Community Service and Research Centre and School of Social Work and Social Policy, Brisbane, February.

108 Further reading Croft, D. (1998), “Place management: a key to better urban development”, Australian Planner, Vol. 35 No. 1, pp. 49-53. Mant, J. (1988), “Instruments of planning – urban management”, Urban Research Unit Working Paper, No. 6, Australian National University, Canberra. Mant, J. (1998), “Place management: why it works and how to do it”, Sydney Vision UTS Papers in Planning, No. 13, Planning Program Faculty of Design, Architecture and Building, University of Technology Sydney, Sydney, April. Mant, J. (2000), “Putting place outcomes at the centre of planning law and administration”, Australian Planner, Vol. 37 No. 2. Mant, J. (2002), “Place management as an inherent part of real change: a rejoinder to Walsh”, Australian Journal of Public Administration, Vol. 61 No. 3, pp. 111-6. Walsh, P. (2001), “Improving government’s response to local government – is place management an answer?”, Australian Journal of Public Administration, Vol. 2, pp. 3-12. About the author John Mant is an Urban Planner and retired lawyer, practicing in Sydney Australia. He has worked as a Senior Public Servant in several Australian Governments and as a Management and Policy Consultant to a number of local and overseas governments. He has promoted the concepts of outcome and place management for many years. John Mant can be contacted at: [email protected]

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European shopping centre developments: an industry perspective Hayley Myers, Julie Gore and Katherine Liu

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School of Management, University of Surrey, Guildford, UK Abstract Purpose – This viewpoint seeks to review the changing environment of shopping spaces in Europe, specifically evaluating factors underpinning development trends. The paper provides a critical overview, staking stock of recent debates in the area of European shopping place development and international retailing. It provides a discussion of themes emerging from the views of expert research-orientated stakeholders. Design/methodology/approach – Themes were drawn from a survey of a group of 11 expert research-orientated European shopping centre stakeholders. Findings – Key suggestions centre around issues associated with: people and lifestyle; planning and economics; environment and design, and globalisation. Two seemingly dichotomous trends are discussed; the increasing cross-border transfer of shopping place forms, and the increasing need for shopping space individualism, identity, integrity and sensitivity to locality. Research limitations/implications – Whilst the authors’ recognise that a limited number of experts were consulted the data reveals an important insight into the views of practitioners well-placed to foresee the future. Further investigations can be envisaged which consult a wider range of views. Originality/value – Takes a pan-European perspective in order to analyse both the similarities and variations in shopping place development. Keywords Shopping centres, Shopping, Europe, International business, Retailing Paper type General review

Introduction The shopping place sector across Europe is facing increasing competition and regulation. This has resulted in the growing sophistication of retail spaces from both a format development and a management and marketing perspective. The influence of various stakeholders, including developers and investors, planners, retailers and consumers, has arguably led to a more thought out and sophisticated approach. There is evidence that a number of common themes are shaping the development and management of shopping spaces and that some of the more successful attributes of developments are being transferred across borders within Europe. But, while successful shopping place concepts are being replicated on a pan-European level, there is a seemingly dichotomous trend, a growing interest in the benefits of shopping space differentiation and sensitivity to locality. This paper reviews the changing environment of shopping spaces in Europe, specifically evaluating factors underpinning development trends. It provides a critical overview, With special thanks to the International Council of Shopping Centres that facilitated access to members of its European Research Group and to the retail property executives for sharing their views.

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staking stock of recent debates in the area of European shopping place development and international retailing, and provides a discussion of themes emerging from the views of expert research orientated stakeholders. European shopping centres – setting the scene Despite an environment of restrictive regulation in much of Europe the total gross lettable area across the region continues to grow, and after a slight dip in the amount of new space coming online in 2004, 2005 and 2006 were projected to achieve record levels of new space. Forecasts (Cushman & Wakefield Healey & Baker, 2005) suggested that 9.5 million square meter of new retail and leisure space was planned to open across Europe in 2005-2006. Cross-border acquirers made up 68 per cent of total investment in Continental European shopping centres between 1999 and 2004, equating to some e18.8 billion (CBRE, 2005). Indeed, more than 90 per cent of investment in Poland, Greece, The Czech Republic, Italy, Portugal and Finland was non-domestic. Developers such as Sonae, AM, ECE and investors such as ING and Radamco have shown they are capable and willing to transport brand formats and invest on a transnational basis. The extent to which European shopping centres are becoming homogeneous has been questioned (Reynolds, 1992). The International Council of Shopping Centres – ICSC (2005, p. 15) has undertaken a comprehensive review of shopping centre types across Europe stating that: . . . the need for international benchmarking is growing . . . [European] emerging markets have adopted definitions based on the US which suggests that operators in these countries view shopping centres as an international product.

