European Journal of Marketing

The power of perceived service quality in international marketing channels

Ko de Ruyter Martin Wetzels Jos Lemmink

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Ko de Ruyter Martin Wetzels Jos Lemmink, (1996),"The power of perceived service quality in international marketing
channels", European Journal of Marketing, Vol. 30 Iss 12 pp. 22 - 38
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22
Received April 1995
Revised October 1995
Revised January 1996

European Journal of Marketing,

Vol. 30 No. 12, 1996, pp. 22-38.
MCB University Press, 0309-0566

The power of perceived

service quality in
international marketing
channels
Ko de Ruyter, Martin Wetzels and Jos Lemmink
University of Limburg, Faculty of Economics and Business
Administration, The Netherlands
Introduction
As a result of intense competition, slower growth rates and expanding price
pressures in markets of fast moving packaged consumer goods, the nature of
manufacturer-distributor relationships is changing. Traditional marketing
channel instruments such as guarantees of availability, credit terms or sales
promotions are becoming less efficient in saturated markets in which there is an
increasing emphasis on non-price competition. In domestic channels, perceived
service quality is used as a differentiation strategy and regarded as a decisive
success factor in supplier evaluation and purchase decisions in the
manufacturer-distributor dyad (Ballou, 1992; Gilmour, 1977; Kyj, 1987, 1989;
La Londe et al., 1988; Mentzer et al., 1989). Providing quality service is
instrumental in establishing and facilitating communication, conflict-solving
and commitment, which have been identified as major dimensions of mutually
satisfying and, hence, strong channel relationships (Anderson and Narus, 1984,
1990; Anderson and Weitz, 1989, 1992). Channel service quality could, therefore,
be considered as a type of power base that can be utilized to influence and
control the decisions and behaviour of channel partners (Frazier and Sheth,
1985; Gaski, 1984, 1987; Keith et al., 1990). This may be even more applicable to
international channels in which long shipping distances, multiple
transhipments and diversity in channel levels and time zones require significant
efforts and financial risk on behalf of manufacturers. Moreover, in the
international channel environment producers have less control over service
levels (Assugman and McCullough, 1993). Quality service may convey a
manufacturers intentions to cultivate and maintain strong partnerships in
addition to power-dependence bases. However, despite the importance of the
role of perceived service quality, empirical research into the nature of crossborder channel relationships has been limited largely to such issues as market
entry designs (LaBahn, 1994). Therefore, this article explores the relationship
between perceived service quality, supplier power bases and perceived
relationship strength in international marketing channels. It is structured as
follows. First, the literature on marketing channel relationships and perceived

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service quality will be reviewed. Next, the results of an empirical study that was
The power of
conducted on the worldwide distribution network of a large international food perceived service
manufacturer will be reported. Finally, a number of theoretical and managerial
quality
implications emerging from this study will be discussed.
The nature of marketing channel relationships
Several theoretical perspectives have been advanced to explore and understand
the complex nature of marketing channel phenomena. Among them are the
political economy paradigm and the relationship marketing paradigm. These
perspectives introduce new concepts and aspects of human behaviour that form
a welcome addition to the body of (classic) economic theory that deals with
marketing channels. Specifically, recent channel research has focused on such
issues as (long-term) manufacturer-distributor relationships (e.g. Hogarth-Scott
et al., 1994) and the power-dependence balance (Keith et al., 1990). With regard
to channel relationships, a shift in marketing thought has taken place from an
emphasis on a transactional to a relationship perspective (Webster, 1992). The
concept of the relationship marketing paradigm that is most appropriate to
marketing channels is relational exchange. Relationships between
manufacturers and distributors take many forms varying from discrete,
transactional exchanges to relational exchanges in vertically-integrated
networks (Dwyer et al., 1987). At the one end of the continuum, discrete
transactions are characterized by a narrow content and focus and limited
communication between the manufacturer and distributor. Typically, these
exchanges are based on price, specification and availability and relate to
classical channel instruments such as sales promotions (Rangan, 1986).
Moreover, transactional exchanges are characterized by small investments, a
short duration and low switching costs. At the other end of the continuum,
relational exchanges involve repeated transactions over a longer time-frame. At
this level channel relationships have moved beyond purely price-based
negotiations. Exchange investments are large and switching costs are high.
Several operationalizations of the relationship continuum in marketing
channels have been proposed recently (Hogarth-Scott et al., 1994; Kotler, 1991;
Webster, 1992). For example, Kotler, (1991) classifies perceptions of marketing
channel relationships as:
A chain of discrete orders; there is no real partnership;
Reactive; the manufacturer only reacts to problems if the distributor
tries to get contact;

