International Journal of Quality & Reliability Management

The antecedents of consumer satisfaction and loyalty in fast food industry: A crossnational comparison between Chinese and Swiss consumers
Reza Etemad-Sajadi Daniela Rizzuto

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Reza Etemad-Sajadi Daniela Rizzuto, (2013),"The antecedents of consumer satisfaction and loyalty in fast
food industry", International Journal of Quality & Reliability Management, Vol. 30 Iss 7 pp. 780 - 798
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Kisang Ryu, Hye-Rin Lee, Woo Gon Kim, (2012),"The influence of the quality of the physical environment,
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dx.doi.org/10.1108/09596111211206141
Hong Qin, Victor R. Prybutok, Qilan Zhao, (2010),"Perceived service quality in fast-food restaurants:
empirical evidence from China", International Journal of Quality & Reliability Management, Vol. 27 Iss
4 pp. 424-437 http://dx.doi.org/10.1108/02656711011035129
G. Ronald Gilbert, Cleopatra Veloutsou, Mark M.H. Goode, Luiz Moutinho, (2004),"Measuring customer
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IJQRM
30,7

780
Received 23 May 2012
Revised 7 March 2013
Accepted 12 March 2013

QUALITY PAPER

The antecedents of consumer

satisfaction and loyalty in fast
food industry
A cross-national comparison between
Chinese and Swiss consumers
Reza Etemad-Sajadi and Daniela Rizzuto

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EHL (Ecole hotelie`re de Lausanne), Lausanne, Switzerland

Abstract

International Journal of Quality &

Reliability Management
Vol. 30 No. 7, 2013
pp. 780-798
q Emerald Group Publishing Limited
0265-671X
DOI 10.1108/IJQRM-May-2012-0069

Purpose The purpose of this research is to investigate the degree of satisfaction and loyalty of
Chinese and Swiss fast-food consumers. The aim is to compare Chinese/Swiss consumers perception
of meal quality, service quality, price and their influence on their satisfaction and loyalty. The image of
fast-food restaurants in the two countries is also compared.
Design/methodology/approach Two on-line surveys were conducted with two samples. The first
one was conducted with Chinese consumers in China and the second one was conducted with Swiss
consumers in Switzerland. The authors selected McDonalds as it is globally a standardized and well-known
fast-food chain. They adapted items of SERVQUAL in order to apply it to the fast food industry and to
measure service quality. Data analysis was performed using ANOVA. As they had several latent variables,
the authors also used partial least squares (PLS), a variance-based structural equation modeling method.
Findings Results showed that Chinese consumers have a better perception of meal quality and a more
positive image of McDonalds. As far as service quality perception is concerned, no major differences were
observed. However, reliability and tangibles dimensions seem to be more positively perceived in China.
The degree of consumer satisfaction is very similar between the two samples. However, the degree of loyalty
of Chinese consumers is higher compared to Swiss consumers. In addition, the image of McDonalds
seems to have a stronger influence on Swiss consumers loyalty. Finally, the level of service quality perceived
seems to have less impact on the image of McDonalds for Chinese consumers than for Swiss consumers.
Research limitations/implications First, as the authors selected McDonalds, they must be careful
in the generalization of their findings to all fast-food restaurants. Second, the two samples consist of
students, which limits the generalizability of the findings. However, students are identified to be the current
customers of fast-food restaurants and consequently possess an intuitive understanding of fast-food outlets.
Practical implications As consumers in China perceive a better quality of meal in McDonalds,
they might be willing to pay a higher price relative to their earnings. Compared to China, fast-food
managers in Switzerland should work harder in order to improve their image. Fast-food managers
must adapt themselves to the preferences of local consumers. However, this study also shows that not
all variables are perceived differently by Swiss and Chinese consumers. This implies that some
measures can be standardized in order to save costs.
Originality/value The study investigates the impact of nationality on the whole model, defined by
customer perception of fast-food restaurants image, product/service quality, satisfaction/loyalty, and
finally price fairness. As China is a major player in the global market based on its size and growth
potential, it is interesting to compare the antecedents of customer satisfaction and loyalty in China,
with a culturally different country such as Switzerland.
Keywords Service quality, Fast-food restaurants, Customer satisfaction, Customer loyalty, Image,
McDonalds, China, Switzerland, Culture
Paper type Research paper