Individual markets remain idiosyncratic in terms of economic conditions, regulation, consumer behaviour and such like, yet there are examples of shopping place characteristics that are apparent across the region. Shopping places in Europe are beginning to place more value on brand management. Ardill (2006, p. 6) highlights the potential of developing shopping place branding: If shopping centre branding is to evolve, then branding and marketing must become strategic priorities throughout the development process and the lifecycle of the centre. These priorities will provide an opportunity to build a powerful brand ethos that can drive both the promise and reality of a clearly differentiated and highly compelling customer shopping experience.

Key drivers of European shopping centre developments While it is clear that a whole raft of factors are driving the changing character of shopping places across Europe, four key themes emerged from a cross-national survey of shopping place research executives: planning and economics, consumer lifestyle, environment and design, and internationalisation. Planning and economics While some regulatory trends span Europe, regulatory frameworks vary by market, making it simpler and less costly to invest in some markets than others. The big boom in countries such as Poland and Russia is in part on the back of the relatively unrestrictive regulatory framework allowing an influx of new developments and stores. That said, there are significant regulatory differences even within this region with some markets focusing developments in town centres and others allowing out of

town development. In the more mature European markets of France, the UK, Germany and The Netherlands, new schemes are focused on the regeneration of existing urban centres. In others, there is a wave of suburban centres developing, for example in Spain, where developers are now moving from key centres further down the urban hierarchy and in Italy where many traditional centres are protected. Markets such as the UK have ridden a wave of high-consumer confidence and spending, in direct contrast to markets such as Germany which has been in recession for much of the last decade. Central Europe shows great growth potential in consumer expenditure, albeit from a significantly lower base (Roberts, 2005). The creation of quality, modern retail space in these markets is acting as a draw to international retail brands seeking expansion opportunities and so fuelling the process of retail internationalisation. However, economic conditions have to be weighed up against stability, cost of operating and regulatory controls. Any economic downturn and drop in consumer confidence hits most shopping centre tenants particularly hard due to the largely discretionary nature of their product offer. Consumer lifestyle Consumers are becoming increasingly polarised in their demands; on the one hand they desire and aspire to quality brands and convenience, yet at the same time they are value conscious and demand good price points across the retail mix. Convenience means different things to different shoppers at different times and includes such factors as location, ease of parking, opening hours and a multi-channel offer. This suggests that issues of tenant mix could become even more complex as consumers take a more varied approach in terms of where and how they shop. It highlights the need for segmenting and understanding the ways in which various consumer groups shop, but also the need to better understand the way in which individuals change their shopping behaviour at different times. The strength of niche retail brands catering to specific segments of the population has grown at the expense of some of the more established mass market retailers (Mintel, 2006). An implication is that rent price deflation will need to be considered and managed in a more holistic manner. Developers and operators may need to be more open minded when dealing with smaller retail brands, or even specialist independents, if they are to provide a relevant and aspirational retail mix. Observational evidence suggests that to some small extent this is already occurring, whether through business opportunism or as a means to counteract the clone town argument. For example, developer Grosvenor’s 1.6 million square foot “Liverpool One” project is setting aside 12 small units for independent shopkeepers (Pickard, 2007). Clearly shopping places are as much entertainment and social spaces as they are utilitarian (Oppewal and Timmermans, 1999). Shopping centres have for some time been adding on leisure offers such as cinemas and bowling alleys. Consumers across Europe are moving into an increasingly post-materialist phase and so diverting a greater share of spend towards experiences. In this context, it is the shopping experience that will become ever more key to success in shopping places, not just the retail product offer available. Despite the lack of attention focused on older shoppers (Roberts and Zhou, 1997), they are an increasingly important group who are able and willing to spend (Sawchuck, 1995). While ensuring the physical environment is easy to access, safe and comfortable is a

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necessity for this group, research (Myers and Lumbers, 2006) highlights that the importance of experience-based shopping is particularly the case for older consumers who tend to have less need for products than consumers at other lifestages and are less interested in a fashion driven product replacement cycle. In particular, it is the socialisation aspect of shopping that appeal to this group (Moschis, 2003; Hollander, 2002). Communicating with the older shopper will become increasingly important for retailers and shopping places, but it is made more complex (Szmigin and Carrigan, 2001; Silvers, 1997) in that cognitive age, rather than chronological age, shapes shopping and buying behaviour: While age appears to be the most common and easiest way of segmenting the mature market, it is probably the least effective . . . peoples’ behaviour is more sensitive to their needs and lifestyles, which are in turn influenced by life-changing events and circumstances they experience (Moschis, 2003, p. 521).