Proactive; the manufacturer will try to find out if there are any
problems and will then try to solve them;
Based on continued interest from the manufacturer even if there are no
problems at all; or
A real partnership; cooperation takes place on many areas.

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Higher degree of partnerships involve interdependence, although this

interdependence is not necessarily evenly balanced.
The concepts of power and dependency are central to channel relationships
(Stern and El-Ansary, 1992). These concepts have been studied widely from the
perspective of the political economy framework (Arndt, 1979; Reve and Stern,
1986; Stern and Reve, 1980; Thorelli, 1986). This paradigm views a social
system as comprising interacting sets of major economic and socio-political
forces which affect collective behaviour and performance (Stern and Reve,
1980, p. 53). From this point of view, power is conceptualized as the ability of
one channel member to influence or control the decisions and behaviour of other
channel members. Stern and El-Ansary (1992, p. 312) contend that power
generally must be used in marketing channels to gain cooperation and
induce satisfactory role performance. This holds true in particular for
international channel relationships (Ahmed, 1977). Different types of power
bases are used in marketing channels to create dependence. With respect to
channel conflict, a distinction has been made between coercive and non-coercive
power bases (Frazier and Summers, 1986; Kale, 1986). The former relates to
rewards and punitive actions (e.g. through promises, threats and legalistic
pleas), while the latter denotes the use of expertise, information and
recommendations or reference (Frazier and Sheth, 1985; French and Raven,
1959; Gaski, 1984, 1986; Keith et al., 1990; Raven and Kruglanski, 1970).
Coercive power is a function of both the power base and dependency of the
distributor (El-Ansary and Stern, 1972). Dependence may be affected by the
availability of alternative resources. Coercive power bases are founded on the
belief that a manufacturer has the ability to provide (explicit and implicit)
rewards to distributors or, alternatively, has the capability to correct in case
distributors should fail to meet manufacturer demands. A coercive power base,
therefore, is aimed at influencing actual behaviour. Non-coercive power is based
on the perception that a supplier has special knowledge, skills and/or
conditions to offer that are not available from other manufacturers. As an
alternative influence strategy, the use of a non-coercive power base primarily
seeks to change perceptions by downstream dependency levels in the channel
(Boyle and Dwyer, 1995). From this point of view, perceived service quality
could also be used as a non-coercive power base. The ability to offer channels
service levels that are perceived as high quality, relative to competition, could be
considered a non-coercive base of power, similarly to expert or information
power. It can be used to improve trust, commitment and co-operation among
channel partners and decrease interorganizational conflict (Hunt and Nevin,
1974; Lusch, 1976).
The nature of perceived service quality
With regard to marketing channel service quality, a conceptual shift has taken
place (Christopher and Wills, 1974; La Londe and Zinszer, 1976; La Londe et al.,
1988; Mentzer et al.,1989; Rakowski, 1982; Rinehart et al., 1989; Sterling and
Lambert, 1989; Tucker, 1983). Initially, service in channels was considered as a