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Introduction
Competition in the fast food market is growing and success depends more and more on
customer retention. Therefore, service improvements are the key to competitive success.
To succeed in different countries, fast-food providers must adapt themselves to local
preferences (Qin et al., 2010). Indeed, despite a more and more globalized world,
customers have differing needs and perceptions. Although, causes of satisfaction and
dissatisfaction can sometimes be generalized, there are some variations according to
cultural background. Therefore, it is important to identify the specific characteristics of
culturally diverse markets (Brady et al., 2001). Indeed, most studies report an effect
of culture (Hofstede, 1991) on perceptions and this implies that service offerings need to
be adapted to the environment (Donthu and Yoo, 1998; Furrer et al., 2000; Hoare and
Butcher, 2008; Laroche et al., 2004). It is crucial to understand how customers evaluate
services so firms can adapt their offerings accordingly. By adapting to the local needs
and preferences a step towards superior service quality is undertaken.
The way that service quality and meal quality are perceived by local consumers will
influence customers satisfaction and consequently their loyalty in the future. Indeed,
consumer loyalty is a pre-requisite for a successful and profitable business. Several
authors also argued that satisfaction is an antecedent of loyalty (Woodside et al., 1989;
Cronin and Taylor, 1992; Kandampully and Suhartanto, 2000; Lovelock and Wright,
2002; Hong and Goo, 2004; Ekinci et al., 2008; Faullant et al., 2008). As mentioned by Bowen
and Chen (2001), there are three distinctive approaches to define loyalty which are:
(1) behavioural (consistent, repetitious purchase behaviour);
(2) attitudinal (emotional and psychological attachment); and
(3) composite (a combination of the first two dimensions and the measure of loyalty
by customers preferences, repeat patronage, word-of-mouth, propensity of
brand-switching).
Service quality has a direct impact on customer satisfaction and an indirect impact on
customer loyalty. However, there are several more factors that must be taken into
account such as the impact of firms image or even the perception of price fairness.
A complete picture is essential in order to truly deliver what customers desire based on
their national culture.
For this research, McDonalds was chosen as it is the worlds market leader in fast
food, the local leader in Switzerland and well represented in China. McDonalds is an
example of combination between its process of globalization, standardization and
adaptation to local communities (Vignali, 2001). Switzerland and China were selected to
represent two different cultures. Moreover, while McDonalds is seen as a usual fast-food
restaurant in some countries, it represents a symbol in others. Our goal is to investigate
the antecedents of satisfaction and loyalty of Chinese and Swiss fast-food consumers.
Literature review
Service quality
Several models exist to measure the quality of service perceived by the consumers. One
of the most famous is SERVQUAL. Parasuraman et al. (1988) developed SERVQUAL
instrument which measures customers perception of the received service and relate it to
their expectations and the gap measures clients satisfaction. SERVQUAL is composed of
five dimensions which are:

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(1) reliability (ability to perform the promised service dependably and precisely);
(2) assurance (knowledge and courtesy of employees and their ability to inspire
confidence);
(3) responsiveness (willingness to help customers and provide prompt service);
(4) tangibles (physical facilities, equipment, personnel); and
(5) empathy (individualized attention given to customers).
One of the main advantages of SERVQUAL is the fact that it has been widely used in the
literature and in practice. As far as the disadvantages are concerned, the traditional
SERVQUAL can be difficult to administer and there is a risk of bias as consumers must
give once their expectations and once their perceptions. Moreover, the five dimensions
of SERVQUAL must be adapted to the industry (Babakus and Boller, 1992). One
alternative is SERVPERF (Cronin and Taylor, 1992). This model will only measure the
experiences and does not ask respondents about their expectations. Gronroos (1982)
developed the Nordic model in which he identified the technical and functional aspects
of service quality. The first one relates to the outcome of the service and the second one
relates to the manner in which the service is delivered. Rust and Oliver (1994) developed
the Three-component model and they distinguished service product, interaction quality,
and service environment. In the context of restaurant services, Stevens et al. (1995)
adapted SERVQUAL to the restaurant industry and called it DINESERV.
The relationship between service quality, satisfaction, and loyalty
Consumer perception of service quality is critical for the success of a firm as it is linked
with customer satisfaction and loyalty. Indeed, several authors claimed that service
quality is an important antecedent of customer satisfaction (Parasuraman et al., 1985;
Cronin and Taylor, 1992; Baker and Crompton, 2000; Lee et al., 2000; Caruana, 2002; Hong
and Goo, 2004; Ladhari, 2009). Some proved that satisfaction acts as a mediator between
service quality and loyalty and has an overall stronger effect on loyalty than service
quality. However, satisfaction alone may not be enough to actually achieve loyalty
(Woodside et al., 1989; Cronin and Taylor, 1992; Kandampully and Suhartanto, 2000;
Lovelock and Wright, 2002; Hong and Goo, 2004; Ekinci et al., 2008; Faullant et al., 2008).
It was found that the majority of customers who assert to be brand loyal did switch brand
recently even if they were generally satisfied with their regular brand. Therefore, in order
to become loyal and profitable for the company, a customer must be highly satisfied.
Any drop from total satisfaction results in a major drop in loyalty (Jones and Sasser,
1995). Moreover, less money needs to be invested in attracting new customers as highly
satisfied customers spread positive word of mouth and recommend the service to others
(Lovelock and Wright, 2002). As far as restaurant experience is concerned, several
authors argued that food, physical environment, and employee services are major
components and have an impact on customer satisfaction (Ryu et al., 2012; Chow et al.,
2007; Jang and Namkung, 2009). In the fast food industry, several authors studied the
impact of perceived service quality on customer satisfaction and loyalty (Stevens et al.,
1995; Brady et al., 2001; Qin and Prybutok, 2009; Gilbert et al., 2004; Qin et al., 2010; Johns
and Howard, 1998; Law et al., 2004). The factors such as the taste of food, the outlet
cleanliness, the fast service, and the friendliness of staff seem to play a major role.
Moreover, two values that are gaining importance are price and nutritional values

