Kano Empirical Model

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RESEARCH ARTICLE

Empirical research on Kano’s model and


customer satisfaction
Feng-Han Lin1‡, Sang-Bing Tsai2,3,4‡*, Yu-Cheng Lee5, Cheng-Fu Hsiao6, Jie Zhou7*,
Jiangtao Wang2*, Zhiwen Shang4,8*
1 Ph.D. Program of Technology Management, Chung Hua University, Hsin Chu City, Taiwan, 2 Zhongshan
Institute, University of Electronic Science and Technology of China, Guangdong, China, 3 Economics and
Management College, Civil Aviation University of China, Tianjin, China, 4 China Academy of Corporate
Governance, Nankai University, Tianjin, China, 5 Department of Technology Management, Chung Hua
University, Hsin Chu City, Taiwan, 6 Department of Hospitality Management, Hsing Wu University, New
Taipei City, Taiwan, 7 College of Tourism and Service Management, Nankai University, Tianjin, China,
8 Business School, Nankai University, Tianjin, China

‡ These authors are co-first authors on this work.


* [email protected] (ST); [email protected] (ZS); [email protected] (JW);
[email protected] (JZ)
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a1111111111 Abstract
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Products are now developed based on what customers desire, and thus attractive quality
creation has become crucial. In studies on customer satisfaction, methods for analyzing
quality attributes and enhancing customer satisfaction have been proposed to facilitate
product development. Although substantial studies have performed to assess the impact of
OPEN ACCESS
the attributes on customer satisfaction, little research has been conducted that quantitatively
Citation: Lin F-H, Tsai S-B, Lee Y-C, Hsiao C-F, calculate the odds of customer satisfaction for the Kano classification, fitting a nonlinear
Zhou J, Wang J, et al. (2017) Empirical research on
relationship between attribute-level performance and customer satisfaction. In the present
Kano’s model and customer satisfaction. PLoS
ONE 12(9): e0183888. https://doi.org/10.1371/ study, the odds of customer satisfaction were determined to identify the classification of
journal.pone.0183888 quality attributes, and took customer psychology into account to suggest how decision-mak-
Editor: Yong Deng, Southwest University, CHINA ers should prioritize the allocation of resources. A novel method for quantitatively assessing
quality attributes was proposed to determine classification criteria and fit the nonlinear rela-
Received: November 17, 2016
tionship between quality attributes and customer satisfaction. Subsequently, a case study
Accepted: May 31, 2017
was conducted on bicycle user satisfaction to verify the novel method. The concept of cus-
Published: September 5, 2017 tomer satisfaction odds was integrated with the value function from prospect theory to
Copyright: © 2017 Lin et al. This is an open access understand quality attributes. The results of this study can serve as a reference for product
article distributed under the terms of the Creative designers to create attractive quality attributes in their products and thus enhance customer
Commons Attribution License, which permits
satisfaction.
unrestricted use, distribution, and reproduction in
any medium, provided the original author and
source are credited.

Data Availability Statement: All relevant data are


within the paper and its Supporting Information
files. Introduction
Funding: The authors received no specific funding Product development was previously producer-oriented, but has now switched to being led by
for this work. the customer. From customers’ perspective, the Kano’s model has been used to understand
Competing interests: The authors have declared customer needs by identifying and classifying the quality attributers [1]. Product quality is typ-
that no competing interests exist. ically determined by customers, with their satisfaction an indicator for the direction in which a

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Empirical research on Kano’s model and customer satisfaction

product should be developed. This indicator is considered valuable by governments, and


national customer satisfaction indexes have thus been established in many countries. In a
fiercely competitive market, some products’ life cycles became shorter, such as consumer elec-
tronics, so understanding customers’ satisfaction levels with previous products is crucial for
designing desirable products in a timely manner [2]. Within product development, attractive
quality creation has become paramount, and quality engineering and management has transi-
tioned from production-oriented to quality control-oriented, thereby satisfying customer
needs [3].
Many studies on customer satisfaction have been published in recent decades. Martilla and
James [4] investigated automotive services and used importance-performance analysis (IPA)
to develop corporate strategies. They integrated the analysis of two dimensions (importance
and performance) to evaluate quality attributes that were crucial to customers but did not
result in the expected performance and thus needed to be improved. Kano et al. [1] investi-
gated TV and lamp products, and observed that customers’ product awareness was not simply
one-dimensional. Accordingly, they developed a two-dimensional quality model. They consid-
ered that quality attributes and customer satisfaction had an asymmetric and nonlinear rela-
tionship, and that for a product, its must-be and attractive quality attributes must considered
in addition to its one-dimensional quality attributes. Numerous researchers have further stud-
ied Kano’s model, giving explanations about customer satisfaction [5]. Parasuraman, Zeithaml,
and Berry [6] investigated the quality of services provided by banks, securities businesses,
credit card companies, and product maintenance companies, and developed the Parasuraman,
Ziethaml, and Berry (PZB) gap theory, which proposed five types of quality gap. A quality gap
is the gap between customers’ expectations for the service and their feelings after using it; that
is, between expected and perceived performance. Llosa [7] proposed the Tetraclasse model
and investigated the effect of quality attributes on satisfaction to classify products by their qual-
ity. IPA and PZB gap theory analyzed quality attribute performance and customers’ quality
gap, and Kano’s model and the Tetraclasse model explored the influence of quality gap on cus-
tomer satisfaction. Although various methods have been adopted, they all were intended to
achieve an identical purpose through the crucial quality attributes; to enhance customer
satisfaction.
The two-dimensional quality model developed by Kano has been used during product
development and design [8–10], and using Kano’s model to examine customers’ preference
for product functions and classify quality attributes is conducive to decision analysis in a prod-
uct development project. Kano’s model has previously been integrated with other tools to clar-
ify the requirements of customers; these tools include PZB’s gap theory [11], IPA [12–13],
quality function deployment [14,15], failure mode and effect analysis [16], and the theory of
inventive problem solving [17]. The conventional Kano’s model can only present the results of
classifying quality attributes. Brandt [18] proposed penalty reward contrast analysis (PRCA)
analysis, using dummy variable regression to classify quality attributes. Subsequently, dummy
variables have been adopted by numerous studies to analyzed the asymmetric and nonlinear
relationship between the performance of quality attributes and overall customer satisfaction
[19–22]. Lin [23] reported that dummy variable regression presented skewed sample distribu-
tions, and suggested that, based on the line/curve shape within Kano’s model, moderated
regression could be used to classify quality attributes. Lin [23] also indicated that, according to
expert comparison, moderated regression was superior to dummy variable regression. Chen
[24] concluded that dummy variable regression could not accurately classify quality attributes,
and that moderated regression incorrectly classified quality attributes because of the cofound-
ing effect between attribute-level performance and customer satisfaction. Thus, Chen [24]
used ridge regression to handle the interaction between attribute-level performance and

