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(Attractive utility, non-linear)

Attributes of the service that drive perceptions of utility gain but when not fulfilled do not cause perceptions of utility loss.

Performance factors (P)

(Attractive utility, linear)

Attributes of the service that result in perceptions of utility gain when fulfilled and utility loss when not fulfilled in an almost linear one-dimensional pattern.

Indifferent attributes (I)

Cause neither gains nor losses in perceptions of utility regardless of whether they are fulfilled or not.

Reversed attributes (R)

Cause gains in perceptions of utility when not fulfilled and losses when fulfilled. Assumptions need to be reversed.

Questionable response (Q)

Responses are questionable possibly because questions were not clear or misinterpreted.

Table 7.1 The Kano Model28 and service attributes

Take the example of an online storage service with synchronized backup and restore capabilities. It must provide round-the-clock access, with high upload and download speeds. It must protect from corruption, unauthorized access and accidental disclosure. At the same time, it must be very accessible to the rightful owners. There is utility gain from having access to the storage service on a public network through a secure browser. The service is a substitute for a portable storage device, which needs careful handling and transport by the users to maintain access to the stored data. To an extent, security and accessibility are basic factors. Their provision does not result in utility gains for the customer. It takes utility to the level of no difference or the neutral zone (Figure 7.9). Not providing them causes a dramatic drop in customer satisfaction.

Some users have need for a greater amount of storage than others. Within a certain range, they value an increasing amount of storage and are willing to pay a proportionally higher price. The size of storage is a performance factor with one-dimensional utility, along with which it is meaningful to offer options. Within the range, the relationship between utility and storage space is approximately linear. Outside this range, the customers have diminishing utility on additional storage or the lack of it. Another type of one-dimensional utility could be the number of ‘sub-accounts’ so that customers can assign different storage boxes for different purposes such as projects, media type, and personal information. More sub-accounts mean greater utility with diminishing utility after a particular number of sub-accounts.

Services can have excitement attributes, which customers do not expect but are happy to have, given a reasonable offer. The storage service may offer attributes such as scheduled backups and notification, administrator-style privileges, multiple sub-accounts, metering, access control, account administration and secure file transfer protocols. Some customers may view these as performance factors with one-dimensional utility. For others these are excitement factors. Their absence does not cause dissatisfaction. Their presence causes a dramatic increase in satisfaction at a reasonable price.

Excitement factors and performance factors are the basis for market segmentation and differentiated service levels. They are used to fulfil the needs of particular types of customers. Such attributes are necessary for any strategy involving the segmenting of customers into groups and serving them with an appropriate utility package. Basic factors are the cost of entry into the market space. Without basic factors the service provider cannot enter the market space. As time passes, excitement factors become commonly available, losing their ability to differentiate. Competition, changes in customer perceptions, and new innovations can cause excitement factors to drift towards becoming performance or basic factors.

Figure 7.9 Mapping perceptions of utility28

Extensive dialogue is required with targeted customers or segments of market spaces to determine the attributes a service must have, should have, and could have in terms of must-have attractive utility. Questionnaires are used to elicit responses from customers from which further analysis is possible. The Kano Evaluation Table is a useful method (Table 7.2).

Customers are asked ...

Dysfunctional form (-)

How would you feel if the product does not have attribute X?

Functional form (+)

Customers respond ...

Like it

Expect it

Neutral

Accept it

Dislike it

How would you feel if the product has attribute X?

Like it

Expect it

Neutral

Accept it