Consumers Reactions to Substandard Services: Do Cultural Norms have a role to play?

Consumers Reaction Study

Abstract

This study examines consumer reactions to substandard services which generate behavioral response to dissatisfaction; whereby cultural norms play the role of moderator between dissatisfaction and behavioral response. Dissatisfaction has been measured through the constructs of exit, negative word of mouth and resorting to third party influence. The paper explores Pakistani culture with the lens of Hofstede’s cultural dimensions theory and its impact on behavioral response. The selected cultural dimensions include uncertainty avoidance, individualism and achievement orientation. The research was conducted on the beauty and wellness industry whereby data was collected from 290 female customers of beauty salons. Analysis was done through Process Macro by Hayes moderation model 1.  The current study's results, based on a cross-sectional survey design, show that Pakistani culture, as measured along the Hofstede dimensions of achievement, uncertainty avoidance and individualism play a moderating role and has consequences on negative word of mouth, exit and third-party influence. Despite its functional importance, there has been very little academic literature that specifically considers the impact of culture on behavioral responses to service failure experiences. This study makes a theoretical contribution through extending the existing knowledge base of the study variables and applies the Hofstede model on a new avenue of research. It also provides valuable insights for decision makers in the industry on how to retain and build their base of customers.