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    THE JOURNAL OF SERVICES MARKETING, VOL. 11 NO. 1 1997, pp. 39-52 M CB U NIVERSITY PRESS 0887-6045 39

    The growth of service industries is playing a significant role in the US

    economy (Bateson, 1992; Cronin and Taylor, 1992; Ginsberg and Vojta,

    1981). By 1992, the service sector accounted for 72 percent of its gross

    domestic product and 76 percent of the domestic labor force employment

    (The Economist, 1993). It has accounted for most of the recent growth in

    non-farm employment; 85 percent of all new jobs created in the last decade

    have been in service industries (Koepp, 1987).

    Services have also been a fast-growing part of US trade, amounting to a 20percent share of the world market and 30 percent of US exports. With 135

    companies, the USA has dominated the Fortune Global Service 500

    (Fortune, 1993). In 1991, US cross-border receipts (or exports) for sales of

    private services totaled $153 billion while cross-border payments (or

    imports) for purchases of services were $99.9 billion, indicating a surplus of

    $53.2 billion (US Department of Commerce, 1992). This surplus has further

    widened to $60.6 billion for 1992. For the period 1986-1992, the average

    annual growth in exports was almost triple that in imports (US Department

    of Commerce, 1993). In addition, services have been a significant part of

    foreign investment, accounting for an average of 40 percent of the stock of

    US foreign direct investment (The Economist, 1993).

    The proliferation and internationalization of services have not only offered

    business opportunities but also posed competitive threats for many US

    service marketers. Service marketing researchers have suggested that a

    strategy for the survival and success of service firms is the delivery of

    quality services that satisfy customer needs and wants (Brown and Swartz,

    1989; Parasuraman et al., 1988; Thompson et al., 1985). However, the

    design and implementation of such a strategy can never be successful unless

    service marketers first determine how the quality and value of their services

    are perceived by customers.

    Understanding of customer perceptions of service quality and value is

    especially important to international service firms because such perceptionsare susceptible to cultural differences. In countries with different cultures,

    tastes and living habits, US service companies need to be aware and adaptive

    to local needs (Hofstede, 1980; Prahalad and Doz, 1987). Hence, the cultural

    distance between the USA and the foreign host country would be a major

    concern for foreign investment of US service firms (Li and Guisinger, 1992).

    This paper investigates the cross-cultural implications of customer

    evaluations of US fast-food services. The US fast-food restaurant industry is

    one service sector whose growth and internationalization have lately become

    significant (Chaudhry, 1995; Kramer, 1995a; Palmer, 1985; Tiegs, 1980;

    Woodman, 1980). The US domestic and Canadian markets have become

    saturated and have primarily been characterized by competition for market

    share rather than new growth (Restaurants and Institutions, 1994). Fast food

    Consumer evaluations of fast-food services: a cross-nationalcomparison

    Moonkyu Lee and Francis M. Ulgado

    An execut ive summ ary for

    m anagers and executives

    can be found at th e end of

    this art ic le

    Service sector is a fast-growing part of US trade

    Customer perceptions

    are susceptible tocultural differences

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    companies are looking to international markets for growth opportunities.

    American fast food restaurant chains have been expanding more rapidly into

    foreign markets than domestically, with a 13.5 percent international sales

    growth reported in 1994, compared to 7 percent in domestic sales growth

    (Kramer, 1995a). With such a maturing and highly competitive domestic

    market, fast food chains such as McDonalds (Paul, 1994), Wendys

    (Kramer, 1995b), KFC (Lee, 1995), and Dominos (Green, 1993) have

    expanded operations to many foreign countries. In addition to the traditional

    segments of hamburgers, pizza and chicken, international growth

    opportunities in other food categories such as ice cream (e.g. Baskin-

    Robbins) and donuts (e.g. Dunkin Donuts) have also been pursued

    (Restaurants and Institutions, 1995). The potential in fast food franchising in

    international markets has also been identified for smaller food service

    companies (Nations Restaurant News, 1992; 1995).

    Faced with less competition and national economic or market reforms, US

    fast-food chains have been attracted to countries like Hong Kong (Lan and

    Khan, 1995), Belgium (Wolf, 1994), Poland (Martin, 1994), Brazil (Bruce,

    1994), and China (Miu and Leung, 1994). South Korea is also one of the

    many countries these US fast-food companies have entered successfully. The

    sharp rise in personal income in recent years has stimulated the performance

    of numerous fast food chains in this country (Business Korea, 1994).

