Similarities of the Latin Countries in Relation to Customer
Expectations about Service Dimensions of the Hotel Service
MARA FRANCO1,2,a, RAQUEL MENESES3,4,b, RUI ALEXANDRE CASTANHO5,6,c
1CiTUR, Centre for Tourism Research, Development and Innovation,
Madeira,
PORTUGAL
2University of Madeira,
Funchal,
PORTUGAL
3Faculty of Economics,
Porto University,
Porto,
PORTUGAL
4LIAAD INESC TEC,
Porto,
PORTUGAL
5Faculty of Applied Sciences,
WSB University, 41-300 Dabrowa Górnicza,
POLAND
6College of Business and Economics,
University of Johannesburg,
PO Box 524, Auckland Park,
SOUTH AFRICA
aORCiD: https://orcid.org/ 0000-0002-6999-9583
bORCiD: https://orcid.org/ 0000-0001-5829-9402
cORCiD: https://orcid.org/0000-0003-1882-4801
Abstract: - This research delves into the alignment of service dimensions with customer expectations in Latin
countries, exploring the presence of homogeneity within this diverse group. Utilizing unidirectional ANOVA
for individual service dimensions, comparisons were made between the means of the Latin cluster, the Latin
European cluster, and the Latin American cluster to evaluate the uniformity of country averages. The results
revealthat Latin countries do not form a homogeneous group concerning service dimensions; at least one
country demonstrates distinct expectations, indicating varying customer preferences. Additionally, disparities
were identified between the Latin-European cluster and the Latin American cluster. This challenges the reliance
of Latin companies on cultural and historical proximity for internationalization, as customer expectations for
the same service vary. Managers are urged to conduct country-specific analyses and tailor marketing strategies
and service offerings to each Latin country. The cross-cultural research spans ten largely unexplored Latin
countries, where the absence of consensus among authors in cultural dimension clustering underscores an
incongruity in labeling Latin customers as equals with identical service expectations.
Key-Words: - Customer’s expectations, Services dimensions, Latin countries, Tourism services, Hotel, Cultural
dimensions, Cultural distance.
Received: March 22, 2023. Revised: January 25, 2024. Accepted: February 16, 2024. Published: March 15, 2024.
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1 Introduction
Internal international trade in services experienced
rapid growth, particularly notable in OECD
countries, where it surged by 24% in exports and
22% in imports between 2010 and 2014, [1]. A
distinctive aspect is the pivotal role customers play
throughout the service process, occasionally
reaching a level of participation where the customer
becomes a co-creator of the service. The inherent
characteristics of services, including intangibility,
consumer involvement, interpersonal interactions,
and the challenge of standardization, make
formulating and managing a marketing strategy for
services a complex endeavor.
Acknowledging the significant influence of
comprehending customer needs on the efficiency
and effectiveness of services, [2], achieving
customer satisfaction remains the foremost
objective for every supplier. Satisfaction hinges on
the alignment of service performance with
customer expectations, [3], [4]. To achieve and
maintain customer satisfaction, it is imperative to
comprehend customer expectations for a service.
Consequently, managing these expectations
becomes a critical aspect of service conception and
management, with companies effectively
communicating what customers anticipate in terms
of service performance, [5].
The diversity in customer characteristics based
on origin and culture underscores the notion that
national culture shapes expectations, [6], [7]. While
customers from the same culture likely share
similar expectations due to shared cultural identity,
attitudes, and behavior patterns, the
internationalization of a firm requires careful
consideration of foreign markets, [8]. Cultural
analysis, as an essential criterion among others, is
pivotal for understanding the cultural climate that
can impact business operations, [9]. Marketers
must understand how their services are perceived in
diverse cultures, given that culture plays a crucial
role in shaping consumer behavior, [10].
In the context of internationalization, managers
often prioritize countries that exhibit cultural
closeness, [11]. This is exemplified by Latin
countries, where Latin companies choose to expand
internationally into other Latin nations due to
perceived proximity and assumed cultural
similarity. However, cross-cultural research reveals
a lack of consensus among authors regarding the
clustering of these countries by cultural
dimensions. While often regarded as culturally
similar, [12], [13], [14], [15], [16], [17], [18],
studies on national cultures underscore
discrepancies in how Latin American and Latin
European countries are grouped, varying from one
author to another. This incongruity challenges the
notion of labeling Latin customers as equals and
treating their service expectations equally.
This study aims to investigate whether Latin
countries exhibit homogeneity in service
dimensions by considering customer expectations
about services.
This study challenges the assumption that Latin
countries are a homogeneous group, particularly
regarding customer expectations about service
dimensions.
