Factors Causing the Service Quality Perception

In many cases service quality perception is not formed on the basis of expectations towards service encounter and subsequent real experience. Regularly there are side aspects influencing one concrete service episode. In the next part some of those aspects are talked about with highlights on the company image, image of country where service is offshored, cultural and age dissimilarity.

2.3.2.1 Company image

Company image plays a role during service episode. Consequently, interacting with company influences its company´s image in the client´s eyes. Many companies are getting aware of the influence which offshoring may have on their representation. The fact that call center is situated in different country and calls handled by non-local speakers can change customer´s perception of a firm. Company´s concerns are often related to brand image, property rights; lower customer satisfaction and as consequences increased clients‟ complaints and lower brand loyalty (Sharma et al., 2009). It has been proved that service quality and customer satisfaction correlate (Selnes, 1993; Sharma et al., 2009). Therefore, low quality service has a negative influence on the customer fulfillment. On the other hand, service of a first-class influences positively customer´s satisfaction and as an outcome, business image.

Roggeveen, Bharadwaj and Hoyer (2007) have carried out a study aiming to find out how location and reputation influence on customer´s expectations regarding upcoming service encounter. Based on their findings call center location does not affect the expectations prior to interaction if the firm has a good image and reputation.

This is, however, not the case for less known companies when clients predict lower level of service. (Roggeveen et al., 2007). The suggestion is based on the fact that if

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the company is lesser known, customers will expect poorer service from call center offshored than in case of good reputation firm which, as Roggeeveen et al. (2007) state out, will guarantee the quality service regardless where the call center located.

This discovery is somewhat supported by Sharma (2009) stating that” the more reputed or well known a service company is, the less likely are its clients to criticize against its offshored call centers and more likely to continue using its services.”

Furthermore, if company emphasizes its origins being in a certain country, this fact possibly influences customer’s expectations towards the Customer Care being also provided from this country. The truth that call center is located to a different location may cause more negative reactions than in case of firms not basing their image on a country.

2.3.2.2 Country Image

Findings point out that many countries are allocated various images by the clients. As a result, this fact also causes on the service quality perception (Huber and McGann, 1982; Thelen et al., 2010). Huber and McGann (1982) recommend that in case that customers are incompetent to identify the service quality on the source of own experiences, they are subject to estimate it on the basis of their attitudes towards countries. Consequently, the country image is significant determinant of service quality.

Thelen et al. (2010) have conducted a study where customers were asked to estimate the imaginary service quality on the basis of the country service was offshored to. As Thelen et al. (2010) completed “the most preferred countries to American consumers

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for services offshoring are not vitally the ones with the highest trained labor, lowest cost, or geographic closeness to the origin country.” From the chosen countries (India, China, Canada, Philippines & Pakistan), customers anticipated to obtain quality service respectively, with Canada receiving the highest and Pakistan the lowest preferences (Thelen et al., 2010). Roggeveen et al. (2007) based on the research concluded that call center location influences callers’ expectations only for slighter known firms having no contact on the expectations from well known firms with a good reputation. On the contrary, Barker and Härtel (2004) point out that customer have low prospects towards the quality of service provided by AGENT with different cultural and ethnic background.

Thelen et al. (2010: 196) recommends that companies should be conscious of customers´ country perceptions prior to offshoring. Nevertheless, it is uncertain to what extent the country perception varies within Asian/Asian countries and as a result, to what Asian/Asian countries the service can be offshored without damaging the company´s image. Nonetheless, a Asian/Asian country sensitivity may differ from one country to another and as a result, conducting the research is advantageous prior to offshoring.

2.3.2.3 Cultural differences

Hofstede (1997) describes culture as “collective programming of the mind which differentiates the members of one group or category of people.” Cultural differences are numerous of the aspects explaining differences in customers´ behavior. As this report is conducted in Philippines and Taiwan, variance in manners based on the cultural behavior may come into view. In case countries´ cultures are similar they are referred to as low cultural distances countries (Stringfellow et al., 2008).

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Hofstede (1997) provides four dimensions of cultural classification

(1) Power distance

As Hofstede (1997) stated, the power distance is “the extent to which the less powerful members of institutions and organizations within a country anticipate and believe that power is scattered unequally.”

(2) Collectivism versus individualism

The degree of collectivism and individualism points out how human distinguishes himself – as a part of the society or individual.

(3) Femininity versus masculinity

Based on IBM company study, Hofstede (1997) projected a set of characteristics normally perceived as masculine (earnings, challenge) and feminine (cooperation, employment security). Taking the studies into account, Hofstede finished off that some country´s citizens are likely to act more masculine or feminine than it is usual in other countries.

(4) Uncertainty avoidance

Some nations appear to accept higher level of impulsiveness while others like to manage the forthcoming (by technology, laws). (Hofstede, 1997).

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For achieving in a different way in the above mentioned features, countries (and subsequently cultures) do not need to be located geographically distant. Regardless of Asia being relatively small area on the globe, many cultural variations can be found even in neighboring countries.

2.3.2.4 Age dissimilarity

It has been recommended that typical personalities are shared by customers born in a certain time (Yoon and Niehm, 2006). Generations have dissimilar life approaches and value. Heaney (2007) reviews key personalities of three generations. Although in the table 1 generation Y refers to those born after 1977, some studies note that Generation Y covering people born between 1977 and 1994 (Yoon and Niehm, 2006) or 1995 (Barlett, 2004)

Table 1. Generational characteristics Heaney (2007) Context Baby Boomers identify service performed by non-local speaker in a different way compared to other age groups. As stated in the table 1, Generation Y is distinguished by their experience with use of media and high technology (computers, mobile phones). Members of this

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generation are personalized to globalization and they are more likely to learn foreign languages (Ramirez, 2008). Thus, it may be supposed that their approach towards non-local speakers is more positive compared to other generations. This assumption is based on the fact Generation Y members are more likely to interact with foreigners and consequently also with non-local speakers (through the use of technological devices). Taking this assumption to account, it may be supposed that they may perceive non-local speakers in call centers in a different way compared to other generations.

2.3.2.5 Other factors

As stated above, there are many aspects both on the customers and AGENT´s sides influencing the service encounter. Barker and Härtel (2004) stated out that prior to communication, both parties bring with them their exclusive “makeup” containing demographic variables such as race and gender as well as knowledge, dispositions, beliefs, attitudes and previous experiences. The present mood and customer´s and Customer Care representative´s (AGENT´s) personalities also determine to a definite scale on how well the communication will be. Customer´s expectations towards service whether with or without previous experiences affect the service encounter´s way as well. It is AGENT´s task to focus fuzzy expectations, reveal inherent expectations and debate over with customer possible too high or low expectations towards service (Ojasalo, 2001). All this should happen in a pleasant and calm manner.

In addition, Sharma et al. (2008) states that “negative attitudes towards offshored call centers result in feelings of dissatisfaction, raise in complaints and decrease in purchases”. With customers experiencing the negativity with some call center their attitude towards all call centers may be negative.

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