Developing a Service Economy in China: The Effect of Cultural values on the Practice of Services Marketing

Abstract

China is the fastest growing service economy in the world. There is therefore a great need for services marketing theory and practice there. However most services marketing theory and practice has been developed within the western cultures of the United States and Europe. The large people element to services marketing and the noted difference between East and West in the values that underlie consumption suggests that services marketing theory and techniques may need to be modified to suit the Chinese context. This study examines the value profile of a sample of Chinese consumers, links those values to services marketing principles and discusses what the implications are for how services marketing principles should be operationalised there. It was found that the Chinese sample was less likely to try new services, more likely to rely heavily on brand, look to long term performance in evaluating services and value more highly post purchase assurances, service guarantees and warrantees. They were also found to be likely to demand less customisation in product design, be more process orientated and have less susceptibility to impulse purchases. They are likely to have lower service recovery demands, place higher importance on role theory and scripting, and demonstrate a higher propensity to develop relationships but have a lower propensity to complain.