Journal of Services Marketing

Consumer evaluations of fast-food services: a cross-national comparison

Moonkyu Lee Francis M. Ulgado

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Moonkyu Lee Francis M. Ulgado, (1997),"Consumer evaluations of fast-food services: a cross-national comparison", Journal
of Services Marketing, Vol. 11 Iss 1 pp. 39 - 52
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An executive summary for

managers and executives
can be found at the end of
this article

Consumer evaluations of fastfood services: a cross-national

comparison
Moonkyu Lee and Francis M. Ulgado

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Service sector is a fastgrowing part of US trade

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 20
percent 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.

Customer perceptions
are susceptible to
cultural differences

Understanding of customer perceptions of service quality and value is

especially important to international service firms because such perceptions
are 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

THE JOURNAL OF SERVICES MARKETING, VOL. 11 NO. 1 1997, pp. 39-52 MCB UNIVERSITY PRESS 0887-6045

39

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. BaskinRobbins) 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).
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Fast-food restaurants
successful in South Korea

Literature on consumer
evaluation of services

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 value
Perceived 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.

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

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SERVQUAL measures
perceptions of service
quality

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 impact
on 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 important
cost/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.

The gap theory

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

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.

A survey of US and
South Korean consumers

Research methodology
A survey was conducted with US and South Korean consumers to see if
there 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).

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

given the theory-application nature of the study, homogeneous subjects (e.g.

students or housewives) were desirable (Calder et al., 1981). A total of 193
usable questionnaires were collected, which consisted of 104 from the US
sample and 89 from the Korean sample.

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Demographic profile

Results
Sample characteristics
Table I shows the demographic profile of the respondents. It also presents
the respondents usage of McDonalds, familiarity and involvement with fast
food restaurants in general. As can be seen, although the Americans,
compared to their Korean counterparts, were more familiar with fast food
restaurants, they considered the restaurants to be less important, useful and
relevant to their personal life.
Comparisons of service expectations
As mentioned earlier, the first section of the questionnaire measured
respondents expectations about various aspects of fast-food restaurants in

Variable

US sample
(n = 104)

Korean sample
(n = 89)

Overall
(N = 193)

Sex (%)
Male
Female

62.5
37.5

82.9
17.1

70.8
28.1

Age (%)
Under 20 years
20-30 years
Over 30 years

2.0
95.1
2.9

2.3
95.4
2.3

2.1
95.3
2.6

Family income (%)

Under $20,000
$20-$40,000
$40-$60,000
Over $60,000

38.5
12.5
6.7
42.3

34.1
50.0
14.8
1.1

36.4
29.7
10.4
23.5

Family size (%)

1-2 persons
3-4 persons
5 or more persons

34.6
45.2
20.2

13.6
43.2
43.2

24.9
44.3
30.8

Frequency of usage
(times per month)

4.1
(3.2)a

3.8
(3.7)

4.0
(3.4)

Familiarity with
fast-food restaurantsb

2.5
(1.4)

1.6
(1.2)

2.1
(1.4)

Involvement with
fast-food restaurantsc

1.3
(1.6)

2.1
(1.2)

1.6
(1.5)

a
b

standard deviation
average ratings on three 9-point bipolar scales ranging from 4 to +4, where 4 = not-at-all
familiar, not-at-all knowledgeable and little experience of eating at fast-food restaurants, and
+4 = very familiar, very knowledgeable and considerable experience of eating at fast-food
restaurants (alpha = 76.7)
average ratings on three 9-point bipolar scales ranging from 4 to +4, where 4 = not-at-all
important, not-at-all useful and not-at-all relevant, and +4 = very important, very useful and
very relevant to my personal life (alpha = 87.0)

Table I. Sample characteristics

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43

Service
dimension

US sample
(n = 104)

Korean
(n = 89)

Sample overall
(N = 193)

t-value

p-value

2.50
2.68
2.69
2.63
2.17
1.90
2.65
3.10

3.27
3.39
2.81
3.22
2.34
2.61
3.06
2.88

2.86
3.01
2.74
2.90
2.25
2.23
2.84
2.99

5.60
4.70
0.79
4.22
0.98
2.81
1.86
1.14

0.001
0.001
0.431
0.001
0.329
0.005
0.064
0.256

Tangibles
Reliability
Responsiveness
Assurance
Empathy
Food prices
Service time
Location

Table II. Comparisons of service expectations

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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.
Striking differences

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

Service
dimension
Overall value
Tangibles
Reliability
Responsiveness
Assurance
Empathy
Low food prices
Short service time
Convenient location

US sample
(n = 104)
1.33
0.20
1.42
1.61
1.38
1.29
0.05
0.69
0.16

Korean sample
(n = 89)

Overall
(N = 193)

t-value

p-value

0.19
1.13
2.31
2.09
2.51
2.54
3.08
1.62
2.30

0.77
0.54
1.75
1.79
1.79
1.75
1.16
1.03
0.95

8.63
4.86
3.50
1.80
4.24
5.11
7.38
3.19
6.74

0.001
0.001
0.001
0.074
0.001
0.001
0.001
0.002
0.001

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

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

Service
dimension
Tangibles
Reliability
Assurance
Empathy
Low food prices
R2
F-statistic

US sample
(n = 104)
Coefficient t-value

0.25
0.31

Korean sample
(n = 89)
Coefficient t-value

ns
ns
2.75**
ns
3.45***
0.17
10.62***

0.56
0.26
0.17

ns
6.66***
ns
2.55*
2.34*
0.93
385.85***

Overall
(N = 193)
Coefficient t-value
0.32
0.23
0.32

5.23***
ns
2.59**
ns
6.74***
0.83
221.88***

Notes:
ns = t-value with a non-significant beta coefficient
* p < 0.05; ** p < 0.01; *** p < 0.001

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

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 to
each 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).

Perceived service values

regressed on gap scores

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 by
those 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).

Significant differences
between US and South
Korean consumers

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

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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 preand 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.
Eating regarded as a
social experience

In contrast, the value of time for other societies may be different. Asian
cultures, and even some European countries, consider eating, especially at a
restaurant, 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 good
fast-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 McDonalds
higher 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.

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

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The marketing approach

must be adapted to
national culture

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 be
what 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 crosscategory 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 value
Cronbach 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.

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49

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.

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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.

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This summary has been

provided to allow
managers and executives
a rapid appreciation of
the content of this
article. Those with a
particular interest in the
topic covered may then
read the article in toto to
take advantage of the
more comprehensive
description of the
research undertaken and
its results to get the full
benefit of the material
presented

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 Americanness 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 differ
between 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 the
richest 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-food
restaurants 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

emphasis in McDonalds UK advertising where the high profile, Americanness 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.
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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 crossnational comparison. Supplied by Marketing Consultants of MCB
University Press)

52

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

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