Foreign or domestic: who provides better customer service?

Abstract

Purpose – The purpose of this paper is to investigate the role of customer service employees’ (CSEs) competence and service recovery outcomes on service evaluations of foreign and domestic CSEs. Design/methodology/approach – Three experiments were conducted to test and validate the proposed hypotheses. The participants were told a cover story that they were either listening to (Study 2) or reading (Studies 1 and 3) a real conversation between a customer service representative of a bank and a customer and the authors wanted their views about the service encounter. While country of origin (COO) and competency were common independent variables across three studies, Study 2 included service recovery with a full refund and Study 3 had both full and partial refund and apology offered or not. Findings – Results from three experiments show that while competent CSEs are evaluated the same, regardless of their COO, the domestic CSE is evaluated more negatively than the foreign CSE when both are incompetent. The authors also find that when competent CSEs deliver no service recovery, the foreign CSE evaluations are significantly lower than the domestic one. Study 3 results show that this effect is mediated by participants’ ethnocentric beliefs. Research limitations/implications – For implications, this study provides a deeper understanding of the role of COO in services contexts. Future researchers can utilize the findings to investigate the important role that expectations play in determining service excellence and how it affects the COO effect. Practical implications – The paper provides managers in both offshoring client and provider firms with an understanding of the effects of offshoring on employee evaluations. It discusses the relevance/irrelevance of COO on the customer evaluations of service employees. Originality/value – The study investigates an under researched phenomenon – offshoring of services. This paper is one of the few looking at the role of different interaction factors, such as competence, recovery on service evaluations.