Purpose
This study aims to analyze the joint effects of where a service failure occurs and who witnesses it, with a specific focus on Chinese consumers who have varying levels of acculturation.
Design/methodology/approach
A 4 × 2 × 2 between-subject factorial design was used, where social presence and the location of the service failure were manipulated and acculturation was measured. Data were collected in Australia and China to contrast perceptions and behavioral responses of Chinese – Australians and Mainland Chinese by drawing on samples of 224 and 264 respondents, respectively.
Findings
Results showed significant differences in face, satisfaction and repeat purchase intention ratings following a service failure between Chinese – Australians and Mainland Chinese, as well as among Chinese – Australians with different acculturation strategies. Contrary to expectations, results established that where and with whom a service failure is experienced prominently affect consumer behavior regardless of the acculturation level.
Practical implications
An understanding of the effect of acculturation on a service failure situation is crucial for businesses to successfully compete in a continuously globalized world where migration produces multicultural societies and short-term travel tends to significantly change demands on service provision.
Originality/value
This research presents one of the first studies that go beyond the traditional East/West consumer distinction in studying service failure. This study analyzes the effect of acculturation by itself and together with other variables of interest.
