7 - Customer Satisfaction and Service Quality

8/12/2019 7 - Customer Satisfaction and Service Quality

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SVM125 Quarter 3 SY 2010-11 2

Lecture 7Customer Satisfaction

andService Quality


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What is Customer Satisfaction?

Customer satisfaction is a measure of how productsand services supplied by a company are able tomeet customers expectations. Customer satisfaction is the state of mind that

customers have about a company when theirexpectations have been met or exceeded over thelifetime of the product or service.Customer satisfaction refers to the customers

feelings in response to evaluations of one or moreuse experiences with a service/product


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What is Customer Satisfaction?

It is an abstract concept and will vary fromproduct to product and from customer tocustomer.It depends on both psychological andphysical variables.The achievement of customer satisfaction

leads to company loyalty and productrepurchase.


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What is Customer Satisfaction ?Customer Satisfaction has two conceptualizations:

Transaction-specific state of affect of customer aftera simple transaction ensues between provider andcustomer. Transactional satisfaction is typicallyleveraged for service diagnostics. ConsumerResearch deals with transactional models ofsatisfaction service encounter levelCumulative state of affect of customer after acumulative set of transactions between provider andreceiver over a longer duration of time. Typicallysatisfaction models belong here. Cumulativesatisfaction is a fundamental indicator of a firmscurrent and long term business performance


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Different Aspects of CustomerSatisfaction

Satisfaction with the quality of a particularproduct or service Satisfaction with an ongoing businessrelationship Satisfaction with the price-performance ratioof a product or service

Satisfaction because a product/service metor exceeded the customer's expectations


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How is Customer SatisfactionMeasured?

Measurement is not be exact and will requiresampling and statistical analysis because customersatisfaction is a subjective, nonquantitative state,

Customer satisfaction measurement must beundertaken with an understanding of the gapbetween customer expectations and attributeperformance perceptions.

There should be some connection betweencustomer satisfaction measurement and bottom-lineresults.


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Customer Satisfaction MeasurementFacts

A 5-percent increase in loyalty can increase profitsby 25%-85%.

A very satisfied customer is nearly six times morelikely to be loyal and to repurchase and/or

recommend your product than a customer who is just satisfied.Only 4 percent of dissatisfied customers willcomplain.The average customer with a problem eventuallytells nine other people.Satisfied customers tell five other people about theirgood treatment.


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Kanos model of customer satisfaction


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Origins of the Kano ModelNoriaki Kano

Received individual Demming Prize in 1997Challenged traditional Customer SatisfactionModels that More is better, i.e. the more you

perform on each service attribute the moresatisfied the customers will be.Proposed new Customer Satisfaction model(Kano Model)

Performance on product and service attributes isnot equal in the eyes of the customersPerformance on certain attributes produces higherlevels of satisfaction than others.


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Key Elements of the Model

Identify the Voice of the CustomerTranslate Voice of the Customer into Criticalto Quality (CTQs) Characteristics

Rank the CTQs into three categories:Dissatisfier - Must bes Cost of EntrySatisfier More is better CompetitiveDelighter Latent Need Differentiator

Evaluate Current Performance


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Kano Model Requirements Survey

Kano Model Requirements SurveyUser Survey

Functional form vs. Dysfunctional Form How would you feel if the product h a d 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.


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Example: Requirements Survey


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Example: Requirements Questionnaire


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Functional vs. Dysfunctional Comparison


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Evaluation Customer Requirements

C.R. A E O R Q I Total Grade1 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 ACustomer Requirement is:

A: Attractive R: Reverse Q: Questionable ResultE: Expected O: One Dimensional I: Indifferent


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Example Results


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Kano Model & QFD

Documents

7 - Customer Satisfaction and Service Quality