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(Kara et al., 1995; Oyewole, 1999; Min, 2011). Convenient operating hours are a further
significant point for consumers (Oyewole, 1999).
The relationship between image, service quality, satisfaction, and loyalty
Gronroos (1982) identified that corporate image plays an important role in the evaluation
of service quality and vice versa. Corporate image is believed to influence the
customers perception of service quality through a filtering effect (Andreassen and
Lindestad, 1998a, b; Kandampully and Suhartanto, 2000; Brunner et al., 2008). After a
re-examination of Gronroos model, Kang and James (2004) found that functional
qualities have a larger impact on image than technical qualities. This proves the
importance of the employee/customer relationship and its impact on a customers
perception of an organizations image. Andreassen and Lindestad (1998a, b) found that
an existing customers attitude towards a company is primarily experience based,
therefore positive or negative disconfirmation may strengthen or weaken the
consumers impression of and attitude towards the company. This entails that if
functional qualities are excellent they have the potential to overcome any deficiencies
caused by technical qualities. The way in which a customer perceives the quality of
performance has therefore a direct effect on image development. Further, expectations
at the stage of pre-experience and perceptions after the experience are influenced by the
way that the customer sees the company (Gronroos, 1982). This implies that if the
customer experiences good service, one automatically has a more favourable image of
the company. On the other hand, if a customer already has a positive image of the
company one is more likely to perceive the service as good and to forgive if the service
was not optimal. However, Brunner et al. (2008) argued that if the customer already has
a high image of the company one also expects higher quality service.
Andreassen and Lindestad (1998a, b) found that for complex and infrequently
purchased services, it is image rather than satisfaction that leads to customer loyalty.
This challenges the disconfirmation of expectations paradigm as it states that
satisfaction is the main predictor (Oliver, 1980). A study by Brunner et al. (2008) found
that the influence of satisfaction on loyalty decreased over time. The more experienced a
customer is with the service, the less the influence of satisfaction on loyalty. On the
contrary, if the customer is new to the service, satisfaction is very important in the loyalty
formation process. In addition, if a favourable image is built, the customer is more
likely to give the company another chance even if service was less than satisfactory
(Faullant et al., 2008). This is only valid for a service that is often used and to which a
customer can become accustomed. Otherwise it is not possible to develop a consistent
image. Kandampully and Suhartanto (2000) confirmed that image is positively related
to customer loyalty. Customers tend to repurchase and recommend a business with a
favourable image in the belief that it provides an assurance of high quality of goods and
services. Kandampully and Hu (2007) confirmed that image functions as a mediator
between service quality, customer satisfaction and customer loyalty. Image and loyalty
are directly linked to the companys service performance, not merely in terms of what was
performed, but more importantly how it was performed. In effect, the moments-of-truth
that were created through service minded employees actions were found to be an
important contributing factor. Operational and human factors were found to have a
strong enhancing influence on image and loyalty (Kandampully and Hu, 2007). As far as
restaurant experience is concerned, several authors argued that restaurant image was

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a significant determinant of customer satisfaction which is also an antecedent of

customer loyalty (Ryu et al., 2008; Kivela et al., 1999; Kim et al., 2009; Namkung and
Jang, 2007).
Challenges when dealing with customers in different countries/cultures
One of the most important research studying cultural differences between countries
was done by Hofstede in 1991. He stated that differences in thinking needed to be taken
into consideration if one wants to define effective solutions in a cross-cultural context.
People acquire patterns of thinking, feelings and potential acting during their childhood
which are formed afterwards by their social environment. Picking up on the theory of
Hofstede, Laroche et al. (2004) defined culture as the sum of learned beliefs, values, and
customs that create behavioural norms for a given society. Culture is one of the key
constraints to complete marketing standardization. In fact, it has been noted that the
inability of firms and their managers to make adjustments to the demands of the
international business environment, principally due to the inability or unwillingness of
managers to appreciate cultural challenges, has been cited as the principal cause of
international business failures. For business success in new geographic areas, it is vital
to develop strategies that adapt to the cultural environment of the country. Depending
on the characteristics of the culture, the service provider needs to work harder to delight
its customers. As standardization is necessary in order to control cost, managers need to
ensure that they offer the same services to similar customers. However, in parallel smart
firms are customizing their offerings and services to local markets (Ueletschy et al.,
2008). With the trend of globalization, growth of transnational corporations, and the
emergence of culture-related issues, cultural differences have become significant when
explaining the behaviour of consumers and designing efficient marketing strategies
and tools (Weiermair and Fuchs, 2000).
Hofstede (1991) identified five dimensions of culture which are:
(1) power distance (the extent to which the less powerful members of institutions
and organisations within a country expect and accept that power is distributed
unequally);
(2) individualism vs collectivism (the degree of interdependence a society
maintains among its members);
(3) masculinity vs femininity (the fundamental issue here is what motivates people,
wanting to be the best or liking what you do);
(4) uncertainty avoidance (the extent to which the members of a culture feel
threatened by ambiguous or unknown situations and have created beliefs and
institutions that try to avoid these); and
(5) long-term vs short-term orientation (the extent to which a society shows a
pragmatic future-oriented perspective rather than a conventional historical
short-term point of view).
These cultural dimensions have been widely used in explaining customers perception
of service quality in different cultures (Donthu and Yoo, 1998; Furrer et al., 2000; Hoare
and Butcher, 2008). Donthu and Yoo (1998) analysed the effect of Hofstedes dimensions
on customers service quality expectations. They found that the level of expectation is
higher for customers with a culture identified to be individualistic, low on power