Environment and design The priority that consumers are placing on shopping as a leisure activity and as an important means of socialisation has implications for the physical form of shopping places as they move from an essentially functional offer to an experience driven space: The future holds dramatic changes in physical formats . . . for those able to adapt, strategies employed will range from simple refurbishment to complete metamorphosis through redevelopment and pioneering reinvention. . . differentiation must be a priority in order to achieve destination pull. Adaptation in shopping places must aspire to greater authenticity and the re-enchantment of place and identity to create emotionally responsive and desirable environments (Drummond and O’Neill, 2007, p. 6).

As retail competition increases so the importance placed on the physical shopping environment takes on more prominence as a point of differentiation. As regulation restricts further growth in more mature markets and refocuses attention on traditional urban centres so the physical offer of a scheme, including its architecture, landscaping and facilities management, become increasingly important. The quality of the physical landscape, internal and external, together with innovative design and architecture are cornerstones to centre branding, positioning and differentiation. Yet while characteristics such as natural light, easy access, quality finishes, and interesting design and architecture are all important, but so are the basics; cleanliness, adequate toilets, good signage, seating and security. Retail spaces need to become more flexible. From a developers perspective, this means constructing retail spaces that can readily be changed to accommodate the changing needs of tenants and also offering greater flexibility in terms of leases. It may be that operators will need to consider offering peppercorn and flexible rents to key specialists, and not necessarily the multiples, in order to create a successful and differentiated offers that are embedded in the local context. For retailers, it is about exploring the possibility of adapting business models and store formats as local conditions dictate. Ikea’s decision to go with smaller multilevel stores due to the restrictions on large store openings in the UK is a case in point. Internationalisation As more retailers follow a growth strategy of internationalisation so shopping places will increasingly need to consider tenants on an international basis. Players such as

Zara, Mango, H&M and Esprit are emerging as important tenants on a pan-European basis. Not only are such brands entering the mature markets of Europe, but also the development of purpose built modern space has facilitated their entry into less developed markets such as Poland and Russia. Indeed, the retail property sector might be considered as both gatekeeper and catalyst to the process of retail internationalisation and as a contributing factor to decision making in terms of both the direction of expansion and market entry mode. It might be hypothesised that the ubiquity of international retail brands will lead to clone shopping places across Europe. Yet, a concern with shopping space differentiation and sensitivity to locality goes against this trend. So while we may see a trend of homogenisation across Europe in terms of international tenants, centres will be differentiated by other means such as integration with local character, for example using local materials for construction, incorporating local cultural and historical themes and branding centres so they are integrated with their locality. Conclusion and future research In an increasingly competitive marketplace fundamental, retail business values are a given in order to stay in business and increasingly it is customer experience that sets the performance of both retailers and shopping spaces apart. Shopping places must provide comfortable, safe and clean environments as a truism, but it is their engagement with shoppers that will be a prime means of differentiation. In addition to concentrating on the customary marketing, principles of price, product, place and promotion, shopping spaces will increasingly compete on the extent to which they offer excitement, experience and emotional engagement. So how best can the shopping place sector respond, and lead, change? While successful retail formats and brands will increasingly be transported across national borders, there is also an increasing requirement to differentiate centres, create distinct identities and to build knowledge of and relationships with customers. Shopping spaces will need to develop into dynamic and creative places, in a world of increased globalisation, the differentiation of shopping places by the development of shopping place branding by truly engaging with distinguishing local characteristics will set the successful apart. References Ardill, R. (2006), Future of Brands, British Council of Shopping Centres, London. CBRE (2005), EU Shopping Centre Investment, CB Richard Ellis, London. Cushman & Wakefield Healey & Baker (2005), Shopping Centres in Europe, Mintel, London. Drummond, P. and O’Neill, T. (2007), Future Shopping Places, British Council of Shopping Centres, London. Hollander, S.C. (2002), “Retailers as creatures and creators of the social order”, International Journal of Retail & Distribution Management, Vol. 30 No. 11, pp. 514-7. ICSC (2005), Towards a Pan-European Shopping Centre Standard: A Framework for International Comparison, International Council of Shopping Centres – ICSC, New York, NY. Mintel (2006), Clothing Retailing in Europe, Mintel, London. Moschis, G.P. (2003), “Marketing to older adults: an updated overview of present knowledge and practice”, Journal of Consumer Marketing, Vol. 20 No. 6, pp. 516-25.