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Empirical research on Kano’s model and customer satisfaction

Table 1. Summary of approaches.


Author Approach Assessment
The asymmetric relationship The nonlinear relationship
Brandt [26] PRCA Asymmetric effects on Customer satisfaction None
Regression analysis with
dummy variables
Ting and Regressing analysis The attributes performances affect the overall satisfaction Point to the nonlinear relationship between
Chen [20] applying natural logarithms asymmetrically attributes and customer satisfaction
Matzler et al. Regressing analysis with The impact of the different attributes on overall satisfaction None
[27] dummy variables
Lin et al. [23] Moderated regression with Moderated effect of attribute-level on customer satisfaction Predict relation curves between attributes
dummy variables and customer satisfaction
Finn [28] Polynomial regression Assess the shape of satisfaction response functions for Test nonlinear effects of quality attributes
classify attributes on customer satisfaction
Chen [24] Ridge regression Confirm the asymmetric customer satisfaction effects, and Explore the nonlinear customer satisfaction
classify quality attributes, including mixed-class distribution effects
https://doi.org/10.1371/journal.pone.0183888.t001

satisfaction. Table 1 provides a summary of various approaches for assessing the asymmetric
and nonlinear relationships between attributes and customer satisfaction. Quality attributes
often change, and Borgianni and Totini [25] asserted that current classification of quality attri-
butes within a long-term product design project was insufficient. Anderson and Mittal [19]
revealed the nonlinear relationship between attributes’ importance and customer satisfaction.
In many studies, linear regression was used to fit a nonlinear relationship, thereby incorrectly
classifying quality attributes and incorrectly understanding changes in quality attributes.
Logistic regression is a nonlinear model, and is thus more suitable for fitting a nonlinear rela-
tionship than linear regression. Using quantified odds to assess quality attributes facilitates
effectively understanding customer satisfaction.
Witell, Löfgren, and Dahlgaard [29] indicated that a large number of studies have applied
Kano’s model without exploring the implications of attractive quality. Thus, few studies have
investigated attractive quality creation and the life cycles of quality attributes [29]. The devel-
opment of Kano’s model has facilitated modifying questionnaire design and classification
methods and analyzing the influence of quality attributes on customer satisfaction. However,
if the asymmetric and nonlinear relationship between quality attributes and customer satisfac-
tion proposed by Kano is not adequately explored, the risk of customer dissatisfaction due to
inadequate quality attributes’ performance is not decreased and the odds on customer satisfac-
tion is not enhanced. Wang & Wu [30] incorporate combining conjoint analysis and Kano
model to optimize product varieties. However, conjoint analysis has been employed to captur-
ing customer preference, but the use of the Kano classification as a research field has not yet
been much explored. Besides, Jung, Sydnor, Lee, and Almanza [31] argued that conjoint analy-
sis excludes a priori the possibility of using a lexicographic decision-making rule and employed
logistic regression to explore the effects of attributes on customers’ choices. The skew respon-
ses of dummy variable regression affect the result [24]. Unlike linear regression, the as-
sumption of normality are unnecessary for logistic regression. The logistic regression is a
direct probability model, and the odds of logistic regression are estimated conditional on
the independent variables [31–32]. Therefore, logistic regression is recommended for ana-
lyzing risk and odds. Few studies have explored customer psychology and the implications
of attractive quality attributes. Therefore, this study was aimed to explore the odds on cus-
tomer satisfaction due to high quality performance and the risk of customer dissatisfac-
tion due to low quality performance, therefore enhancing quantitative assessment and

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Empirical research on Kano’s model and customer satisfaction

classification criteria through fitting nonlinear relationships. Based on customer psychol-


ogy, this study also investigated how decision-makers should prioritize the allocation of
resources. By quantitatively assessing quality elements that enhanced customer satisfac-
tion, and by objectively classifying quality attributes, this study clarified the asymmetric
and nonlinear relationship between quality attributes and customer satisfaction, and
determined how resources could be allotted to improve quality. Attractive quality is based
on customers’ cognition; understanding customers facilitates the identification of efficient
quality attributes that would require few resources to improve.