    Nevertheless, the South Korean culture can be considered quite apart from

    the US environment in which these firms were originally conceived. The

    following study examines the US and Korean fast food customers,

    comparing their expectations and perceptions of an international fast-food

    chain. Implications of the results are discussed for US fast-food service

    firms in international marketplaces.

    Conceptual background

    The opportunity of a huge and profitable potential market abroad with a

    maturing domestic market is a primary reason why many US fast-food

    chains have entered European and Asian countries. In order to take

    advantage of such a huge market potential, US firms need to understand how

    their services are perceived and evaluated by consumers in different

    countries. This section reviews service marketing literature which deals with

    how consumers make their overall evaluations of services in general. The

    literature serves as the basis for the present study, involving a cross-national

    comparison.

    Perceived service valuePerceived service value has been a critical construct in marketing because it

    is assumed to have a significant influence on purchase or patronage behavior

    (Bolton and Drew, 1991; Zeithaml, 1988). Although value is an indistinct

    and elusive construct, service value as perceived by consumers has narrowly

    been defined as a trade-off between perceived quality (or the benefit

    component) and perceived sacrifice (or the cost component) regarding a

    service being evaluated (Dodds and Monroe, 1985; Dodds et al., 1991).

    Consumers would make their value judgment on a service by trading off the

    positive utility of the quality against the negative utility of the cost inferred

    from various service characteristics. Then, what specific aspects of a service

    imply the quality and the cost for the value judgment? This question is dealt

    with in the sections below.

    40 THE JOURNAL OF SERVICES MARKETING, VOL. 11 NO. 1 1997

    Fast-food restaurantssuccessful in South Korea

    Literature on consumerevaluation of services

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    Perceived service quality. Perceived quality is one of the major determinants

    of perceived service value. It is assumed that consumers consider various

    dimensions of a service to reach their overall judgment of service quality.

    Parasuraman et al. (1988), based on a survey with 200 consumers about five

    different service categories, have developed a standardized instrument called

    SERVQUAL, which can be used to measure customer perceptions of service

    quality. They then have retested and refined their original SERVQUAL

    instrument (Parasuraman et al., 1991). SERVQUAL consists of 22 items

    measuring customers expectations and another 22 items measuring their

    perceptions of five dimensions of service performance. Specifically, they

    have suggested that when consumers make their judgment of service quality,

    they would generally consider the service providers:

    physical facilities and equipment (tangibles);

    ability to perform promised service dependably and accurately

    (reliability);

    willingness to help customers and provide prompt service

    (responsiveness); knowledge, courtesy and ability to inspire trust and confidence

    (assurance); and

    caring and individualized attention to its customers (empathy).

    However, SERVQUAL is a generic measure; researchers have found that the

    relative importance of the five dimensions varies across different service

    industries (e.g. Crompton and Mackay, 1989; Johnson et al., 1988;

    Parasuraman et al., 1988, 1991).

    Perceived service cost. Consumers compare service quality with cost to

    determine service value. Service cost is basically what consumers have to

    give up or sacrifice to obtain a desired service. Since it has a negative impacton consumers budgets, it would have a negative influence on their

    perceptions of service value.

    The concept of cost can be extended to include nonmonetary cost such as

    service time (see Murphy and Enis (1986), for a detailed review of time

    costs). Service time is the amount of time during which a service is

    provided. Since most customers would like to have faster services, service

    time would affect perceived service value in the same way monetary cost

    would.

    Some services require customers to be present physically where the services

    are provided (e.g. hairstylists, hotels and motels, restaurants, etc.). For such

    service categories, service locations, like service time, are an importantcost/benefit factor determining service value because the more convenient

    the locations are, the less amount of time consumers need to get there, and

    vice versa.