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Myers, H. and Lumbers, M. (2006), Consumers Over 55: Silver Shoppers Provide a Golden Opportunity, British Council of Shopping Centres, London. Oppewal, H. and Timmermans, H. (1999), “Modelling consumer perception of public space in shopping centres”, Environment and Behaviour, Vol. 9 No. 1, pp. 45-65. Pickard, J. (2007), “Independents ‘squeezed out of rebuilt shopping centres’”, Financial Times, 4 September. Reynolds, J. (1992), “Generic models of European shopping centre development”, European Journal of Marketing, Vol. 26 Nos 8/9, pp. 48-60. Roberts, G. (2005), “Auchan’s entry into Russia: prospects and research implications”, International Journal of Retail & Distribution Management, Vol. 33 No. 1, pp. 49-68. Roberts, S. and Zhou, N. (1997), “The 50s and older characters in the advertisements of modern maturity: growing older, getting better”, Journal of Applied Gerontology, Vol. 16 No. 2, pp. 208-17. Sawchuck, K. (1995), “From gloom to boom: age, identity and target marketing”, in Featherstone, M. and Werbick, A. (Eds), Images of Aging: Cultural Representations of Later Life, Routledge, London, pp. 173-87. Silvers, C. (1997), “Smashing old stereotypes of 50-plus America”, Journal of Consumer Marketing, Vol. 14 No. 4, pp. 303-9. Szmigin, I. and Carrigan, M. (2001), “Learning to love the older consumer”, Journal of Consumer Behaviour, Vol. 1 No. 1, pp. 22-34. Corresponding author Hayley Myers can be contacted at: [email protected]

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Reclaiming customers through a retailer-led TCM scheme in Italy

TCM scheme in Italy

J. Andre´s Coca-Stefaniak School of Creative Enterprise, London College of Communication, University of the Arts London, London, UK and Manchester Metropolitan University Business School, Manchester, UK

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Fabrizio Stasi Novi Ligure “Cuore di Novi” Downtown Association, Torino, Italy

Giovanna Codato and Elena Franco Associazione Gestione Centro Citta` Torino, Italy, and

Gareth Roberts Manchester Metropolitan University Business School, Manchester, UK Abstract Purpose – Il Cuore di Novi is an example of an innovative way of regenerating and revitalising a town centre in Italy in the face of intense competition from large out-of-town retail and residential developements. This has been achieved through a combination of research surveys linked to an organic approach to marketing strategy and effective engagement with the town’s local authority and small- and medium-sized retailers. The paper’s aim is to discuss this development. Design/methodology/approach – This case study provides an example of retailer-led town centre management in the Novi Ligure (Italy) and builds on previous work by Molinillo Jime´nez, Sa´nchez del Rı´o, Vilarin˜o et al. and Coca-Stefaniak et al. Findings – Southern European models of retailer-led town centre management, known in Italy as centro commerciale naturale and discussed by Valente, Zanderighi, Moras et al. and Codato et al. can be effective in competing with large out-of-town shopping centres through innovative place management and marketing techniques in town centres based on local know-how, differentiation and customer service. Originality/value – The case of Novi Ligure’s successful retailer-led town centre management scheme is unique in Italy in terms of its ability to integrate retail revitalisation with urban regeneration in a town centre. This scheme is ground-breaking in Italy and provides further evidence of the success of Southern European bottom-up retailer-led place management models. This study is of value to practitioners and policy makers in place management, town centre management, local authority planning officers, urban regeneration consultants, academics, small- and medium-sized independent retailers, community leaders and town centre residents. Keywords Italy, Town planning, Urban centres, Retail trade Paper type Case study

Introduction Novi Ligure is a town of 27,223 inhabitants located in a sub-region area of 420,000 people north of Genoa, Northwest Italy, in the Piedmont region. The authors would like to hereby acknowledge the contribution of the European Union’s INTERREG IIIC to the co-financing of this work.

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Novi assumed the denomination of “Ligure” in the Middle Ages in order to differentiate itself from other towns and as a legacy to its political and social history. During this period of its history, the town was conquered by neighbouring towns such as Tortona and Milan before falling into Genoa’s political jurisdiction in 1447. Some of the town’s most illustrious rulers since have included the Marquis of Monferrato, the Viscount of Milan, the Genoa Republic and the Savoy family (current heirs to the throne of Italy). Under the rule of Genoa, the town flourished in art and commerce. Remnants of this buoyant period can still be found in a number of palaces, of which Negroni Palace is regarded to be the most important symbol of this period (Figure 1). One of the palace’s most illustrious guests was the French general Barth Cathrine Joubert, who died during the battle of Novi fought in 1799 as the French army was defeated by the Austro-Russian coalition led by General Suvorov. Today, Novi Ligure is a bustling town know for its crafts shops, excellent wines with world-wide famous brands such as Cortese of Gavi DOCG and Moscato d’Asti, and a “town of champions” home to Costante Girardengo and Fausto Coppi – two of Italy’s greatest cycling heroes of all time. The Piedmont region also offers many possibilities for leisure in natural surroundings of picturesque beauty with a good infrastructure for ecotourism. Novi enjoys a strategic geographical location for commerce as the gateway to the region of Liguria. Since, the Industrial Revolution, Novi’s road and railway networks have helped the area to develop into an important centre for retail and manufacturing. Novi is host to important manufacturing brands such as the confectionery and chocolate manufacturers Elah-Dufour, Pernigotti and Novi. In fact, the town’s manufacturing heritage includes the production of iron and steel, textiles, engineering

