New service development using gapbased quality function deployment A mobile telecommunication case

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New service development using gap-based quality
function deploymentA 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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House of quality
engineering metrics
relationships between customer needs
and engineering metrics
customer needs
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1 1 1 1 1
Village Volvo
Volvo Dealer
Fitzsimmons, Fitzsimmons, 2001
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Gap model
Customer Expectations
Customer Demands
Service Delivery
Management perceptions of customer expectations
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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Weights of service quality
Kano, et al, 1984

• positive question
• Required elements can be always found
• reverse question
• Required elements can NOT be always found

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
Source www.drcnet.com.cn
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Beginning
Price chaos
2001
2002
2003
2005
2008
Development
Rational competition
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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
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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)
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Pearson correlations

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Reliability and Validity customer demands
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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 Alyens 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.4150, 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.1240, 1988.
• N. Kano, et al. Attractive quality and must-be
  quality, Hinshitsu (Quality, the Journal of
  Japanese Society for Quality Control), Vol. 14,
  pp.3948, 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. 418-430, 2001.
• 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. 25-38, 1998.

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Welcome comments and questions !

• Academic Visitor
• Manchester Institute of Innovation Research
• Manchester Business School
• The University of Manchester
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• Tel [phone](O)
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• Mobile (China) 86 139 581 600 47
• Email jinghua.li_at_mbs.ac.uk
• Email jhli_at_zju.edu.cn