Literature review and conceptual background


Kano’s model and customer satisfaction
The relationship between quality attributes and customer satisfaction is asymmetric and non-
linear. Herzberg, Mausner, and Snyderman [33] proposed the motivation-hygiene theory
describing job satisfaction in the workplace (also called the two-factors theory). Hygiene fac-
tors refer to factors that eliminate job dissatisfaction, whereas motivation factors refer to fac-
tors that give rise to job satisfaction. Swan and Combs [34] proposed a two-factors theory,
elucidating that the instrumental and expressive dimensions influenced customer satisfaction
and dissatisfaction, respectively; therefore, that satisfaction and dissatisfaction were indepen-
dent of each other. Kano et al. [1] classified five types of quality attribute that lead to customer
satisfaction and dissatisfaction when the attributes are sufficient or insufficient, respectively;
they are must-be, one-dimensional, attractive, indifferent, and reverse quality attributes.
1. Must-be quality attributes: sufficient quality attributes do not lead to customer satisfaction,
but insufficient quality attributes lead to customer dissatisfaction.
2. One-dimensional quality attributes: sufficient quality attributes lead to customer satisfac-
tion, and insufficient quality attributes lead to customer dissatisfaction.
3. Attractive quality attributes: sufficient quality attributes lead to customer satisfaction, but
insufficient quality attributes do not lead to customer dissatisfaction.
4. Indifferent quality attributes: sufficient quality attributes do not lead to customer satisfac-
tion, and insufficient quality attributes do not lead to customer dissatisfaction.
5. Reverse quality attributes: sufficient quality attributes lead to customer dissatisfaction, and
insufficient quality attributes lead to customer satisfaction.
The original Kano questionnaire consists of functional and dysfunctional questions for
each attribute. The highest response frequency determines the kano category through a special
evaluation table [1].
Based on Kano’s two-dimensional quality model, Brandt [26] proposed a three-factors the-
ory to classify quality attributes into minimum-requirement, value-enhancing, and hybrid
attributes, and numerous studies have verified the theory [19, 27, 35, 36]. Matzler et al. [27]
classified quality attributes into three types: basic, excitement, and performance factors. As a
must-be quality, basic factors unidirectionally influenced customer dissatisfaction; as an attrac-
tive quality, excitement factors unidirectionally influenced customer satisfaction; and as a one-
dimensional quality, performance factors were common factors whose absence led to dissatis-
faction and whose presence led to satisfaction. The relationship between quality attributes and
customer satisfaction was thus not represented as a symmetric and linear relationship, but an
asymmetric and nonlinear relationship.

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Empirical research on Kano’s model and customer satisfaction

The relationship between quality attributes and customer satisfaction


While Kano’s model analyzed satisfaction qualitatively, quantitative definitions require further
investigation [2]. Recently, research has been performed on the asymmetric and nonlinear
relationship between quality attributes and customer satisfaction [29, 37] using Kano’s two-
dimensional quality model. Numerous studies have explained how various types of quality
attribute influenced customer satisfaction distinctly, but have not indicated differences among
various quality elements within one quality attribute; consequently, insufficient information is
provided to enable decision-makers to identify crucial quality attributes [29]. Shahin et al. [2]
precisely classified quality attributes and considered that the influence of quality attributes on
customer satisfaction could be understood according to the importance level of the attributes.
Wang and Ji [38] employed a S-CR (customer satisfaction and the fulfillment of customer
requirements) relationship function in the analysis of Kano’s model. Finn [28] used prospect
theory to determine the quality attribute line/curve shape and customer satisfaction. Some
studies have applied a back-propagation neural network to analyze the causal relationship
between quality attributes and customer satisfaction [39]. Fuzzy theory has also been used to
classify quality attributes [40]. Compared with Kano’s model, some studies have performed a
more detailed quantitative analysis and determined the importance of quality elements in a
single quality attribute, verifying an asymmetric relationship between quality attributes and
customer satisfaction. However, the nature of this nonlinear relationship remains to be investi-
gated [41–42].
In recent years, the number of studies using Kano’s model has substantially increased, but
its quantitative evaluation, classification criteria, and decision support still need to be
improved [2, 29, 43–45]. Some researchers who adopted Kano’s model could not identify
attractive qualities because of an inadequate questionnaire design, inappropriate quality attri-
bute definition, or improper quality attribute life cycles [46–47]. Improvements to Kano’s
model have been proposed, for example modifying questionnaires, improving classification
methods, or integrating Kano’s model with other tools [12, 44, 48–50]. A quantitative evalua-
tion explains the importance of each quality attribute to customer satisfaction. Such evalua-
tions have been previously performed using classification rules to explain the asymmetric
relationship between quality attributes and customer satisfaction [20, 51–53]. One study on
product development integrated Kano’s model with producer’s capacity [44]. Other studies
have considered customer psychology, and suggested that before attractive quality attributes
are improved, must-be quality attributes or one-dimensional quality attributes should be
improved [54]. Questions such as whether overall customer satisfaction improves if quality
attribute performances improves, and whether overall customer satisfaction deteriorates if
quality attribute performances deteriorates, merit further investigation.

Psychological perspective
From a cognitive psychology perspective, Kahneman and Tversky [55] adopted the concept of
a value function and established the psychological codes of gain and loss. They used the con-
cept of transaction utility to construct a purchase model, and proposed prospect theory.
According to prospect theory, people’s preference is generally nonlinear. The three basic prin-
ciples of the theory are as follows [56]:
1. Most people tend to avoid risk when facing “gain.”
2. Most people tend to prefer risk when facing “loss.”
3. People are more sensitive to loss than to gain.