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constraint the costs of which should be minimized (Lekashman and Stolle, 1965;
The power of
Parker, 1962). Moreover, early research on channel service adopted the perceived service
suppliers view of quality. In this research channel, service is strongly related to
quality
the distribution element of the marketing mix. As a result, service attributes
such as order cycle time, fill rate and shipping information are emphasized (La
Londe and Zinszer, 1976; La Londe et al., 1988; Perreault and Russ, 1974; Willet
25
and Stephenson, 1969). More recently, the customers perception has been
introduced as a point of departure for defining channel service quality
(Christopher and Wills, 1974; Hutchison and Stolle, 1968; Perreault and Russ,
1974; Sabath, 1978; Sterling and Lambert, 1989). The basis for customerperceived service quality frequently forms the SERVQUAL model that was
introduced by Parasuraman et al. (1985). The model departs from the
assumption that quality involves a comparison of expectations with actual
performance in the context of interactions between firms and their customers.
Perceived service quality is determined by the size and the direction of so-called
internal gaps:
(1) between customer expectations and management perception of those
expectations;
(2) between management perceptions of customer expectations and the
firms service quality specifications;
(3) between service quality specifications and actual service delivery; and
(4) between actual service delivery and external communications about the
service.
Gap 5 (the so-called external gap) involves the comparison between
expectations and performance. Within the context of marketing channels, this
would mean the interaction between manufacturers and distributors (Pisharodi
and Langley, 1990). Recent research in the area of service quality suggests that
scores on the perceptions component of the SERVQUAL instrument are able to
explain significantly more variance in customer perceived service quality than
are the perception minus expectation scores (Kasper and Lemmink, 1989).
Moreover, the difference scores have been shown to exhibit unfavourable
psychometric properties (Cronin and Taylor, 1992).
With respect to the so-called internal gaps of the SERVQUAL model, it has
been suggested that boundary personnel (the front office) and company
management (the back office) have different views on customers perceptions
of service quality and that management and boundary personnel each may
influence perceived service quality differently (Bateson, 1991; Ehnbom, 1990;
Gilmour, 1977; Kasper and Lemmink, 1989; Langeard et al., 1981; Parasuraman
and Zeithaml, 1982). Intra- and interorganizational conflicts might arise
between management and boundary personnel, if perceptions of service quality
differ markedly (Schneider et al., 1980). In relation to the external gap, it should
be noted that service quality is determined largely by boundary personnelrelated psychological and social capabilities in the generation of trust (cf. Swan

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and Nolan, 1985; Swan et al., 1985), the quality of communication (Dwyer et al.,
1987) and the emergence of relational norms (Gundlach and Murphy, 1993;
Heide and John, 1992) in so-called service encounters (Bitner, 1990).
With regard to perceived service quality, Gilmour (1977) has argued that
customer wants and needs may vary between customer segments. Within an
international context, Marr (1984) identified different service needs with regard
to Germany and the Benelux countries. If such regional differences occur, one
could expect differences in service quality needs to exist on a global level.
Research questions
Relatively little is known about the determinants of perceived service quality in
an international marketing channel context and its impact on perceived
relationship strength (Klein and Roth, 1993; LaBahn, 1994). However, as was
already pointed out above, perceived service quality may be a substantial type
of power base that can be utilized to exert influence over the decision-making
behaviour of international channel partners. Perceived service quality is
generally considered to be of a multi-dimensional nature. Perceptions may
therefore vary between customer segments with respect to the various
dimensions of service quality. Furthermore, in international distribution,
several channel structures, differing in length and in the number of
intermediaries involved, are often used simultaneously. It has been argued that
the number of downstream dependency levels will influence perceived
relationship strength (Stern et al., 1989). The effect(s) of power bases on
influence processes even in domestic marketing channels has remained fuzzy.
On the one hand, Frazier and Rody (1991) argue that manufacturers with a
power advantage will prefer the use of non-coercive power bases, as the use of
coercive power will endanger the dominating power status. Alternatively,
Kasulis and Spekman (1980) argue that the use of non-coercive strategies, such
as information exchange, takes more effort from the part of the manufacturer
and that, therefore, its use will be limited to a relatively small number of
preferred channel partners. As there seems to be insufficient evidence of the
direction of the relationship between power and perceived degree of
relationship strength to warrant specific hypotheses, the following four
empirical research questions on the role of perceived service quality as a noncoercive power base in international marketing channels were formulated:
(1) What are the dimensions of perceived service quality in international
marketing channels?
(2) How do geographical customer segments differ with respect to
dimensions of perceived service quality in international marketing
channels?
(3) How does perceived service quality as a type of a non-coercive power
base relate to forms of coercive power in determining perceived
relationship strength in international marketing channels?

