Kano’s model of Customer Satisfaction - PowerPoint Presentation

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Kano’s model of Customer Satisfaction

Dr. Surej P John

Slide2

Origin

of the Kano Model

Noriaki

Kano Professor at Tokyo Rika UniversityInternational ConsultantReceived individual Demming Prize in 1997

Slide3

Introduction

Product/service quality is main antecedent of customer satisfaction

(Cronin & Taylor 1992; Anderson & Sullivan 1993; Brady et al. 2002)

Important to find out how each attribute performance impacts on satisfaction

Prof. Kano pointed out that not all product/service attributes have same role in satisfying customer needs

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Origin

of the Kano Model

Developed

foundation for an approach on “Attractive Quality Creation” commonly referred to as the “Kano Model”

Challenged traditional Customer Satisfaction Models that More is better, i.e. the more you perform on each service attribute the more satisfied the customers will be

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Origin

of the Kano Model

Proposed

new Customer Satisfaction model (Kano Model)

Performance on product and service attributes is not equal in the eyes of the customersPerformance on certain categories attributes produces higher levels of satisfaction than

others

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Introduction

Separate among satisfaction, dissatisfaction and delight since factors that dissatisfy and that delight are often different

(Rust,

Zahorik

& Keiningham 1994)Ex. If a customer approaches an ATM then finds it to be out of cash, the customer will likely be dissatisfied, but it is unlikely that finding an ATM stocked with cash would satisfy or delight the customer

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Kano’s Model of Satisfaction

Technique

used

to determine the influence of attributes of products and/or services have on customer satisfaction (Kano et al. 1984)

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Kano’s Model of Satisfaction

Which products and services can be used to obtain a high level of customer satisfaction?

Which product features have a more than proportional influence on satisfaction

Which attributes are an absolute must in the eyes of the customer?

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Kano’s Model of Satisfaction

Product/service attributes can be classified into

Five

groups

Attractive Quality AttributesOne dimensional Quality Attributes

Must have Quality

Attributes

Indifference Quality

Attributes

Reverse Quality Attributes

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Attractive Quality Attributes

Produce satisfaction when delivered but cause no dissatisfaction if not delivered

These attributes are not normally expected and often unintentionally surprise and delight customers.

High

performance on these has a greater impact on overall satisfaction rather than low performanceex

. (unexpected) promotional offers

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Performance/One-dimensional Attributes

Produce both satisfaction dissatisfaction depending on performance levels

Satisfaction

is proportional to the level of fulfillment of these

attributes.These are the most visible attributes and with which companies compete.ex. Gasoline consumption of a car; lower consumption leads to higher customer satisfaction

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Must-be Attributes

An attribute whose absence will result in customer dissatisfaction, but whose presence does not significantly contribute to customer satisfaction.

Minimum

required features that customer naturally expect from a

product/serviceConsidered as basic attributes of a product or a service.ex

.

Punctuality

and safety of airline

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Indifference Quality Attributes

Indifferent attributes are those that customers perceive as not contributing to their satisfaction.

Hence their presence or absence has no effect on satisfaction.

Ex: A doorman at the hotels or Malls

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Reverse Quality Attributes

Reverse quality elements are those attributes, which, if present, would lead to customer dissatisfaction,

And if absent, would lead to customer satisfaction.

Ex: Too many complex and extra features of High tech products.

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Three-Factor Theory

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Typical Research Framework

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Kano’s Model Process

Identify the Voice of the Customer

Translate Voice of the Customer into Critical to Quality Characteristics (CTQs)

Rank the CTQs into three categories:

Dissatisfier - Must be’s

– Cost of Entry

Satisfier – More is better – Competitive

Delighter – Latent Need – Differentiator

Evaluate Current Performance

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Kano Model

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Kano model process

Analyze

data from available sources

Brainstorm list of features and functionality

Determine type of requirements:

Output Requirements

Service Requirements

Kano Model Requirements Survey

User Survey

“Functional form” vs. “Dysfunctional Form”

“How would you feel if the product

had

feature X?”

“How would you feel if the product

didn’t have

feature X?”

Kano Questionnaire Answers:

I like it.

I expect it.

I’m neutral.

I can tolerate it.

I dislike it.

