The effect of power distance and individualism on service quality expectations in banking A two‐country individual‐ and national‐cultural comparison

The effect of power distance and individualism on service quality expectations in banking A... Purpose – The purpose of this paper is to investigate the relationship between Canadian and Indian consumers' national cultural orientations and banking service quality expectations. Using two of Hofstede's five cultural dimensions operationalized at the individual level, and five dimensions of service quality from Parasuraman et al. 's SERVQUAL scale, the aim is to develop and test hypotheses relating national culture values to service quality expectations. Design/methodology/approach – The study is quantitative in nature, using surveys (online and written) from respondents in Canada and India. Data were analyzed using dummy variable regression and structural equation modeling. Findings – The results show that the importance of various SERVQUAL dimensions is related to Hofstede's power distance and individualism cultural dimensions both at the individual and national levels. More specifically, consumers low on power distance expect highly responsive and reliable service. High power distance customers attach higher importance to tangible service attributes. Consumers high on individualism expect lower empathy and assurance from service providers. Furthermore, Indian consumers attach higher importance to tangible attributes, whereas Canadian consumers find service reliability more important. However, differences in overall service quality expectations are not significantly different across the two countries. Practical implications – The results suggest that managers must be aware of the cultural values of the buyer/client in order to fully understand the most effective means of establishing and nurturing the service delivery process and, consequently, establishing service quality expectations. Banks will be more successful when service delivery is in tune with cultural imperatives, particularly sub‐group cultural imperatives. Originality/value – The study provides an original insight into the manner in which national culture impacts on service quality expectations. Furthermore, the study identifies individual sub‐cultural influences that shape service quality expectations. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Bank Marketing Emerald Publishing

The effect of power distance and individualism on service quality expectations in banking A two‐country individual‐ and national‐cultural comparison

Loading next page...
 
/lp/emerald-publishing/the-effect-of-power-distance-and-individualism-on-service-quality-98JuSrMcdH
Publisher
Emerald Publishing
Copyright
Copyright © 2009 Emerald Group Publishing Limited. All rights reserved.
ISSN
0265-2323
DOI
10.1108/02652320910979870
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to investigate the relationship between Canadian and Indian consumers' national cultural orientations and banking service quality expectations. Using two of Hofstede's five cultural dimensions operationalized at the individual level, and five dimensions of service quality from Parasuraman et al. 's SERVQUAL scale, the aim is to develop and test hypotheses relating national culture values to service quality expectations. Design/methodology/approach – The study is quantitative in nature, using surveys (online and written) from respondents in Canada and India. Data were analyzed using dummy variable regression and structural equation modeling. Findings – The results show that the importance of various SERVQUAL dimensions is related to Hofstede's power distance and individualism cultural dimensions both at the individual and national levels. More specifically, consumers low on power distance expect highly responsive and reliable service. High power distance customers attach higher importance to tangible service attributes. Consumers high on individualism expect lower empathy and assurance from service providers. Furthermore, Indian consumers attach higher importance to tangible attributes, whereas Canadian consumers find service reliability more important. However, differences in overall service quality expectations are not significantly different across the two countries. Practical implications – The results suggest that managers must be aware of the cultural values of the buyer/client in order to fully understand the most effective means of establishing and nurturing the service delivery process and, consequently, establishing service quality expectations. Banks will be more successful when service delivery is in tune with cultural imperatives, particularly sub‐group cultural imperatives. Originality/value – The study provides an original insight into the manner in which national culture impacts on service quality expectations. Furthermore, the study identifies individual sub‐cultural influences that shape service quality expectations.

Journal

International Journal of Bank MarketingEmerald Publishing

Published: Jul 24, 2009

Keywords: Banking; Customer services quality; National cultures; Consumer behaviour; Canada; India

References

  • A comparison of service quality dimensions conveyed in advertisements for service providers in the USA and Korea: a content analysis
    Bang, H.K.; Raymond, M.A.; Taylor, C.R.; Moon, Y.S.
  • Good and bad customers: the benefits of participating in the banking relationship
    Ennew, C.T.; Binks, M.R.
  • Methodological issues in cross‐cultural marketing research: a state‐of‐the‐art review
    Malhotra, N.K.; Agarwal, J.; Peterson, M.
  • Cultural influences on service quality and customer satisfaction: evidence from Greek insurance
    Tsoukatos, E.; Rand, G.K.

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off