Transcript KanoModel_Satisfaction_040213

Kano’s Model of Customer Satisfaction
How to Delight Your Customers
A. Nitipan Ratanasawadwat
Assumption University of Thailand
Origins of the Kano Model
Noriaki Kano
Professor at Tokyo Rika University
International Consultant
Received individual Demming Prize in 1997
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
Origins 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
Origins 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 customers
Performance on certain categories
attributes produces higher levels of
satisfaction than others
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
Kano’s Model of Satisfaction
Technique use to determine which
influence the attributes of products
and/or services have on customer
satisfaction (Kano et al. 1984)
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?
Kano’s Model of Satisfaction
Product/service attributes can be classified
into three groups
1. Basic attributes/dissatisfiers/Must-have
2. Performance/one-dimensional
attributes
3. Exciting attributes/satisfiers/Attractive
Basic Attributes/Dissatisfiers
• Minimum required features that
customer naturally expect from a
product/service
• Not able to elicit satisfaction but can
produce dissatisfaction when not fulfilled
• ex. Punctually and safety of airline
Performance/One-dimensional Attributes
• Produce both satisfaction dissatisfaction
depending on performance levels
• satisfaction is proportional to the level of
fulfillment of these attributes
• ex. Gasoline consumption of a car; lower
consumption leads to higher customer
satisfaction
Exciting Attributes/Satisfiers
• Produce satisfaction when delivered but
cause no dissatisfaction if not delivered
• High performance on these has a greater
impact on overall satisfaction rather than
low performance
• ex. (unexpected) promotional offers
Three-Factor Theory
Typical Research Framework
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
Kano Model
“Didn’t know I
wanted it but I
like it.”
Satisfaction
Satisfier
One Dimensional
Desired Quality
Delighters
Excited Quality
Service
Performance
Service
Performance
Dissatisfier
Must-be
Expected Quality
Dissatisfaction
“Cannot increase
my satisfaction, but
can decrease.”
Kano Model Procedure
Research
•Research
available data
sources
•Determine data
collection
strategy
•Design data
collection
instruments
•Collect and
summarize data
Analyze &
Brainstorm
•Analyze results
from data
collection
•Brainstorm list
of features and
functionality
•Develop
Functional and
Dysfunctional
Questionnaire
•Distribute
Questionnaire
Plot &
Diagram
•Develop
Customer
Requirement
Matrix
•Record
Questionnaire
results in
Matrix and
Summarize
•Plot results on
Kano Model
Strategize
•Determine
Project selection
•Product
Development
•Service
Development
•Identify
Marketing
Strategy
1. Research
• Must Be’s - Focus Groups, Lawsuits and
Regulations, Buzz on Internet
• Satisfiers - Competitive Analysis, Interviews,
Surveys, Search Logs, Usablity Testing,
Customer Forums
• Delighters - Field Research,
Marketing/Branding Vision, Industrial Design,
Packaging, Call Center Data, Site Logs
2. Analyze & Brainstorm
• 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.
Example: Requirements Survey
Example: Requirements Questionnaire
Functional vs. Dysfunctional Comparison
Functional vs. Dysfunctional Comparison
Basic
Attribute
Functional vs. Dysfunctional Comparison
Performance
Attribute
Functional vs. Dysfunctional Comparison
Exciting
Attribute
Evaluation Customer Requirements
C.R.
1
A
3
E
6
O
14
2
5
6
11
3
6
1
4
13
10
1
2
4
5
11
R
1
Q
I
Total Grade
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O
1
23
O
11
23
I
23
E
23
A
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Customer Requirement is:
A: Attractive R: Reverse
Q: Questionable Result
E: Expected O: One Dimensional
I: Indifferent
3. Plot & Diagram
Satisfaction
Satisfier
One Dimensional
Desired Quality
Delighters
Attractive
Excited Quality
Service
Performance
Service
Performance
Dissatisfier
Must Be
Expected Quality
Dissatisfaction
Kano Model & QFD
4. Strategize
Project Selection
• Lean Six Sigma
• Design for Six Sigma
Organizational Strategy
• Dissatisfier – Must be’s – Cost of Entry
• Satisfier – More is better – Competitive
• Delighter – Latent Need – Differentiator
Application
•
•
•
•
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Break into Teams
Select Team Leader
Select Scribe
Select Presenter
Scenario – You work for a Hotel chain and your
company is trying to identify Voice of the Customer
information to improve Hotel performance.
• Instructions:
 Brainstorm important characteristics you expect
when staying at a Hotel
 Identify whether they are a Must be, Expected or
a Delighter from a Business Client perspective
and from a vacationer perspective
 Add in what the current performance is for the
Hotel
Example Results
Debrief
• Analysis
• Strategy Recommendations
Summary of Kano Model
• Analyze and rank the voice of the
customer data
• Develop into Categories
– Dissatisfier – Must be’s – Cost of Entry
– Satisfier – More is better – Competitive
– Delighter – Latent Need – Differentiator
• Identify and implement strategy
Questions?
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 - 327
• Zultner, R.E. & Mazur, G. H. ( 2006). The Kano Model:
Recent Developments. The eighteenth symposium on
Quality Function Deployment.
Dimensions of Quality
• Performance
• Reliability
• Convenience and
Accessibility
• Features
• Empathy
• Conformance to
Standards
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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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Dimensions of Quality (3 of 6)
• EMPATHY: The demonstration of caring and
individual attention to customers.
• CONFORMANCE: The degree to which an
output meets specifications or requirements.
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Dimensions of Quality (4 of 6)
• 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.
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Dimensions of Quality (5 of 6)
• 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
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Dimensions of Quality (6 of 6)
• 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.
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When is there too much Quality
• The cost of quality erodes the profit
• The quality is too far exceeding
customer expectations
• Rational 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 improvement
• Track 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
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