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Example: Requirements Survey

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Example: Requirements Questionnaire

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Functional vs. Dysfunctional Comparison

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Functional vs. Dysfunctional Comparison

Basic Attribute

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Functional vs. Dysfunctional Comparison

Performance Attribute

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Functional vs. Dysfunctional Comparison

Exciting Attribute

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Evaluation Customer Requirements

C.R.

A

E

O

R

Q

I

Total

Grade

1

3

6

14

23

O

2

5

6

11

1

23

O

3

6

1

4

1

11

23

I

4

13

10

23

E

5

11

1

2

9

23

A

Customer

Requirement is

:

A: Attractive R: Reverse Q: Questionable Result

E: Expected O: One Dimensional I: Indifferent

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3. Plot

& Diagram

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Advantages

Aids in understanding the importance attributes that influence customer satisfaction

Helping the management in trade-off situations in the attribute implementation stage.

Determining and satisfying attractive attribute requirements of consumers enables to differentiate the products and/or services over competitors.

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Questions?

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References

Walder, D., (1993). Kano’s model for understanding customer-defined quality. Center For Quality of Management Journal, 39,

65 – 69.

Jacobs, R., (1997). Evaluating customer satisfaction with media products and services.

European Media Management Journal, 32, 11 – 18.Ungvari, S., (1999). Adding the third dimension to auqlity. Triz Journal, 40, 31 – 35.Sauerwein, E., Bailom, F., Matzler, K., & Hinterhuber, H. (1996). The kano model: How to delight your customers. International Working Seminar on Production Economics, 19, 313 - 327Zultner, R.E. & Mazur, G. H. ( 2006). The Kano Model: Recent Developments. The eighteenth symposium on Quality Function Deployment.

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Dimensions of Quality

Performance

ReliabilityConvenience and AccessibilityFeatures

Empathy

Conformance to

Standards

Serviceability

Durability

Aesthetics

Consistency

Assurance

Responsiveness

Perceived Quality

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Dimensions of Quality

( 1 of 6)

PERFORMANCE:

How

well the output does what it is supposed to do.

RELIABILITY:

probability of operating for specific time and conditions of use

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Dimensions of Quality

(2 of 6)

CONVENIENCE and

ACCESSIBILITY: How easy it is for a customer to use the product or service.

FEATURES:

The

characteristics of the output that exceed the output’s basic functions.

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EMPATHY:

The

demonstration of caring and individual attention to customers.

CONFORMANCE: The degree to which an output meets specifications or requirements.

Dimensions of Quality

(3 of 6)

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SERVICEABILITY:

How

easy it is for you or the customer to fix the output with minimum downtime or cost.

DURABILITY: How long the output lasts.

AESTHETICS:

How

a product looks, feels, tastes, etc.

Dimensions of Quality

(4 of 6)

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CONSISTENCY:

The

degree to which the performance changes over time.

ASSURANCE: The knowledge and courtesy of the employees and their ability to elicit trust and confidence; The ability of the output (and its provider) to function as promised

Dimensions of Quality

(5 of 6)

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RESPONSIVENESS:

Willingness

and ability of employees to help customers and provide proper services.

PERCEIVED QUALITY: The

relative

quality level of the output in the eyes of the customers.

Dimensions of Quality

(6 of 6)

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When is there too much Quality

The cost of quality

erodes the profit

The quality is too far exceeding customer expectationsRational turns to Irrational

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Importance of Customer Satisfaction and Loyalty

“Satisfaction is an attitude; loyalty is a behavior”

Loyal customers

spend more, are willing to pay higher prices

, refer

new clients

, and are

less costly

to do business with.

It costs

five times more

to find a new customer than to keep an existing one

happy

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Measuring Customer Satisfaction

Discover customer perceptions of business effectiveness

Compare company’s performance relative to competitors

Identify areas for improvementTrack trends to determine if changes result in improvements

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Difficulties with Customer Satisfaction Measurement

Poor measurement schemes

Failure to identify appropriate quality dimensions

Failure to weight dimensions appropriately

Lack of comparison with leading competitors

Failure to measure potential and former customers

Confusing loyalty with satisfaction

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Creative Problem Solving

Mess Finding

– identify symptoms

Fact Finding – gather data; operational definitions

Problem Finding

– find the root cause

Idea Finding

– brainstorming

Solution Finding

– evaluate ideas and proposals

Implementation

– make the solution work