01/27/19

Quality defined

Customer

Dimensions of Quality •  Fitness for use

•  Getting what you expect
in Product and Service •  Perceived performance
•  “Lies in the eyes of the beholder”.

Manufacturing/ Service
By: Prof. Jerome Alvarez •  Conformance to requirements
•  Meet Specifications
•  Product is well-made
•  Service performed according to
operational guidelines

Gap Model Linking Voice of the Customer

to Internal Processes
Customers Perceived Value

•  CPV measures how customers assess benefits

PERCEIVED
QUALITY in —such as product performance, ease of use,
comparison or time savings—against costs, such as
with
ACTUAL purchase price, installation cost or time, and
QUALITY so on, in making purchase decisions.
and
EXPECTED
QUALITY

An example of this is "United

Happy Customer vs. Satisfied Customer Breaks Guitars” - a trio of protest
songs by Canadian musician Dave
Carroll and his band. It chronicles
a real-life experience of how his
“There is a huge difference between a guitar was broken during a trip on
United Airlines in 2008. After
happy customer and a satisfied customer. fruitless negotiation with the
company for 9 months, he just
A happy customer is 5 to 7 times more decided to write a song about it.
The song became an immediate
likely come back.” YouTube hit in July 2009,
reaching 150,000 hits in just 1
-- Armand Feigenbaum day, 16M+ currently.

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3 Classes of Customer Needs 3 Classes of Customer Needs

•  The Japanese TQM professor and consultant 1.  Dissatisfiers, needs that are expected in a
Noriaki Kano, has provided us with a very product or service; also known as “must-
useful model of customer satisfaction as it be,” “basic,” or “expected” characteristics.
relates to product characteristics. 2.  Satisfiers, needs that customers say they
•  Kano’s model divides product characteristics want; also known as “one-dimensional” or
into three distinct categories, each of which “straight-line”characteristics.
affects customers in a different way. 3.  Delighters, new or innovative features that
customers do not expect; also known as
“attractive” or “exciting” characteristics.

3 Classes of Customer Needs 3 Classes of Customer Needs

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3 Classes of Customer Needs Dissatisfier

•  A product characteristic that the customer takes for granted
when it is presented, but that causes dissatisfaction when it is
missing.
–  things that customers don’t normally ask about, because they
expect them to be taken care of.
–  absence of “expected quality,” in the sense that customers expect
products to be essentially flawless, and if they are not, the
customers are dissatisfied.
–  Customer complaints are a primary source of information on
existing dissatisfiers in our current products.

https://www.isixsigma.com

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Satisfier Delighter
•  is something that customers want in their products, •  are product attributes or features that are pleasant
and usually ask for. surprises to customers when they first encounter
–  The more we provide of a satisfier, the happier customers will them.
be. –  if delighters are not present, customers will not be dissatisfied, since
–  sometimes called “desired quality” because they represent they will be unaware of what they are missing.
the aspects of the product that define it for the customer. –  Delighters are sometimes called “exciting quality” or “unexpected
–  the attributes that tend to be easy to measure, and therefore quality.”
they become the benchmarks used for competitive analysis. –  As with dissatisfiers, customers don’t tell us they want delighters.
The needs that delighters fill are often called “latent” or “hidden”
needs.

Examples Examples

Examples Examples

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Examples Examples

Quality Perspectives
Examples
by David Garvin

•  Customer Perspective: meeting or exceeding

customer expectations
•  Manufacturing Perspective: conformance to
specifications
•  Transcendent Perspective: excellence
•  Product Perspective: quantities of product
attributes
•  User Perspective: fitness for intended use
•  Value Perspective: quality vs. price

Quality Perspectives
Manufacturing based
by David Garvin
transcendent & •  Manufacturing-based definitions are concerned primarily
product-based user-based with engineering and manufacturing practices and use the
needs universal definition of “conformance to requirements”.
Marketing
Customer
•  This approach has the serious weakness. The consumer’s
value-based
perception of quality is equated with conformance and
products Design
hence is internally focused.
and manufacturing-
based
services
Manufacturing
Distribution

Information flow
Product flow

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Transcendental Product based

•  Quality is difficult to define or to operationalize. It thus •  Quality is viewed as a quantifiable or measurable
becomes elusive when using the approach as basis for characteristic or attribute. (Ex: durability or reliability)
competitive advantage. Moreover, the functions of design,
production and service may find it difficult to use the •  Quality is determined
definition as a basis for quality management. objectively. Although
this approach has many
•  T h o s e w h o h o l d t h e benefits, it has
transcendental view would say limitation as well.
“I can’t define it, but I know it Where quality is based
when I see it” on individual taste or
preference, the
benchmark for
measurement may be
misleading.

User based Value based

•  Quality is an individual matter and products that best •  It is defined in term of costs and prices as well as
satisfy their preferences are those with the highest quality. number of other attributes. Thus, the consumer’s
This is a rational approach but leads to two problems; purchased decision is based on quality at an
•  Consumer preference
acceptable price.
vary widely and it is
difficult to aggregate
these preferences into •  The highest quality is not usually the best value.
products with wide That designation is assigned to the “best- buy”
appeal.
product or service.
•  A n o t h e r p r o b l e m
concerns the answer to
the question “Are quality
and customer satisfaction
the same?” the answer is
probably not.