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Empirical research on Kano’s model and customer satisfaction

According to prospect theory, overall customer satisfaction is sensitive to quality attribute


performance, and decreases if the performance decreases. The impact of negative attribute per-
formance on overall customer satisfaction was determined to be greater than the impact of the
positive attribute performance [51, 54]. Mittal, Ross, and Baldasare [51] adopted prospect the-
ory to explore the influence of products, services, and attribute performance on satisfaction.
The influence of low performance on overall customer satisfaction was found to be greater
than that of high performance, and utility-preserving attributes were applicable to the S-
shaped value function curve in prospect theory. Yoshimitsu, Hara, Arait, and Shimomura [57]
integrated Kano’s model with prospect theory and proposed a method for assessing customer
satisfaction. Tontini et al. [54] considered the psychology of the problem and concluded that
low must-be quality performance led to customer dissatisfaction even if attractive and one-
dimensional qualities had high performance.
Sampson and Showalter [58] investigated a school lunch program and concluded that the
importance and performance of quality attributes was not a point estimation function but a
performance-importance response function. Thus, low performance indicated high impor-
tance, and the importance level changed when the performance level changed. Customers’
preferences generally change when solutions, contexts, and frames change. People’s preference
for risk varies depending upon their reference point and is nonlinear. Risk preferences for loss
and gain were found to be asymmetric, with people more sensitive to loss than to gain [56, 59–
62]. Therefore, the influence of quality attribute performance on customer satisfaction varies
depending on customer reference point, and customer satisfaction is sensitive to performance
increase and decrease by different degrees.
Maslow [63] proposed a theory of human motivation, and indicated that human needs
are hierarchical with basic needs requiring satisfaction before higher-level needs will
appear. Similarly, customers have basic (explicit), expected, and implicit needs for product
quality. Needs for must-be qualities are basic needs, needs for one-dimensional qualities are
expected needs, and needs for attractive qualities are implicit needs. Tontini et al. [54] indi-
cated that, even if attractive and one-dimensional qualities perform highly, low perfor-
mance of must-be qualities can lead to customer dissatisfaction. Therefore, must-be quality
performance must be high before excellent attractive or one-dimensional qualities will
affect customer satisfaction. Customers are more sensitive to quality attributes that dissat-
isfy them than to those that satisfy them, and thus it is the quality attributes that dissatisfy
customers that should be first improved. During product development, the relationship
between quantitative evaluation and customer satisfaction should be considered, and the
improvement of which attributes should be prioritized must be considered from a psycho-
logical perspective.

Methodology
Logistic regression analysis
This study employed logistic regression analysis to estimate the odds ratio of customer satisfac-
tion to customer dissatisfaction due to quality element performance. Previous studies have
compared the positive influence of high quality attribute performance on customer satisfaction
with the negative influence of low quality attribute performance [64–71]. These positive and
negative influences explained the asymmetric relationship but did not explain its nonlinearity.
The present study deployed logistic regression to describe the nonlinear relationship, to infer
the odds ratio of customer satisfaction to customer dissatisfaction due to quality element per-
formance, and to analyze the influence of quality element performance on customer satisfac-
tion. This method explained both the asymmetric relationship and the nonlinear model.

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Empirical research on Kano’s model and customer satisfaction

The proposed approach


According to these considerations, our procedure for evaluating customer satisfaction is as
follows:
Step 1: Questionnaire design
Penalty and reward contrast analysis (PRCA) was used for the questionnaire design [18,
22]. A 9-point scale was employed to assess the performance of each quality element (1 = the
lowest performance, 9 = the highest performance). The more scale steps, the greater validity of
scales [72]. Thus, a scale of 1 to 100 was used to assess customer satisfaction in this study.
Step 2: Data analysis
Logistic regression was used to analyze the odds ratio of high or low performance on each
quality element influencing customer satisfaction. Fema and French [73] proposed the three-
factor model, a regression model, to assess returns on capital assets. On the basis of this model,
we divided customers into two groups according to overall customer satisfaction (i.e., a cus-
tomer dissatisfaction group and a customer satisfaction group). Quality elements were divided
into three groups according to quality element performance, and collected data were coded. A
dummy variable was employed for the logistic regression analysis.
Step 3: Classification of quality attributes
Assuming that k independent variables exist, the logistic regression equation is

X
k
aþ bk xki
e k¼1
pi ¼ ð1Þ
X
k
aþ bk xki
1þe k¼1

where pi = p(yi = 1|x1i,x2i,  ,xki) denotes the probability of an event pi; xki is the ith indepen-
dent variable; yi is the ith dependent variable; α is the intercept and βk is the kth regression
coefficient.
The odd ratio ORi of independent variables is given by

X
k
aþ bk xki
pi
ORi ¼ ¼e k¼1 ð2Þ
1 pi

According to logistic regression analysis, the relationship between quality attribute perfor-
mance and customer satisfaction is a nonlinear relationship and fits Kano’s model (Fig 1). The
customer satisfaction function of an attractive quality attribute is convex, whereas the function
of a must-be quality attribute is concave.
The odds ratio was determined using significance and confidence intervals and was
employed to classify quality attributes according to the impact of attribute performance on sat-
isfaction, as proscribed in Kano’s model.
Step 4: Decision-making diagram
On the basis of how the customers perceived the functional and dysfunctional quality attri-
butes, the Kano’s model pointed out customer satisfaction was nonlinear function relationship
for quality attributes. The Kano category is still qualitative; and further, it hardly estimates the
extent of customer satisfaction. Therefore, a decision diagram was employed to prioritize the
allocation of resources for improving quality attributes [60,62,74–76].
ORSi denotes the odds ratio of customer satisfaction, and ORDi denotes the odds ratio of
customer dissatisfaction.

