What is the Kano Model?

1. Introduction to the Kano Model

The Kano Model, developed by Professor Noriaki Kano in the 1980s, is a

framework for prioritizing product features based on their impact on customer
satisfaction. It categorizes features into five distinct types, helping businesses
understand which features will delight customers and which are simply
expected.

2. Origins and Development

Historical Context and Creation by Noriaki Kano:

 Background: During the 1980s, Japanese industries were focused on

quality improvement to compete globally. Noriaki Kano, a quality
management professor at the Tokyo University of Science, introduced
the Kano Model to address the limitations of traditional customer
satisfaction models.

 Creation: Kano's research focused on understanding the different levels

of customer satisfaction and how various product attributes affect them.
His model provided a more nuanced view, distinguishing between
features that prevent dissatisfaction and those that enhance
satisfaction.

Theoretical Foundation and Principles:

 Customer Satisfaction Dimensions: Kano's theory posits that

customer satisfaction is not linear. Different types of product features
affect satisfaction differently. The model is based on two dimensions:
functional (what the product does) and dysfunctional (what happens
when the product doesn’t meet expectations).

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  Nonlinear Relationship: The Kano Model identifies that some features
have a more significant impact on satisfaction than others, and this
impact can change over time as customer expectations evolve.

3. Feature Categories

Basic Needs (Must-be Quality):

 Definition: These are the fundamental features that customers expect.

If these needs are not met, customers will be extremely dissatisfied.
However, fulfilling these needs does not increase satisfaction; it only
prevents dissatisfaction.

 Examples: In a car, basic needs might include safety features like seat
belts and airbags.

Performance Needs (One-dimensional Quality):

 Definition: These features cause customer satisfaction to increase

linearly with their performance. The better these needs are met, the
higher the customer satisfaction.

 Examples: In a smartphone, performance needs might include battery

life and screen resolution.

Excitement Needs (Attractive Quality):

 Definition: These are unexpected features that can delight customers.

Their absence does not cause dissatisfaction, but their presence
significantly increases satisfaction.

 Examples: In a hotel, a complimentary spa treatment could be an

excitement need.

Indifferent Needs:

 Definition: These features do not significantly impact customer

satisfaction whether they are present or not.

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  Examples: The color of the internal wiring in a household appliance
might be indifferent to customers.

Reverse Needs:

 Definition: These features can satisfy some customers while causing

dissatisfaction in others.

 Examples: Highly technical control panels in consumer electronics

might be appreciated by tech-savvy users but disliked by non-technical
users.

4. Kano Analysis Process

Steps Involved in Conducting Kano Analysis:

1. Identify Features: List the features or attributes of the product that

will be evaluated.

2. Design Questionnaire: Create a Kano survey with paired questions for

each feature—one functional question (how the customer feels if the
feature is present) and one dysfunctional question (how the customer
feels if the feature is absent).

3. Administer Survey: Collect responses from a representative sample of

customers.

4. Analyze Results: Categorize features into Kano categories based on

the survey responses using a Kano evaluation table.

5. Prioritize Features: Use the categorized features to inform product

development priorities.

Example of a Kano Survey Questionnaire:

 Functional Question: How do you feel if the product has feature X?

o Like

o Expect

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 o Neutral

o Live with

o Dislike

 Dysfunctional Question: How do you feel if the product does not have
feature X?

o Like

o Expect

o Neutral

o Live with

o Dislike

Interpretation of Kano Model Results:

 Categorization Table: Use a Kano evaluation table to interpret the

responses. Each combination of answers from the functional and
dysfunctional questions corresponds to a specific Kano category (e.g.,
Must-be, One-dimensional, Attractive, Indifferent, or Reverse).

 Actionable Insights: Prioritize features that fall into the Must-be, One-
dimensional, and Attractive categories. Address basic needs first to
prevent dissatisfaction, enhance performance needs to improve
satisfaction, and include attractive features to delight customers.

How Do People Use the Kano Model?

Introduction to the Kano Model's Practical Applications

The Kano Model is widely used across various industries to enhance product
development and customer satisfaction. This tutorial provides detailed insights
into how the Kano Model is applied, including practical applications, case

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studies, steps for implementation, pros and cons, and integration with modern
product discovery methodologies.

1. Practical Applications

Industries and Scenarios Where the Kano Model is Commonly Applied:

 Technology: Software companies use the Kano Model to prioritize

features based on customer needs and satisfaction.

 Manufacturing: Manufacturers apply the model to design products that

meet customer expectations and stand out in the market.

 Healthcare: Healthcare providers use it to improve patient satisfaction

by identifying critical service attributes.

 Retail: Retailers implement the Kano Model to enhance customer

experience through better product offerings and services.

 Hospitality: Hotels and restaurants utilize the model to identify

features that delight guests and improve their stay or dining experience.

2. Case Studies

Examples of Companies Using the Kano Model for Product

Development:

 Apple Inc.: Apple uses the Kano Model to prioritize features in its
product development cycle, ensuring that new devices meet and exceed
customer expectations.

 Toyota: Toyota applies the Kano Model in its vehicle design process to
identify and implement features that enhance customer satisfaction.