8 Dimensions of Quality
Dimensions of Quality
by David Garvin
§  The performance dimension relates to the quality of the
1.  Performance – a product’s primary operating characteristics. fundamental purpose for which the product is purchased.
2.  Features – the “bells and whistle’s” of a product.
§  The features dimension refers to product capabilities not considered
3.  Reliability – the probability of a product’s surviving over a
to be part of normal performance expectations.
specified period of time under stated conditions of use.
4.  Conformance – the degree to which physical and performance §  The reliability dimension relates to performance that can be
characteristics of a product match pre-established standards. depended upon with a high level of assurance.
5.  Durability – the amount of use of one gets from a product before
it physically deteriorates or until replacement is preferable. §  The conformance dimension alludes to the degree to which the
measured production qualities correspond to the design quality
6.  Serviceability – the ability to repair a product quickly and easily. standards that have been specified.
7.  Aesthetics – How a product looks, feels, sounds, tastes, or smells.
8.  Perceived Quality – subjective assessment resulting from image, §  The durability dimension deals with how well the product endures in
the face of use and stress.
advertising, or brand names.
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Dimensions of Quality
Others

§  The serviceability dimension is related to how often service is •  Robustness
required; and how difficult, and how costly it is to service and repair
the product. •  Ability to operate or utilize in adverse conditions
•  To become robust is to become less sensitive to
§  The aesthetics dimension refers to the appearance of the product. variations.
§  The perceived quality dimension relates to the customers’
perceptions of the product’s quality and value received for monies •  Safety - Freedom from injury or harm
paid. This dimension integrates the prior seven dimensions with the
customers’ sense of value for them. Market research is one of the
most important means for determining the customers’ perceived •  Value/ Affordability - Intrinsic value, value for money
quality.

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Service Quality Moments of Truth

•  Customer satisfaction or dissatisfaction takes place during
•  Service is defined as “any primary or moments of truth—every interaction between a customer
complementary activity that does not and the organization.
directly produce a physical product – that is, •  Example (airline)
–  Making a reservation
the non-goods part of the transaction –  Purchasing tickets
between buyer (customer) and seller –  Checking baggage
–  Boarding a flight
(provider).” –  Ordering a beverage
–  Requests a magazine
–  Deplanes
–  Picks up baggage

Service Quality SERVQUAL

•  The tangible component of services is important •  First published in 1977 by Valarie Zeithaml, A.
Parasuraman & Leonard Berry to measure
•  The service process is important
quality in the service sector.
•  The service is judged against the customer’s
expectations •  The authors also identified 5 Gaps that may
•  Exceptions will occur cause customers to experience poor service
quality
•  Later on, SERVQUAL was refined, simplified,
and called RATER

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5 Gaps to Service Quality Dimensions of Service Quality

Gap 1 : between management Perception of Customer 1.  Competence is the possession of the required skills and knowledge to perform
the service.
expectations and customer Expected Service 2.  Courtesy is the consideration for the customer's property and a clean and neat
Gap 2 : between management Perception of Customer appearance of contact personnel, manifesting as politeness, respect, and
friendliness.
expectations and Service Quality Specification
3.  Credibility includes factors such as trustworthiness, belief and honesty. It
Gap 3: between Service Quality Specification and Service involves having the customer's best interests at prime position. It may be
Delivery influenced by company name, company reputation and the personal
characteristics of the contact personnel.
Gap 4: between Service Delivery and External 4.  Security enables the customer to feel free from danger, risk or doubt including
Communication physical safety, financial security and confidentiality.
5.  Access is approachability and ease of contact. For example, convenient office
Gap 5: between Expected Service and Experienced operation hours and locations.
Service

Dimensions of Service Quality RATER (1990)

6.  Communication means both informing customers in a language they are able to
understand and also listening to customers. Information might include for example,
1.  Reliability: the ability to perform the promised service
explanation of the service and its cost, the relationship between services and costs and dependably and accurately
assurances as to the way any problems are effectively managed
7.  Knowing the customer means making an effort to understand the customer's individual 2.  Assurance: the knowledge and courtesy of employees
needs, providing individualized attention, recognizing the customer when they arrive and and their ability to convey trust and confidence
so on. This in turn helps to delight the customers by rising above their expectations.
8.  Tangibles are the physical evidence of the service, for instance, the appearance of the 3.  Tangibles: the appearance of physical facilities,
physical facilities, tools and equipment used to provide the service; the appearance of equipment, personnel and communication materials
personnel and communication materials and the presence of other customers in the
service facility. 4.  Empathy: the provision of caring, individualized
9.  Reliability is the ability to perform the promised service in a dependable and accurate
manner. The service is performed correctly on the first occasion, the accounting is correct,
attention to customers
records are up to date and schedules are kept. 5.  Responsiveness: the willingness to help customers
10.  Responsiveness is the readiness and willingness of employees to help customers by
providing prompt timely services, for example, mailing a transaction slip immediately or and to provide prompt service
setting up appointments quickly.