The Effect of Power Distance Belief on DIY Preferences: A Multilevel, Multimethod Study

摘要

The world's biggest home improvement retailer Home Depot Inc. retreated from China after several years of losses. Home Depot's do-it-yourself (DIY) model did not work for Chinese consumers, who rather hire a professional home improver than actively engaging in DIY. While low labor costs in China may partly account for this behavior, economic reasons might not be the only determinant why Chinese consumers favor do-it-for-you (DIFY) over DIY services. In this paper we study preferences for DIY vs. DIFY services across cultures by investigating the following research questions: Are there any systematic, cross-cultural differences in DIY preferences that are caused by cultural value orientations and especially by power distance (PD)? If yes, what dimensions mitigate the cultural influence regarding DIY preferences? Drawing on social exchange theory (SET), we theorize that service formats such as DIY and DIFY evoke different feelings of power disparity. While in a DIFY service encounter customers are in a relatively powerful position, DIY services put customers and companies on the same power level. Since high PD cultures accept and respect power disparities, they favor DIFY services while low PD societies insist on equal relations and therefore prefer DIY.