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1 New service development using gap-based quality function deployment A mobile telecommunication case Jing-hua Li Zhejiang Gongshang University P.R.China.

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Presentation on theme: "1 New service development using gap-based quality function deployment A mobile telecommunication case Jing-hua Li Zhejiang Gongshang University P.R.China."— Presentation transcript:

1 1 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

2 2 Research questions Why study new service development ? Why combine the Gaps and QFD ? Why employ mobile telecom case ?

3 3 Contents Combining two models ? New model Mobile phones in China What this means ?

4 4 Combining two models? House of quality Gap model

5 5 House of quality customer needs engineering metrics benchmarking on needs target and final specs technical correlations relative importance relationships between customer needs and engineering metrics

6 6 Fitzsimmons, Fitzsimmons, Volvo Dealer Village Volvo

7 7 Gap model Customer Expectations Customer Demands Service Delivery Management perceptions of customer expectations Service Specifications Communication Service design Customer / Marketing research Service performance Gap 5 Gap 1 Gap 3 Gap 4 Gap 2 Parasuraman, et al., 1985, 1988 Customer Satisfaction

8 8 Combining two models?

9 9 New Model Theoretical model Operational model Weights

10 10

11 11

12 12 Questionnaire Interview Literature

13 13 Weights of service quality positive question –Required elements can be always found reverse question –Required elements can NOT be always found Kano, et al, 1984 Dont fulfill expectations Customer dissatisfaction Attractive Must-be Performance Positive questions Reverse questions HappyMust-beIndifferenceAcceptableUnhappy HappyQAAAO Must-beRIIIM IndifferenceRIIIM AcceptableRIIIM UnhappyRRRRQ Matzler, Hinterhuber, 1998

14 14 Mobile phones in China Background Model Questionnaire Interview

15 15 Background Source: China mobile phones Mobile subscribers (million)

16 16 Subscribers per 100 inhabitants, Winter 2007, China Source: Background

17 Beginning Operators: China Mobile Object: users of GoTone Content: local voice service Characteristics: simple forms Price chaos 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 Development Operators: China Mobile and China Unicom Object: an expansion of users interface Content: local voice, toll voice, roaming service Characteristics: intensified competition, bundling sale Rational competition Operators: China Mobile and China Unicom Object: comprehensive users Content: voice service. data service, choose available Characteristics: rational competition trend

18 18 Tariff brands in China Mobile GoTone businessman and other high earners M-zone students Easyown remaining sections of society

19 19 New tariff package development Tracki ng & assess ment users tracking ·the effective assessment Feedback & adjustment 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 Desig n of tariff packa ge · design product mix of tariff package ·decide tariff level in advance Desig n of marke ting strate gy · 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

20 20

21 21 Questionnaire 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 G5 I can choose elements of package freely G6 The packages with same brand can be chosen together 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 G11 The package is always with a preferential price G12 The package is always with a clear billing Elements of package Range of free choice Personalization of package Price

22 22 Profile (125 subscribers, August 2007) Index percent Gender male 50.4 female 49.6 Age – – – Career staff 33.6 student 30.4 manager 15.2 teacher 8.8 other 12.0 Degree < B. A B. A M. A 36.0 Income Monthly (RMB) Package M-zone 55.2 GoTone 22.4 Easyown 22.4

23 23 Pearson correlations

24 24 Reliability and Validity customer demands ID EFA Load Factor 1Factor 2Factor 3Factor 4 Alpha G G G G G G G G G G G G

25 25 The weights of service quality

26 26 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

27 27

28 28 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

29 29

30 30 What this means ? New service development vs. service innovation Engineering vs. marketing Thought vs. methodology Theory vs. practice

31 Acknowledgements Natural Science Fund of China (Grant No ) 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 Alyens kindly help on presentation and slide design

32 32 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, 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, 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, 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 , K. Matzler, H. H. Hinterhuber, How to make product development projects more successful by integrating Kanos model of customer satisfaction into quality function deployment? Technovation, Vol. 18, No. 1, pp , 1998.

33 33 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): Welcome comments and questions !


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