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Jing-hua Li Zhejiang Gongshang University P.R.China 02/06/2008

New service development using gap-based quality function deployment A mobile telecommunication case. Jing-hua Li Zhejiang Gongshang University P.R.China 02/06/2008. Research questions. Why study new service development ? Why combine the Gaps and QFD ? Why employ mobile telecom case ?.

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Jing-hua Li Zhejiang Gongshang University P.R.China 02/06/2008

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  1. New service development using gap-based quality function deploymentA mobile telecommunication case Jing-hua Li Zhejiang Gongshang University P.R.China 02/06/2008

  2. Research questions • Why study new service development ? • Why combine the Gaps and QFD ? • Why employ mobile telecom case ?

  3. Contents • Combining two models ? • New model • Mobile phones in China • What this means ?

  4. Combining two models? • House of quality • Gap model

  5. technical correlations relative importance benchmarking on needs target and final specs House of quality engineering metrics relationships between customer needs and engineering metrics customer needs

  6. 1 1 1 1 1 Village Volvo Volvo Dealer Fitzsimmons, Fitzsimmons, 2001

  7. CustomerSatisfaction Communication Customer / Marketingresearch Gap5 Gap4 Gap1 Serviceperformance Servicedesign Gap3 Gap 2 Gap model CustomerExpectations Customer Demands ServiceDelivery Managementperceptionsofcustomerexpectations ServiceSpecifications Parasuraman, et al., 1985, 1988

  8. Combining two models?

  9. New Model • Theoretical model • Operational model • Weights

  10. Questionnaire Interview Interview Literature

  11. Performance Attractive Don’t fulfill expectations Must-be Customer dissatisfaction Kano, et al, 1984 Weights of service quality • positive question • Required elements can be always found • reverse question • Required elements can NOT be always found Matzler, Hinterhuber, 1998

  12. Mobile phones in China • Background • Model • Questionnaire • Interview

  13. China mobile phones Background Source:www.drcnet.com.cn Mobile subscribers (million)

  14. Subscribers per 100 inhabitants, Winter 2007, China Background Source:www.drcnet.com.cn

  15. Operators: China Mobile Object: users of GoTone Content: local voice service Characteristics: simple forms Operators: China Mobile and China Unicom Object: overall expansion Content: local voice, toll voice, roaming service Characteristics: various kinds of packages, update quickly, different means for sale Operators: China Mobile and China Unicom Object: an expansion of users interface Content: local voice, toll voice, roaming service Characteristics: intensified competition, bundling sale Operators: China Mobile and China Unicom Object: comprehensive users Content: voice service. data service, choose available Characteristics: rational competition trend Beginning “Price chaos” 2001 2008 2002 2003 2005 “Rational competition” Development

  16. Tariff brands in China Mobile • GoTone businessman and other high earners • M-zone students • Easyown remaining sections of society

  17. Definition of objectives Designof tariff package Designof marketing strategy Tracking &assessment Market forecasts Benefit forecasts Audit for approval Launch ·find market opportunities ·consider the copy strategy ·make marketing Objectives ·focus on target Consumers ·analyze consumption characteristic ·design product mix of tariff package ·decide tariff level in advance ·select marketing channels and sale mode ·formulate the publicity strategy ·a pre-assessment on the package ·predict the profit and cost ·determine the tariff level ·be presented to China Mobile (headquarter) to get a approval through auditing users tracking ·the effective assessment ·salesmantraining ·market sales Feedback & adjustment New tariff package development

  18. Questionnaire Elements of package • G1 Required elements can be always found • G2 The differentiation between elements is always significant • G3 The elements of package are full enough • G4 The package is simple enough Range of free choice • G5 I can choose elements of package freely • G6 The packages with same brand can be chosen together Personalization of package • G7 The interval between new tariff packages is reasonable • G8 The package is always improved with the changing of customer demands • G9 The content of package is novel and personalized • G10 The tariff package has image symbols Price • G11 The package is always with a preferential price • G12 The package is always with a clear billing

  19. Profile(125 subscribers, August 2007)

  20. Pearson correlations

  21. Reliability and Validity customer demands

  22. The weights of service quality

  23. Interview I • “left wall”-- customer demands elements of package; range of free choice; personalization of package; price • “ceiling” -- design process of tariff package • market forecasts; • target orientation; • design tariff package; • planning marketing strategy; • revenue forecasts; • approval; • launching into market; • keeping track and evaluation; • improving according to the feedback

  24. Interview II • “left wall” -- customer perception elements of package range of free choice personalization of tariff package price • “ceiling”-- tariff package product price place promotion

  25. What this means ? • New service development vs. service innovation • Engineering vs. marketing • Thought vs. methodology • Theory vs. practice

  26. Acknowledgements Natural Science Fund of China (Grant No. 70402016) Natural Science Fund of Zhejiang Province (Grant No. Y605404) Two co-authors’ contribution: Ms. Lei Xu, Ms. Xiu-lan Wu Two anonymous reviewers of International Journal of Services Technology and Management Mr. Jonathan Alyen’s kindly help on presentation and slide design

  27. References in slides • James A. Fitzsimmons, Mona J.Fitzsimmons, Service Management: Operation, Strategy, and Information Technology, Third Edition, McGraw-Hill Companies, Inc. 2001, p58 • A. Parasuraman, L.L. Berry, V.A. Zeithaml, A conceptual model of service quality and its implications for future research, Journal of Marketing, Vol. 49, pp.41–50, 1985. • A. Parasuraman, L.L. Berry, V.A. Zeithaml, SERVQUAL: A multi-item scale for measuring consumer perceptions of service quality, Journal of Retailing, Vol. 64, No. 1, pp.12–40, 1988. • N. Kano, et al. Attractive quality and must-be quality, Hinshitsu (Quality, the Journal of Japanese Society for Quality Control), Vol. 14, pp.39–48, 1984. • K. C. Tan, T. A. Pawitra, Integrating SERVQUAL and Kano's model into QFD for service excellence development, Managing Service Quality, vol. 11, no. 6, pp. 418-430, 2001. • K. Matzler, H. H. Hinterhuber, How to make product development projects more successful by integrating Kano’s model of customer satisfaction into quality function deployment? Technovation, Vol. 18, No. 1, pp. 25-38, 1998.

  28. Welcome comments and questions ! Academic Visitor Manchester Institute of Innovation Research Manchester Business School The University of Manchester 5.10 Harold Hankins Building Tel: +44 161 275 0928(O) Mobile (UK): +44 779 982 1004 Mobile (China): +86 139 581 600 47 Email: jinghua.li@mbs.ac.uk Email: jhli@zju.edu.cn

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