The research offers multiple advantages,
providing valuable insights into customer
expectations regarding services in Latin countries.
Understanding these expectations is crucial for
businesses operating in or planning to expand into
these markets. Also contributes to cross-cultural
understanding by highlighting the diversity among
Latin countries. This knowledge is essential for
international businesses, especially those from
Latin regions, to recognize and adapt to cultural
differences in customer expectations. The findings
emphasize the need for companies to tailor their
marketing strategies and services to each specific
Latin country. This adaptation is essential for
success in international markets where cultural
variations impact customer preferences and
expectations. The research challenges the
assumption that Latin countries are a homogeneous
group. This challenges the common practice of
relying on cultural and historical proximity when
internationalizing. Recognizing the diversity among
Latin countries prompts a more nuanced and
tailored approach to market entry and service
provision. The study also suggests that managers
should conduct a country-specific analysis and
customize their marketing strategies accordingly.
This provides practical guidance for businesses
operating in or planning to expand into Latin
American and Latin European markets. Empirically
the research contributes to the field of cross-
cultural research by focusing on ten different Latin
countries. The lack of consensus among authors in
clustering these countries based on cultural
dimensions indicates a gap in understanding, and
this study aims to fill that gap.
relationships and sustaining business success.
In fact, the study underscores the importance of
considering cultural factors in internationalization
strategies. This information is valuable for
companies looking to expand their operations
globally, especially in Latin regions.
In summary, the study contributes valuable
insights that can inform strategic decision-making
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for businesses operating in the Latin American and
Latin European markets, particularly in the service
industry. Recognizing and addressing the diversity
among Latin countries is crucial for effective
marketing and service delivery.
2 Customer’s Expectations
In a foundational sense, customer expectations
center around the anticipated offerings of a service,
[19], representing an outlook on the forthcoming
service experience, [20]. Within the literature on
customer satisfaction, expectations are defined as
subjective predictions made and evaluated solely
by consumers during service exchanges, inherently
relative and influenced by customer perceptions,
attitudes, and affects, [21], [22].
Concerning the evaluation of services, [21]
pioneered the development of a multi-item scale
called SERVQUAL, widely used for assessing
service quality, [22], [23], [24], [25], [26]. This
instrument measures service quality by
conceptualizing it as the discrepancy between
customer expectations and the perception of the
service provider's performance (Service Quality =
Performance – Expectations). Applied across
various contexts, including tourism, where it is
employed to evaluate hotel service quality
attributes, SERVQUAL stands as a prominent tool
in service quality assessment.
This evaluation, gauging the gap between
expectations and actual performance, significantly
influences customer satisfaction or dissatisfaction
with a service, [27]. Customer satisfaction is
achieved when the perceived service quality aligns
with superior standards, creating a sense of value
that either matches or surpasses the customer's
ideal expectations, [22], [28]. Consequently, the
effective management of customer expectations is
crucial in service conception and management,
[29].
Before the initial service encounter, each
customer carries a distinct cultural identity,
encompassing physiognomy, language, and
demeanor, shaping the backdrop that influences the
entire service encounter process, [30]. Customers
from diverse countries or cultures exhibit varying
levels of service quality expectations, stemming
from differences in attitudes and behavior patterns,
[31], [32].
In essence, each country possesses its unique
culture, and since culture shapes how customers
anticipate services, there is a necessity to adapt
services according to the cultural nuances of each
country. However, it is essential to ascertain
whether culture not only impacts expectations
regarding service quality but also influences other
dimensions of the service, [33].
3 Services Dimensions
Customers maintain unique expectations for each
service dimension, highlighting the importance of a
thorough understanding of dimensions identified by
various authors, [33], [34], [35], [36], [37], [38].
This research embraces a customer-centric
viewpoint, concentrating exclusively on service
dimensions within the service provider's sphere of
influence and control. These dimensions signify
areas that the service provider can intentionally
design to meet and surpass customer expectations.
The proposed classification introduces innovative
service dimensions:
Degree of Customer Involvement: Signifying
the level of connection and interaction between
the service provider and customers during the
service process or system. Crucial for managing
the service process, ensuring service quality,
and determining the extent of customer
involvement or co-production.
Convenience Level: Encompassing customers'
evaluation of service availability and effort
expended before and during the service process
(including money, time, and energy). The
criteria for evaluation encompass risk
assessment, physical safety, financial security,
and levels of confidentiality.
Contact Personnel Performance: Recognizing
the pivotal role of contact personnel in service
performance, particularly in differentiating
services through the adept fulfillment of
customer needs. Contact personnel gauge and
assess customer needs based on the resources at
their disposal.
