iBusiness, 2013, 5, 18-20
http://dx.doi.org/10.4236/ib.2013.53B004 Published Online September 2013 (http://www.scirp.org/journal/ib)
An Empirical Study of the Impact of Service Quality for
Taiwanese Firms to Enter the Chinese Market
Anny Ching-Fang Wei, Peir-Chyi Lii
Tamkang University, Chinese Taipei.
Email: anny.wei1101@msa.hinet.net
Received May,2013
The paper deals with the power quality analysis of interlaced four quadrants (4Q) converters with constant switching
frequency. These are in fact the input stages of the locomotives and high speed trains supplied by 25 kV, 50 Hz and 15
kV, 16.7 Hz lines. Due to the high power needed for the train circulation, the 4Q converters can absorb distorted cur-
rents, whose harmonic content can affect the signaling systems and communication devices. The presence of more con-
verters gives the opportunity, using dedicated commutation strategy, to interlace them in order to reduce the harmonic
content in absorbed current. In the paper a suitable model of more 4Q converters is developed. The control logic im-
plemented in the model allows the evaluation of the harmonic contribution of both single converter and the interlaced
configuration. The analysis is carried out through electromagnetic transient simulations.
Keywords: Cross-cultural Difference; Service Quality; Chinese Market; Service Contact
1. Introduction
Organizations have realized that being customer-oriented
is fundamental to their success as satisfying customer
needs is a critical mission that they have to face if they
are to survive [1]. By satisfying and exceeding their cus-
tomers’ needs, organizations are able, through this direct
chain of causation, secure their customers’ loyalty, and
increase their growth and profits [2]. Petty and Goodman
(1996) showed that it is only right for organizations to
pay commensurate level of attentio n to customers as they
make a sizeable contribution to the profitability of these
organizations. In successful organizations, profitability is
a definite result of value-creation for their customers [3].
Consequently, customer loyalty holds the key to success.
In order to improve customer loyalty, organizations must
strive to increase customer satisfaction by elevating ser-
vice quality and enhancing service value. Service quality
involves relationship quality while service value encom-
passes relationship value [4]. Elements that constitute
customer satisfaction include subjective perception of
customers, emotional acceptance of products/services,
service intention and overall service design. Commit-
ments that organizations made to their customers are
crucial in safeguarding customer loyalty; and these in-
clude commitment to product/service quality, to the
rights and interests of customers, and to post-sales and
warranty sermjyvices. Customers’ subjective perception
can also be affected by service fairness, service quality,
trust, and business friendship that may arise from service
contacts and service interactions. Customer satisfaction
and perception evaluation are two main factors affecting
service satisfaction. Perception of satisfaction is fast re-
placing physical assets as a valuable intangible asset of
2. Research Propositions
While providing services to customers in China, Western
or European firms place great emphasis on service qual-
ity, service value and service satisfaction of their cus-
tomers [5]. On the other hand, Chinese consumers look at
the relationship quality, relationship benefits, and subjec-
tive perception of produc ts/services qu ality from We stern
or European firms before being committed to these pro-
ducts/services. Service quality is derived from the prod-
uct’s ease of use, post-sales services and service contacts
with sales and/or customer service personnel. Customers
evaluate relationship benefits as the ratio of product price
and product features. Subjective perception comprises
both the physiological and psychological aspects. Physi-
ologically, service acceptance can be increased by habits
that are formed by repetitive physical actions. It is much
harder to form psychological habits as one may have to
take into consid eration feelings and sense of trust that are
evoked by the firms’ commitment to quality and cus-
Copyright © 2013 SciRes. IB
An Empirical Study of the Impact of Service Quality for Taiwanese Firms to Enter the Chinese Market 19
tomer rights.
2.1. Proposition 1
Power distance differences between Western or Euro-
pean countries and Eastern countries, in which the former
has lower power difference scores than the latter, may
cause discomforts in Chinese consumers during service
contacts. In Western or European countries, service in-
teractions are commonly very cordial and done in close
proximity [6]. This low power distance way of service
contact may lead the Chinese consumers to perceive
these Western or European firms as being too casual,
even to the point of being imprudent, thus affecting the
formation of customer trust.