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distance, short-term oriented and high on uncertainty avoidance. Laroche et al. (2004)
and Ueletschy et al. (2008) found that some measures of service quality and satisfaction
were constant across cultures. This suggests that some marketing measures can be
standardized but that total standardization will not lead to satisfaction. Whereas
consumers from collectivist and/or high uncertainty avoiding cultures tend to voice
praise when they receive superior service, they are also less apt to switch service
providers and to voice criticism when they receive inferior customer service. In direct
contrast, consumers from individualistic and/or low uncertainty avoiding cultures are
less likely to praise superior service but are more apt to switch and to voice criticism.

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Culture in Switzerland vs China

Figure 1 shows a comparison of culture between Switzerland and China. According to
Hofstede (1991) Switzerland is an individualistic and masculine culture with a small
power distance and a relative high tolerance for uncertain situations. Chinese culture is
characterised by a large power distance, collectivism and a long-term orientation.
Chinas fast food market
In 2009, fast food industry revenues reached $64 billion in China while in the world fast
food industry revenues reached $486 billion (Euromonitor, 2010b). With the fast-growing
middle class in China, their lifestyle is changing and less people are cooking at home
(Cullen et al., 2008). However, fast food in the Chinese market share accounts for only
9.8 per cent of Chinese sales for outside meals vs 84.5 per cent in America (Datamonitor,
2007). This implies an important potential of growth in China (Qin et al., 2010). By 2014, it is
predicted that fast food will account for 26 per cent of the consumer foodservice market
(Euromonitor, 2010b). International fast-food chains are rushing into China due to the
huge market potential. Asian fast-food restaurants represent by far the largest sub-sector
in the fast food industry. This implies that Chinese customers are obviously accustomed to
their local cuisine. Additionally, Asian fast-food restaurants also have lower selling
prices than Western fast-food outlets. Indeed, prices in McDonalds and Kentucky Fried

Notes: PDI power distance; IDV individualism;

MAS masculinity/feminity; UAI uncertainty avoidance;
LTO long term orientation
Source: Hofstede (1991)

Figure 1.
Cultural distance between
Switzerland and China

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Chicken are often too high for people living in underdeveloped cities and rural areas.
McDonalds is number two with 15.8 per cent market share compared to 40.2 per cent of
KFC (Euromonitor, 2010b). As local products are favoured by Chinese customers, Western
fast-foods such as McDonalds must adapt their offers to the local market.
Switzerlands fast food market
Sales of fast food remained strong in 2009, indicating that they have not suffered from or
were not greatly impacted by the recent credit crunch. Indeed, they even benefited as
customers downgraded from more expensive restaurants. In 2009, sales reached
$1.5 billion (Euromonitor, 2010c). Further, the popularity of fast-food outlets among
youngsters contributed to the growth. An estimated 20 per cent of young people in
Switzerland aged between 15 and 24 eat fast food more than twice a week (Euromonitor,
2010c). The fast food industry is predicted to grow further, supported by time-pressed
and busy customers looking for time-saving solutions (Euromonitor, 2010c). Fast-food
providers are challenged by the increasing health focus and campaigns sponsored by the
Federal Office of Public Health and major consumer protection associations that prompt
Swiss consumers to limit their fast food consumption. As a reaction to this trend,
fast-food restaurants have adjusted their menu offerings. In order to cater to the health
conscious clientele, they make ingredient and nutritional information available on their
menus (Euromonitor, 2010c). Burger fast food dominates the market with almost
50 per cent of the total fast food value in 2009. McDonalds is a major contributor to the
fast food brand with 42 per cent market share (Euromonitor, 2010c).
Research framework and hypotheses
Figure 2 shows the research model. The goal of this research is not to test the complete
model, but to observe the impact of nationality on the other variables. As we already

Figure 2.
Initial research model

Notes:
Links between IVs (independent variables) and DVs (dependent variables) based
on literature;
our specific six hypotheses