    Measurement of perceived service value

    Parasuraman et al. (1985, 1988, 1991) have proposed a gap theory, which

    states that customers assessment of overall service quality is determined by

    the degree and direction of the gap between their expectations and

    perceptions of performance levels. Specifically, they have suggested that

    perceived service quality can be determined by calculating the difference

    between expectations and perceptions of actual service performance. This

    measurement paradigm can be extended to measure perceived service value;

    THE JOURNAL OF SERVICES MARKETING, VOL. 11 NO. 1 1997 41

    SERVQUAL measuresperceptions of servicequality

    The gap theory

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    perceived service value can be estimated by the gap between expectations

    and perceptions of service performance as well as cost and time factors. This

    measurement framework is used in the present study.

    Research methodology

    A survey was conducted with US and South Korean consumers to see ifthere were significant differences in their perceptions of a fast-food

    restaurant service. McDonalds was selected for the study because it had

    expanded operations to South Korea and it was relatively well-known to

    both US and Korean consumers (Business Korea, 1994). McDonalds

    derives over 45 percent of its total income from international operations

    outside the USA (Restaurants and Institutions, 1994).

    The questionnaire

    The questionnaire consisted of three sections. The first section dealt with

    respondents expectations about the services provided by fast-food

    restaurants in general. It included:

    22 items measuring expectations about five SERVQUAL dimensions;

    and

    three items dealing with expectations about service cost (or food prices

    in the present case), service time and convenience of service locations,

    respectively.

    The second section included:

    two items measuring overall perceived value of the services offered by

    McDonalds restaurants;

    22 items dealing with perceptions of the SERVQUAL performance

    dimensions; and

    three items measuring perceptions of food prices, service time and

    location convenience.

    The last section dealt with respondents demographic characteristics such as

    sex, age, income and family size. It also included questions concerning how

    often respondents usually ate at McDonalds restaurants, and how familiar

    and involved they were with fast-food restaurants in general. The question

    items are shown in the Appendix.

    The questionnaire was translated for the Korean sample. To address potential

    translation problems, procedures for quality checks as developed and

    demonstrated in the literature were used, involving double translation with

    decentering (Brislin, 1970; Brislin et al. 1973; Triandis, 1976). Basically, thequestionnaire, originally written in English, was translated into Korean by

    two bilinguals, and was subsequently back-translated into English by two

    different bilinguals. Then, based on the comparison between the original and

    the back-translated English versions, adjustments were made on the Korean

    questionnaire.

    Data collection

    Data were collected in a survey of students enrolled in business courses at

    major metropolitan universities in the USA and South Korea. Although there

    has been a concern regarding the use of students as surrogate consumers,

    they were deemed appropriate for this study because they were actual, not

    surrogate customers of fast-food restaurants in both countries. In addition,

    42 THE JOURNAL OF SERVICES MARKETING, VOL. 11 NO. 1 1997

    A survey of US andSouth Korean consumers

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    general, such as the five SERVQUAL dimensions, as well as food prices,

    service time and location convenience. Since the multiple items of the

    SERVQUAL dimensions consistently obtained high coefficient alphas (see

    Appendix for the Cronbach alphas for the measures), simple average ratings

    on these items were used.

    A comparison of the US and Korean samples in terms of their expectations

    about fast-food restaurants revealed striking differences (see Table II for the

    t-test results); the Korean samples expectations about various aspects of the

    restaurants were generally higher than those of the US sample. In particular,

    the Koreans expectation levels about tangibles, reliability, assurance and

    low food prices were significantly greater than those of the American.

    Comparisons of service value perceptions

    Consumers overall perceptions of service value were measured on 9-point

    Likert scales ranging from 4 = strongly disagree to + 4 = strongly

    agree with following statements:

    (1) The food and services offered by McDonalds are a very good value for

    the money.

    (2) The food and services offered by McDonalds are a very good bargain,

    considering the prices.

    Since these two items showed a high reliability (Cronbach alpha = 0.88),

    simple average on the items was used. As shown in Table III, the Korean

    samples average perception of McDonalds service value was significantly

    lower than the Americans.