Complexity Degree: Acknowledging the service
provider's authority to define and design service
encounter steps and their number, influenced by
the repeatability of service steps and customers'
freedom in defining them. Complexity level
determination is crucial for effective service
provision.
Information and Communication Power:
Emphasizing the pivotal role of exchanging
information between the service provider and
customers. Information control becomes a
source of power in the service process, with
implications for task performance, issue
clarification, promotion, and sales.
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Environment and Social Responsibility:
Focusing on the service provider's capacity to
offer environmentally oriented services with
ecological processes and materials. The service
provider can also play an educational role,
fostering customer awareness for environmental
protection and social responsibility.
Countries with homogeneous expectations
regarding service dimensions are expected to
demonstrate greater cultural proximity.
Consequently, societies and individuals within such
clusters are expected to share similar behaviors,
values, and beliefs. This alignment underscores the
interconnectedness of service dimensions and
cultural factors in shaping customer expectations.
4 Latin Cluster and the Cultural
Distance
Consensus among authors on clustering Latin
countries based on cultural similarity remains
elusive. Despite this, service providers in these
countries often base internationalization decisions
on assumed cultural proximity or similarity to other
Latin nations. This incongruence is evident: service
providers venture into these countries expecting
cultural likeness, while researchers attempting to
cluster Latin countries based on such similarity do
not reach a consensus on the constituting countries
of the cluster.
Crucially, companies' choices for foreign
market selection are heavily influenced by cultural
proximity, a factor where managers opt for foreign
countries that share cultural similarities. This
proximity facilitates adaptation to the foreign local
context, sparing managers the need to learn new
languages, religions, or national backgrounds. Latin
companies exhibit a predisposition towards
internationalizing to other Latin countries due to
perceived cultural links. However, this cultural
identification is occasionally overvalued by
managers, not always stemming from a meticulous
cultural analysis, [39], [40].
The decision-making process of Latin
companies in internationalization is remarkably
swayed by cultural proximity to other Latin
countries, indicating an expectation of cultural
similarity among Latin countries and people, [41],
[42], [43], [44], [45], [46]. Latin managers often
assume a low cultural distance between Latin
European and Latin American countries and their
respective markets. This presumption, rooted in
historical ties, shared language, beliefs, values, and
norms, leads companies to internationalize with
lesser efforts and research on foreign cultures.
Overestimating the importance of cultural
proximity, Latin managers often prefer Latin
countries for their internationalization efforts.
However, the cognitive dissonance of some
Latin managers has led to unsuccessful
performances in internationalization. Some
companies anticipated streamlined communication
processes and reduced risks and costs by entering
Latin markets, only to encounter bureaucratic
hurdles and disparate human resources practices.
Consequently, it becomes imperative to assess
whether previous cross-cultural studies align or
differ in defining the countries constituting the
Latin cluster and the characteristics and values
defining each cluster.
5 Latin Cluster Constitution
The advancement of cross-cultural research has
proven instrumental in grouping countries based on
similar cultural dimensions, utilizing specific
regional characteristics such as language, religion,
history, and cultural aspects to form clusters that
carry significance for societies and cultures, [18].
However, the constitution of these clusters varies
among authors due to the use of different countries,
cultural dimensions, methodologies, or differences
in the decades when the studies were conducted,
considering the dynamic nature of social,
economic, political, and cultural elements.
From previous exercises in country clustering,
two clusters have emerged—Latin countries,
further divided into Latin Europe and Latin
America. The clustering is based on the importance
attributed to cultural dimensions, grouping
countries with higher cultural proximity together.
This grouping implies an expectation that societies
and individuals within the same cluster share
similar behaviors, values, and beliefs.
With the development of cultural dimensions
and cross-cultural studies in the field of
management research, countries, including Latin
countries, have been categorized into clusters based
on cultural dimensions. Cultural effects
predominantly stem from differences between
societal clusters rather than individual countries,
[17]. While the constitution of country clusters
lacks a universally accepted method, some authors
consider clustering societies as an appropriate and
relevant unit of analysis, [47]. These clusters are
valuable for examining cross-cultural similarities
and differences and can guide the sampling strategy
for cross-cultural research, [46].
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Table 1. Studies that cluster countries based on cultural dimensions or factors
Author (year)
Clusters
Haire et al. [48].
Latin European: Belgium, France, Italy and Spain
Latin American: Argentina, Chile and India
Sirota and
Greenwood [49].