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have an idea of the five dimensions of national culture described by Hofstede for the two
countries, we focused on the consumers nationality instead of asking them questions
related to Hofstedes dimensions. We also aim to determine whether nationality has a
moderating role on the other relationships between the different latent variables.
As SERVQUAL instrument has been used in several different cultural contexts, we
opted for this instrument and we adapted the items of the five dimensions of SERVQUAL,
which are reliability, responsiveness, assurance, tangibles, and empathy, to the fast food
industry. We only focused on consumer perception of performance and not on their
expectation. In this sense, we were more similar to SERVPERF.
The understanding of customers service quality perception and value is especially
important to international service firms because such perceptions are susceptible to
cultural differences (Lee and Ugaldo, 1997). Culture has an impact on how consumers
perceive service quality. Customers in different countries may have different perceptions of
service quality, which may be due to national cultural differences (Mattila, 1999; Furrer et al.,
2000). As far as McDonalds is concerned, Vignali (2001) also argued that the perception of
the quality perceived varies based on the country. Consumers from countries and cultures
with a long-term orientation such as China expect a long-term and close relationship with
service providers (Qin et al., 2010). According to them, reliability, responsiveness, and
tangibles are three important attributes of service quality in the fast food industry in China.
As the lifestyle of the Chinese is changing, they place a greater value on time (Qin et al.,
2010). Winsted (1997) studied the importance given to service attributes by comparing
American and Japanese consumers. American consumers highlighted behaviours related
to friendliness, promptness, and having a positive attitude. Japanese consumers put more
emphasis on kindness and caring. Heung et al. (2000) applied DINESERV to restaurants in
China and found that customers desire convenience in operating hours, cleanliness,
politeness, courtesy, well-dressed employees and readable menus.
In order to satisfy service quality expectations with respect to global consumers, the
management should recognise the differing needs emerging from different cultures.
On the basis of Hofstedes five dimensions of culture, Hsieh and Tsai (2009) also
analysed the relationship between culture and service quality. Even if the five
dimensions of SERVQUAL are important for both Western and Eastern cultures, they
seem to be more important for Eastern cultures. Moreover, international
products/services often have a different meaning in different countries (Trompenaars
and Hampden-Turner, 2002). While an experience in McDonalds is seen as a status
symbol in some countries, in others it is an everyday occasion. McDonalds is a more
prestigious symbol in China than in Switzerland. Based on these arguments, we
hypothesize the following:
H1. Chinese consumers have a better perception of McDonalds service quality
(reliability, tangibles, responsiveness, assurance and empathy) than Swiss
consumers.
Product quality also influences customer satisfaction (Parasuraman et al., 1994;
Andaleeb and Conway, 2006). Compared to Western countries, consumers from Eastern
countries place a relatively high value on McDonalds meal. Furthermore, nutritional
value is gaining importance (Kara et al., 1995; Oyewole, 1999; Min, 2011) around the
world and this has a negative impact especially on fast-food outlets in Western countries
such as Switzerland. Thus, we propose the following hypothesis:

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H2. Chinese consumers have a better perception of McDonalds product quality

than Swiss consumers.
In addition to service/product quality, price also influences customer satisfaction
(Fornell et al., 1996; Gilbert et al., 2004). Many customers have turned to fast food as it is
overall the cheapest option for eating out (Euromonitor, 2010a). A major problem which
international fast-food providers face is the price difference compared to local outlets
(Qin et al., 2010). The significantly higher prices often prevent them from operating
successfully. As Chinese customers reduced their spending for fast food in the first half
of 2009, McDonalds chose to decrease their average selling price by up to 30 per cent
(Euromonitor, 2010a). However, while eating at a McDonalds is seen as a status symbol
in Moscow, in New York it is a cheap and everyday occasion. This impacts the
companys pricing strategy as McDonalds can price a hamburger considerably higher
in cities like Moscow compared to New York relative to the earnings of customers. It is
also the case of cities in China. Indeed, prices are higher in China than in Switzerland
compared to the earnings of the population. As product life-cycle is a determinant of
price and as McDonalds is a more prestigious symbol in China than in Switzerland,
Chinese consumers seem to judge prices as fair. We propose that the price fairness
perceived will be the same in the two countries, even if prices are higher in China relative
to the earnings of the population. Thus, we suggest the following hypothesis:
H3. Chinese consumers judge McDonalds prices as fair as Swiss consumers do.
As said above, eating at a McDonalds is more prestigious and has more value in China
than in Switzerland. This has an impact on the firms image. Furthermore, in all the
world and especially in Europe, eating healthy meals is gaining importance (Kara et al.,
1995; Oyewole, 1999; Min, 2011) and despite the efforts made by some fast-food
providers to improve their image, consumers do not seem convinced enough. Based on
these arguments, we hypothesize the following:
H4. Chinese consumers have a more positive image of McDonalds than Swiss
consumers.
According to Leung et al. (2005), cultural values have a direct influence on customer
satisfaction. Cultural values also directly influence customer behavioural intentions
(Pizam and Ellis, 1999; Hoare and Butcher, 2008; Chung and Pysarchik, 2000). Attitudes
and beliefs, which are integral parts of any culture, are believed to have an impact on
satisfaction levels. Therefore, depending on the cultural background, customers are apt
to evaluate services differently and to hold different expectations about optimal and
adequate encounters (Laroche et al., 2004). The existing literature contains limited
research about the impact of culture on customer satisfaction and loyalty, especially in
the Chinese context (Hoare and Butcher, 2008; Lin and Mattila, 2006).
Laroche et al. (2004) divided cultures into low- and high-context cultures. High-context
cultures need to build relationships and trust before conducting business and meaning
comes from the context in which something is said and from the status of the people
involved. Non-verbal communication and visual cues take on additional meaning and
importance. The welfare of the group and maintaining group harmony are top priorities.
In addition, cooperation, reasonableness and understanding of others are the most
admired virtues. People often suppress their true feelings for the good of the group or
of a relationship. In low-context cultures, meaning is taken from words and individual