 Amazon: Amazon leverages the Kano Model to improve its e-commerce

platform, focusing on features that drive customer satisfaction and
loyalty.

Analysis of Successful Implementations:

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  Apple Inc.: By using the Kano Model, Apple has consistently introduced
features that delight customers, such as the Retina display and Face ID.

 Toyota: Toyota's application of the Kano Model has led to the

development of cars with advanced safety features and exceptional
reliability, key factors in their customer satisfaction.

 Amazon: Amazon's focus on customer-centric features like one-click

purchasing and personalized recommendations has been successful,
significantly boosting customer satisfaction and retention.

3. Steps in Using the Kano Model

Designing and Administering Customer Surveys:

 Identify Features: List potential product features to be evaluated.

 Design Questionnaire: Create paired questions for each feature—

functional and dysfunctional.

o Example:

 Functional: "How do you feel if the product has feature X?"

 Dysfunctional: "How do you feel if the product does not have

feature X?"

 Administer Survey: Distribute the questionnaire to a representative

sample of customers.

Analyzing Survey Results:

 Categorize Responses: Use a Kano evaluation table to classify

features into categories: Must-be, One-dimensional, Attractive,
Indifferent, or Reverse.

 Prioritize Features: Based on the classification, prioritize features that

will prevent dissatisfaction and those that will delight customers.

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Categorizing Features and Prioritizing Product Development:

 Basic Needs (Must-be): Ensure these features are present to avoid

dissatisfaction.

 Performance Needs (One-dimensional): Focus on improving these

features to increase satisfaction.

 Excitement Needs (Attractive): Include these features to delight

customers and differentiate the product.

 Indifferent Needs: Consider whether these features are necessary.

 Reverse Needs: Evaluate if these features should be included, as they

might have mixed reactions.

4. Kano Model: Pros and Cons

Advantages:

 Customer-Centric Approach: Helps prioritize features based on

customer satisfaction.

 Identification of Key Differentiators: Highlights features that can

significantly impact customer satisfaction.

 Structured and Clear Framework: Provides a systematic method for

feature evaluation and prioritization.

Disadvantages:

 Reliance on Subjective Feedback: Customer responses can be

subjective and may vary over time.

 Complexity in Survey Design: Creating effective Kano surveys can be

complex and time-consuming.

 Static Nature: Requires periodic reassessment as customer

preferences evolve.

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Comparative Analysis:

 MoSCoW Method: Focuses on categorizing features into Must have,

Should have, Could have, and Won't have. The Kano Model provides a
more nuanced understanding of customer satisfaction.

 Value vs. Effort Matrix: Prioritizes features based on their value and
the effort required to implement them. The Kano Model adds a customer
satisfaction dimension to this analysis.

5. How to Combine the Kano Model with Modern Product

Discovery?

Integrating with Agile Practices:

 Sprint Planning and Backlog Refinement: Use Kano analysis to

prioritize the product backlog.

 Continuous Feedback Loops: Regularly update the Kano analysis with

customer feedback and incorporate changes into sprints.

Leveraging Lean Methodologies:

 MVP Development: Use Kano insights to define the minimum viable

product, focusing on essential features.

 A/B Testing and Rapid Experimentation: Test and validate Kano

model findings through experiments and user feedback.

Design Thinking Synergies:

 User Journey Mapping: Combine Kano analysis with journey mapping

to understand customer needs and pain points.

 Persona Development: Use Kano categories to inform persona

development and enhance empathy.

Data-Driven Product Discovery:

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  Analytics and Customer Behavior Data: Integrate data analytics
with Kano findings to make informed decisions.

 Regular Updates: Continuously update the Kano analysis with new

data and insights to keep it relevant.

6. Discussion

Synthesis of Findings:

 Combining the Kano Model with modern methodologies enhances its

effectiveness in product development.

 Practical implications for product managers include improved

prioritization and customer satisfaction.

Practical Implications for Product Managers and Development Teams:

 Better decision-making through a customer-centric approach.

 Enhanced ability to prioritize features that drive satisfaction and loyalty.

Potential Challenges and Solutions:

 Challenge: Complexity in survey design and data interpretation.

 Solution: Use specialized tools and software to streamline the process.

 Challenge: Keeping the analysis updated with changing customer

preferences.

 Solution: Regularly collect customer feedback and update the Kano

analysis.

Recommendations for Future Research and Practice:

 Explore the integration of the Kano Model with emerging technologies

like AI and machine learning.

 Conduct longitudinal studies to understand the evolving impact of Kano

categories on customer satisfaction.

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7. Conclusion

Recap of the Kano Model's Importance and Application:

 The Kano Model provides a robust framework for understanding and

prioritizing customer needs.

 Its application across various industries has demonstrated significant

improvements in customer satisfaction.

Summary of Pros, Cons, and Integration Strategies:

 Pros: Customer-centric approach, clear framework, identification of key

differentiators.

 Cons: Subjective feedback, complexity, static nature.

 Integration Strategies: Combine with Agile, Lean, Design Thinking,

and data-driven approaches.

Final Thoughts on the Evolving Role of the Kano Model in

Contemporary Product Discovery:

 The Kano Model remains a valuable tool for product managers.