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(4) How does channel length relate to perceived relationship strength in

The power of
international marketing channels?
perceived service
The answers to these questions were formulated on the basis of an empirical
quality
study.
An empirical study
Research setting
The setting that was selected for conducting the research was a large,
multinational Dutch manufacturer of fast-moving packaged consumer goods.
In the research the focus was essentially on the first-level members of the
marketing channels (distributors) in an international context. These constitute
the first link in their respective marketing channels. The main decision makers
in the marketing channel members organization were identified and referred to
as contact persons. As a rule, the nature of the contact with the manufacturer
is twofold: contacts with respect to logistics matters, and contacts with regard
to marketing affairs. On the basis of the manufacturers internal records, two
criteria were applied to ensure sufficient experience with the manufacturers
customer service:
(1) The contact person had put 12 or more orders (one per month) for the
suppliers products in the previous year.
(2) The contact person had ordered more than 10,000 units of the suppliers
products in the previous year.
Basically, two types of channel lengths were distinguished. The first was the
(nationwide or region-wide) distributor/agent-wholesaler-retailer-consumer
channel. The second channel structure was the distributor-retailer-consumer
duty-free channel. The first channel is rather long; it usually takes up to several
weeks before the product reaches the retailer. The second channel is rather
short; it usually takes no more than a couple of days (sometimes even a few
hours) before the product reaches the duty-free retailer.
Sampling
Questionnaires were sent to contact persons (227) worldwide by courier. The
selected contact persons accounted for more than 95 per cent of the annual
export sales of the manufacturer and more than 90 per cent of the annual
amount of orders. The questionnaire was announced by means of a telefax
message. Moreover, a reminder message was sent by telefax and additionally 70
per cent of the selected contact persons were contacted by phone. Finally, after
three weeks the response totalled 133 (59.5 per cent), of which 117 (51.5 per cent)
could be used for further analysis. The response accounted for more than 50 per
cent of the annual export sales and over 45 per cent of the annual amount of
orders. Contact persons not willing to participate in the mail survey were asked
to answer an abbreviated telephone survey to get some insight into nonresponse bias. No significant differences between respondents and non-respondents regarding characteristics and attitudes were discovered. Furthermore, a