    The respondents perceptions of various aspects of McDonalds were further

    examined on the basis of the gap theory framework. First, the mean

    44 THE JOURNAL OF SERVICES MARKETING, VOL. 11 NO. 1 1997

    Table II. Comparisons of service expectations

    Service US sample Korean Sample overall

    dimension (n = 104) (n = 89) (N= 193) t-value p-value

    Tangibles 2.50 3.27 2.86 5.60 0.001

    Reliability 2.68 3.39 3.01 4.70 0.001

    Responsiveness 2.69 2.81 2.74 0.79 0.431

    Assurance 2.63 3.22 2.90 4.22 0.001Empathy 2.17 2.34 2.25 0.98 0.329

    Food prices 1.90 2.61 2.23 2.81 0.005

    Service time 2.65 3.06 2.84 1.86 0.064

    Location 3.10 2.88 2.99 1.14 0.256

    Table III. Comparisons of service value perceptions (mean gap scores)

    Service US sample Korean sample Overall

    dimension (n = 104) (n = 89) (N= 193) t-value p-value

    Overall value 1.33 0.19 0.77 8.63 0.001

    Tangibles 0.20 1.13 0.54 4.86 0.001

    Reliability 1.42 2.31 1.75 3.50 0.001

    Responsiveness 1.61 2.09 1.79 1.80 0.074

    Assurance 1.38 2.51 1.79 4.24 0.001

    Empathy 1.29 2.54 1.75 5.11 0.001

    Low food prices 0.05 3.08 1.16 7.38 0.001

    Short service time 0.69 1.62 1.03 3.19 0.002

    Convenient location 0.16 2.30 0.95 6.74 0.001

    Striking differences

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    differences between their expectations and perceptions of the service value

    dimensions were calculated (called mean gap scores). Second, based on

    t-tests, these mean scores of the US and Korean samples were compared toeach other along the service value dimensions. Again, the results suggested

    that the Koreans average ratings of McDonalds service value were

    significantly lower than the Americans on most dimensions (see Table III).

    Regression analyses

    Stepwise regression analyses were performed to determine differential

    effects of the service dimensions on perceived value. Specifically, the overall

    ratings of perceived service value were regressed on the gap scores of the

    various service value dimensions. The results are summarized in Table IV.

    The overall regression model was highly significant (F= 221.88,p < 0.001)

    with 83 percent of the variance in overall service value accounted for bythose independent variables. Among various service dimensions, tangibles,

    assurance and lower food prices had the most significant impact on overall

    service value (coefficients = 0.32, 0.23 and 0.32 respectively).

    The regression models were also significant for both samples (F= 10.62,

    p < 0.001 for the US sample; F = 385.85,p < 0.001 for the Korean sample)

    with 17 percent and 93 percent of the variance (for the US and Korean

    samples respectively) in the dependent measure explained by the

    independent variables. While the US sample indicated low food prices and

    assurance as the most important variables in determining overall service

    value (coefficient = 0.31 and 0.25 respectively), the Koreans rated reliability

    and empathy in addition to lower prices as the most significant variables(coefficients = 0.56, 0.26, and 0.17, respectively).

    Discussion

    In general, study results indicate that significant differences may exist

    between US and South Korean patrons in terms of their expectations and

    perceptions of fast-food restaurant services, McDonalds in particular. To US

    consumers, low food prices are of paramount importance in their evaluations

    of fast-food establishments. In addition, assurance is also significantly

    important to Americans. On the other hand, to Korean customers, service

    dimensions other than low prices, such as reliability and empathy, increase

    in relative importance (see Table IV). These findings essentially illustrate the

    difference in roles that fast-food restaurants play in each of these societies.

    THE JOURNAL OF SERVICES MARKETING, VOL. 11 NO. 1 1997 45

    US sample Korean sample Overall

    Service (n = 104) (n = 89) (N= 193)

    dimension Coefficient t-value Coefficient t-value Coefficient t-value

    Tangibles ns ns 0.32 5.23***

    Reliability ns 0.56 6.66*** ns

    Assurance 0.25 2.75** ns 0.23 2.59**Empathy ns 0.26 2.55* ns

    Low food prices 0.31 3.45*** 0.17 2.34* 0.32 6.74***

    R2 0.17 0.93 0.83

    F-statistic 10.62*** 385.85*** 221.88***

    Notes:

    ns = t-value with a non-significant beta coefficient

    *p < 0.05; **p < 0.01; ***p < 0.001

    Table IV. Comparisons of stepwise regression results: overall service value

    Perceived service valuesregressed on gap scores

    Significant differencesbetween US and SouthKorean consumers

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    In the USA, fast food essentially lives up to its names objective, fast. In

    the fast-paced US culture, as in most Western industrialized countries, time

    is money (Copeland and Griggs, 1985; Hall and Hall, 1990); the notion of

    eating quickly and conveniently appeals to a population on-the-go.