French: Belgium and France
Southern Latin American: Argentina and Chile
Northern Latin American: Colombia, Mexico and Peru
Independent: Brazil, Germany, Israel, Japan, Sweden and Venezuela
Hofstede [50].
Latin: Brazil, Italy, France, Switzerland – French speaking
Ronen and Kraut
[51].
Latin European: France, Belgium, Spain, Italy and Portugal
Latin American: Peru, México, Colombia, Argentina, Chile and Venezuela
Independent: Brazil, Japan, India and Israel
Hofstede [50].
Latin European: Argentina, Belgium, Brazil, France, Italy and Spain
Latin American: Chile, Colombia, Mexico, Peru, Portugal, Venezuela
Ronen and Shenkar
[15].
Latin American: Argentina, Venezuela, Chile, Mexico, Peru and Colombia
Latin European: France, Belgium, Italy, Portugal and Spain
Independent: Brazil, Japan, India and Israel
Trompenaars and
Hampden-Turner
[52].
Latin countries: Argentina, Cuba, Mexico, Venezuela, Brazil, France, Portugal, Italy,
Spain and Romania
Brodbeck et al. [14].
Latin European: Spain, Italy and Portugal
Independent: Czech Republic, France, Russia and Georgia
Gupta et al. [47].
Latin European: Israel, Italy, Portugal, Spain, France and Switzerland – French
speaking
Latin American: Venezuela, Ecuador, Mexico, El Salvador, Colombia, Bolivia,
Brazil and Argentina
Jesuino [14].
Latin European: Spain, Portugal, Italy, French Switzerland, France and Israel
Hofstede et al. [13].
Latin Countries: Brazil, France and Panama
Globe Project
House et al. [18].
Latin European: Israel, Italy, Portugal, Spain, France and Switzerland – French
speaking
Latin American: Costa Rica, Venezuela, Ecuador, Mexico, El Salvador, Colombia,
Guatemala, Bolivia, Brazil, Argentina
Stankov [17].
Latin European: France, Italy and Spain
Latin American: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador,
El Salvador, Mexico and Venezuela
Table 1 showcases various studies that group
countries into clusters using different variables.
While other clusters are presented in these studies,
Table 1 specifically focuses on the Latin clusters,
European and American.
The studies presented in Table 1 highlight the
divergence in the formation of clusters for Latin
America and Latin Europe. Notably, the
composition of the Latin Europe cluster varies
across studies, featuring countries such as Italy,
Spain, France, and Portugal. In some instances,
Belgium is included in the Latin European cluster
due to geographical proximity, linguistic
similarities (with French and Dutch speakers), and
shared cultural background. Hofstede's four
dimensions study further supports this inclusion,
placing Belgium closer to France than the
Netherlands based on the rooted influence of the
French language in Belgian social structure.
However, more recent studies do not consistently
maintain Belgium within the Latin European
cluster.
In the early 21st century, French Switzerland
and Israel were also considered Latin European
countries by some researchers. Ronen and Shenkar
suggest that the Latin American and Latin
European clusters are expected to converge,
primarily due to the historical effects of Spain and
Portugal on colonized countries in Latin America,
implying strong ties in language and religion.
Notably, Portugal's cultural categorization varies
among authors, as some place it within the
European cluster while others include it in the Latin
American cluster, [13].
Previous discussions imply an assumed cultural
similarity among Latin countries, not only in terms
of internationalization processes among companies
but also in cross-cultural research, where Latin
Europeans and Americans share certain cultural
characteristics. If this Latin cluster indeed exists,
customers residing in these countries are expected
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to harbor similar expectations for service,
particularly concerning service dimensions. To
investigate the homogeneity of the Latin cluster,
Latin American cluster, and Latin European cluster,
the following hypotheses are proposed:
Hypothesis 1 (H1): Customers from Latin countries
share similar expectations for each service
dimension.
Hypothesis 2 (H2): Customers from Latin
European countries share similar expectations for
each service dimension.
Hypothesis 3 (H3): Customers from Latin
American countries share similar expectations for
each service dimension.
The study is positioned in an unexplored
context, emphasizing the lack of consensus among
authors in clustering Latin countries based on
cultural dimensions. The incongruity in clustering
Latin American and Latin European countries is
presented as a gap in understanding, and the
objective of the research is to determine if Latin
countries are a homogeneous group regarding
service dimensions.
6 Methodology
The hypotheses were tested within the context of
Latin countries, specifically focusing on hotel
services. Recent research has extensively explored
travel and tourism services, recognizing the
significant influence of national culture on tourist
behavior towards destinations, [53]. The tourism
sector, a vital contributor to economic development
in some countries, is also a prominent subject in
service quality research due to its unique
characteristics. In hotel services, for instance,
customers actively contribute to the service
experience, [54].