Figure 1. Palazzo Negroni overlooking the main square Note: Photo courtesy of Novi Ligure "Il Cuore di Novi" Downtown Association

and food. This buoyant manufacturing sector has grown by 10 per cent between 2004 and 2006 and offers employment to 22 per cent of Novi Ligure’s population. Moreover, nearly 1 per cent of all Italy’s manufacturing base and national GDP is centred in Novi Ligure. The town’s remarkable level of entrepreneurship is reflected in the fact that there are nearly ten small- and medium-sized enterprises for every 100 inhabitants in this area. This has led to historically low levels of unemployment in Novi Ligure – currently at 4.5 per cent against a national average of 9 per cent. In order to attract new industrial activities, the town has created a customer service office for companies seeking information and support. Parallel to this initiative, Novi is developing four industrial districts with financial support from European Structural Funds. On this front, a development and synergy project has been set up to reach out to all businesses active in these areas. In addition to a buoyant manufacturing sector, Novi Ligure’s agriculture is also an important contributor to the local and national economy with major growth areas such as organic farming and wine production. Retail, which offers employment to 16 per cent of the population of Novi Ligure, is also important with a contribution of 26 per cent to the economic base of the region with 489 retail outlets, 164 of which are in the town’s centre. Of these town centre-based retail outlets, 27 per cent are speciality shops and 17 per cent are grocery shops. About 82 per cent of all independent shops are not food retailers. All these outlets have a combined retail surface area of 82,000 ft2 in the town centre. In spite of the capacity and diversity of retail offer in Novi Ligure, 38 per cent of all retail outlets reported a decrease in sales (2 5 per cent) over the period 2004-2006. The key reason for this may have been the development of two large out-of-town shopping centres, McArthurGlen Designer Outlets Serravalle – the most successful designer brand retail park in Italy. This major retail facility opened its first shopping mall in 2000 only 10 minutes away by car from the town centre. It offers stock from some of the world’s best-known brands in fashion, sport and home ware as well as bars and restaurants. Since, the shopping centre’s opening, five million visitors have strolled through its doors. Its success led to the inauguration of an additional 50,000 ft2 of retail surface area in 2002, consisting of ten new highly prestigious brand shops with maximum daily footfall levels from 30,000 to 50,000 customers. Although the development of this major out-of-town shopping centre had a negative impact on the historic urban retail district of Novi Ligure’s town centre for the first two months after its opening, the situation gradually stabilised over time. In fact, some fashion shops located in the town centre actually began to benefit with an increase in sales of 10 per cent over the period 2004-2006 (against a decrease of 16 per cent in overall trade in the period 1996-2004). Upon investigation of this phenomenon, it was found that Designer Outlets Serravalle, which relies primarily on the out-of-town consumer segment, operated a price-based competitive strategy for premium brand stock from previous seasons or excess production at reduced prices (often 30-70 per cent). Yet, this strategy was counterbalanced by Novi Ligure’s town centre-based retailers in terms of offering customers a larger variety of stock and enhanced customer service. A recent survey carried out in 2006 actually showed an increase in fashion shops registered for trade in Novi Ligure’s town centre. In addition to the Serravalle shopping centre, there is one other large out-of-town retail outlet (88,000 ft2). Further plans have also been approved for the regeneration of a former ILVA steel plant brown field site that will be turned into a residential and retail

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development (Figure 2). The retail infrastructure approved in this plan, called EuroNovi, includes a 135,000 ft2 area with a 40,000 ft2 hypermarket and 25 new retail outlets. A strip market will also be built in the same area, with a total retail lease area of 108,000 ft2. The entire brown field site regeneration area earmarked for retail activity is nearly three times larger than Novi Ligure’s city centre (itself only 9.1 km2 in size).

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Novi Ligure TCM scheme – background and results to date In 1999, the local authority activated an urban revitalization programme (PQU – commercial revitalization plan), also co-funded by Regione Piemonte, aimed at revitalizing the town centre and its retail businesses in order to achieve the following objectives:

FORMER ILVA AND EURONOVI DEV.T AREA

Figure 2. Aerial view showing the city centre (outlined in blue) and the brown field regeneration area Note: Photos courtesy of Novi Ligure "Il Cuore di Novi" Downtown Association

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regenerate the town centre’s retail; restore the town centre’s buildings; and enhance tourism.