    Naturally, for something on which consumers do not spend much time, they

    do not expect to spend too much money. Therefore, low prices are an

    important feature. Also important to the US consumer is that they can be

    confident they made the right decision, not only in choosing the fast-food

    restaurant, but in menu-item selection as well. Such assurance can be

    reinforced not only by consistent quality in the food products, but also by

    employee behavior. Americans do not want to waste valuable time on pre-

    and post-purchase dissonance or uncertainty about something on which they

    do not spend too much time and money in the first place. Therefore,

    consistently courteous and knowledgeable employees can help develop

    consumer confidence in the food and services, and minimize uncertainty

    about the fast-food restaurant.

    In contrast, the value of time for other societies may be different. Asian

    cultures, and even some European countries, consider eating, especially at arestaurant, as more of a social, family-related, or entertaining experience,

    even if it involves part of a busy day (Copeland and Griggs, 1985; Hall,

    1966). Collectivist societies such as Korea tend to consider such social

    activities from the perspective of the group experience in contrast to a more

    individualistic orientation. Individualism represents the preference for a

    social framework in which people put themselves or immediate families

    first, as opposed to collectivism, which puts the extended family or social

    group first (Hofstede, 1980). Service speed and low food prices may still be

    important, but no longer dominate their mind-sets, as other service features

    also become significant in achieving their satisfaction.

    Therefore, Koreans may have a different concept of what makes up a goodfast-food restaurant. This difference can be also attributed to the prevalence

    of small mom-and-pop eateries of Korean culture, which influences

    Korean consumers perceptions of US fast food. The overall lower

    perception of McDonalds by South Koreans in terms of service value (see

    Table III) could be a result of such a difference in expectations, which is

    substantiated by the results of this study (see Table II). Korean customers

    may have had pre-conceived expectations of McDonalds which may not

    have represented the typical fast food definition, but more of an

    embodiment of an American experience or a taste of US life. Therefore,

    their objectives of eating at McDonalds may have been different from that

    of eating at a local quick-eatery. Once the novelty has worn off, it is possible

    that the traditional expectations of service value, coupled with McDonaldshigher food prices, relative to those of the domestic fast food, bring about

    lower perceptions of the US chain. To the Korean consumer, it is important

    that the service value and quality received be reliable. Koreans want to be

    able to depend on the fast-food restaurant to meet their needs correctly, or

    react quickly to do so if they are not being met. It is also more important for

    Koreans to feel that McDonalds empathizes with the customers specific

    needs in a somewhat altruistic and unselfish manner. Individual attention,

    customer pampering and having the restaurant diners best interest at heart

    are more significant than less time-consuming or even time-saving services.

    Hence, for example, convenient store hours may be more important to

    Koreans than shorter service time.

    46 THE JOURNAL OF SERVICES MARKETING, VOL. 11 NO. 1 1997

    Eating regarded as a

    social experience

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    Managerial implications and recommendations

    The study implies that US fast-food marketers in foreign countries, South

    Korea for example, need to be more aware of the distinct customer

    expectations and perceptions in each country that they enter (Clark, 1990).

    These consumer attitudes are a function of the cultural, economic and social

    environment. What fast-food restaurants are to US consumers may not bewhat they should be to foreign customers if they are to be successful. US

    marketing managers should realize that long term success in foreign markets

    may not be guaranteed by an over-reliance on the general popularity of US

    products in international markets. An awareness and understanding of the

    foreign consumer should facilitate the ability to adapt the marketing

    approach where needed. For example, instead of a traditional advertising and

    promotion focus on price incentives or service speed, US fast-food chains

    may need to emphasize other features in their international markets. Instead

    of continually counting on the allure of a Big Mac, McDonalds may have to

    adapt its menu by including some South Korean food items or traditions.

    Future research

    Further study is needed to examine other service sectors, such as banking,

    insurance, advertising and consulting, which have also experienced

    significant growth and internationalization. This would facilitate cross-

    category comparisons of different types of services. Additional research is

    also important to investigate other Asian countries with some cultural

    similarities to and/or subtle differences from Korea, as well as other markets

    in Europe which may exhibit distinct differences from both Korean and US

    environments.