This study addresses a previous gap in the
research area by conducting a multi-country
analysis, [55]. [56], emphasizes the importance of
including a minimum of 10 to 15 cultures in cross-
cultural research. To address these gaps, the present
research undertakes a transcontinental cross-
cultural study, examining 10 different countries
with a "presumed cultural similarity paradox", [57],
[58].
The selected Latin European countries for this
study include France, Italy, Portugal, Spain, and
Romania. The Latin American countries in the
study are Bolivia, Brazil, Chile, Mexico, and
Uruguay. The study focuses on university students
attending post-graduate, master, and PhD programs
in these selected Latin countries. This population
was chosen as they possess the characteristics
necessary for responding to a questionnaire about
consumer issues and are also customers of the hotel
service, with the financial means to spend on such
services. Schwartz emphasizes that "countries are
meaningful cultural units," and students are
considered an ideal sample for cross-cultural
research due to their alignment on critical
characteristics.
Data collection took place through an online
questionnaire administered between April 10th and
June 4th, 2018. To enhance the response rate and
data validity, all questions were made mandatory.
The questionnaire was distributed to selected
universities in Latin European and Latin American
countries via email, accompanied by an
introductory text, a link to the online questionnaire,
and a brief explanation of the research. Universities
were requested to disseminate the questionnaire
among their students, preferably those attending
post-graduate courses, master's, and doctoral
programs. Respondents were also encouraged to
forward the email to their university colleagues,
precluding the calculation of a specific response
rate.
The questionnaire was initially developed in
English and subsequently translated into the native
languages of the Latin countries (Portuguese,
Spanish, Italian, and Romanian) by a local native
speaker. To ensure consistency, a back translation
was conducted to verify that the translated words
retained the same meanings in both languages.
Employing a 7-point Likert scale for measurement,
the questionnaire gauged customers' expectations
regarding each service dimension, drawing
inspiration from previous authors' measurements
and incorporating sociodemographic
characteristics, [59], [60], [61].
The questionnaire comprised two main
sections. The first section focused on measuring
customers' expectations for each new service
dimension, while the second section delved into
demographic information and certain moderator
elements. The construction of the questionnaire
followed an evolutionary process. Initially,
constructs, questions, and scales from the literature
that aligned with the new service dimensions were
identified. A preliminary draft was then created
with questions categorized under each
subdimension of the new service dimensions.
Subsequent iterations involved the identification
and elimination of repetitions and questions with
ambiguous interpretations. However, some
subdimensions lacked questions already measured
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by previous authors, prompting the formulation of
new questions based on the literature review.
Table 2. Variables included in the questionnaire
Main dimensions (variables)
Degree of Customer Involvement
(DCI)
Convenience Level (CL)
Contact Personnel Performance
(CPP)
Complexity Degree (CD)
Information and communication
power (ICP)
Environment and social
responsibility (ESR)
Following this refinement process, a test was
conducted in Portugal, where the questionnaire was
distributed to individuals involved in tourism and
hotel research. Respondents were not only asked to
answer the questionnaire but also to identify
unclear or repetitive questions. The objective of
this test was to resolve any conceptual
uncertainties. Table 2 presents the variables
included in the questionnaire, along with the
references supporting their inclusion.
The analysis compared the means of the
countries in the clusters regarding service
dimensions, to uncover the homogeneity of the
Latin cluster, the Latin American cluster and the
Latin European cluster.
7 Findings
7.1 Socio-demographic Profile of the Sample
The sample of this research is adequate with 1262
observations (Portugal (15%), Spain (9%), France
(9%), Italy (6%), Romania (9%), Brazil (12%),
Mexico (13%), Uruguay (8%), Bolivia (10%) and
Chile (7%). In Table 3 is presented the socio-
demographic profile of the sample. perceive it as
bad - they do not fully know the functions within
their competence. 66% consider it.