The local authority (Comune di Novi) has carried out a regeneration plan in the main square of Novi Ligure through a general streetscape improvement project, which includes an upgrade of existing street furniture and lighting. Parallel to this regeneration initiative, privately-funded intervention by retailers, retail-trade associations and property owners has helped to restore new retail and business outlets, and improved the fac¸ade of buildings, signboards and shop windows. Private interventions amounted to 12 per cent of the entire investment. Table I, outlines some of the intervention projects selected in this regeneration programme and their cost (the investment totalled e2,707,637). In 2001, as part of the second phase of the PQU strategic urban regeneration program co-funded by Regione Piemonte, Novi Ligure’s local retailers’ association (ASCOM) created “Il Cuore di Novi” (literally, “the Heart of Novi”). Il Cuore di Novi was set up to promote and support local businesses with events and trading activities, along with a service offer that includes the implementation of an integrated marketing strategy to enhance and create a centro commerciale naturale (or retailer-led town centre management scheme). This model of town centre management led by small- and medium-sized retailers has been discussed extensively by authors in Italy (Valente, 2004; Zanderighi, 2004; Moras et al., 2004; Codato et al., 2005) and Spain (Molinillo Jime´nez, 2001; Sa´nchez del Rı´o, 2001; Vilarin˜o et al., 2002; Coca-Stefaniak et al., 2005). Il Cuore di Novi is recognised by the Regional Offices of the Department of Trade and can thus access regional funding, upon regional approval of a strategic three-year programme drafted in cooperation with the local government that focuses on customer retention, promotion and marketing. This funding stream tends to cover about 50 per cent of the budget for actions identified within the strategic plan and is only received by Il Cuore di Novi once the activities agreed have been completed and described in a final report. Once this stage is complete, the scheme is then allowed to access further funding if the actions reported are considered successful by the regional government offices. By adopting a marketing approach more commonly associated with by big-box retailers and large shopping centres, Il Cuore di Novi has achieved all the objectives it has set itself to date. The association has organized several competitions and initiatives (e.g. Compra & Vinci! – buy and win the lottery!), as shown in Figure 3, and issued Projects Downtown utility system restoration Street system, lighting and urban furniture Piazza St Andrea renovation Market square renovation Urban furniture Public street lighting Total public investment Total private investment (retailers)

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Cost (e) 1,315,570.66 800,508.19 87,797.67 81,600.19 53,968.66 43,898.84 2,383,344.21 324,293.00

Table I. Regeneration intervention projects carried out in Novi Ligure (1999) showing private and public investment

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Figure 3. Il Cuore di Novi’s Christmas Lottery – Compra & Vinci!

Note: Photo courtesy of Novi Ligure "Il Cuore di Novi" Downtown Association

retail vouchers and a customer loyalty card (Figure 4), which awards customers money back on purchases in retail outlets that are members of the scheme. Il Cuore di Novi’s Novi Card is owned by 10,000 people. Half of these are customers from Novi Ligure’s out of town catchment area, which amounts to 30,000 residents. Use of this card in Novi Ligure’s town centre shops allows customers to receive an extra e20 for additional purchases for every e400 spent in shops that are members of the scheme. Cuore di Novi also created “Novi Day” – a day when the first 20 customers to reach the e400 purchase mark receive an extra e50 of cash-back and e100 worth of coupons (the latter only on the gold day initiative). Customers are also offered shopping days – a three-day-shopping fest when up to e10,000 worth of coupons are given out

Figure 4. Il Cuore di Novi’s customer loyalty card – Novicard Note: Photo courtesy of Novi Ligure "Il Cuore di Novi" Downtown Association

to customers. Other initiatives include a baby parking scheme – a childcare service that allows parents to leave their children in safe hands while they shop. Over Christmas, Il Cuore di Novi has set up a free shuttle bus from out-of-town parking areas that helps to reduce traffic congestion. This scheme has been set up in association with the local authority’s transport department. Other seasonal events include “I k Gavi” a Christmas prize contest, or “Santa lives in Novi” with Santa Claus promoting downtown activities and, in parallel, a free videogame competition. It also participates and publicises other local events such as “Dolci Terre di Novi” and the “Museo dei Campionissimi’s” initiatives such as the chocolate festival (Figure 5). Il Cuore di Novi has had a town centre management scheme since 2001. The first two years were used primarily to attract shoppers back to the city centre. The focus of the scheme has shifted since to the place marketing of Novi Ligure’s traditional urban retail district in the town centre. Parallel to this work, the local authority has been driving the urban regeneration of the town centre through a variety of projects. Research surveys carried out by Il Cuore di Novi have focused on gaining a better knowledge base of the likes and dislikes of Novi Ligure’s customers in order for the marketing strategy of the town centre to be led by the results of these regular surveys. A key business target on this front has been to capture (or reclaim) at least 4-5 per cent of the customers who would normally shop at the Serravalle (out-of-town) outlets. This is being achieved through promotion campaigns in fairs in the Lombardy Lake region and even using a transnational approach by co-operating with Novi Ligure’s local tourism office to target potential customers in Switzerland. All in all, Novi Ligure’s large out-of-town shopping centres have failed to have a negative impact on the city centre’s economy, as it was initially feared. This has been largely the result of a proactive approach by Novi Ligure’s town centre retailers, through the creation of Il Cuore di Novi. However, there are still significant challenges ahead of the scheme. For instance, the ILVA brownfield regeneration area, where Euronovi’s new retail infrastructure alone will soon cover an area three times that of Novi Ligure’s town centre retail lease area, may well pose a significant threat to the economic prosperity and social cohesion of the town centre itself. Currently, high-land prices in Novi Ligure’s town centre (average of e250 per square foot of area) may be the first to suffer the effects of this out-of-town development of retail and residential units.

