An investigative study into the asymmetrical and non-linear relationships between quality attributes and customer satisfaction

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1 An investigative study into the asymmetrical and non-linear relationships between quality attributes and customer satisfaction prospect theory 43 Kano model implication Abstract In the past, very little research has been carried out into the differing roles played by various quality attributes on customer satisfaction and the vast majority of scholars consider the relationship between quality attributes and customer satisfaction to be linear. However, from the point of view of prospect theory, this relationship may be non-linear. This study began by reviewing past research into quality attributes and customer satisfaction. Next, an investigative study was carried out on hypermarket customers and it was found that the relationship between most quality attributes and customer satisfaction is asymmetrical and non-linear. It was also discovered that the value function curve of prospect theory could only be used on certain one-dimensional quality attributes. The attractive quality, must-be quality, indifferent quality, and reverse quality attributes as well as some of one-dimensional quality attributes could not be described by the value function curve. Based on the differences in the way they affect customer satisfaction, the 43 hypermarket quality attributes were categorized in accordance with the Kano model and are presented here as a guide to practitioners in drawing up their marketing strategies. Some implications for management are discussed and some suggestions for further research are also forwarded. Keywords: quality attribute, customer satisfaction, prospect theory, Kano model 1

2 Kahneman and Tversky 1979 prospect theory S 1 gains concave losses convex losses gains steep 1 Kahneman, Daniel and Amos Tversky, Prospect Theory: An Analysis of Decision under Risk, Econometrica, vol.47, no., March 1979, pp Mittal, Ross, and Baldasare 1998 prospect theory Johnston 1995

3 Coyne, 1989 Mittal, Ross, and Baldasare 1998 Johnston 1995 delight tangibility integrity H3 H1 Kano, Seraku, Takahashi, and Tsuji, 1984 Mittal, Ross, and Baldasare 1998 attractive quality element one-dimensional quality element must-be quality utility-preserving element utility-enhancing negative disconfirmation indifferent quality positive disconfirmation element reverse quality element S Kano model H S basics, taken for granted Anderson and Sullivan, performance improvements 1993; Oliva, Oliver, and Bearden, 1995 wows and delights 3

4 Burton and 10 Patterson, 1999 Kano et al. Ishikawa 1990 backward-looking quality forward- looking quality % % Kondo, 55.% 000 Anderson and Sullivan 1993 Mittal, Ross, and Baldasare 1998 H4 Overall Satisfaction Intercept 1 LN_PER LP_PER PER N_PER P_PER LN_PER LP_PER L natural logarithm LN_PER ln -PER LP_PER 0 LP_PER ln PER LN_PER 0 "-4" LN_PER=ln - -4 LP_PER=0 "3" LP_PER=ln 3 43 LN_PER=0 LN_PER LP_PER

5 1 LN_PER 1 LP_PER S 0 S LN_PER diminishing sensitivity 1 LP_PER cf. Anderson and Sullivan, 1993; Mittal, Ross, and Baldasare, 1998 S LN_PER LP_PER 15 1=-0.89 =0.349 S 1 1= natural logarithm 3 1 = = =0.537 S H S 1 diminishing sensitivity curve Anderson and Sullivan, 1993; Mittal, Ross, and Baldasare, 1998 "*" 43 R H3 43 R R 43 R =0.363 F 86, 347 =.30 P=0.000 R =0.357 F 86, 347 =.36 H1 P=0.000 / 5

6 LN_PER LP_PER R 1 R * n.s n.s n.s n.s * n.s n.s n.s n.s n.s *** n.s *** * *** n.s *** n.s ** n.s ** *** *** * *** n.s *** ** ** * *** *** 0.49 *** *** *** *** *** n.s *** ** *** * *** *** *** *** *** ** 0.34 ** ** ** n.s *** ** *** n.s *** *** *** n.s *** n.s *** n.s ** n.s *** *** 0.67 *** n.s * *** 0.44 *** * *** n.s ** n.s *** ** *** * *** ( ) * *** LN_PER LP_PER * p 0.05 ** p 0.01 *** p

7 ( ) S attractive quality element

8 one-dimensional quality element must-be quality element 1 1 indifferent quality element 1 1 reverse quality element / Kondo 000 H Humphreys and Williams, 1996 musts satisfiers delightsclemmer, ; Levitt, 1983; Rust and Oliver, 000 S 8

9 replication Williams, Exploring the Relative Effects of Salesperson Interpersonal Process Attributes robustness and Technical Product Attributes on purify Customer Satisfaction, Journal of Personal Selling and Sales Management, vol.16, no.3, generalization Summer 1996, pp external validity 6. Ishikawa, K., Introduction to Quality Control, Tokyo: 3A Corporation, Johnston, Robert, The Determinants of Service Quality: Satisfiers and Dissatisfiers, International Journal of Service Industry Management, vol.6, no.5, 1995, pp Kahneman, Daniel and Amos Tversky, Prospect Theory: An Analysis of Decision under Risk, Econometrica, vol.47, no., March 1979, pp Kano, Noriaki, Nobuhiko Seraku, Furnio Takahashi, and Shinichi Tsuji, Attractive Quality and Must-Be Quality, Quality: The Journal of the Japanese Society for Quality Control, vol.14, April 1984, pp Kondo, Yoshio, Attractive Quality: Its Importance and the Points of Remark, Total Quality Management, vol.11, no.4/5 6, 000, pp Levitt, Theodore, The Marketing Imagination, New York: Free Press, Mittal, Vikas, William T. Ross, Jr., and Patrick M. Baldasare, The Asymmetric 43 Impact of Negative and Positive Attribute-Level Performance on Overall 1-1 Satisfaction and Repurchase Intentions, Journal of Marketing, vol.6, January 1998, LN_PER=0 LP_PER=0 pp Oliva, Terence A., Richard L. Oliver, and 1 William O. Bearden, The Relationship -1 Among Consumer Satisfaction, Involvement, and Product Performance, Behavioral Science, vol.40, April 1995, pp Rust, Roland T. and Richard L. Oliver, Should We Delight the Customer? Journal of the Academy of Marketing Science, 1. Anderson, Eugene W. and Mary W. Sullivan, vol.8, no.1, Winter 000, pp The Antecedents and Consequences of Customer Satisfaction for Firms, Marketing Science, vol.1, Spring 1993, pp Burton, Andrew and Simon Patterson, Integration of Consumer and Management in NPD, Journal of the Market Research Society, vol.41, no.1, January 1999, pp Clemmer, Jim, The Three Rings of Perceived Value, Canadian Manager, vol.15, Summer 1990, pp Coyne, Kevin, Beyond Service Fads----Meaningful Strategies for the Real World, Sloan Management Review, vol.39, Summer 1989, pp Humphreys, Michael A. and Michael R. 9

Prospect Theory: An Analysis of Decision under Risk

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