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Empirical research on Kano’s model and customer satisfaction

Fig 1. Kano’s model of customer satisfaction.


https://doi.org/10.1371/journal.pone.0183888.g001

Let ORSi = tanθ0 , π/4  θ0 < π/2


and −ORDi = −tanω0 , π/4  ω0 < π/2.
Thus, 0  2θ0 −π/2 < π/2
and 0  2ω0 −π/2 < π/2.
Let θ = 2θ0 −π/2
and ω = 2ω0 −π/2.
Thus, θi = 2tan−1(xi)−π/2 where 0  θi < π/2,
and ωi = 2tan−1(xi)−π/2, where 0  ωi < π/2,
with xi = ORSi, xi  0; and xi = ORDi, xi < 0, respectively.
Therefore,
(
xi tanðp 2yi Þ if x1
yi ¼ ð3Þ
xi tanðp 2oi Þ if x<1

As shown in Fig 2, the angle θi, formed by the quality attribute vector and the vertical axis, was
obtained from the inverse tangent function of ORSi and denotes the customer satisfaction index.
The angle ωi, formed by the quality attribute vector and the vertical axis, was obtained from the
inverse cotangent function of ORDi, and denotes the customer dissatisfaction index. The right
and left sides of the horizontal axis in Fig 2 represent customer satisfaction and customer dissatis-
faction, respectively. The horizontal component of the quality attribute vectors denote the satisfac-
tion odds ratio and the dissatisfaction risk ratio, depending whether the vector points right or left,
respectively. The difference in the horizontal components of each vector indicates that the rela-
tionship between quality attributes and customer satisfaction is asymmetric.

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Empirical research on Kano’s model and customer satisfaction

Fig 2. Odds decision diagram for customer satisfaction.


https://doi.org/10.1371/journal.pone.0183888.g002

When the quality attribute vector rotates clockwise from the vertical axis and θi approxi-
mates 0, a low probability of customer satisfaction with quality attributes is indicated. When
the angle is close to π/2, the probability of customer satisfaction with quality attributes is high.
By contrast, when the vector rotates counterclockwise, the probability of customer dissatisfac-
tion with the quality attributes is high.
Step 5: Decision-making analysis
The left and right sides of the decision-making diagram represent the quality attributes that
influence customer dissatisfaction and satisfaction, respectively. Considering the decision
sequence, the quality attributes on the right side must be maintained before those on the left
side can be improved.

Case study
The case
Because of recent technical development, bicycles are used not only for transportation but also
for sports and leisure. Understanding cyclists’ experiences about bicycle quality helps manu-
facturers create products conforming to customer needs. In this study, heavy users of bicycles
for sports and leisure were recruited, and quality attributes and customer satisfaction were
investigated. A total of 192 cyclists participated in this study, each completing the specific bicy-
cle route of a cycling event. The male cyclists participated in this cycling event are more than
female ones. Table 2 shows that 91.7% of respondents were male, and 8.3% were female. The
major age groups were from 30 to 49. The very high percentage of respondents participated in
the cycling event at least once a month. Most respondents had more than one year experience
in the cycling event.

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Empirical research on Kano’s model and customer satisfaction

Table 2. Demographic characteristics of the respondents.


Category Response Frequency (N = 192) Percentage (%)
Gender Male 16 8.3%
Female 176 91.7%
Age Less than 19 8 4.2%
20–29 26 13.5%
30–39 67 34.9%
40–49 53 27.6%
50–59 29 15.1%
60 or older 9 4.7%
frequency of the cycling event 1 time 1–3 days 20 10.5%
1 time 4–6 days 9 4.7%
1 time 1 week 45 23.4%
1 time 2 weeks 20 10.4%
1 time 3 weeks 5 2.5%
1 time 1 month 31 16.1%
1 time 2 months 17 8.9%
1 time 3 months 17 8.9%
1 time more than 3 months 28 14.6%
Experience of the cycling event Less than 1 year 11 5.8%
1 year 45 23.4%
2 years 30 15.6%
3 years 30 15.6%
4 years 19 9.9%
5 years or more than 57 29.7%
https://doi.org/10.1371/journal.pone.0183888.t002

Upon completing the bicycle route, the participants received a questionnaire survey. The
PRCA proposed by Brandt [18] was adopted for to design a questionnaire for measuring bicy-
cle-related quality attribute performance and overall customer satisfaction. The questionnaire
included eight quality elements: Q1 (appearance), Q2 (color), Q3 (cushion), Q4 (brake sys-
tem), Q5 (transmission system), Q6 (wheels and transmission system), Q7 (weight), and Q8
(accessories). A 9-point scale was employed to assess quality attribute performance (1 = the
lowest, and 9 = the highest performance), and a scale of 1 to 100 was used to assess a cyclist’s
satisfaction with their bicycle. The participants’ perceived performance of their bicycle, catego-
rized by the 25th and 75th percentiles into low, medium, and high performances, served as the
independent variable, whereas overall satisfaction served as the dependent variable, and the
mean value of overall satisfaction was used to divide the participants into two groups: the satis-
faction and dissatisfaction groups. If the odds ratio exhibited a significant confidence interval
lower limit of >1, then the customers were likely to be satisfied with the high performance of
the quality elements or dissatisfied with the low performance of the quality elements. Fig 3
illustrates the logistic function of each quality element. Ranking the quality elements according
to the steepness levels of the regression curves revealed a descending order of Q1, Q2, Q5, Q7,
Q6, Q3, Q4, and Q8; the steepness level corresponded to the size of the odds.