(a)

(b)

Note: Photos courtesy of Novi Ligure "Il Cuore di Novi" Downtown Association

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Figure 5. Chocolate body painting and chocolate massage during the chocolate festival

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Novi Ligure’s management and funding mechanisms From its outset, Il Cuore di Novi has operated with the legal structure of a consortium (not-for-profit) where businesses can gain membership by paying an annual fee of e1,000. Whilst this legal framework is producing successful results, should the scheme wish to change to a different legal framework, the in-flexibility of their existing form as a consortium would mean that the partnership would need to be dissolved before any changes are made. In spite of this, a consortium as a legal form carries several advantages in Italy over other forms such as an association. These advantages include the fact that consortia are more commonly used as a vehicle for commercial joint ventures where only a small number of partners are involved. Additionally, a consortium is easier to set up in Italy as it involves an non-incorporated affiliation of companies regulated by the Italian National Civil Code. In a consortium, all affiliated businesses are full members and co-owners of any jointly developed product/service. As such, they have sole control over any products and services developed. Membership of Il Cuore di Novi is clearly spelled out in the scheme’s membership charter, which outlines the rights and responsibilities of each member of the town centre management scheme. ASCOM, Novi Ligure’s local retailers’ association, is a key founding partner in the scheme, and so is the local authority and the local chapter of the National Retailers’ Confederation but the consortium Cuore di Novi through its president is solely responsible for its own management, funding and viability in accordance with the local authority’s policies and guidelines. As such, the local authority has a considerable level of influence due to strict town centre regulations concerning the preservation of historical buildings. As a result of this, the local authority cooperates closely with Il Cuore di Novi and is often a proactive partner in many of its initiatives at both operational and strategic levels. The start up investment for Il Cuore di Novi’s town centre management scheme was e200,000. Of this amount, 50 per cent was co-funded by the Regional Government of Piemonte and the rest was gathered through membership fees. Most of the funding available in Il Cuore di Novi’s annual budget is for general activities and is, as such, not earmarked, though some funding is specific to promotional events such as the Christmas campaign and local fair initiatives. Although a tax levy is not used as a fundraising channel yet, a study is under way to establish the feasibility of such a scheme within the current Italian legislation framework. The association is led by a president for the ultimate benefit of retailers. The president, in turn, reports to a general assembly board that is elected by the scheme’s members. The scheme is administered from an office located in the town centre of Novi Ligure where all its activities are planned and carried out by two staff employed on a full-time basis. As well as providing a focal point of contact and service for consumers and business owners, the office also acts as a public relations platform for activities and events planned in the town centre. Further work on this front includes the creation of an internet web site for Il Cuore di Novi. Currently, a dedicated town centre manager position does not exist at Il Cuore di Novi hence, this role is fulfilled by the president, who is charged with dealing with the local authority on a day-to-day basis and operationalising all strategic decisions made by the scheme’s general assembly. There are two full-time employees that report to the president and support the work of the town centre management scheme.

