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Applying asymmetric, case-based, forecasting modeling in service research: Cultures’ consequences on customers’ service gratuities

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  • Ferguson, Graham
  • Megehee, Carol M.
  • Woodside, Arch G.

Abstract

This study provides a theory of the influences of alternative national cultures (as complex wholes) on customers’ tipping behaviors following receiving of services in restaurants and taxis. Based on complexity theory tenets, the study constructs and tests models asymmetrically—offers separate models for explaining and forecasting high tipping versus low tipping national cultures. The study uses multiple sources of secondary data for 30 nations including Hofstede's first four culture values, religiosity, Gini index, and GDP_PPP. Model construction includes computing-with-words (CWW) screens that prior theory forecasts to be accurate in identifying high (low) tipping behavior. Analysis includes using fuzzy-set qualitative comparative analysis (fsQCA) and somewhat precise outcome testing (SPOT) of the consistency (degree of accuracy) and coverage for each model. Model testing includes predictive as well as fit validation. The findings support core tenets of complexity theory (e.g., equifinality of different recipes for the same outcome, both negative and positive associations of individual ingredients in different recipes contribute to the same outcome, and causal asymmetry). Because national cultures are complex wholes, hospitality researchers need to embrace the complexity theory tenets and asymmetric tools to achieve deep understanding and for accurately forecasting of customer responses to hospitality services. This study provides new theory and methodological tools for recognizing the complexities and forecasting customers’ behavior in their responses following receiving hospitality services.

Suggested Citation

  • Ferguson, Graham & Megehee, Carol M. & Woodside, Arch G., 2018. "Applying asymmetric, case-based, forecasting modeling in service research: Cultures’ consequences on customers’ service gratuities," Australasian marketing journal, Elsevier, vol. 26(4), pages 369-381.
  • Handle: RePEc:eee:aumajo:v:26:y:2018:i:4:p:369-381
    DOI: 10.1016/j.ausmj.2018.10.009
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    References listed on IDEAS

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    1. Wu, Pei-Ling & Yeh, Shih-Shuo & Huan, Tzung-Cheng (.T.C.). & Woodside, Arch G., 2014. "Applying complexity theory to deepen service dominant logic: Configural analysis of customer experience-and-outcome assessments of professional services for personal transformations," Journal of Business Research, Elsevier, vol. 67(8), pages 1647-1670.
    2. Ferguson, Graham & Megehee, Carol M. & Woodside, Arch G., 2017. "Culture, religiosity, and economic configural models explaining tipping-behavior prevalence across nations," Tourism Management, Elsevier, vol. 62(C), pages 218-233.
    3. Ragin, Charles C., 2000. "Fuzzy-Set Social Science," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226702773, January.
    4. Armstrong, J. Scott, 1967. "Derivation of theory by means of factor analysis or Tom Swift and his electric factor analysis machine," MPRA Paper 81667, University Library of Munich, Germany.
    5. Ragin, Charles C., 2006. "Set Relations in Social Research: Evaluating Their Consistency and Coverage," Political Analysis, Cambridge University Press, vol. 14(3), pages 291-310, July.
    6. Woodside, Arch G., 2014. "Embrace•perform•model: Complexity theory, contrarian case analysis, and multiple realities," Journal of Business Research, Elsevier, vol. 67(12), pages 2495-2503.
    7. Lynn, Michael & Zinkhan, George M & Harris, Judy, 1993. "Consumer Tipping: A Cross-Country Study," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(3), pages 478-488, December.
    8. Woodside, Arch G. & Hsu, Shih-Yun & Marshall, Roger, 2011. "General theory of cultures' consequences on international tourism behavior," Journal of Business Research, Elsevier, vol. 64(8), pages 785-799, August.
    9. repec:ucp:bkecon:9780226702766 is not listed on IDEAS
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    Cited by:

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