Modeling variation in global consumers’ participation behaviour intentions using an institutional market index

Abstract

Purpose – Enhancing customer participation behaviour (CPB) is critical for service firms. However, in a global context, cultural and local market factors are relevant. The purpose of this paper is to detail how and why global service firms can and should account for such factors. Prior research relied predominantly on cultural value differences to account for cross-national variation. The present study uses an index of consumers’ institutional logics of market action (CILMA) as an alternative approach to segment international markets. Design/methodology/approach – In total, 1,910 customers of financial services in 11 countries were surveyed on their CILMA as well as on costomer participation behaviour intentions (CPBI) and cognitive and affective trust as drivers. The 11 countries are then grouped according to their levels in the CILMA index. Finally a structural equations model on the drivers of CPBI is tested for direct and moderating effects of the CILMA index by comparing the two segments with a relation- vs contract-dominated CILMA. Findings – The study reveals that the CILMA index explains differences in consumer participation behaviour intention and moderates relational mechanisms; in particular, in more relational vs contractual markets, CPBI is higher, and also the effect of cognitive trust on CPBI is stronger in such settings. Global marketing managers thus should adjust CPB strategies according to observed CILMA index scores. Segmentation for CPB approaches could rely on CILMA index variations. Originality/value – The newly proposed CILMA index combines both relation- and contract-based governance dimensions to describe complex institutional fields. This index differentiates relation- from contract-dominated markets and supports the application of the CILMA scale to many nations at the same time. The CILMA index can be applied to segment international markets to explain customer cocreation behaviour and its drivers.