Customer marketing strategies, such as the scheme’s loyalty card, allow the town centre management scheme to monitor the performance of its activities and economic impact. Within the first year, it had 10,000 customers registered for its loyalty card (50 per cent of whom were from outside Novi Ligure). The main beneficiaries of Novi Ligure’s town centre management scheme are retailers, based in the town centre. However, free-riders are a problem because the scheme’s membership is voluntary. At present, there are no measures in place to rectify this issue. It is hoped that those retailers currently not contributing to the scheme will realise the added value of the scheme and, in time, contribute to it actively. In return for becoming a contributing member, the scheme’s charter ensures that the member is aware of their rights and responsibilities and sets out the numerous benefits they are eligible to now receive, such exclusive as marketing (i.e. through newsletters) and promotional services (i.e. Novi loyalty cards). Concluding remarks The town of Novi Ligure has benefited immensely from the creation of a town centre management scheme. In spite of this, competition from large out-of-town shopping centres – particularly the Euronovi scheme – continues to be a threat to the health and vitality of Novi’s town centre. In spite of this, the development and successful implementation of a place marketing strategy for the town centre focused on increasing footfall and aiming to ultimately improve customer loyalty through a number of schemes loyalty schemes has seen the Novi Ligure scheme succeed where other similar retailer-led town centre management schemes have failed. Novi Ligure’s Il Cuore di Novi town centre management scheme, in co-operation with the town’s local authority, has raised the profile of the town to a point where economic leakage of customers to out-of-town retail developments has been reversed to attract visitors from neighbouring areas with a marketing campaign that has targeted the town’s natural catchment area as well as cross-border communities in Switzerland. In spite of this, Il Cuore di Novi still has some challenges ahead. These include the engagement of non-contributing free-riders of the scheme. Other stakeholders that require a deeper level of engagement for the scheme to realise its full potential include Novi Ligure’s local authority and the town’s cultural, tourism and business associations in spite of the fact that there is some evidence of promising informal cooperation and great coordination between the town centre management scheme and the city’s resident community and other key stakeholders. References Coca-Stefaniak, J.A., Parker, C., Barbany, A., Garrell, X. and Segovia, E. (2005), “Gran Centre Granollers – city, culture and commerce”, International Journal of Retail & Distribution Management, Vol. 33 No. 9, pp. 685-96. Codato, G., Franco, E., Kotval, Z. and Mullin, J.R. (2005), “City center revitalization: a comparative assessment”, paper presented at Association of European Schools of Planning Conference, Vienna, 13-17 July. Molinillo Jime´nez, S. (2001), “Centros comerciales de a´rea urbana – estudio de las principales experiencias extranjeras”, Distribucio´n y Consumo, No. 57, pp. 27-45. Moras, G., Codato, G. and Franco, E. (2004), L’approccio integrato alla qualificazione urbana – modelli e strategie di urbanistics commerciale, Celid, Turin.

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Sa´nchez del Rı´o, R. (2001), “Centros comerciales abiertos – una estrategia de mejora del atractivo urbano y del nivel de competitividad de la actividad terciaria en las ciudades”, Distribucio´n y Consumo, No. 48, pp. 43-52. Valente, M. (2004), “Il centro commerciale naturale per la riqualificazione socio-economica dei centri storici”, Disciplina del Commercio e dei Servizi, Maggioli editore, April, pp. 887-98. Vilarin˜o, J.P., Torres Outo´n, S.M., Mesı´as Grangel, A. and Soage Loira, M. (2002), “Horizonte Comercial del caso Histo´rico I”, Seminario de Estudios Socioecono´micos de Pontevedra Carlos Velasco, Pontevedra. Zanderighi, L. (2004), “Commercio Urbano – e nuovi strumenti di governance”, Il Sole 24 Ore, Milan. Corresponding author J. Andre´s Coca-Stefaniak can be contacted at: [email protected]

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Call for papers International Journal of Housing Markets and Analysis Edited by: Richard Reed, Faculty of Architecture, Building and Planning, University of Melbourne, Melbourne, Australia

The Journal of Housing Markets and Analysis, launching in 2008, aims to provide an international forum for the interchange of information and ideas relating to housing, housing markets and the interaction thereof. The focus is placed on the interface between academic research and practical application by disseminating new research findings alongside articles related to everyday professional practice. Academic papers are refereed to the highest academic standard through double blind peer review. Overall, the papers provide a unique contribution to understanding international housing markets from both a detailed and broader perspective.

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geographic information systems and the use of mapping programs to understand housing trends;

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demographics and the relationship with housing, e.g. unemployment rates;

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trends in low-cost housing including viable alternatives;

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housing affordability including the option of renting vs buying;

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the effect of financial factors (e.g. interest rates) on housing markets;

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valuing housing markets and individual houses;

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first-time buyers or first home owners entering the housing market;

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the effect of government decisions on housing;

peer reviewed papers illustrating the latest research, trends and developments in the housing field;

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undertaking mass appraisals and advances in technology;

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taxation of housing such as for council rating purposes;

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case studies detailing examples of best practice, and solutions to everyday problems; and

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emerging housing markets such as third world countries and developing nations;

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law reports assessing and discussing new legislation.

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conversion and modification of houses, e.g. to embrace sustainability;

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the relationship between the environment and housing; and

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planning aspects and the integration of housing into the urban environment.

The editor now invites contributions for the first volume of the journal. Articles which detail practice and methodology in international housing markets will be actively encouraged. The journal will publish: .

Coverage will include, although is not limited to: .

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housing market analysis including broader aggregate markets using a large-scale approach; examining individual houses including price, design and cost factors;

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depreciation and obsolescence factors affecting housing;

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high-density housing, especially inner-city and upmarket trends;

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social housing considerations and influences;

Please send submissions by post or E-mail to: Richard Reed, Faculty of Architecture, Building and Planning, University of Melbourne, Victoria 3010, Australia, E-mail: [email protected] For more information, and to access submission guidelines, please visit: www.emeraldinsight.com/ijhma.htm