1. Service Relationship and Consumer Reaction to Service Failure: A Cross-Cultural Study
Michael K. Hui（许敬文）
Professor of Marketing（市场学讲座教授）
The Chinese University of Hong Kong（香港中文大学）
May 2006

2. Types of Research
Publications in highly respected international journals
Market research vs. Marketing research
Exploratory research vs. Confirmatory research
Behavioral research vs. Modeling research

3. Types of Cross-Cultural Research
Mean differences between cultural or sub-cultural groups (Schaninger, Bourgeois and Buss 1985, JM)
Conceptual and measurement differences (emic vs. etic) (Winsted 1997, JR; Patterson and Smith 2003, JR)
Relational differences (Mattila and Patteron 2004, JR; Hui, Au and Fock 2004, JIBS)

4. Steenkamp and Baumgartner (1998, JCR)
Switching
Barriers
(Thailand & Malaysia)
Switching
Barriers
(Australia)
λ1(1)
λ2(1)
λ3(1)
λ4(1)
λ1(2)
λ2(2)
λ3(2)
λ4(2)
λ5(2) X1 X2 X3 X4 X1 X2 X3 X4 X5
δ1(1)
δ2(1)
δ3(1)
δ4(1)
δ1(2)
δ2(2)
δ3(2)
δ4(2)
δ5(2)
Configural invariance: λ5(2) = 0
Metric invariance: λ1(1) = λ1(2), … λ4(1) = λ4(2)
Scalar invariance:
Error variance invariance:

5. Empowerment Effects Across Cultures Hui, Au & Fock (2004, JIBS)
Job Satisfaction
Culture
(high power distance vs. low power distance)

6. Relationship as a Switching Barrier (Jones, Mothersbaugh & Beatty 2000, JR)
Service Failure
Consumer Reactions: Repatronage
Complaint
WOM
Relationship

7. The Mediating Effect of Trust Morgan & Hunt 1994, JM :
Relationship
Trust
Positive Consequences
(a)
(b)
Service Failure
Consumer Reactions: Repatronage
Complaint
WOM
Trust
Relationship

8. The Moderating Effect of Culture Brockner et al. (2000, ASQ)
Trust
Outcome Evaluation
Cultural: Interdependent vs. Independent

9. My Theoretical Framework
Service Failure:
Process vs. Outcome
Consumer Reactions: Repatronage
Complaint
WOM
Outcome Uncertainty
Culture:
Interdependent
vs.
Independent
Trust
Relationship: Length vs. Type

10. Propositions
The length and type of a service relationship will affect consumers’ reaction to service failure, including repatronage intentions and complaint intentions.
Trust in the service provider will be a significant mediator between service relationships and consumers’ reaction to service failure.
The effect of service relationship and trust on consumers’ reaction to service failure will vary between cultures that foster interdependent self-construals and cultures that foster independent self-construals.
The effect of service relationship and trust on service failure will vary with the extent to which the service outcome is uncertain to the consumer prior to consumption.

11. Experiment Design: Outcome Uncertainty Relationship Culture ×
(high vs. low) ×
Relationship
(long vs. short)
Culture
(Chinese vs. Canadian)

12. Results Chinese Canadian Post-purchase Behaviors Relationship Short
Long
uncertain
certain
Post-purchase Behaviors
uncertain
certain
Relationship
Short
Long
Canadian

13. Why Cross-Cultural (East and West) Service Research?
Service encounters are first and foremost social encounters (McCallum & Harrison 1990)
Cross-cultural research is widely received in organizational research
Diversity of publication outlets
Our Chinese background
Prominent cross-cultural researchers (e.g. Bond, Leung) in HK