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Kano’s model of Customer Satisfaction

Kano’s model of Customer Satisfaction. Dr. Surej P John. Origin of the Kano Model. Noriaki Kano Professor at Tokyo Rika University International Consultant Received individual Demming Prize in 1997. Introduction.

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Kano’s model of Customer Satisfaction

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  1. Kano’s model of Customer Satisfaction Dr. Surej P John

  2. Origin of the Kano Model NoriakiKano • Professor at Tokyo Rika University • International Consultant • Received individual Demming Prize in 1997

  3. 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

  4. 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

  5. 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 customers • Performance on certain categories attributes produces higher levels of satisfaction than others

  6. 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

  7. 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)

  8. 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?

  9. Kano’s Model of Satisfaction Product/service attributes can be classified into Five groups • Attractive Quality Attributes • One dimensional Quality Attributes • Must have Quality Attributes • Indifference Quality Attributes • Reverse Quality Attributes

  10. 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 performance • ex. (unexpected) promotional offers

  11. 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

  12. 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/service • Considered as basic attributes of a product or a service. • ex. Punctuality and safety of airline

  13. 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

  14. 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.

  15. Three-Factor Theory

  16. Typical Research Framework

  17. 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

  18. Kano Model

  19. 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.

  20. Example: Requirements Survey

  21. Example: Requirements Questionnaire

  22. Functional vs. Dysfunctional Comparison

  23. Functional vs. Dysfunctional Comparison Basic Attribute

  24. Functional vs. Dysfunctional Comparison Performance Attribute

  25. Functional vs. Dysfunctional Comparison Exciting Attribute

  26. Evaluation Customer Requirements Customer Requirement is: A: Attractive R: Reverse Q: Questionable Result E: Expected O: One Dimensional I: Indifferent

  27. 3. Plot & Diagram

  28. 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.

  29. Questions?

  30. 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.

  31. Performance Reliability Convenience and Accessibility Features Empathy Conformance to Standards Serviceability Durability Aesthetics Consistency Assurance Responsiveness Perceived Quality Dimensions of Quality

  32. 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

  33. 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.

  34. 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.

  35. 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.

  36. 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

  37. 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.

  38. 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

  39. 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

  40. 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

  41. 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

  42. 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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