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14
HAERYIP SIHOMBING
1
, YUHAZRI
2
, M.Y. and YAHAYA
3
, S.H.
1, 2, 3
Faculty of Manufacturing Engineering Universiti Teknikal Malaysia Melaka Malaysia
17609, Durian Tunggal, Hang Tuah Jaya, Melaka, MALAYSIA
1
iphaeryutem.edu.my
1.0  I
NTRODUCTION
In cur r ent hyper competitive mar kets, the companies’ sur vival in the mar ket and, thus becoming successful in their  business field ar e depends on many factor s contr ibuted.  Since the main objective of a business is, basically,
to  cr eate  pr ofit  by  satisfying  the  customer s,  accor ding to  Schnaar s  1991,  thr ough  the  cr eation  of  customer satisfaction  w ill  enable  the  company  to  gener ate  some  benefits  to  them,  including  the  r elationship  w ith  the
customer s  as  a  good  foundation  for   the  cr eation  of  loyalty  and  r epeat  pur chase  of  customer s.  On  this per spective,  Rahman  2004:426  stated  the  customer   satisfaction  constitutes  as  a  car dinal  indicator .  By
consider ing on this point of view , customer  r elationship development and management systems ar e, ther efor e, need  to  be  focused  heavily  by  companies  Ver hoef  et  al.,  2002, w hile  the  development  of  effective customer
r elationships need to be r ecognized as an essential component of mar keting strategies Lymper opoulos et al., 2006:366. Tow ar d this idea w her e ser vice quality as becoming a pr imar y competitive w eapon, then the quality
of  ser vices  is  globally  r emained  as  a  cr itical  point  for   businesses  str ategy  to  a  comparative  advantage  in  the mar ketplace Hossain  Leo, 2009:338; Staffor d, 1996:6
The facts, w hat the companies faced to the challenges and competitions in the mar ket ar e not only on how to identify w hat the customer  satisfaction and r equir ements. This is due to the actual manifestation of the state
of  satisfaction  is  var y  fr om  per son  to  per son,  also  against  pr oducts  or   ser vices.  In  addition,  the  customer satisfaction is an ambiguous and abstract concept Kanojia and Yadav, 2012. Whether  they have been or  might
be successfully implementing or  not, accor ding to Kultanan et al., 2006, the customer  r equir ements ar e much mor e  technically  complex  than  in  consumer   mar ket,  especially  in  ser vice  sector .  In  pr oduct  quality
measur ement, even they ar e still in scientific debate on super ior ity of one method over  another . This is due to the methods used ar e usually not  tr eated as complement ar y, r ather  as alter native tools Zelma, 2008. Hence, as
pr eviously  w as  under lined  by  Grigor oudis  et  al.,  2002:1,  a  number   of  measurable  par ameter s  that  dir ectly linked to sever al aspects of company’s pr oducts ser vices or  elsew her e r emained as an abstr act and intangible
notion.  In  addition,  ther e  ar e  a  common  pr oblems  occur r ed  w hile  analyzing  data  fr om  customer   satisfaction sur veys w hich is car r ied out by compar ing the stated and der ived impor tance for  a set of satisfaction dimension
Gr igor oudis and Spyr idaki , 2003:229; Kano et al., 1984.  Ther efor e,
i Fir st, the companies need to alw ays taken their  business str ategy into account in pr oviding goods
and ser vices to satisfy the customer s by inter pr eting todays competitive mar ket as a cr ucial effor t in cr eating a loyal customer , w hich involves of captur ing and r etaining them. In this per spective,
In current hypercompetitive markets, customer satisfaction is one of major requirements that enable the company to generate some benefits to their business. This is also including the relationship with
the  customers  as  a  good  foundation  for  the  creation  of  loyalty  and  repeat  purchase  of  customers. However, the customer requirements are much more technically complex than in consumer market,
especially in service sector. On the other hand, the analysis of importance and performance assumed on  Kano  method  to  measure  customer  satisfaction  also  lead  to  misleading  the  implications  of
customer satisfaction since some scholars use this technique into symmetric and linear relationships between  attribute  level  performances.  In  this  study,  we  poposes  the  approach  on  how  to  find  the
priority  improvement  or  the  most  significant  element  required  for  improvement  based  on  Kano method  as  a  measurement  basis ;  using  Kano  manipulating  graph,  ranking  level,  and  then  a
simplification approach toward the graphs to enable the priorities  significant element required for improvement determined and justified. To justify the approach proposed, some trials carried out in
service companies as the case of study. Key w ords:
Customer  satisfaction,  Kano  method,  Kano  manipulating  Graph,  priorities  for improvement required.
A BSTRA CT
HOW TO MEASURE AND IDENTIFY THE ULTIMATE IMPROVEMENT REQUIRED FOR CUSTOMER SATISFACTION
©  2012 GETview
Limit ed. All right s reserved
15
w hen customer s ar e satisfied, they ar e mor e likely to r et ur n. While they ar e dissatisfied, how ever , the  customer s  ar e  mor e  likely  to  go  elsew her e.    Ger son  2003  stated  the  under standings  of
customer ’s  expectation  depend  on  the  fulfilment  of  customer ’s  need  and  the  existence  of  the pr oduct or  ser vices per for mance deliver ed to them. Besides the quality and pr ice factor s, since the
r etention of ver y loyal customer  is a key to or ganizational sur vival, the other s impor tance factor that should be ther efor e consider ed by them is also how  to attr act the customer  to buy the pr oduct
Jones  Sasser , 1995. Hence, it can be concluded that a major  outcome of mar keting activities ar e not only r elated t o how  much pr ofit can be achieved, but also on how  high customer  satisfaction
r esulting  fr om  company’s  activities.  This  can  be  exper ienced  in  a  var iety  of  situations  and connected to both goods and ser vices CSSP,2007:6 ; Cengiz, 2010:78.