Based on the above deduction, this study states:
Proposition 1: Chinese consumers are unable to adapt
to the overly friend ly service interactions that Western or
European countries provide, thus lowering customer sat-
2.2. Proposition 2
With lower uncertainty avoidance, Western or European
countries are more willing to accept and take risk [7].
Comparatively, Eastern countries are less willing to do
the same as they generally have higher uncertainty
avoidance scores. During service interactions, Western or
European firms may be more willing to promise more
than they can deliver. Although there is no reason to be-
lieve that Western or European firms will shirk their
commitments to their customers, Chinese consumers may
not be very receptive as they may deem these promises to
be given rathe r frivolously.
Thus this study put forth:
Proposition 2: Western or European countries might be
over-committed to the Chin ese consumers, thus lowering
customer trust.
2.3. Proposition 3
Studies have shown that Westerners and Europeans are
known to be competitive in their thinking and acting,
while those from Eastern countries are more reserved and
mild in temperament [8]. This difference in behavioral
norms may prove to bean obstacle for Western or Euro-
pean countries while trying to break into the Chinese
market. Competitive temperaments are linked to being
more proactive, creative and being more on the cutting
edge of technology. When applied to product designs or
service interactions, it may result in advanced and/or
complex approaches. The resulted complexities may
cause Chinese consumers to lose patience when dealing
with telephone or online customer services. They may
even encounter communication problems which will
cause them to judge these firms unfavorably.
Based on the argument above, this study offers:
Proposition 3: Western or European countries provide
services that are too complicated for the Chinese market,
testing the patience of Chinese consumers and alienating
them in the process, and this will lower customer satis-
2.4. Proposition 4
Western or European countries have higher individual-
ism, thus they are more concerned with their individual
rights and more likely to move to protect and defend
those rights [9]. Eastern countries are higher in collectiv-
ism where they tend to put th e interest of their communi-
ties and societies before there own and more likely to
prioritize group/organizational goals. With higher indi-
vidualism, firms have the tendency to favor personalized
services, such as providing personalized customer service
or charging more for additional post-sale services. All
these may not be easily accepted in countries with high
collectivism as consumers are not willing to pay extra
nor do they wish for special attention. All they want is to
be treated like everyone else. In this way, Chinese con-
sumers can do a fair comparison of available services
when making consumption assessment. The difference in
services interactions that arise from this factor may hin-
der Western or European firms’ entry to the Chinese
In this case, this study suggests:
Proposition 4: Non-standardized services provided by
Western or European countries may cause the Chinese
consumers to question the firms’ service fairness, thus
lowering customer satisfaction.
3. Conclusions
Cultural differences between Eastern and Western coun-
tries have an exten sive effect on various human activities,
including individual thought and/or behavior patterns,
organization’s decision-making process, and communi-
cation style [10]. Similar cultur al background en courages
consensus, which in turn promotes greater tolerance and
easier acceptance of products/services design. Further-
more, having similar cultures help foster association and
goodwill between organizations and consumers. Other
than encouraging consumers to repeat consumption,
emotional feedback will help to promote customer loy-
alty towards these organizations. Taiwan and China has
similar collectivistic culture, and this can be verified
through their perception of things, business management
efficiency, and materialism, concep t of time, collectivism,
high power distance, and high uncertainty avoidance.
Therefore it can be said that the close sense of identity
the Chinese consumers have with Taiwanese firms and
greater acceptance of Taiwanese services and/or products
Copyright © 2013 SciRes. IB
An Empirical Study of the Impact of Service Quality for Taiwanese Firms to Enter the Chinese Market
Copyright © 2013 SciRes. IB
than those of Western or European countries are the re-
sult of cultural closeness between Taiwan and China.
These subjective affection and favorable acceptance
Chinese consumers have towards Taiwanese firms will
encourage repeat consumption of their products/services
and consequently constitute higher customer loyalty to
Taiwanese firms. This study concludes that due to the
similarity in culture and thinking processes, Taiwanese
firms are better in understanding the needs of the Chinese
consumers and thus enjoy greater success rate in the
Chinese market.
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