Citation
(2014), "Executive summary of “The importance and formalization of service quality dimensions: a comparison of Chile and the USA", Journal of Consumer Marketing, Vol. 31 No. 2. https://doi.org/10.1108/JCM-03-2014-0894
Publisher
:Emerald Group Publishing Limited
Executive summary of “The importance and formalization of service quality dimensions: a comparison of Chile and the USA
Article Type: Executive summary and implications for managers and executives From: Journal of Consumer Marketing, Volume 31, Issue 2
This summary has been provided to allow managers and executives a rapid appreciation of the content of the article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefit of the material present.Statistics show that services are responsible for an increasing contribution to the economies of many developed nations. Greater orientation towards the provision of services is recognized as a key factor, although the growing trend also prevails where heavy reliance on manufacturing remains. Even traditional industries are acknowledging the importance of the service component. A majority of firms have thus made service quality (SQ) a key part of their marketing strategy.
Service quality has been the focus of much scholarly interest. In the main, it has addressed SQ dimensions, identification of SQ antecedents and how SQ impacts on such as performance and customer satisfaction.
Comparatively little attention has been paid to perceptions of service quality and how they are often subject to national and cultural differences. Various researchers have noted this likelihood and the between-culture variation in terms of the beliefs, values and norms which influence how people think, feel and act. These factors explain why it is usual for different interpretations of SQ to prevail. Often this will be because expectations will vary as will the importance placed on the various dimensions of SQ.
Previous research has led to a framework being widely used to describe culture. Its four dimensions are:
Power distance. This refers to how equally power is distributed within a culture. When power inequality prevails, there are implications for hierarchies and “authority relations in societal, organizational and family contexts.
Individualism, where the focus is on personal achievements and on people taking care of themselves and their immediate family. In a collectivist society, ties between people are closer and a greater priority is attached to group objectives.
Masculinity. Achievement and success matter most rather than humility, concern for the welfare of others and overall quality of life, all of which are regarded as feminine traits.
Uncertainty avoidance. The issue here is the extent to which people need security and familiarity. Ambiguity is perceived as a threat and uncertain situations are avoided where possible. There is a need for “well-defined rules when uncertainty avoidance is high.
In the present study, Guesalaga and Pitta use these cultural dimensions as part of their aim to compare service quality perceptions within Chile and the USA. These countries are selected because of growing influence of the USA on consumption activities in Chile and other parts of Latin America. However, evidence suggests that cultural differences mean that how services are utilized and managed in these two nations tends to diverge. Utilizing the four cultural dimensions indicates that:
Chile is a highly collectivist society where ties are close between people who value groups more than individuals. The culture is feminine so goal attainment is secondary to caring for others. High power distance means that unequal distribution of authority is the accepted norm within a culture anxious about situations where uncertainty and ambiguity prevail.
The United States. More equal distribution of power is expected because power distance is lower. Individualism is valued in a culture which is masculine, therefore people give priority to themselves and their close family members and place great emphasis on achievement and success. Uncertainty avoidance scores low in this culture.
Work over a number of years has inspired the development of various models for measuring and assessing service quality. For the current study, the SERVQUAL model is used. This most widely deployed structure measures the level of formalization of the five facets of service quality it incorporates. The dimensions are:
Tangibility, which concerns physical aspects of service such as the facilities, equipment and communication materials of a firm.
Reliability. This reflects the companys ability to provide a dependable service.
Responsiveness. Readiness to offer prompt assistance to customers.
Assurance. Employee knowledge and courtesy are important here, along with creation of trust and confidence.
Empathy, expressed through the provision of compassionate individualized attention to customers.
Based on the cultural differences between Chile and the USA, the authors speculate on the effect with regard to these SQ dimensions and develop various hypotheses. They believe that tangible aspects of service will be important when uncertainty avoidance is high because of the sense of security they provide. According to some scholars, tangibility incorporates “functional cues which relate to the actual operation of a product or service. In addition, “mechanic and “humanic cues are emotional aspects respectively generated by things and people.
Reliability appears the most important dimension but evidence is conflicting as to cross-cultural variability. For instance, a belief that services should instantly meet expectations has been found with individualistic people possibly because of their demanding nature. But other work noted a positive link between reliability and uncertainty avoidance.
It is thought that greater significance is placed on responsiveness within individualistic cultures on the assumption that independence is likely to breed intolerance. The emphasis on achieving goals means that time is regarded as precious. Unknown situations cause anxiety when uncertainty avoidance rates high. Assurance is therefore valued as it provides confidence and trust. The effect is similar in high power distance cultures where the consumer will probably feel more vulnerable.
Empathy should be more characteristic of cultures which are collectivistic and feminine. This is attributed to the emphasis on “social bonding and sensitivity displayed towards others. It is assumed then that customers in such societies will develop a closer relationship with the service provider.
Guesalaga and Pitta contend that formalization of SQ standards is likelier with high uncertainty avoidance. It helps lower feelings of uncertainty that might be heightened given the largely intangible disposition of services. The onus on self-responsibility within individualistic cultures makes formalization of these standards less necessary.
Executives from MBA programs in Chile and the USA completed self-administered questionnaires measuring their perception of the importance customers attach to each service dimension and the level of formalization within them. Additional information about the executives and their firms was also obtained.
Of the 223 useable responses, executives from Chile provided 126 and their counterparts in the USA 97. The sample represented different management levels and company size, with 58 percent of respondents describing their firm as mainly service-driven. The remainder combined both service and manufacturing.
Analysis revealed that:
in both nations, reliability then responsiveness are the most important dimensions;
reliability is more important in Chile;
responsiveness is more important in the USA; and
formal standards are more evident in Chile and for all five SQ dimensions.
No statistically significant support was found for the expectation that assurance and empathy would be more important in Chile.
From this, the authors conclude that reliability becomes more important as uncertainty avoidance increases. They likewise believe that the more individualistic the culture, the greater the significance of responsiveness.
Firms operating in different markets are advised to note cultural differences. One recommendation is to formalize standards for collectivist societies where uncertainty avoidance is high. There is a need to consider all SQ dimensions in relation to the cultural norms of each nation. Thorough research to ensure quality services are developed, delivered and evaluated is also essential. By considering the cultural dimensions, companies can focus on relevant aspects of service quality in ways which can facilitate better customer satisfaction and business success.
To read the full article, enter 10.1108/JCM-08-2013-0660 into your search engine.(A précis of the article “The importance and formalization of service quality dimensions: a comparison of Chile and the USA. Supplied by Marketing Consultants for Emerald.)