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time trend extrapolation test was carried out. The assumption of such a test is
that respondents who respond less readily, are more like non-respondents
(Armstrong and Overton, 1977). Only a negligible number of variables (less
than 5 per cent) used in the questionnaire showed a significant difference
between early and late respondents. Finally, because of the international
character of the manufacturers business, questionnaire versions in French and
Spanish were also provided on the basis of double back translation.
Questionnaire design
In essence, our questionnaire consisted of two parts: a perceived service qualityrelated part; and a part containing relationship-related measures. In addition, a
number of common descriptive items were included. The service quality part
included statements on the quality of 33 service elements measured on a sevenpoint Likert scale ranging from I strongly disagree with the statement (1) to I
strongly agree with the statement (7). The statements emerged from
exploratory interviews with four managers, ten customer contact employees
and 18 customers. This is in accordance with the procedure for item generation
in the domain of service quality as suggested by Parasuraman et al. (1985).
Seven categories were used to cover the concept of channel service quality:
shipment, order taker, information, complaints handling, documentation,
marketing support and tangibles (see Appendix). Perceived service quality was
measured by asking respondents what their perceptions of the performance of
different service elements were, thereby omitting the expectations component of
the SERVQUAL instrument as proposed by Babakus and Boller (1992); Cronin
and Taylor (1992, 1994); Kasper and Lemmink (1989). Questions were anchored
to excellent service quality, i.e. statements are formulated in such a way as to
reflect excellent service quality if strongly agreed to. Moreover, service quality
was also assessed using an overall (single-item) measure of service quality
ranging from Very poor(1) to Excellent(7).
Furthermore, several relationship-related measures were enclosed in the
questionnaire, namely: perceived relationship strength and types of perceived
power bases. Relationship strength was measured using Kotlers five categories
of relationship that were introduced above (Kotler, 1992). Based on an extensive
review of the literature, the perception of the coercive power bases the
manufacturer most likely uses to influence distributors decisions was
measured on a five-point scale with regard to two coercive power bases
offering rewards and punitive action and three types of non-coercive power
bases expertise, information and reference (cf. Frazier and Sheth, 1985; Keith
et al., 1990). Finally, a distinction was made with regard to channel length: the
distributor/agent-wholesaler-retailer-consumer channel (long), and the distributor-retailer-consumer duty-free channel (short).
Results
In order to answer research question one, the perceived service quality related
data were analysed using principal components factor analysis. The factor

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solution was varimax rotated. Factor scores were subsequently regressed on an

The power of
overall service quality score. As becomes clear from Table I, two factors perceived service
emerged on the basis of the scree plot (see Figure 1). The internal consistency of
quality
the two factors was examined using coefficient alpha. Owing to their low totalto-item correlation (< 0.3), eight customer service elements were excluded from
further analysis.
29
The factors were labelled as: service elements controlled by intermediary
personnel; and service elements controlled by management. The total
percentage of variance explained by the two factors is 41.8. Only the items
loading 0.4 or higher (21 items) are used in further analyses. coefficient alpha

No. Description
Factor 1: Customer service elements controlled by
intermediary personnel
18. Courtesy of employee taking care of complaint
13. Empathy of employee taking order
20. Competence of employee taking care of complaint
9. Courtesy of employee taking order
21. Accessibility of employee taking care of complaint
12. Accessibility of employee taking order
19. Responsiveness of employee taking care of complaint
7. Last-minute changes to order
11. Competence of employee taking order
17. Order status information
32. Occurrence of production errors
Factor 2: Customer service elements controlled
by management
26. Handle increased order volumes during advertising
campaigns, promotional and sponsoring activities
24. Advertising campaigns, promotional and sponsoring
activities adjusted to needs of customer
14. Information on products and prices
27. Market research
16. Information on advertising campaigns, promotional
and sponsoring activities
2. The variability of the time which elapses between the
placement of the order and the delivery of the products
(variability of order cycle time)
3. The requested delivery date
25. Asking the opinions of customer on advertising campaigns,
promotional and sponsoring activities
6. Speeding-up shipment
1. The time which elapses between the placement of the order and the
delivery of the products (order cycle time)
Total explained variance (per cent)
a Factor loadings on the other factor less than 0.4

Factor
loadingsa
(Cronbach alpha
= 0.863)
0.808
0.746
0.659
0.641
0.588
0.577
0.568
0.547
0.534
0.500
0.452
(Cronbach alpha
= 0.863)
0.761
0.743
0.688
0.678
0.624

0.549
0.533
0.524
0.471
0.455
41.8

Table I.
Factor solution of
customer service
elements (using principal
axis factoring with
varimax rotation)

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Eigenvalues
10
9
8
7
6

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5
4
3
2
1
0
Figure 1.
Scree plot

1
2
3
Number of factors

10

was used as a measure of internal consistency of the scale, which (coincidentally) equalled 0.863 for both factors.
Table II contains the results of multiple regression analysis of the factor
scores on overall perceived service quality. From this table, it becomes clear that
the hypothesis that each coefficient is equal to zero can be rejected at = 0.05
(F = 13.515; p < 0.00005). Of the total variance of overall service quality, 25 per
cent can be explained by the two factors. Both factors are statistically
significant at = 0.05. Factor 2 (management controllable service elements)
yields the relatively highest perceived importance (Beta = 0.383).
Predictor variables
Factor 1: boundary personnel
Factor 2: management
Multiple R
Table II.
2
Dimensions of perceived R
F
service quality