Table 3. Socio demographic profile by country of residence
PT
ES
FR
IT
RO
BR
MX
UY
BO
CL
NLE
NEL
NENL
Total
Age
18 to 25
59%
14%
27%
12%
32%
16%
25%
22%
48%
17%
25%
0%
0%
29%
26 to 40
31%
32%
36%
40%
46%
41%
31%
32%
33%
37%
63%
29%
50%
36%
41 to 60
11%
50%
30%
44%
22%
38%
39%
44%
15%
35%
13%
42%
50%
31%
Above 60
0%
4%
7%
4%
0%
4%
6%
2%
4%
11%
0%
29%
0%
4%
Sex
Female
26%
36%
29%
22%
50%
42%
33%
47%
43%
30%
63%
46%
17%
43%
Male
74%
64%
71%
78%
50%
58%
67%
53%
57%
70%
38%
54%
83%
57%
Education qualification
Primary
1%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Secondary
22%
3%
0%
1%
3%
1%
0%
4%
18%
4%
0%
4%
0%
7%
Bachelor's
36%
13%
6%
36%
24%
17%
35%
40%
48%
23%
13%
29%
0%
28%
Master's/PhD
42%
84%
94%
62%
73%
82%
65%
56%
35%
73%
88%
67%
100%
65%
Annual houselhold income (in relation to country's average)
Far below
3%
3%
4%
1%
1%
1%
0%
0%
1%
1%
0%
0%
0%
2%
Below
17%
10%
9%
1%
3%
3%
2%
2%
12%
0%
0%
0%
0%
7%
Average
42%
38%
27%
55%
25%
21%
26%
29%
38%
19%
50%
29%
33%
32%
Above
36%
42%
48%
42%
48%
45%
57%
62%
39%
53%
38%
46%
33%
46%
Well above
3%
7%
12%
1%
23%
30%
15%
7%
11%
28%
13%
25%
33%
14%
Notes: Portugal (PT); Spain (ES); France (FR); Italy (IT); Romania (RO); Brazil (BR), Mexico (MX);
Uruguay (UY); Bolivia (BO); Chile (CL); Non Latin Europe (NLE); Non-European Latin (NEL); Non-
European Non Latin (NENL).
7.2 Reliability, Consistency Analysis and
Outlier Detection
The Exploratory Factor Analysis (EFA) and the
Cronbach Alpha determination was conducted on
the general sample (N = 1262) and results are in
Table 4.
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Table 4. Consistency and reliability analysis of service dimensions
Dimension
KMO Test
Cronbach's alpha (score reliability)
AVE
CR
Degree of customer involvement (DCI)
0,879
0,819
0,480
0,820
Convenience level (CL)
0,955
0,947
0,669
0,948
Contact personnel performance (CPP)
0,902
0,941
0,733
0,943
Complexity degree (CD)
0,910
0,895
0,532
0,900
Information and communication power (ICP)
0,840
0,855
0,563
0,865
Environment and social responsibility (ESR)
0,917
0,929
0,611
0,926
The KMO test suggests that the service
dimensions DCI (KMO=0.879) and ICP
(KMO=0.840) exhibit good homogeneity, falling
within the recommended range of 0.8 to 0.9, [67].
Additionally, the service dimensions CL
(KMO=0.955), CPP (KMO=0.902), CD
(KMO=0.910), and ESR (KMO=0.917)
demonstrate excellent homogeneity, surpassing the
0.9 threshold, [67]. Therefore, it is advisable to
proceed with the execution of the EFA.
All service dimensions display satisfactory
internal consistency, with Cronbach Alpha (score
reliability) exceeding 0.8, per the criteria
established by [68]. Moreover, the service
dimensions exhibit reliable values, as all CR values
are above 0.7, [69]. Furthermore, each service
dimension demonstrates convergent validity of the
construct, with AVE values exceeding 0.5, except
for the degree of customer involvement dimension
(DCI), which has an AVE close to 0.5
(AVE=0.480), [69].
Applying the "outlier labeling rule" method
proposed by [70], outliers were identified and
eliminated. A total of 227 observations were
excluded from the sample across service
dimensions in all countries of residence.
7.3 Hypothesis Test Results
An Analysis of Variance (ANOVA one way) was
employed to compare the means of countries within
clusters concerning service dimensions. So, this
aimed to assess the homogeneity across the Latin,
Latin American, and Latin European clusters. For
each service dimension, a one-way ANOVA was
conducted to compare the means among the Latin
countries cluster, the Latin European cluster, and
the Latin American cluster, thereby determining
whether the means of the countries were similar or
different.
The results of the one-way ANOVA, presented
in Appendix I, indicated a significance level of
0.000 for the service dimensions: degree of
customer involvement (F = 14.972), convenience
level (F = 23.742), contact personnel performance
(F = 10.817), complexity degree (F = 12.072),
information and communication power (F =
16.597), and environment and social responsibility
(F = 4.455). Consequently, the null hypothesis (H1)
was rejected, providing sufficient statistical
evidence to confirm that at least one country's
expectations differ for each service dimension.
A one-way ANOVA was applied to ascertain if
customers' expectations regarding service
dimension varied significantly among Latin
European countries to analyze the Latin European
cluster (comprising Portugal, Spain, France, Italy,
and Romania) further.
