Does country or culture matter in global marketing? : an empirical investigation of service quality and satisfaction model with moderators in three countries

Abstract

The increased importance and acceleration of service globalization during the first decade and a half of the twenty-first century has resulted in multinational firms serving customers with divergent needs and expectations shaped by different cultural background and values. This divergence in consumer perceptions across countries may be attributed to cultural differences. Yet, several cross-cultural studies in services marketing have assumed cultural homogeneity within countries, i.e., country and culture are assumed to be synonymous. In this study, we investigate the influence of cultural values in shaping consumers’ perception of service quality and satisfaction through cross-national vs. cross-cultural analysis. We also analyze the moderating role of the cultural values of individualism/collectivism and uncertainty avoidance on service quality dimensions and the relationship between perceived service quality and satisfaction. We present the conceptual background on service quality, customer satisfaction, and cultural values and develop our hypotheses by integrating these domains. Both cross-national vs. cross-cultural models are empirically tested using customer survey data in three countries. We discuss our SEM-based methodology, present our results, and discuss research implications. Our study makes a number of theoretical, methodological, and managerial contributions that highlight the shifting paradigm in global marketing.