Offshore Outsourcing of Customer Services - Boon or Bane?

Purpose: Offshore outsourcing of customer services is growing rapidly but there is little known about its impact on customer perceptions and behavior. This paper aims to combine the learnings from the country‐of‐origin and service research to address this gap. Design/methodology/approach – An onlin...

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Main Author: Sharma, Piyush
Format: Journal Article
Published: Emerald Group Publishing Limited 2012
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/30279
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author Sharma, Piyush
author_facet Sharma, Piyush
author_sort Sharma, Piyush
building Curtin Institutional Repository
collection Online Access
description Purpose: Offshore outsourcing of customer services is growing rapidly but there is little known about its impact on customer perceptions and behavior. This paper aims to combine the learnings from the country‐of‐origin and service research to address this gap. Design/methodology/approach – An online survey was conducted by contacting a sample of 5,000 customers randomly chosen out of a database of over 100,000 customers provided by a large American retail financial services company, immediately after they had an interaction with an offshore service representative, resulting in 548 complete and usable questionnaires. Findings: Consumer ethnocentrism has a negative influence on the attitude towards offshore outsourcing and the perceived service quality and customer satisfaction with offshore call centers. Customer satisfaction also mediates the influence of perceived service quality on customer complaint behavior, brand image, brand loyalty, and repeat purchase intentions. Research limitations/implications: This paper focuses on the effects of consumer ethnocentrism and attitudes towards offshore outsourcing on several perceptual and behavioral variables in a B2C context with American customers and Indian customer service executives. Hence, its findings may not apply to the B2B context and other country settings. Practical implications: The findings highlight the need for greater employee training as well as customer education for firms using offshore customer service centers, to minimize customer complaints and protect their brand image, loyalty, and repeat purchase intentions. Originality/value: The study offers new insights on the impact of consumer ethnocentrism and attitude towards offshore outsourcing on customer perceptions and behavioral intentions, mediated by customer satisfaction and perceived service quality.
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spelling curtin-20.500.11937-302792018-03-29T09:08:51Z Offshore Outsourcing of Customer Services - Boon or Bane? Sharma, Piyush Offshore outsourcing Customer satisfaction Brand image Perceived service quality Repeat purchase Consumer ethnocentrism Loyalty Complaint behavior Purpose: Offshore outsourcing of customer services is growing rapidly but there is little known about its impact on customer perceptions and behavior. This paper aims to combine the learnings from the country‐of‐origin and service research to address this gap. Design/methodology/approach – An online survey was conducted by contacting a sample of 5,000 customers randomly chosen out of a database of over 100,000 customers provided by a large American retail financial services company, immediately after they had an interaction with an offshore service representative, resulting in 548 complete and usable questionnaires. Findings: Consumer ethnocentrism has a negative influence on the attitude towards offshore outsourcing and the perceived service quality and customer satisfaction with offshore call centers. Customer satisfaction also mediates the influence of perceived service quality on customer complaint behavior, brand image, brand loyalty, and repeat purchase intentions. Research limitations/implications: This paper focuses on the effects of consumer ethnocentrism and attitudes towards offshore outsourcing on several perceptual and behavioral variables in a B2C context with American customers and Indian customer service executives. Hence, its findings may not apply to the B2B context and other country settings. Practical implications: The findings highlight the need for greater employee training as well as customer education for firms using offshore customer service centers, to minimize customer complaints and protect their brand image, loyalty, and repeat purchase intentions. Originality/value: The study offers new insights on the impact of consumer ethnocentrism and attitude towards offshore outsourcing on customer perceptions and behavioral intentions, mediated by customer satisfaction and perceived service quality. 2012 Journal Article http://hdl.handle.net/20.500.11937/30279 10.1108/08876041211245272 Emerald Group Publishing Limited restricted
spellingShingle Offshore outsourcing
Customer satisfaction
Brand image
Perceived service quality
Repeat purchase
Consumer ethnocentrism
Loyalty
Complaint behavior
Sharma, Piyush
Offshore Outsourcing of Customer Services - Boon or Bane?
title Offshore Outsourcing of Customer Services - Boon or Bane?
title_full Offshore Outsourcing of Customer Services - Boon or Bane?
title_fullStr Offshore Outsourcing of Customer Services - Boon or Bane?
title_full_unstemmed Offshore Outsourcing of Customer Services - Boon or Bane?
title_short Offshore Outsourcing of Customer Services - Boon or Bane?
title_sort offshore outsourcing of customer services - boon or bane?
topic Offshore outsourcing
Customer satisfaction
Brand image
Perceived service quality
Repeat purchase
Consumer ethnocentrism
Loyalty
Complaint behavior
url http://hdl.handle.net/20.500.11937/30279