Beta

0.330
0.295
0.428
0.383
0.496
0.246
13.515 (p < 0.00005)

3.091
4.012

<0.003
<0.001

Research question two concerns the differences between geographical customer

segments with respect to perceived service quality in international marketing
channels. On the basis of modes of transportation, the company discerns three
main geographical areas for segmentation with regard to its international
marketing channels: Europe; North America, South America and the
Caribbean; and the Middle East, the Far East and Africa. Transportation in

Europe takes place mainly by road; transportation in the other two

The power of
geographical areas is done primarily by boat. Shipping intervals to the perceived service
Americas are relatively short and regular, whereas shipping intervals to the
quality
Middle East, the Far East and Africa take place at relatively longer intervals
with less regularity. In Table III, factor scores for these main geographical areas
are presented.

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31

Two-factor solution
Factor 1:
Factor 2:
controlled by
controlled by
boundary personnel management

Geographical area
Europe
North America, South America and the
Caribbean
Middle East, Far East and Africa

0.24

0.05

0.59
0.12

0.23
0.14

Table III.
Dimensions of
perceived service
quality by geographical
area

It can be observed that Europe has a less positive view of service elements
controlled by intermediary personnel than service elements controlled by
management, while the Middle East, the Far East and Africa, on the other hand,
have a less negative view of service elements controlled by intermediary
personnel than service elements controlled by management. A similar picture
emerges for the Americas segment.
Next perceived service quality was compared with coercive bases of power.
In this analysis, power bases were represented by a dummy variable. Table IV
contains the results of multiple regression analysis of both perceived service
quality and coercive power bases on perceived relationship strength.
Predictor variables
Perceived service quality
Power basea
Multiple R
R2
F
Note:

Beta

0.425
0.331
0.636
0.235
0.411
0.168
10.674 (p=0.001)

3.717
2.646

0.003
0.094

Coercive power bases = 1, non-coercive power bases = 0

As a non-coercive power base, perceived service quality is positively related to

perceived relationship strength. This variable is statistically significant at =
0.05. While the variable coercive power bases is significant at = 0.10, it is
negatively related to relationship strength. Perceived service quality (Beta =

Table IV.
Power bases and
perceived relationship
strength

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32

0.331) is relatively more important in determining relationship strength than

coercive power bases (Beta = 0.235).
In order to answer research question four, channel length was included in the
multiple regression analysis. This was also represented by a dummy variable
(see Table V).
There is a relatively strong indication (Beta = 0.149; p = 0.1109) that
channel length is positively related to perceived relationship strength. This
means that the shorter the length of the international channel, the less the
perceived strength of the manufacturer/distributor relationship.
Predictor variables

Table V.
Power bases, channel
length and perceived
relationship strength

Perceived service quality

Power basea
Channel lengthb
Multiple R
R2
F
Notes:
b

Beta

0.418
0.442
0.430
0.415
0.173
6.813 (p = 0.003)