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achievement and welfare are of prime importance. Thus, Asian consumers being part of a
high-context culture can be expected to express dissatisfaction less often because of a
need to maintain group harmony. Switzerland belongs to a low-context culture and
consumers are therefore assumed to react if the obtained result is not satisfactory. From a
marketing perspective, this suggests that customer loyalty is greater in a high-context
country such as China, because customers do not want to disturb the harmony of the
relationship that they have established with the seller. China is a high-collectivist culture
characterized by the fact that Chinese consumers seem to forgive service mistakes easier
compared to individualist cultures (Laroche et al., 2004). To these arguments, we again
add that as McDonalds is a more prestigious symbol in China than in Switzerland,
Chinese consumers seem to be more satisfied and loyal than Swiss consumers. Thus, the
following hypotheses have been drawn:
H5. Chinese consumers are more satisfied by McDonalds than Swiss consumers.
H6. Chinese consumers are more loyal to McDonalds than Swiss consumers.
Methodology
Sampling and data collection procedures
The questionnaire items in the Appendix present the operationalization of the model
variables. Switzerland and China were selected to represent Western and Asian cultures.
We selected McDonalds as it is globally a standardized and well-known fast-food chain.
Students were chosen for our two samples. They were identified to be the current
customers of fast-food restaurants and consequently possess an intuitive understanding
of fast-food outlets. Further, they do not have a lot of discretionary income to spend
on eating out and are therefore likely to choose cheap options such as McDonalds.
A student sample was also chosen to enhance sampling equivalence. This approach is
often used for cross-cultural studies as they minimize demographic and socioeconomic
variances (Clarke, 2001). Indeed, students share similar characteristics which facilitate a
comparison of the variables in question. The sampling frame consists of Swiss students
at Ecole hotelie`re de Lausanne and University of St Gallen, and Chinese students from
the Beijing Hospitality Institute.
The questionnaire was sent to 683 Swiss students and to 572 students in China
which results in a total number of 1,255. A total of 118 responses were collected, 66 from
Swiss students and 52 from Chinese students. This results in an overall response rate of
9.4 per cent (9.7 per cent for the Swiss sample, 9.1 per cent for the Chinese sample). The
relatively low response rate of the present study can be explained by the length of the
questionnaire. Indeed, as we wanted to increase the reliability of respondents, we had
several items for the majority of our latent variables.
Data analysis method
Data analysis was performed using ANOVA. Structural equation modeling (SEM) was
also adopted to test the hypotheses because the model contains latent variables.
We chose partial least squares (PLS), because it does not require a large sample
(Fornell and Larcker, 1981). SmartPLS 2.0 was used for the analysis. We employed a
bootstrapping method (200 sub-samples) to test the significant level of regression path
coefficients.

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Results
Reliability and validity of measures
Table I shows that all latent variables have a Cronbachs a higher than 0.6, which
confirms that the scale reliabilities have adequate and stable measurement properties.
Validity is assessed based on three main criteria, namely unidimensionality, convergent,
and discriminant validity. An exploratory factor analysis can verify unidimensionality.
For each construct, only the first eigenvalue is over one and thus, unidimensionality
is confirmed and validated (Droge, 1996). Convergent and discriminant validity are
components of a larger measurement concept known as construct validity (Straub et al.,
2004). Convergent validity is shown when each measurement item is strongly correlated
with its construct. It is usually satisfied by retaining variables whose loadings are
greater than 0.5, indicating that they share sufficient variance with their related
construct. Discriminant validity is satisfied when each measurement item is weakly
correlated with all other constructs except with the one to which it is theoretically
associated (Gefen and Straub, 2005). Table I shows the intercorrelation of the research
constructs. The diagonal of this matrix represents the square root of the average
variance extracted. For adequate discriminant validity, the diagonal elements should be
significantly larger than the correlation of the specific construct with any of the other
constructs and should be at least 0.5 (Fornell and Larcker, 1981). In our case,
discriminant validity is confirmed and sufficient to support the model.
Results and discussion
Table II shows the comparison of means between the perception of Chinese and
Swiss fast-food consumers. The first major difference comes from the perception of
product quality. Chinese consumers perceive a higher quality of product in
McDonalds (mean 3.28) compared to Swiss consumers (mean 2.25). This
difference seems to be very important. On Figure 3, we see that the nationality
explains 25.7 per cent of variance of product quality perceived. Hence H2 is
supported. Vignali (2001) argued that the perception of the quality of McDonalds
products varies based on the country. This point can also explain the fact that there
is no significant difference of perception about price. Indeed, the perception about the
fairness of the price is very similar in the two samples. Consumers in China appear to
Constructs