The results of the one-way ANOVA, presented
in Appendix II, revealed a significance level of
0.000 for the service dimensions: degree of
customer involvement (F = 14.789), convenience
level (F = 26.806), contact personnel performance
(F = 6.020), complexity degree (F = 7.337),
information and communication power (F =
18.637), and environment and social responsibility
(F = 2.742). Consequently, the null hypothesis (H2)
was rejected, providing sufficient statistical
evidence to confirm that at least one Latin
European country's expectations for each service
dimension differ.
8 Discussion
Prior studies have emphasized that customer
expectations regarding services vary based on the
country of residence, particularly concerning
physical features, facilities, contact with staff, [71],
service quality, available personnel, employee
empathy, and location, [2]. The findings reveal that
Latin countries do not constitute a homogeneous
group; at least one country differs, indicating that
customers in these countries do not share the same
expectations regarding service dimensions. This
contradicts earlier assertions, [50], that Latin
countries can be grouped together based on their
culture.
Examining the homogeneity of the Latin
European cluster and the Latin American cluster,
the results indicate differences within each cluster,
challenging the notion of homogeneous
expectations among customers. This contrasts with
previous claims, [18], [46], [47], suggesting that
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both Latin European and Latin American countries
can be treated as homogeneous clusters in terms of
culture. Moreover, the lack of homogeneity within
these clusters—Latin, Latin European, and Latin
American—means that service providers cannot
perceive customers' expectations about service as
similar when devising internationalization
strategies for these countries. Consequently, service
providers must meticulously analyze the unique
characteristics of each country and tailor their
marketing strategies and service offerings
accordingly.
Previous research has advocated that managers
typically prioritize countries that are culturally and
historically closer, measured by language distance,
religious disparities, and colonial ties, [11],
assuming these factors are the most challenging to
overcome. However, this approach is not applicable
to Latin countries, as their differences in
expectations about service stem from cultural
distinctions rather than historical ties.
These results presents a clear contradiction
with previous research, particularly referencing
studies [18], [46], [47] and [50]. This contradiction
is a significant contribution to the existing body of
knowledge and challenges the assumption that
Latin countries, whether European or American,
can be clustered together based on cultural
dimensions. In terms of country-specific
expectations, findings highlight the nuanced nature
of customer expectations within Latin countries,
emphasizing that at least one country in each
cluster differs in terms of service dimensions. This
nuance underscores the importance of moving
beyond broad cultural generalizations and
recognizing the unique characteristics of each
country.
This discussion effectively brings out the
practical implications for internationalization
strategies. The fact that expectations differ within
both the Latin European and Latin American
clusters implies that a one-size-fits-all approach
cannot be applied. Service providers must conduct
a thorough analysis of each country's characteristics
and tailor their strategies accordingly. The
disconfirmation of the idea that cultural and
historical proximity is the primary factor for
country selection emphasizes that managers need to
prioritize an understanding of local expectations
over traditional indicators such as language
distance or colonial ties. This challenges the
assumption that cultural and historical closeness is
the most critical factor in country selection, [11].
By highlighting that differences in expectations
exist within the Latin countries, it suggests that
cultural differences play a more substantial role
than historical ties. This challenges conventional
wisdom in international business literature.
9 Conclusions and Contributions
It is evident that Latin countries, including both the
Latin European and Latin American clusters, do not
exhibit homogeneity concerning customer
expectations about service dimensions. This lack of
homogeneity implies that customers within these
clusters differ in their expectations, with at least
one country displaying distinct means.
Consequently, the grouping of Latin countries
based on customer expectations about service
dimensions is not viable, and the same holds true
for attempts to present Latin European and Latin
American clusters as homogeneous.
This research not only highlights the absence of
homogeneity but also contributes to resolving
previous disagreements in clustering Latin
countries based on cultural similarity. The findings
affirm that Latin European and Latin American
customers exhibit differences in their expectations
of service dimensions, refuting the notion that these
regions can be clustered together. Therefore, Latin
countries, whether American or European, do not
cluster regarding customer expectations about
service dimensions.
The implications of this research extend to
practitioners, providing managers with a nuanced
understanding of customers' expectations in
countries that were traditionally thought to cluster
together. Consequently, it is emphasized that a
uniform approach to designing and marketing
services should not be applied across Latin
countries, be they American or European. These
insights can inform the development or redefinition
of marketing strategies during internationalization
processes.
The primary limitation of this research is its
exclusive focus on the hotel service context.