0.327
0.163
0.149

3.559
1.709
1.556

0.0006
0.0907
0.1109

Coercive power base = 1, non-coercive power base = 0

Short channel = 1, long channel = 0

Discussion
This study has examined the relationship between perceived service quality,
supplier power bases and perceived relationship strength in international
marketing channels. It was found that two dimensions can be used for
characterizing perceived service quality in international marketing channels:
service elements controlled by intermediary personnel; and service elements
controlled by management. These two dimensions reflect the operational
perspective and the tactical/strategic perspective of channel service. The
service elements controlled by intermediary personnel may be looked on as
reflecting the operational context of channel service, while the service elements
controlled by management illustrate the tactical/strategic perspective. From a
strategic perspective, most businesses establish channel service policies that
are uniformly applied to all distributors. The results of our study suggest that,
with respect to perceived service quality, differences exist between
geographical segments of customers in marketing channels. This indicates that
competitive advantage could be obtained by differentiating service quality by
market segment, as suggested by Gilmour (1977) and Marr (1984). Partly,
differences in perceived service quality might be explained by cultural variation
in the global marketplace (Assugman and McCullough, 1993). However, marketor company-specific conditions may account for variation in quality
perceptions. In our case, it can be observed that relatively positive service
quality evaluations were received from the Americas segment. This is
undoubtedly a result of the fact that the company has established a strong local

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presence in their most important export market. The central importer in the
The power of
USA has a well-developed customer service system. On the other hand, the perceived service
relative negative perception of both intermediary personnel and management
quality
controlled service elements by the Eurosegment can be explained by the fact
that recently a large part of the order-handling capacity in this region has been
automated using electronic data interchange (EDI). The fact that initial start-up
problems have not yet been overcome completely, may very well have resulted
33
in relatively negative service quality perceptions. Moreover, communications
about the EDI project may have inflated expectations concerning customer
service quality. Finally, the relative proximity of the manufacturer may lead to
higher customer service expectations than in the other geographical segments.
It was argued that perceived service quality could be viewed as a type of noncoercive base of supplier power. The results of our empirical study reveal that
perceived service quality significantly affects the perceived closeness of the
manufacturer-supplier relationship in international marketing channels. This
constitutes the power of perceived service quality in international marketing
channels. In contrast, the use of coercive power bases is negatively related to
perceived relationship strength. This would suggest that, in manufacturerdistributor relationships, striving for service quality and partnership will
benefit from mutual reinforcement. The relationship between channel length
and perceived strength of the manufacturer-distributor relationship was also
investigated. It was found that distributors operating within the short channel
structure (the distributor-retailer-consumer duty-free channel) have a less
positive perception of relationship strength than distributors operating within
the longer structure. A parallel might be drawn between the European segment
and the duty-free channel. Both can be characterized by relatively short
distances (in fact, the short channel structure mainly holds for the European
market) and, as a result, boundary personnel controlled service elements such
as rush orders and special requests are considered relatively important. For
both the European segment and the short channel structure a more negative
perception of the quality of boundary personnel emerges. As the short distance
attributes to the importance of boundary personnel and shipment, both duty
free and Europe are sensitive to errors by intermediary personnel. Thus,
distributors operating in these channel structures have a largely operational
view of channel service quality.
Part of the strength of an empirical research project lies in the recognition of
its limitations. The limitations form an important point of departure for further
research efforts. Future research on perceived service quality should
incorporate other levels than the first level of the marketing channel (Shycon
and Sprague, 1975). Service provided by the manufacturer can have quite an
impact on all levels of the marketing channel. For instance, retailers and
wholesalers will have quite different views of service quality (Ghosh, 1990;
Rosenbloom, 1987). In future research, attention should also be paid to other
determinants of relationship strength such as satisfaction, commitment and
trust (Crosby et al., 1990) to obtain a more comprehensive picture. The picture
that emerges from our study is also limited in the sense that it is based on the
case of one specific company only. Cross-sectional studies from diverse channel