Table I.
Reliability and
discriminant validity

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Reliability
Tangibles
Responsiveness
Assurance
Empathy
Product quality
Price
Image
Satisfaction
Loyalty

aa
0.60
0.71
0.62
0.67
0.71
1
1
0.79
0.70
0.80

0.74
0.06
0.33 * *
0.28 * *
0.42 * *
0.39 * *

1
0.19 *
0.29 * *
0.29 * *
0.36 * *

10

0.73
0.08
0.67
0.55 * * 0.20 * * 0.75
0.27 * * 0.31 * * 0.46 * * 0.82
0.42 * * 0.18 * 0.43 * * 0.45 * *
0.09
0.29 * * 0.12
0.32 * *
0.23 * * 20.06
0.29 * * 0.30 * *
0.36 * * 0.23 * * 0.19 * 0.17 *
0.31 * * 0.20 * 0.26 * * 0.39 * *
0.21 * * 0.21 * * 0.29 * * 0.41 * *

1
0.26 * * 0.79
0.10
0.55 * * 0.78
0.21 * * 0.64 * * 0.54 * * 0.78

Notes: Correlation is significant

at: *0.05 and * *0.01 levels; aCronbachs a; bdiagonal: (average

P 2 1=2
1/2
li =n
variance extracted)

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Constructs

Mean
Swiss
China

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

3.264
3.401
3.104
3.159
3.294
2.257
2.969
3.369
3.216
2.716

Reliability
Tangibles
Responsiveness
Assurance
Empathy
Product quality
Price
Image
Satisfaction
Loyalty

Total mean

Min.

Max.

ANOVA (F )

p-value

3.412
3.529
3.145
3.221
3.324
2.711
3.016
3.506
3.300
2.872

1
1
1
1
1
1
1
1
1
1

5
5
5
5
5
5
5
5
5
5

7.965
5.984
0.691
1.145
0.335
40.153
0.304
7.247
2.385
5.290

0.006 *
0.016 *
0.407
0.287
0.564
0.000 * *
0.582
0.008 * *
0.125
0.023 *

3.599
3.691
3.196
3.299
3.361
3.288
3.076
3.680
3.406
3.071

Note: Significant at: *0.05 and * *0.01 levels

Notes: Significant at: *0.05 and **0.01 levels; athe variable nationality is not ordinal;
however as we have two groups (codification: Swiss consumers = 1 and Chinese consumers
= 2), we normalized the data in order to measure the impact of this variable on the others;
bthe five dimensions of SERVQUAL which are reliability, empathy, responsiveness, tangibles,
and assurance define the latent variable service quality; we decide to not put them in the
Figure 3 in order to keep it more readable

be willing to pay a higher price relative to their earnings due to the fact that they
perceive a higher quality in McDonalds products. Hence H3 is supported.
Another significant difference is the image of the company. We notice that Chinese
consumers have a better image of McDonalds (mean 3.68) compared to Swiss
consumers (mean 3.36). Hence, H4 is supported. On can conclude that compared to
China, McDonalds managers in Switzerland should work harder in order to improve
their image. Healthy meals are gaining importance and compared to Chinese

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Table II.
Comparison between the
perception of Chinese and
Swiss fast-food
consumers: ANOVA
results

Figure 3.
Results of the
PLS analysis

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792

consumers, Swiss consumers seem to not be convinced enough by the efforts done by
McDonalds or other fast-food restaurants.
As far as the degree of general satisfaction is concerned, there is no significant
difference between the two samples. However, Chinese consumers seem to have a higher
degree of loyalty towards McDonalds (mean 3.07) compared to Swiss consumers
(mean 2.71), even if they are not more satisfied about McDonalds. Hence H5 is
rejected and H6 is supported.
As far as the quality of service is concerned, we observe a significant difference for
these two sub-dimensions: reliability and tangibles. Chinese consumers perceive these
two sub-dimensions more positively compared to Swiss consumers. Hence one can
claim that H1 is partially supported.
Figure 3 shows the results of the PLS analysis. We observe the values of different
path coefficients. As mentioned below the variable nationality is not ordinal. However,
as we only have two groups (codification: Swiss consumers 1 and Chinese
consumers 2), we normalized the data in order to measure the impact of this variable
on the others. As mentioned above, the profile of respondents (China vs Swiss
consumers) influences significantly:
.
the product quality perceived (g 0.507);
.
the image perceived of McDonalds (g 0.203); and
.
the degree of loyalty (g 0.139).
As a moderator variable, we can observe that nationality influences the impact of image
on the degree of loyalty. This means that for Swiss consumers, the image (negative or
positive) perceived about the company has a more important impact on their loyalty
compared to Chinese consumers (g 20.163). The negative value is due to our codification.
We also observe that nationality influences the impact of service quality on the image of
McDonalds. It means that for Chinese consumers, the quality of service perceived has less
influence on the image of the company compared to Swiss consumers (g 20.356).
On the Figure 3, we also observe other relations between our latent variables, which
confirm the literature and where there is no difference between our two samples (e.g. the
impact of satisfaction on loyalty). We also observe that the firms image and service
quality influence customer satisfaction the most (respectively g 0.379 and g 0.327).
45.2 per cent of variance in customers satisfaction is explained by the independent
variables. Product quality and price fairness seem to not have an impact on customer
satisfaction in a fast-food context. One can also claim that customer satisfaction is the
variable that has the strongest influence on customer loyalty (g 0.468). The image of the
company perceived by the customer also has an impact on loyalty (g 0.183). The overall
variance explained in customer loyalty is 50.6 per cent, indicating that the proposed model
in this study could well predict and explain customer loyalty in our context.
Managerial implications
Fast-food managers must adapt themselves to the preferences of local consumers.
In parallel, this study showed that some variables are perceived similarly by Swiss and
Chinese consumers. This implies that some measures should be standardized. In the case
of McDonalds, we discovered a clear difference of perception about the quality of food,
but no significant difference about the service quality. As consumers in China perceive a
prestigious symbol in McDonalds and a better quality of meal, they accept to pay a higher