Reliability and validity analysis


The properties of measurement scales were tested for internal consistency using Cronbach’s α.
The result shows that Cronbach’s α coefficient was 0.949, which is above the benchmark of
0.70 suggested by Nunnally [77]. Therefore, the result suggests a high internal consistency of

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Empirical research on Kano’s model and customer satisfaction

Fig 3. Logistic regressio model for customer satisfaction.


https://doi.org/10.1371/journal.pone.0183888.g003

survey measures. Convergent validity was assessed with confirmation factor analysis (CFA).
The standardized factor loadings ranged from 0.747 to 0.890, respectively, which are above the
benchmark of 0.60 suggested by Bagozzi and Yi [78]. Hence, convergent validity of the mea-
surement indicators was supported.
Statistical analysis and classifications. For each element, two regression coefficients
were used to estimate the odds ratios of customer satisfaction and customer dissatisfaction.
The odds ratios was then given by Eq (2). Table 3 shows the odds ratios of customer satisfac-
tion and customer dissatisfaction for each quality element. The R2 value represents the propor-
tion of variance explained by the independent [79]. Model diagnostics were adequate at the
Nagelkerke R2 value of 0.430. For high Q1 performance, the odds ratio of customer satisfaction
was 8.600, with a significant confidence interval lower limit >1, indicating that when the
appearance performance was high, the likelihood of customer satisfaction was 8.600 times
higher than when the performance was low. For low Q1 performance, the odds ratio of cus-
tomer dissatisfaction was 2.440, indicating that when the appearance performance was low,
the likelihood of customer dissatisfaction was 2.440 times higher than when the performance
was high. Therefore, if Q1 was adequate or better, customers would be satisfied; otherwise, cus-
tomers would be dissatisfied; in other words, Q1 was a one-dimensional quality attribute.
When Q4, Q5, and Q6 presented high performance, they influenced customer satisfaction to
the same degree but with some variation in the likelihood of customer satisfaction. Q4, Q5,
and Q6 were also one-dimensional quality attributes. For high Q2 performance, the odds ratio
of customer satisfaction was 7.448, indicating that when the color performance was high, the
likelihood of customer satisfaction was 7.448 times higher than when the performance was
low. For low Q2 performance, the odds ratio of customer dissatisfaction was 1.501, but the
lower limit of the confidence interval was 0.722 and was nonsignificant; hence, low Q2 perfor-
mance did not significantly influence customer dissatisfaction. In other words, if Q2 was ade-
quate, customers would be satisfied; however, inadequate Q2 did not significantly influence
customer dissatisfaction, implying Q2 as an attractive quality attribute. Similarly, Q3, Q7, and
Q8 were also determined to be attractive quality attributes.
Table 4 shows the classification of quality attributes based on the odds ratio of customer sat-
isfaction to customer dissatisfaction. Q1, Q4, Q5, and Q6 influenced not only customer satis-
faction, but also customer dissatisfaction.

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Empirical research on Kano’s model and customer satisfaction

Table 3. The odds ratio of attribute-level performance against customer satisfaction.


Quality elements Mean(S.D.) High performance (Satisfaction) Low performance (Dissatisfaction)
Odds ratio 95% CI Odds ratio 95% CI
Q1 appearance 6.781(1.557) 8.600*** [3.320, 22.274] 2.440* [1.167, 5.103]
Q2 color 6.890(1.441) 7.448*** [3.235, 17.147] 1.501 (ns) [.722, 3.119]
Q3 cushion 6.635(1.452) 4.195** [1.614, 10.904] 1.000 (ns) [.340, 2.939]
Q4 brake system 6.760(1.474) 3.961*** [1.823, 8.604] 2.079* [1.016, 4.254]
Q5 shift system 6.745(1.511) 4.906*** [2.112, 11.397] 2.675** [1.303, 5.493]
Q6 wheel set and transmission 6.828(1.446) 3.476** [1.602, 7.542] 4.414*** [1.997, 9.758]
Q7 weight 6.557(1.485) 4.457** [1.471, 13.506] 1.220 (ns) [.365, 4.079]
Q8 accessory 6.604(1.447) 3.196* [1.254, 8.143] 1.371 (ns) [.477, 3.947]
overall satisfaction 82.609(12.463)

Notes: ns = not significant. CI = confidence interval


*p<0.05.
**p<0.01.
***p<0.001.

https://doi.org/10.1371/journal.pone.0183888.t003

The quality attribute curves for fitting Kano’s model, as displayed in Fig 4, and their slopes
indicated the size of the odds ratio. The one-dimensional quality attributes were Q1, Q5, Q6,
and Q4, and the attractive quality attributes were Q2, Q3, Q7, and Q8.
Bicycle users do not appear to have high expectations toward bicycle color, cushion, weight,
and accessories, because when these attributes were considered, inadequate quality did not
lead to customer dissatisfaction. If these attributes are improved, however, customer satisfac-
tion will still be enhanced. By contrast, the appearance of bicycles has changed over the
decades and has been considered crucial by bicycle users. Therefore, adequate appearance
leads to customer satisfaction and inadequate appearance leads to customer dissatisfaction.
Excellent brake and transmission systems, wheels, other basic bicycle attributes, and excellent
bicycle performance are also crucial for customers to enjoy their bicycles and should thus be as
high as possible.

Decision-making analysis
The odds ratios of customer satisfaction (ORSi) and customer dissatisfaction (ORDi) were con-
verted into the customer satisfaction index (θi) and the customer dissatisfaction index (ωi),
respectively, the values of which are listed in Table 5.

Table 4. Quality attributes categories.


Quality elements Quality attribute category
Q1 appearance O
Q2 color A
Q3 cushion A
Q4 brake system O
Q5 shift system O
Q6 wheel set and transmission O
Q7 weight A
Q8 accessory A
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Empirical research on Kano’s model and customer satisfaction

Fig 4. Fitting the quality attributes of Kano’s model.


https://doi.org/10.1371/journal.pone.0183888.g004

Fig 5 plots the odds of customer satisfaction for quality elements based on the data in Tables
3 and 5. The customer dissatisfaction index was highest for Q6, implying that inadequate qual-
ity performance in this attribute led to the maximum customer dissatisfaction. For Q6, the

Table 5. The customer satisfaction index of attribute-level performance.


