Kano Empirical Model
Kano Empirical Model
Kano Empirical Model
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
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.
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.
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.
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.
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.
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.
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.
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.
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
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.
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
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 .
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
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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