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price relative to their earnings. The products life-cycle is a determinant factor for the price
and Chinese consumers seem to judge prices as fair. This result should be considered by
other foreign fast-food companies desiring to establish in China.
Compared to China, fast-food managers in Switzerland should work harder in order to
improve their image. Indeed, Swiss and Chinese consumers perceived differently
McDonalds image. In the Western world, fast-food restaurants fight against their unhealthy
image. Therefore, it is not surprising that McDonalds reputation suffers. Fast-food
managers should adapt their offers to consumers expectations and try to improve their
products constantly in accordance with better health and hygiene standards. This is an
important issue for fast-food companies established in Switzerland. However, in a globalized
word, these expectations will soon be more or less generalized in other countries such as
China. Thus, fast-food managers should revise their offers and communicate their efforts to
clients. In parallel, they have an ethical role to inform and educate their customers about
their different offers and the impact that this may have on their health.
Limitations and future work
This study is subject to some limitations. First, we must be careful in the generalization
of our findings to all fast-food restaurants, due to the fact that it concerns McDonalds.
Second, the size of our two samples is small and is limited to students. Thus, the two
samples do not represent the entire consumer population. Nevertheless, the use of a
student sample is not rare as students are a legitimate proportion of the customer base
of many fast-food restaurants (Min, 2011). Third, as we selected students from cities,
we again must be careful in the generalization of our findings. For example, one can
suppose that Mcdonalds prices perceived by people living in Chinese cities are different
compared to people living in underdeveloped cities and rural areas. Fourth,
measurement of product quality perceived was carried out using a single-item scale.
A possible area for future research is to explore other fast-food providers and compare
results with McDonalds. It would also be interesting to study other types of restaurants and
to observe the similarities and differences between the two cultures. Another possible area
for future research is the comparison with other countries and cultures such as the US, India,
Japan, etc. Finally, it may be useful to make the same research in ten years and observe the
evolution of behaviours and perceptions over time.
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Appendix. Questionnaire items
Loyalty
McDonalds is my favorite fast-food.
I eat at McDonalds more often than in other fast-food restaurants.
I would say positive things about McDonalds to other people.
I would encourage friends and family to eat at McDonalds.
Satisfaction
Overall, I am satisfied with my experience in McDonalds.
Eating at McDonalds is a good experience.
I am happy with the way the staff treated me.
Image
McDonalds is a reliable company.
McDonalds has a good reputation.
McDonalds has a good image.
People in my country have a positive attitude towards McDonalds.
Service quality (an adaptation of SERVQUAL)
Reliability
At McDonalds I always receive what I order.
McDonalds employees are always available to help.
At McDonalds I do not have to wait long to receive my order.

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Empathy
McDonalds treats me fair.
McDonalds has convenient operating hours.
McDonalds employees listen to me.
Tangibles
McDonalds outlets are clean.
McDonalds employees are neat.
There is always enough space to sit down.
Responsiveness
I receive my order immediately.
Queues at McDonalds are short.
McDonalds employees are helpful.
Assurance
I fell secure in a McDonalds outlet.
McDonalds employees are competent.
I trust employees.
Product quality
McDonalds food quality is high.
Price
McDonalds prices are fair.
Notes: These questionnaire items measured the model variables. It is only part of the
questionnaire that was sent to our population. The original questionnaire has a different
structure and look. All items in each construct were evaluated on a 1 to 5 scale with 1 being
strongly disagree and 5 being strongly agree.
About the authors
Reza Etemad-Sajadi is currently Professor of Services Marketing and Management at
Ecole hotelie`re de Lausanne. He holds a PhD (Management) from the University of Neuchatel,
and MA and BS (Engineer) from Ecole polytechnique federale de Lausanne (EPFL). Before
coming to EHL, he was a researcher/lecturer at the Enterprise Institute of the University of
Neuchatel where he received the Credit Suisse Award for Best Teaching. His research interests
are services marketing and international marketing. Reza Etemad-Sajadi is the corresponding
author and can be contacted at: reza.etemad@ehl.ch
Daniela Rizzuto holds a BS from Ecole hotelie`re de Lausanne. She is now working as a Private
Banking Assistant for Corne`r Bank.

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