Dimensions of service quality in developed and developing economies: multi‐country cross‐cultural comparisons

Abstract

Purpose: Despite the rapid growth and internationalization of services, marketers of services realize that to successfully leverage service quality as a global competitive tool, they first need to correctly identify the antecedents of what the international consumer perceives as service “quality.” This paper aims to examine the differences in perception of service quality dimensions between developed and developing economies. Design/methodology/approach: Parasuraman et al. proposed a framework consisting of ten determinants or dimensions of service quality: reliability, access, understanding of the customer, responsiveness, competence, courtesy, communication, credibility, security, and tangible considerations. The authors propose 14 hypotheses emphasizing differences in the perception of these dimensions between developed and developing economies by linking these with economic and socio‐cultural factors. Extensive survey data are collected in the context of banking services from three countries: USA, India, and the Philippines and statistically tested using multivariate analysis of variance. Findings: Of the 14 hypotheses, 13 were supported (five partially) in that the results for the USA were systematically and significantly different from those for India and the Philippines in the predicted direction. Research limitations/implications: While almost all of the hypotheses are supported, future research should look at multiple service sectors and include alternative service quality models to further validate this study. Practical implications: Despite limitations, current results have significant implications for international marketing in service strategy formulation, service development, pricing, communications, and service delivery. Originality/value: International service managers need to understand the value of environmental differences between countries in terms of economic development and cultural value system and accordingly emphasize the various dimensions of service quality differentially.