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    Appendix. Summary of measures

    Measurement was on a 9-point Likert scales ranging from 4 = strongly disagree to +4 =

    strongly agree.

    Overall service valueCronbach alpha = 0.88

    The food and services offered by McDonalds are very good value for the money.

    The food and services offered by McDonalds are a very good bargain, considering the

    prices.

    Service value expectation measures

    Tangibles: alpha = 0.82

    Excellent fast-food restaurants will have modern-looking equipment.

    Their physical facilities will be visually appealing.

    Their employees will have a neat appearance.

    The appearance of the physical facilities of these restaurants will be in keeping with the

    types of services provided.

    Reliability: alpha = 0.89

    When these restaurants promise to do something by a certain time, they will do so.

    When customers have problems, these restaurants will show a sincere interest in solving

    them.

    These restaurants will perform the service right the first time.

    They will provide their services at the time they promised to do so.

    They will insist on error-free records.

    Responsiveness: alpha = 0.78

    They will tell customers exactly when the services will be performed.

    Employees of excellent fast-food restaurants will provide prompt services.

    Employees of these restaurants will be willing to help customers.

    They will never be too busy to respond to customer requests.

    Assurance: alpha = 0.80

    The behavior of employees of excellent fast-food restaurants will instill confidence in

    customers.

    Customers of excellent fast-food restaurants will be able to feel safe in their transactions.

    Their employees will be consistently courteous with customers.

    Their employees will have the knowledge to answer customers questions.

    Empathy: alpha = 0.80

    Excellent fast-food restaurants will give customers individual attention.

    These restaurants will have operating hours convenient to all customers.

    These restaurants will have the customers best interests at heart.

    Their employees will understand the specific needs of their customers.

    THE JOURNAL OF SERVICES MARKETING, VOL. 11 NO. 1 1997 49

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    Low food prices

    Excellent fast-food restaurants will offer food at lower prices compared to other

    restaurants.

    Short service time

    Excellent fast-food restaurants will not keep their customers waiting for a longer time

    compared to other restaurants.

    Convenient location

    Excellent fast-food restaurants will have convenient locations.

    Service value performance measures

    Tangibles: alpha = 0.86

    McDonalds restaurants have modern-looking equipment.

    Their physical facilities are visually appealing.

    Their employees have a neat appearance.

    The appearance of their physical facilities is in keeping with the types of services

    provided.

    Reliability: alpha = 0.86 When their employees promise to do something by a certain time, they actually do so.

    When customers have problems, the employees show a sincere interest in solving them.

    McDonalds restaurants perform the service right the first time.

    They provide their services at the time they promised to do so.

    They insist on error-free records.

    Responsiveness: alpha = 0.81

    Their employees tell customers exactly when the services will be performed.

    Their employees provide prompt services.

    Their employees are willing to help me.

    Their employees are never be too busy to respond to my requests.

    Assurance: alpha = 0.88

    The behavior of employees at McDonalds instills confidence in customers.

    I feel safe in my transactions with McDonalds.

    The employees at McDonalds are consistently courteous with me.

    The employees have the knowledge to answer my questions.

    Empathy: alpha = 0.84

    McDonalds restaurants give me individual attention.

    They have operating hours convenient to all customers.

    These restaurants have my best interests at heart.

    Their employees understand my specific needs.

    Low food prices

    They offer food at lower prices compared to other restaurants.

    Short service time:

    They do not keep their customers waiting for a longer time compared to other restaurants.

    Convenient location:

    They have convenient locations.

    Moonkyu Lee is Assistant Professor of Marketing at Yonsei University, Seoul,

    Korea. Francis M. Ulgado is Assistant Professor of Marketing at Georgia Institute of

    Technology, Atlanta, Georgia, USA.

    50 THE JOURNAL OF SERVICES MARKETING, VOL. 11 NO. 1 1997

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    Executive summary and implications for managers and executive

    Buying a Big Mac is this a cultural experience?

