1. Kano’s Model of Customer Satisfaction How to Delight Your Customers
A. Nitipan Ratanasawadwat
Assumption University of Thailand

2. Origins of the Kano Model
Noriaki Kano
Professor at Tokyo Rika University
International Consultant
Received individual Demming Prize in 1997
Know the Voice of the Customer
Translate the V
Kano Model concept first published in an article by Kano, N., Takahshi, F & Tsuji, S. (1984). Attractive quality and must-be quality. The Journal of the Japanese Society for Quality Control, April, pp

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. 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

5. 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

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 use to determine which influence the 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 three groups
Basic attributes/dissatisfiers/Must-have
Performance/one-dimensional attributes
Exciting attributes/satisfiers/Attractive

10. 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
the customer takes these requirements for granted, their fulfillment
will not increase his satisfaction. The must-be requirements are basic criteria of a product, comparing with category point-of-parity.

11. 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
With regard to these requirements, customer satisfaction is proportional to the level of fulfillment—the higher the level of fulfillment, the higher the customer’s satisfaction and vice versa. One-dimensional requirements are usually explicitly demanded by the
customer. Comparing to competitive point-of-parity.

12. 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
These requirements are the product criteria which have the greatest influence on how satisfied a customer will be with a given product. Attractive requirements are neither explicitly expressed nor expected by the customer. Fulfilling these requirements leads to more than proportional satisfaction. If they are not met, however, there is no feeling of dissatisfaction.

13. Three-Factor Theory

14. Typical Research Framework

15. 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
Surveys
Interviews
Focus Groups
Observations
Customer Complaints

16. Kano Model
 The Kano Model is a tool that can be used to prioritize the Critical to Quality characteristics, as defined by the Voice of the Customer and the three categories identified by the model are:
Must Be: Whatever the quality characteristic is, it must be present, such that if it is not, the customer will go elsewhere!
Performance: The better we are at meeting these needs, the happier the customer is.
Delighter: Those qualities that the customer was not expecting, but received as a bonus.
Link to Six Sigma:
Lean
Six Sigma
Design for Six Sigma
Model Structure
The model is represented in an (x, y) graph
The x-axis represents how good we are at achieving the customer’s outcome (s), or CTQ’s.
The y-axis records the customer’s level of satisfaction the customer should have, as a result of our level of achievement.

17. Kano Model Procedure Research Analyze & Brainstorm 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

18. 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

19. 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.
Output Requirement – Features of the final product and service delivered to the customer at the end of the process
Service Requirements – More subjective ways in which customer expects to be treated and served during the process itself
- How should we interact with and treat customers?

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
C.R. A E O R Q I
Total
Grade 1 3 6 14 23 2 5 11 4 13 10 9
All CR are not created equal. Improving performance on a Must-be CR that is already at a satisfactory level is not productive compared with improving performance on a one dimensional or attractive CR. Insight into which CRs fall into which quality dimensions can improve one’s focus on the vital few. In general, must-be requirements must be adequately covered, the set of one dimensional requirements must be competitive, and some attractive requirements are needed for competitive differentiation.
Customer Requirement is:
A: Attractive R: Reverse Q: Questionable Result
E: Expected O: One Dimensional I: Indifferent

27. 3. Plot & Diagram Plot Attributes Lean - Waste
Six Sigma – Defects, Variability
DFSS – New Product/Service Development

28. Kano Model & QFD

29. 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

30. 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

31. Example Results

32. Debrief
Analysis
Strategy Recommendations

33. 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

34. Questions?

35. 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,
Zultner, R.E. & Mazur, G. H. ( 2006). The Kano Model: Recent Developments. The eighteenth symposium on Quality Function Deployment.

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 output’s basic functions.

39. 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.

40. 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.

41. 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

42. 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.

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 company’s performance relative to competitors
Identify areas for improvement
Track trends to determine if changes result in improvements

46. 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

47. 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