Quality elements Customer satisfaction index
Satisfaction θi Dissatisfaction ωi
(High performance) (Low performance)
Q1 appearance 1.339 -0.793
Q2 color 1.304 ns
Q3 cushion 1.103 ns
Q4 brake system 1.076 -0.674
Q5 shift system 1.169 -0.855
Q6 wheel set and transmission 1.011 -1.125
Q7 weight 1.129 ns
Q8 accessory 0.964 ns
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Empirical research on Kano’s model and customer satisfaction

satisfaction and dissatisfaction quality vectors had similar lengths and were approximately
symmetrical. Therefore, the Q6 performance should first meet customers’ requirements and
then be improved to enhance customer satisfaction. The customer satisfaction index for Q1
was the highest. Thus, customer satisfaction can be enhanced the most by improving Q1
(appearance). The satisfaction and dissatisfaction vectors where asymmetric for Q1 (appear-
ance), demonstrating that the influence of performance on customer satisfaction was greater
than that on customer dissatisfaction. The customer satisfaction index for Q2 (color) was the
second highest. No dissatisfaction vector was found, indicating an extremely asymmetric rela-
tionship wherein the performance of Q2 did not influence customer dissatisfaction. By consid-
ering a vector sweeping clockwise around the origin from the horizontal axis, the quality
elements that led to customer dissatisfaction are arranged in a descending order. Examining
the vertical axis Fig 5 showed that the satisfaction index of the quality elements that led to cus-
tomer satisfaction increased; therefore, this figure clearly illustrates how the quality elements
influenced customer satisfaction, and can thereby facilitate decision analysis.

Discussion
Logistic regression analysis was used to demonstrate that the relationship between quality
attributes classified according to product natures and customer satisfaction was nonlinear.

Fig 5. Decision analysis diagram for customer satisfaction odds.


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Empirical research on Kano’s model and customer satisfaction

The odds ratio of customer satisfaction was derived, which provides useful information to
decision-makers on how to develop their product. The attractive quality attributes, arranged in
descending order of customer satisfaction odds ratio, were Q2, Q7, Q3, and Q8. Compared
with improvement in Q8 (accessories) performance, improvement in Q2 (color) performance
increased the likelihood of customer satisfaction by a factor of 4.252. Therefore, improving
color performance is more useful than improving accessories performance. Moreover, with
respect to improving Q8, improvement in Q1 attained a greater increase in customer satisfac-
tion odds ratio (by a factor of 5.404) than did improvement in Q2, indicating that improving
Q1 performance was more useful than improving Q2 (color) performance (i.e., attractive qual-
ity attributes). High performance of attractive quality attributes did not necessarily increase
the odds ratio of customer satisfaction, but high one-dimensional quality attribute perfor-
mance did sometimes enhance customer satisfaction. Compared with improving quality attri-
butes from the perspective of quality attribute classification, considering the odds ratio of
customer satisfaction to improve quality attributes was more likely to win customers. To
reduce costs and avoid customer dissatisfaction, the attribute Q6 (wheels and transmission sys-
tem), which attained the highest dissatisfaction odds ratio, should be considered first. By
examining the odds ratios of customer satisfaction and dissatisfaction, decision-makers can
perform a quantitative classification to identify what factors enhance customer satisfaction.
When customers’ requirements are not met, quality attributes with high dissatisfaction odds
ratios should be improved, whereas to further enhance customer satisfaction, quality attributes
with high satisfaction odds ratios should be enhanced.
Illustrated in Fig 6, the life cycle curve of overall quality attributes was derived from the geo-
metric mean of the quality element odds ratios; the dotted lines represent each quality element,
and the solid line represents the overall quality attribute. According to Kano [80], over the life
cycle of an attribute, it will begin as an attractive quality, then progress to being a one-dimen-
sional quality, and then finally it will become a must-be quality. As quality attributes change,
the reference point of customer satisfaction with quality attribute performance changes. High
and low performances influence customer satisfaction differently. A life cycle curve can be
used to assess the advantages and disadvantages of enhancing and reducing attribute
performances.
Neumann and Morgenstem [81] proposed expected utility theory to describe rational deci-
sion behavior and explore the relationship between wealth level and utility. Allais [82] pro-
posed the Allais paradox, which contradicted expected utility theory. Kahneman and Tversky
[55] explored decision-making behavior according to psychology and proposed prospect the-
ory, which posited that customers typically adopt a relative method of thinking and consider
that value is determined by wealth change instead of wealth level (Fig 7). For gain, a concave
function is obtained; for loss, a convex function is obtained. The expected utility theory does
not explain why people prefer certainty, whereas prospect theory does.
The value function is defined as follows:

(
xa if x0
vðxÞ ¼ b
ð4Þ
lð xÞ if x<0

where α and β are between 0 and 1; λ > 1; x > 0 indicates gain; and x < 0 indicates loss. For
our results, α = β  0.88 and λ  2.25 [83]. According to Kano’s model, quality element perfor-
mance influences customer satisfaction. Similarly, according to expected utility theory, wealth
level influences wealth utility. Moreover, according to prospect theory, value is determined
using wealth change, not wealth level. When decision-making behavior is explained from a

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Empirical research on Kano’s model and customer satisfaction

Fig 6. Quality attributes and customer satisfaction.


https://doi.org/10.1371/journal.pone.0183888.g006

psychology perspective, prospect theory can be used to explain how quality attribute perfor-
mance determines customer satisfaction.
0 0 0
The odds ratio for quality elements is OR ¼ ea þb x .
When quality element performance changes by one unit, x0 = 1 and the odds ratio can be
0 0
expressed as follows: OR ¼ ea þb .
0 0
The odd ratio for quality element i is yi0 ¼ ea þbi .

