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Kanos 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
Kanos Model of Satisfaction
Technique use to determine which
influence the attributes of products
and/or services have on customer
satisfaction (Kano et al. 1984)
Kanos 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?
Kanos 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
Kanos 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 bes Cost of Entry
Satisfier More is better Competitive
Delighter Latent Need Differentiator
Evaluate Current Performance

Kano Model
Delighters
Excited Quality
Dissatisfier
Must-be
Expected Quality
Didnt know I
wanted it but I
like it.
Cannot increase
my satisfaction, but
can decrease.
Dissatisfaction
Satisfaction
Service
Performance
Service
Performance
Satisfier
One Dimensional
Desired Quality
Kano Model Procedure
Analyze &
Brainstorm
Research
Plot &
Diagram
Strategize
Research
available data
sources
Determine data
collection
strategy
Design data
collection
instruments
Collect and
summarize data
Analyze results
from data
collection
Brainstorm list
of features and
functionality
Develop
Functional and
Dysfunctional
Questionnaire
Distribute
Questionnaire


Develop
Customer
Requirement
Matrix
Record
Questionnaire
results in
Matrix and
Summarize
Plot results on
Kano Model
Determine
Project selection
Product
Development
Service
Development
Identify
Marketing
Strategy

1. Research
Must Bes - 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 didnt have feature X?
Kano Questionnaire Answers:
I like it.
I expect it.
Im 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. 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
3. Plot & Diagram
Delighters
Attractive
Excited Quality
Dissatisfier
Must Be
Expected Quality
Satisfier
One Dimensional
Desired Quality
Dissatisfaction
Satisfaction
Service
Performance
Service
Performance
Kano Model & QFD
4. Strategize
Project Selection
Lean Six Sigma
Design for Six Sigma
Organizational Strategy
Dissatisfier Must bes Cost of Entry
Satisfier More is better Competitive
Delighter Latent Need Differentiator

Application
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 bes Cost of Entry
Satisfier More is better Competitive
Delighter Latent Need Differentiator
Identify and implement strategy
Questions?
References
Walder,D.,(1993).Kanosmodelforunderstanding
customer-definedquality.CenterForQualityof
ManagementJournal,39,6569.
Jacobs,R.,(1997).Evaluatingcustomersatisfactionwith
mediaproductsandservices.EuropeanMediaManagement
Journal,32,1118.
Ungvari,S.,(1999).Addingthethirddimensiontoauqlity.
TrizJournal,40,3135.
Sauerwein,E.,Bailom,F.,Matzler,K.,&Hinterhuber,H.
(1996).Thekanomodel:Howtodelightyourcustomers.
InternationalWorkingSeminaronProductionEconomics,
19,313-327
Zultner,R.E.&Mazur,G.H.(2006).TheKanoModel:
RecentDevelopments.Theeighteenthsymposiumon
QualityFunctionDeployment.
36
Dimensions of Quality
Performance
Reliability
Convenience and
Accessibility
Features
Empathy
Conformance to
Standards
Serviceability
Durability
Aesthetics
Consistency
Assurance
Responsiveness
Perceived
Quality

37
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
38
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 outputs basic functions.
39
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)
40
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)
41
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)
42
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)
43
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
44
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
45
Measuring Customer Satisfaction
Discover customer perceptions of
business effectiveness
Compare companys 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