ii Second,  Tse  and  Wilton  1988  ar gues  that  the  customer   r esponse  should  be  consider ed  to  the
mismatches disconfir mation per ceived betw een pr ior  expectations and actual per for mance of a pr oduct.    A  compar ison  of  the  per ceived  per for mance  against  the  expectations  is  as  a  level  of
customer  feelings Kotler , 2003 w her e the expectation, as asser ted by Hsu and Cai 2009:5, is as a cr itical antecedent of satisfaction that becomes a deter minant of attitude. The customer  satisfaction
has r elated to an emotional challenge of the exper ience tow ar ds the consumption of a pr oduct ser vice,  the  pur chase  evaluation,  accor ding  to  Wilkie  1990,  is  ther efor e  r equir ed  against  the
customer s  expectations  and  dissatisfaction  of  the  selected  alter natives.  Especially,  w hen  the expectations r esults outcome w er e not met Engel, 1990. Hence, due to the customer  satisfaction
is gr eatly affected by customer  expectations CSSP, 2007:6, how  customer s, accor ding to Gr önr oos 1998:329, per ceived good the pr oduct quality they should be based on the measur ement against
w hat  the  appr oaches  of  attitude  deter minant  of  customer   satisfaction  r elated  to  the  ser vice per ceptions and expectations value. To addr ess this issue, scholar s discussed about as follow s:
a
the  pr ocess  of  cr eating  and  deliver ing  the  value  to  customer s  in  the  mar ketplace  as  the combination of customer  satisfaction and pr ice Collier , 1995.
b how   to  cr eate  the  ser vice  values  w ith  the  aim  of  satisfying  customer   w her e  the  company
must    to  cor r ectly  attr ibute  the  factor s  r elated  of  the  identified  quality  so  that  cor r ect decision can be made Chen and Lee, 2007.
c the assumption that a customer  w ill lear n fr om exper ience, w her e the decr easing levels of
expectations disconfir mation against goods and ser vices should affect customer  satisfaction McQuitty et al., 2000.
d the  using  of  satisfaction  r atings  as  the  per for mance  indicator   of  pr oducts  and  ser vices
deliver ed, beside the indicator  of the company’s futur e Matzler  and Hinter huber , 1988. iii
Thir d, accor ding to Kumar  et al., 2008:176-177,  they ar e, how ever , not clear ly  to differ entiate the  ser vice  quality  constr ucted;    distinguishing  betw een  functional  ser vice  quality  FSQ  w hich
means doing things nicely and technical ser vice quality TSQ is as doing things r ight. Specifically in ser vice  business,  most  of  the  case  discussed  the  ser vice  per ceptions  and  expectations.  i.e.  bank
Alhemoud, 2010; Naeem  Saif 2010; Guo et al., 2008; Jabnoun  Al-Tamimi, 2002, financial and loan funding Gottschalk, 2008,  hospital Br ennan, 1995; Williams et al., 1998; Peltola et  al., 2007;
Padma et al., 2009, public ser vice
Rodr íguez et al., 2009, secur ity firm Xu and  Goedegebuur e,
2005,  air lines  Gustafsson  et  al.,  1999; Fr ost  and  Kumar ,  2001,  education  Joseph  et  al.,  2005; García-Ar acil,  2009,  etc..  In  or der   to  incr ease  the  company’s  competitiveness,  ther efor e  the
companies  should  pay  gr eater   attention  to  customer   ser vice  quality  and  customer   satisfaction thr ough  the der egulation  of the total per ception r elated to the quality of a ser vice as the outcome
technical  quality,  rather   than  simply  addr essing  ser vice  quality  fr om  a  functional  per spective Gr önr oos, 1998:329; Kumar  et  al., 2008:183; Kang and James, 2004:266. Steve et al. 2001  in
their  r esear ch added that in satisfying the customer s ar e also gr eatly depends on a smooth r unning pr ocess  appr oach  to  successfully  completing  a  customer   tr ansaction.  Briefly  to  say,  ther e  is  a
positive  linear   r elationship  betw een  staff  satisfaction,  ser vice  quality  and  customer   satisfaction leading to pr ofitability Hallow ell et al., 1996; Yee et al., 2009.
Based  on  pr oblems  afor ementioned,  each  of  scholar s  pr oposed  the  appr oaches  how   to  measur e  the customer   satisfaction.  i.e.  IPA  to  impr ove  or der -w inner   cr iter ia  and  w in  or der   Lee  et   al.,  2009,  IPA  w ith
str ength  and  w eakness  Zemla,  2008,  IPA  w ith  Kano  Model  and  Dematel  Hu  et  al.,  2009,  MUSA  method Gr igor oudis  and  Spyr idaki,  2003,  str uctur ing  the  customer   r equir ement  model  w ith  Quality  Function
Deployment Kultanan et al., 2006; Matzler  and Hinter huber , 1998; Lai et al., 2004, the w eighted aver age scor e model tow ar d Kano model Bhattachar yya and Rahman, 2004; Xu et al., 2009, customer  satisfaction thr ough
cr eating loyal customer s Rahman, 2004, the influences the components of pr oducts and ser vices Sauer w in et al.
, 1996; Sauer w ein, 1999, the impor tance of quality attr ibutes using 8 categor ies of Kano model Yang, 2005,
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