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

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

4. Combining two models?
House of quality
Gap model

5. 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

6. 1
Village Volvo
Volvo Dealer
Fitzsimmons, Fitzsimmons, 2001

7. 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

8. Combining two models?

9. New Model
Theoretical model
Operational model
Weights

12. Questionnaire
Interview
Interview
Literature

13. 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

14. Mobile phones in China
Background
Model
Questionnaire
Interview

15. Background China mobile phones Source: www.drcnet.com.cn
Mobile subscribers (million)

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

17. 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

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

19. 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

21. 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

22. 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

23. Pearson correlations

24. 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

25. The weights of service quality

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

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

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. 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

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, 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.

33. 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):