● A success of an organization depends on
○ How many customers it has
○ How much they buy
○ How often they buy
● An organization must give its customer a
quality product or service that meet their
needs at a reasonable price, which includes
on-time delivery and outstanding service.
● Total satisfaction is achieved when the offer
● Feedback is ongoing and active probing
of the customer mind.
● It enables the organization to:
▪ discover customer dissatisfaction.
▪ discover relative priorities of quality.
▪ compare performance with the
▪ identify customer needs.
▪ determine opportunities for
6. How to do feedback?
● Listening to customer voice can be accomplished by numerous
information collecting tools like:
1. comment cards
3. focus groups
4. toll-free telephone lines
5. customer visit
7. Translating needs into requirements
● The Kano Model is an approach to prioritizing
features on a product roadmap based on the
degree to which they are likely to satisfy
● Product managers often use the Kano Model
to prioritize potential new features by
grouping them into categories.
9. Customer retention
● Represent those activities that produce customer
satisfaction and creates customer loyalty which
improves bottom line.
● Customer satisfaction should also be measured by
market share, cash register receipts, no. of referrals
from other customer etc.
● Can be done by having employee retention, which has
an impact on customers.
● Maximize customer retention and satisfaction, financial
reward will follow automatically
11. Internal customer supply chain
● As an organisation seeks to satisfy the external
customer, same concept applies to internal
● Each individual becomes customer and supplier
along the business process flow.
12. Material Process Process Sales
13. External Suppliers
● Small and medium business also needs to
develop a strategy treating themselves as a
customer to their own external suppliers.
● A policing attitude towards suppliers where
visits and inspection are undertaken with little
or no prior warning may reveal their mistakes
and poor quality.
● Some formal measures must be established
between the customer and supplier,
otherwise the relationship may become
14. ● These could include:
❖ Accurate measurable customer requirements
❖ Periodic customer supplier quality reviews
❖ Examination of supplier quality policy
❖ Creation of customer supplier improvement teams
A long-term relationship between supplier and buyer allows for the
free-flow of feedback and ideas. Over time, this will create a more
streamlined, effective supply chain that could have a positive impact
on both costs and customer service.
15. Kano’s Model
● A theory for product development and customer
● Developed in the 1980s by Professor Noriaki Kano.
● Classifies customer preferences into five categories.
● Needs and wants of organization can and should be
segmented into a hierarchy.
● It provides a logical pathway to meeting and exceeding
customer needs on the important elements of
relationship between an organization and customer.
Kano’s model of customer
satisfaction as a function
of need fulfillment
Degree of fulfillment
17. 1.Must-be Quality: These are the requirements that the
customers expect and are taken for granted. Examples: In a hotel,
providing a clean room is a basic necessity.
1.One-dimensional Quality: These are attributes that are
spoken and the ones in which companies compete. Examples:
Waiting service at a hotel.
1.Attractive Quality: These are attributes that are not
normally expected. Examples: In a hotel, providing free food is an
18. 4. Indifferent Quality: These attributes refer to
aspects that are neither good nor bad, and they do
not result in either customer satisfaction or customer
Examples: In a call center, highly
polite speaking and very prompt responses might
not be necessary to satisfy customers and might not
be appreciated by them.
5. Reverse Quality: These attributes refer to a high
degree of achievement resulting in dissatisfaction
and to the fact that not all customers are alike.
Examples: In a call center, using a lot of jargon, using
excessive pleasantries, or using excessive scripts
while talking to customers might be off-putting for
21. As customer expectations change with the
level of performance from competing
products. Attributes can move from delighter
to performance need and then to basic
For example, In 2009, mobile phone charge
would last 12 hours. As each new mobile
phone generation improved battery life, the
attribute of 12-hour battery life has shifted
from delighter to less than a basic need.
1.Determine Main Features
2. Devise Questionnaire:
Kano proposes a standardized questionnaire to measure
participants' opinions in an implicit way by ansering in functional as
well as dysfunctioanal way
24. 3. Sum Responses: Average Response is Calculated.
4. Identify Classification:
Illogical answers (e.g., "I like it" for both the functional and dysfunctional
questions) are usually neglected or put in a special category "Questionable".
5. Kano Graph Plot: For visual Guide.
The Kano model offers some insight into the product attributes which
are percieved to be important to customers.
Kano's model provides the insights into the dynamics of customer
preferences to understand these methodology dynamics.
The purpose of the tool is to support product specification and
discussion through better development of team understanding.
Kano's model focuses on differentiating product features, as opposed
to focusing initially on customer needs.
Kano also produced a methodology for mapping consumer responses
to questionnaires onto his model.
● We must be nearly flawless on meeting
customers' must-be needs and we should
focus our time, effort and quality teams on
● We should acknowledge the one-
dimensional needs of our customers but
quickly move the discussion to the next level
to focus on delighters.
● We must focus concentrated effort on the
delighters -- those differentiators that provide
extraordinary benefit to the customer without
increasing a supplier's cost.
28. Customer Protection
The following points justify the need for customer protection:
❖ Customer do not have adequate product knowledge.
❖ They are ignorant of their right.
❖ They are in a weak bargaining position.
❖ Manufactures and suppliers have the expertise which they don’t have
❖ Often products are forced on customers through publicity, eye
catching packaging and advertisements.
❖ Fake and spurious products are flooding the markets and deceiving
❖ Let the buyer be aware is not realistic in complex and mass produced
goods or services.
29. Quality awards
● Thee are quality awards aiming for customer satisfaction:
○ Malcolm Baldrige National Quality Award
○ ISO 9000: though it does not fully address but the inherent
assumption is that customer requirements are known and fulfilled
○ The European quality award
○ The Deming prize for quality
○ The Golden Peacock National Quality Award