Although the service dimension scale was designed
for applicability across various services, future
research has the potential to validate the identified
relationships in different service domains, as
consumption patterns change over the years, [72].
The second limitation is context-specific, as the
study concentrated on a particular set of Latin
countries to test hypotheses. However, there is
room for future research to replicate these
hypotheses in diverse country groups characterized
by cultural proximity. Alternatively, the study
could be expanded to include additional Latin
countries, including some African nations
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Volume 21, 2024
recognized as Latin countries by the Latin Union
(2012), such as Angola, Cape Verde, Guinea-
Bissau, Ivory Coast, Mozambique, São Tomé and
Príncipe, and Senegal. Despite their inclusion in the
Latin Union, these African countries have not been
incorporated into cross-cultural studies and remain
outside any established cluster.
While noting contradictions with specific
studies, the discussion could further integrate these
findings into the broader literature on cross-cultural
management and internationalization. This would
help position the study within the existing scholarly
conversation and emphasize its contribution to
advancing knowledge in the field, [73]. In future
research, it could be explored specific cultural
dimensions that contribute to the variation in
customer expectations within Latin clusters or
investigating how different industries may be
affected by these cultural differences could be areas
for further exploration.
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[73] Franco, M. and Meneses, R. (2021), "The
proximity between Latin countries regarding
customer's expectations about the hotel
service", EuroMed Journal of Business, Vol.
16 No. 4, pp. 564-581.
https://doi.org/10.1108/EMJB-07-2020-0074.
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DOI: 10.37394/23207.2024.21.66
Mara Franco, Raquel Meneses, Rui Alexandre Castanho
E-ISSN: 2224-2899
798
Volume 21, 2024
Appendix I
One-way ANOVA applied to service dimensions for Latin European countries
Sum of Squares
df
Mean
Square
F
Sig.
Degree of Customer
Involvement
Between
Groups
117,500
9
13,056
14,972
0,000
Within
Groups
1053,377
1208
0,872
Total
1170,877
1217
Convenience Level
Between
Groups
45,120
9
5,013
23,742
0,000
Within
Groups
238,185
1128
0,211
Total
283,305
1137
Contact Personnel
Performance
Between
Groups
41,297
9
4,589
10,817
0,000
Within
Groups
487,410
1149
0,424
Total
528,707
1158
Complexity Degree
Between
Groups
77,476
9
8,608
12,072
0,000
Within
Groups
843,612
1183
0,713
Total
921,088
1192
Information
and
Communication
Power
Between
Groups
106,040
9
11,782
16,597
0,000
Within
Groups
839,118
1182
0,710
Total
945,158
1191
Enviroment and
Social
Responsibility
Between
Groups
40,099
9
4,455
4,625
0,000
Within
Groups
1168,493
1213
0,963
Total
1208,592
1222
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2024.21.66
Mara Franco, Raquel Meneses, Rui Alexandre Castanho
E-ISSN: 2224-2899
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Volume 21, 2024
Appendix II
One-way ANOVA applied to service dimensions for Latin American countries
Latin Europe
Sum of
Squares
df
Mean
Square
F
Sig.
Degree of Customer
Involvement
Between Groups
49,289
4
12,322
14,789
0,000
Within Groups
500,753
601
0,833
Total
550,042
605
Convenience Level
Between Groups
26,795
4
6,699
26,806
0,000
Within Groups
141,192
565
0,250
Total
167,987
569
Contact Personnel
Performance
Between Groups
11,433
4
2,858
6,020
0,000
Within Groups
275,381
580
0,475
Total
286,815
584
Complexity Degree
Between Groups
22,341
4
5,585
7,337
0,000
Within Groups
452,927
595
0,761
Total
475,268
599
Information and
Communication Power
Between Groups
56,587
4
14,147
18,637
0,000
Within Groups
452,404
596
0,759
Total
508,991
600
Enviroment and Social
Responsibility
Between Groups
9,385
4
2,346
2,742
0,028
Within Groups
513,302
600
0,856
Total
522,687
604
Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy)
The authors equally contributed to the present
research, at all stages from the formulation of the
problem findings to the final findings and solution.
Sources of Funding for Research Presented in a
Scientific Article or Scientific Article Itself
Funded by national funds through FCT—
Portuguese Science and Technology Foundation,
within the project reference UIDB/04470/2020.
DOI: https://doi.org/10.54499/UIDB/04470/2020.
Conflict of Interest
The authors have no conflict of interest to declare.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.e
n_US
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2024.21.66
Mara Franco, Raquel Meneses, Rui Alexandre Castanho
E-ISSN: 2224-2899
800
Volume 21, 2024