Fig 7. Value function of prospect theory.


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Empirical research on Kano’s model and customer satisfaction

The change in customer satisfaction due to a change in quality element performance is


expressed as
dy0 0 0
¼ ea þbi :
db0

Therefore, the change in quality element performance can cause a gain in customer satisfac-
tion and a loss of customer dissatisfaction.
0 0
Let x ¼ ea þbi where x denotes gain and loss in prospect theory. The value function v(x) is
the value produced by the gain and loss. Table 6 details the value derived from the change in
quality attribute performance. When the gain increased by one unit, the increase in value
decreased, and vice versa. However, compared with gain for attractive quality attributes, must-
be quality attributes were more sensitive to loss.
Analyzing how improvement in quality attributes changes customers’ perceived value
enables identifying the quality attributes that offer the maximum value. This will help deci-
sion-makers determine how customer satisfaction influences value creation, how to improve
quality attributes, and which quality attributes are the highest priority.

Conclusions
In the present study, a novel method was proposed to quantitatively examine the asymmetrical
and nonlinear relationship between quality attributes and customer satisfaction, and to classify
quality attributes on the basis of this relationship. To sum up, these findings are not only that
the influences of some attributes on customer satisfaction are significant, but that the logistic
regression models the probability of customer satisfaction to fit the nonlinear relationship.
Examining the cyclists confirmed that quality attributes and customer satisfaction were in an
asymmetric and nonlinear relationship, as found in previous studies [51, 20, 24]. Berger, et al.
[84] proposed the customer satisfaction index to indicate the extent of customer satisfaction.
The customer satisfaction coefficient is measured by the frequency of the quality attribute.
However, this study employed the odds ratio to estimate the extent of customer satisfaction. It
appears the logistic regression method produces more accurate measurements and more useful
information. Utilizing the shape changes of the nonlinear relationship encourage strategic
thinking to optimize customer satisfaction through improving the performance of various
attribute. In addition to the likelihood of customer satisfaction, this method is more strongly
linked to success in the nonlinear relationship than the previous methods. The value function
calculated using prospect theory revealed an S-shaped curve, and could be used to analyze cus-
tomer satisfaction. Resources and production capacity are generally limited during product

Table 6. Customer satisfaction value.


Quality elements Value
Gain Loss
Q1 appearance 6.643 -4.933
Q2 color 5.853
Q3 cushion 3.532
Q4 brake system 3.358 -4.284
Q5 shift system 4.054 -5.348
Q6 wheel set and transmission 2.993 -8.311
Q7 weight 3.725
Q8 accessory 2.780
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Empirical research on Kano’s model and customer satisfaction

design and manufacture, so by considering customer psychology and the asymmetric and non-
linear relationship between attributes and satisfaction, time and money need not be wasted on
product changes that will not increase customer satisfaction.
Kano’s model is constructed according to customers’ requirements, which change with
time and situation [11, 85]. The reference point used by customers to assess quality attribute
performance often changes. A decision-making diagram was presented in this study, visualiz-
ing how quality attributes affect customer satisfaction. The decision-making diagram corre-
spond to the life cycle of quality attributes proposed by Kano [8]. Previous studies reported
that for successful quality attributes, an indifferent quality changes to an attractive quality over
time, which in turn becomes a one-dimensional quality and finally a must-be quality [86–88].
Thaler [89] proposed the endowment effect, which states that when a person owns an object,
they want to avoid losing it. Therefore, when a customer owns a quality element, the customer
wants to avoid losing the quality element. Slack [90] reported that if the importance of a quality
attribute increased (i.e., customers came to value it more highly), then customers would cease
to be easily satisfied because the quality is in the process of transforming from an attractive
quality into a must-be quality. For example, Kano [80] investigated TV remote controls, which
were considered as an attractive quality in 1983, a one-dimensional quality in 1989, and a
must-be quality in 1998. The reference point used by customers to assess the quality of a TV
remote control changed with time. Customers typically avoided losing existing quality attri-
butes, and changed their decision-making preference from gain to loss, demonstrating that
quality attributes are not fixed, but dynamic.
For bicycles, the quality attribute life cycle is long, but for mobile phones, for example, the
quality attribute life cycle is short. The development of quality attributes must be understood if
products are to be manufactured that satisfy customers. In the present study, we not only clas-
sified quality attributes and examined the change of quality attributes, but also quantitatively
analyzed a dynamic two-dimensional quality model. Subsequent studies are suggested to
examine quality attribute life cycles through exploring the impact of performance change on
customer satisfaction, which predicts changes in quality attributes. In the present study, the
proposed novel method employs the concept of customer satisfaction odds. Comprehensive
and profound empirical studies remain to be conducted to demonstrate the applicability of
this method.

Supporting information
S1 File. Questionnaire–English.
(DOCX)
S2 File. Questionnaire–Chinese.
(DOCX)

Author Contributions
Conceptualization: FHL YCL.
Data curation: FHL.
Formal analysis: SBT.
Funding acquisition: SBT.
Investigation: SBT JZ JW ZS.
Methodology: YCL FHL CFH.

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Empirical research on Kano’s model and customer satisfaction

Project administration: FHL YCL.


Resources: YCL FHL SBT.
Software: FHL YCL CFH.
Supervision: FHL YCL.
Validation: FHL YCL.
Visualization: FHL YCL.
Writing – original draft: FHL SBT.
Writing – review & editing: FHL SBT JZ JW ZS.

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