The Effect of Individualism and Collectivism on Customer Satisfaction in Retail Sector: Asian versus Western Culture

Customer satisfaction is defined as the customer's attitude towards the perceived service performance, which results from the differences in pre-existing expectations and the actual service performance. There are many factors that can lead to customer satisfaction, but instead of looking into a...

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Main Authors: Abdul Hamid Abdul Halim, Muhammad Hafizi Zamri, Mohd Faizol Rizal Mohd Rasid
Format: Article
Language:English
Published: UiTM Press 2018-12-01
Series:Journal of International Business, Economics and Entrepreneurship
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/29299/1/29299.pdf
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author Abdul Hamid Abdul Halim
Muhammad Hafizi Zamri
Mohd Faizol Rizal Mohd Rasid
author_facet Abdul Hamid Abdul Halim
Muhammad Hafizi Zamri
Mohd Faizol Rizal Mohd Rasid
author_sort Abdul Hamid Abdul Halim
collection DOAJ
description Customer satisfaction is defined as the customer's attitude towards the perceived service performance, which results from the differences in pre-existing expectations and the actual service performance. There are many factors that can lead to customer satisfaction, but instead of looking into all factors, it is interesting to look at cultural differences since the study focuses on the Malaysian setting, which is known for the multicultural environment. More interestingly, businesses in Malaysia not only involve local customers, but as well as customers from Asian and Western regions. The aims of this study are to determine the relationship between individualism and collectivism towards customer service satisfaction, specifically in the retail sector which involves multinational brands as well as multicultural customers. The use of Geert Hofstede Dimension theory in this study is because it is one of the most important theory in cultural differences studies and has generated a large body of research. A quantitative method has been used and the study has been conducted on 103 respondents, 51.5 % are from Asian origin and 48.5% are of Western origin. Although both individualism and collectivism have a significant impact on customer service satisfaction in the retail sector, it is proven in this study that collectivism has more to do in determining the satisfaction level as a whole. It is recommended that further studies should be done outside of Klang Valley. Furthermore, future research should seek to expand the pool of potential explanatory variables such as how cultural differences factor can help influence customer satisfaction.
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spelling doaj.art-e7b21ab7ba0243fda94a36973de077212023-11-29T16:50:32ZengUiTM PressJournal of International Business, Economics and Entrepreneurship2550-14292018-12-013SI232910.24191/jibe.v3iSI.14421The Effect of Individualism and Collectivism on Customer Satisfaction in Retail Sector: Asian versus Western CultureAbdul Hamid Abdul Halim0Muhammad Hafizi Zamri1Mohd Faizol Rizal Mohd Rasid2Faculty Business and Management, Universiti Teknologi MARA, Shah Alam, SelangorFaculty Business and Management, Universiti Teknologi MARA, Shah Alam, SelangorFaculty Business and Management, Universiti Teknologi MARA, Shah Alam, SelangorCustomer satisfaction is defined as the customer's attitude towards the perceived service performance, which results from the differences in pre-existing expectations and the actual service performance. There are many factors that can lead to customer satisfaction, but instead of looking into all factors, it is interesting to look at cultural differences since the study focuses on the Malaysian setting, which is known for the multicultural environment. More interestingly, businesses in Malaysia not only involve local customers, but as well as customers from Asian and Western regions. The aims of this study are to determine the relationship between individualism and collectivism towards customer service satisfaction, specifically in the retail sector which involves multinational brands as well as multicultural customers. The use of Geert Hofstede Dimension theory in this study is because it is one of the most important theory in cultural differences studies and has generated a large body of research. A quantitative method has been used and the study has been conducted on 103 respondents, 51.5 % are from Asian origin and 48.5% are of Western origin. Although both individualism and collectivism have a significant impact on customer service satisfaction in the retail sector, it is proven in this study that collectivism has more to do in determining the satisfaction level as a whole. It is recommended that further studies should be done outside of Klang Valley. Furthermore, future research should seek to expand the pool of potential explanatory variables such as how cultural differences factor can help influence customer satisfaction.https://ir.uitm.edu.my/id/eprint/29299/1/29299.pdfindividualismcollectivismcustomer satisfactionhofstede theorycultural differences
spellingShingle Abdul Hamid Abdul Halim
Muhammad Hafizi Zamri
Mohd Faizol Rizal Mohd Rasid
The Effect of Individualism and Collectivism on Customer Satisfaction in Retail Sector: Asian versus Western Culture
Journal of International Business, Economics and Entrepreneurship
individualism
collectivism
customer satisfaction
hofstede theory
cultural differences
title The Effect of Individualism and Collectivism on Customer Satisfaction in Retail Sector: Asian versus Western Culture
title_full The Effect of Individualism and Collectivism on Customer Satisfaction in Retail Sector: Asian versus Western Culture
title_fullStr The Effect of Individualism and Collectivism on Customer Satisfaction in Retail Sector: Asian versus Western Culture
title_full_unstemmed The Effect of Individualism and Collectivism on Customer Satisfaction in Retail Sector: Asian versus Western Culture
title_short The Effect of Individualism and Collectivism on Customer Satisfaction in Retail Sector: Asian versus Western Culture
title_sort effect of individualism and collectivism on customer satisfaction in retail sector asian versus western culture
topic individualism
collectivism
customer satisfaction
hofstede theory
cultural differences
url https://ir.uitm.edu.my/id/eprint/29299/1/29299.pdf
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