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34

environments taking a longitudinal point of view should be used to draw a more

reliable picture.
Limitations of our study are also related to the use of the SERVQUAL
approach in our study. Several shortcomings of this approach have been
identified lately. First, the stability of the service dimensions across different
branches of industry has proved to be weak (Cronin and Taylor, 1992). Second,
the validity and reliability of the difference between expectations and performance have been seriously questioned (Carman, 1990). Third, application of the
SERVQUAL approach is by definition limited to existing products since
experience and performance must both be taken into account. Hence, the
quality of service innovations can hardly be measured. Fourth, additive
relationships between service dimensions are implied by the model, while this
may not be a realistic assumption (Cronin and Taylor, 1992). In international
marketing channels, trade-offs between various service levels will be made
(Gilmour, 1977). Therefore, there is clearly a need for a method that allows us to
investigate the trade-off that distributors make between order cycle time, costs
and other elements of the channel service quality mix. Such an approach would
benefit from the use of conjoint analysis as a research method. Finally,
measuring perceived service quality by means of the SERVQUAL approach is
based on the assumption that service quality is a static concept, while in fact it
is not (Bolton and Drew, 1991). A dynamic approach to assessing service quality
on the basis of a longitudinal design might therefore provide additional insight
in the power of perceived service quality in international marketing channels.
From a managerial point of view, it seems worthwhile to analyse the
differences between customer-perceived boundary personnel and management
controllable service elements and to focus on service quality improvements as
they clearly define distributor perceived relationship strength, even in our case
of a strong consumer brand. Furthermore, uniform service quality levels are
expensive to maintain and this may not be necessary. Our study indicates the
potential for reducing service quality costs and improving service quality by
taking segmentation criteria such as geographical areas and channel structure
into account.
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Appendix: perceived service quality items
1. The period of time which elapses between the placement of my order and the delivery of the
products is rather short.
2. The variability of the period of time which elapses between the placement of my order and the
delivery of the products is relatively stable.
3. When ordering products the requested delivery date is always met.
4. Serious deviations from order specifications are highly unlikely, when I receive my order (for
instance, the wrong product is delivered in the right quantity).
5. Whenever possible, special shipping instructions are accommodated, such as mixed pallets.
6. On my request my shipment can always be expedited.
7. Last-minute changes to my order are never a problem.
8. Order constraints are no serious impediment to my business.
9. The employee who takes my order is always courteous.
10. The employee who takes my order is never too busy to respond to questions or requests.
11. The employee who takes my order is competent and skilled enough to do an excellent job.
12. The employee who takes my order can easily be contacted by me.
13. The employee who takes my order shows genuine interest in my problems and needs and
responds in an appropriate way to take care of them.
14. I have always timely received all relevant information on products and their prices, as for
example on new product introductions, price changes, etc.
15. I have always promptly received all relevant information on distribution issues, such as new
pallet formats.
16. I have always swiftly received all relevant information on advertising campaigns, promotional
and sponsoring activities, such as the start of a new advertising campaign.
17. If there should be a problem with my delivery, the necessary order status information is
always available (e.g. if my order should be late the employee would be able to tell me the
estimated delay).
18. In case of a complaint, the employee who takes care of it always responds courteously.
19. The employee who takes care of my complaint is never too busy to solve it adequately.
20. In case of a complaint, the employee who handles it always tries to find a satisfactory solution
as quickly as possible.
21. If I have a complaint, I can easily reach the employee, who should take care of it.
22. I have no problem understanding all of the accompanying documentation, e.g. invoices, bills of
lading, etc. It is always clear and straightforward.
23. It is rather unlikely for me to discover an error in all of the accompanying documentation.
24. Advertising campaigns, promotional and sponsoring activities are always adjusted to my
needs and support my own activities in these areas.
25. Major advertising campaigns, promotional and sponsoring activities are never carried out
without at least asking my opinion about them.
26. During advertising campaigns, promotional and sponsoring activities this company is well
prepared to handle the increased order volume.
27. This company conducts sufficient market research on the beer consumption in my country.
28. In my opinion, I can exert considerable influence on decisions in the most important
distribution issues regarding my own operations.
29. This companys credit facilities can be considered as rather advantageous for my operations.
30. The appearance of all products is always excellent, e.g. no dust on the products, labels in an
optimal condition, Best before has not expired, etc.
31. Production errors, like crown caps in the bottle, cracked bottles, are fairly unlikely to occur.
32. This companys returns policy allows me to return products whose quality is not up to
standard and compensates me fully for those products.
33. This companys packaging hardly allows products to be damaged during transport.

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