    What do we want from a fast-food service? Is it just quickly served food of

    consistent quality at the right price wherever you go or does the expectation

    of the consumer vary? Lee sets out to investigate whether the standardized,

    homogeneous approach typified by the big US fast-food chains is the right

    approach or whether they should vary their promotional message, service

    provision and even product depending on the market in which they are

    operating.

    McDonalds, the company studied here, continues to expand internationally.

    It is seen for good or bad as an example of the exporting of American

    life. It goes with Coca-Cola and Disney as representing popular American

    culture. As a result there is some expectation that the essential American-

    ness of McDonalds contributes to its success. Take away that cultural

    reference point and, perhaps, you lose the primary rationale of the business.

    Lee and Ulgado find that consumer evaluation of McDonalds does differbetween the USA and Korea. This reflects several factors:

    (1) Price. US consumers see McDonalds as a low priced product and

    attach little significance to purchase. For South Koreans the price

    differential with indigenous food is limited and, in some ways, the

    burger is a fairly expensive purchase.

    (2) Expectations. US consumers are assured by the brand, low prices and

    corporate reputation. They really do not expect too much from a burger.

    They look for fast service and consistent quality. The product is such an

    integral part of their culture that any cultural significance becomes

    irrelevant to the purchase. For Koreans the expectations are higher. The

    product is not cheap and is imbued with the cultural messages of therichest country on earth. As a result Lee and Ulgado find them more

    likely to be disappointed by McDonalds.

    (3) Product. Lee and Ulgado suggest that fast-food businesses should look

    to make better linkages with the cultures of the countries they operate in

    by including indigenous foods on the menu. Given that, for American

    fast-food businesses, the American cultural influence is all important, I

    suspect that such an approach is fraught with risk. Some additional

    elements (such as wine in French outlets) may work, but most

    consumers are buying a specifically American experience especially in

    emerging nations like Korea.

    (4) Importance. The ubiquity of fast-food in the USA means that fast-foodrestaurants are unimportant to consumers. Frankly, they are not

    bothered if there is a McDonalds in Bloggsville since there is probably

    a Wendys. Competition is on the basis of price, consistency and location

    rather than on any cultural factors. For Koreans fast-food is more

    important as a purchase. They are less likely to buy because they

    fancy a snack or cannot be bothered cooking tonight. They look for a

    more complete experience which includes the food, the speed of service

    and the association with American culture. The result is again that

    Koreans are more likely to be disappointed.

    What Lees research shows is that the more fast-food restaurants become a

    part of a culture, the more the promotional emphasis shifts from the brand

    experience to the price and consistency of quality. This can be seen from the

    THE JOURNAL OF SERVICES MARKETING, VOL. 11 NO. 1 1997 51

    This summ ary has been

    provided to al low

    m anagers and execut ives

    a rapid appreciat ion of

    the conten t o f th is

    art ic le. Those w ith a

    part icular interest in the

    topic covered may then

    read t he art ic le in toto t otake advantage of the

    more com prehensive

    descript ion of the

    research un dertaken and

    its results to get the ful l

    benef i t of the m aterial

    presented

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    emphasis in McDonalds UK advertising where the high profile, American-

    ness is now replaced by droll English-style advertising and a growing focus

    on price. For Koreans, I suspect that McDonalds presents a more exciting

    prospect for consumers than it does in markets it has served for many years.

    Ultimately, the Korean may become inured to the Big Mac and will treat it in

    the same way as the Americans. In the meantime, promotion, service and the

    product mix must reflect the different expectations of consumers in the two

    countries.

    This finding has a resonance for other service exports since we cannot

    assume that, whatever the original purpose of the service, there will not be

    transferred cultural references. For food- or drink-related services, this is

    critical since eating and drinking are important in every culture. If cultural

    variance is ignored then promotion may prove ineffective and the export will

    lose out to its more clued up competitors.

    Lee and Ulgado demonstrate that, even for an almost ubiquitous service

    such as fast-food, we can never assume that consumers respond uniformly

    across national borders. Yet again the lesson is that marketers must

    accommodate culture difference in all their activities if their international

    marketing is to succeed.

    (A prcis of the article Consumer evaluations of fast-food services: a cross-national comparison. Supplied by Marketing Consultants of MCB

    University Press)

    52 THE JOURNAL OF SERVICES MARKETING, VOL. 11 NO. 1 1997

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