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New service development using gap-based quality function deployment A mobile telecommunication case
Jing-hua Li Zhejiang Gongshang University P.R.China 02/06/2008
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Research questions Why study new service development ?
Why combine the Gaps and QFD ? Why employ mobile telecom case ?
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Contents Combining two models ? New model Mobile phones in China
What this means ?
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Combining two models? House of quality Gap model
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relationships between
House of quality technical correlations relative importance engineering metrics relationships between customer needs and engineering metrics customer needs benchmarking on needs target and final specs
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1 Village Volvo Volvo Dealer Fitzsimmons, Fitzsimmons, 2001
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Service Specifications
Gap model Customer Satisfaction Customer Expectations Customer Demands Gap 5 Gap 1 Gap 3 Gap 4 Gap 2 Communication Customer / Marketing research Service Delivery Management perceptions of customer expectations Service performance Service design Service Specifications Parasuraman, et al., 1985, 1988
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Combining two models?
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New Model Theoretical model Operational model Weights
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Questionnaire Interview Interview Literature
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Weights of service quality
Kano, et al, 1984 Don’t fulfill expectations Customer dissatisfaction Attractive Must-be Performance positive question Required elements can be always found reverse question Required elements can NOT be always found Positive questions Reverse questions Happy Must-be Indifference Acceptable Unhappy Q A O R I M Matzler, Hinterhuber, 1998
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Mobile phones in China Background Model Questionnaire Interview
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Background China mobile phones Source: www.drcnet.com.cn
Mobile subscribers (million)
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Background Subscribers per 100 inhabitants, Winter 2007, China
Source: Subscribers per 100 inhabitants, Winter 2007, China
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Operators: China Mobile Object: users of GoTone Content: local voice service Characteristics: simple forms Operators: China Mobile and China Unicom Object: overall expansion Content: local voice, toll voice, roaming service Characteristics: various kinds of packages, update quickly, different means for sale Beginning “Price chaos” 2001 2002 2003 2005 2008 Development “Rational competition” Operators: China Mobile and China Unicom Object: an expansion of users interface Content: local voice, toll voice, roaming service Characteristics: intensified competition, bundling sale Operators: China Mobile and China Unicom Object: comprehensive users Content: voice service. data service, choose available Characteristics: rational competition trend
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Tariff brands in China Mobile
GoTone businessman and other high earners M-zone students Easyown remaining sections of society
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New tariff package development
Marke t foreca sts ·find market opportunities ·consider the copy strategy Defini tion of object ives ·make marketing Objectives ·focus on target Consumers ·analyze consumption characteristic Design of tariff package ·design product mix of tariff package ·decide tariff level in advance Design of marketing strategy ·select marketing channels and sale mode ·formulate the publicity strategy Benefi t foreca sts ·a pre-assessment on the package ·predict the profit and cost ·determine the tariff level Audit for appro val ·be presented to China Mobile (headquarter) to get a approval through auditing Launc h ·salesman training ·market sales Tracki ng & assess ment users tracking ·the effective assessment Feedback & adjustment
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Questionnaire Elements of package
G1 Required elements can be always found G2 The differentiation between elements is always significant G3 The elements of package are full enough G4 The package is simple enough Range of free choice G5 I can choose elements of package freely G6 The packages with same brand can be chosen together Personalization of package G7 The interval between new tariff packages is reasonable G8 The package is always improved with the changing of customer demands G9 The content of package is novel and personalized G10 The tariff package has image symbols Price G11 The package is always with a preferential price G12 The package is always with a clear billing
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Profile (125 subscribers, August 2007)
Index percent Index percent Gender male female Age ≤ 20– 26– 31– ≥ Career staff student manager teacher other Degree < B. A B. A ≥ M. A Income Monthly (RMB) ≤ ≥ Package M-zone GoTone Easyown
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Pearson correlations
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Reliability and Validity customer demands
EFA Load Factor 1 Factor 2 Factor 3 Factor 4 Alpha 0.822 0.848 0.807 0.837 G1 0.317 0.624 0.465 0.037 G2 0.313 0.797 0.272 0.052 G3 0.362 0.667 0.193 0.227 G4 0.035 0.688 0.042 0.603 G5 0.089 0.244 0.845 0.293 G6 0.162 0.271 0.725 0.357 G7 0.601 0.369 0.228 0.325 G8 0.619 0.259 0.350 0.206 G9 0.776 0.146 0.339 0.082 G10 0.838 0.181 0.185 0.075 G11 0.407 0.223 0.348 0.687 G12 0.150 0.077 0.857
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The weights of service quality
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Interview I “left wall”-- customer demands
elements of package; range of free choice; personalization of package; price “ceiling” -- design process of tariff package market forecasts; target orientation; design tariff package; planning marketing strategy; revenue forecasts; approval; launching into market; keeping track and evaluation; improving according to the feedback
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Interview II “left wall” -- customer perception elements of package
range of free choice personalization of tariff package price “ceiling”-- tariff package product price place promotion
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What this means ? New service development vs. service innovation
Engineering vs. marketing Thought vs. methodology Theory vs. practice
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Acknowledgements Natural Science Fund of China (Grant No. 70402016)
Natural Science Fund of Zhejiang Province (Grant No. Y605404) Two co-authors’ contribution: Ms. Lei Xu, Ms. Xiu-lan Wu Two anonymous reviewers of International Journal of Services Technology and Management Mr. Jonathan Alyen’s kindly help on presentation and slide design
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References in slides James A. Fitzsimmons, Mona J.Fitzsimmons, Service Management: Operation, Strategy, and Information Technology, Third Edition, McGraw-Hill Companies, Inc. 2001, p58 A. Parasuraman, L.L. Berry, V.A. Zeithaml, A conceptual model of service quality and its implications for future research, Journal of Marketing, Vol. 49, pp.41–50, 1985. A. Parasuraman, L.L. Berry, V.A. Zeithaml, SERVQUAL: A multi-item scale for measuring consumer perceptions of service quality, Journal of Retailing, Vol. 64, No. 1, pp.12–40, 1988. N. Kano, et al. Attractive quality and must-be quality, Hinshitsu (Quality, the Journal of Japanese Society for Quality Control), Vol. 14, pp.39–48, 1984. K. C. Tan, T. A. Pawitra, Integrating SERVQUAL and Kano's model into QFD for service excellence development, Managing Service Quality, vol. 11, no. 6, pp , 2001. K. Matzler, H. H. Hinterhuber, How to make product development projects more successful by integrating Kano’s model of customer satisfaction into quality function deployment? Technovation, Vol. 18, No. 1, pp , 1998.
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Welcome comments and questions !
Academic Visitor Manchester Institute of Innovation Research Manchester Business School The University of Manchester 5.10 Harold Hankins Building Tel: (O) Mobile (UK): Mobile (China):
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