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While language is vital for a successful service exchange, it can also become a source of vulnerability if one party is a non-native speaker in an inter-culture service encounter (ICSE). Hence, the purpose of this study is to understand the relationship between language-related stigma that non-native customers perceive in an ICSE and the associated psychological and behavioral responses.

A survey-based research method and an experimental study was used to collect data from non-native speakers in the USA with English as their second language. Structural equation modeling procedure was used to test the hypothesized relationships.

The findings suggest that the customers who perceive language-related stigmatization in an ICSE context experience intergroup anxiety and lack of social belonging. In turn, intergroup anxiety influences their interaction comfort with the service provider. In the end, these experiences shape their future buying behavior, i.e. they tend to avoid direct interactions with the servers and prefer smart services.

Future research is needed to explore the focal phenomenon in other service contexts and cultures to enrich knowledge on language vulnerabilities.

The study highlights the importance of technology, not just from a convenience perspective, but also as an accommodation mechanism for linguistically vulnerable customers.

To the best of the authors’ knowledge, this study is the first to empirically examine the language-related stigmatization and associated psychological and behavioral responses from the non-native customers’ perspective in a services exchange setting.