 Its integration with modern methodologies ensures its continued

relevance and effectiveness in meeting customer needs and driving
satisfaction.

Case Study: Application of the Kano Model in the Airline

Industry

Introduction

The airline industry is highly competitive, with customer satisfaction playing a

crucial role in determining the success of an airline. This case study explores
how an airline utilized the Kano Model to enhance customer satisfaction by
prioritizing and optimizing its service offerings.

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Background

Airline: SkyHigh Airlines

Objective: Improve overall customer satisfaction and loyalty by

understanding and prioritizing the features and services that matter most to
passengers.

Step 1: Identifying Features and Attributes

SkyHigh Airlines started by identifying a comprehensive list of features and

services that could impact customer satisfaction. These features were grouped
into various categories such as in-flight services, ground services, ticketing
and booking, and overall travel experience.

Features Identified:

 In-flight entertainment

 Wi-Fi connectivity

 Seat comfort

 Quality of food and beverages

 Check-in process

 Baggage handling

 Customer service

 On-time performance

 Loyalty program benefits

Step 2: Designing the Kano Survey

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A Kano survey was designed to capture customer preferences regarding the
identified features. Each feature had two questions: a functional (positive)
question and a dysfunctional (negative) question.

Example Questions:

 In-flight Wi-Fi:

o Functional: "How do you feel if the in-flight Wi-Fi is available and

reliable?"

o Dysfunctional: "How do you feel if the in-flight Wi-Fi is not

available?"

 Seat Comfort:

o Functional: "How do you feel if the seats are very comfortable?"

o Dysfunctional: "How do you feel if the seats are uncomfortable?"

Step 3: Administering the Survey

The survey was administered to a representative sample of SkyHigh Airlines'

customers. The sample included frequent flyers, occasional travelers, and
first-time passengers to ensure diverse feedback. Surveys were distributed
via email, in-flight during longer flights, and at the airport lounges.

Step 4: Analyzing Survey Results

The responses were categorized using the Kano evaluation table. Each feature
was classified into one of the five Kano categories: Must-be, One-dimensional,
Attractive, Indifferent, and Reverse.

Example Results:

 In-flight Wi-Fi: Attractive

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  Seat Comfort: One-dimensional

 Quality of Food and Beverages: Performance

 Check-in Process: Must-be

 Customer Service: Must-be

 On-time Performance: One-dimensional

 Loyalty Program Benefits: Attractive

 Baggage Handling: Must-be

Step 5: Prioritizing Features

Based on the analysis, SkyHigh Airlines prioritized the features for

development and improvement.

 Must-be Features: Immediate attention to ensure they meet basic

customer expectations.

o Check-in process

o Customer service

o Baggage handling

 One-dimensional Features: Continuous improvement to enhance

customer satisfaction.

o Seat comfort

o On-time performance

 Attractive Features: Investment to delight customers and

differentiate from competitors.

o In-flight Wi-Fi

o Loyalty program benefits

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  Performance Features: Enhance to boost overall satisfaction.

o Quality of food and beverages

 Indifferent Features: Minimal focus as they do not significantly impact

customer satisfaction.

Step 6: Implementing Changes

SkyHigh Airlines implemented the following changes based on the Kano Model
analysis:

 Check-in Process and Customer Service: Introduced self-service

kiosks, mobile check-in options, and enhanced staff training programs
to improve efficiency and customer interaction.

 Baggage Handling: Implemented better tracking systems and

streamlined baggage handling procedures to reduce wait times and lost
luggage incidents.

 Seat Comfort: Invested in ergonomic seating with adjustable features

and more legroom in economy class.

 On-time Performance: Improved flight scheduling and operational

processes to ensure timely departures and arrivals.

 In-flight Wi-Fi: Partnered with leading technology providers to offer

reliable and fast Wi-Fi connectivity on all long-haul flights.

 Loyalty Program Benefits: Introduced new benefits such as priority

boarding, free upgrades, and exclusive lounge access for loyalty
program members.

Step 7: Monitoring and Feedback

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SkyHigh Airlines continued to monitor customer feedback and conduct periodic
Kano surveys to ensure that the implemented changes were meeting customer
expectations and to identify new areas for improvement.

Results and Analysis

Customer Satisfaction:

 In-flight Wi-Fi: Customer satisfaction increased by 20% due to the

introduction of reliable and fast Wi-Fi.

 Seat Comfort: Improved seat design led to a 15% increase in

satisfaction regarding seat comfort.

 Check-in Process: Streamlined check-in process reduced wait times

and improved overall passenger experience, reflected in a 25% increase
in satisfaction.

 Customer Service: Enhanced training programs led to a noticeable

improvement in customer service, with satisfaction increasing by 18%.

Overall Impact:

 Loyalty and Retention: The enhanced loyalty program benefits

resulted in a 30% increase in loyalty program memberships and a 10%
increase in repeat customers.

 Market Differentiation: The attractive features, such as in-flight Wi-

Fi and enhanced loyalty benefits, helped SkyHigh Airlines differentiate
itself from competitors.

 Revenue Growth: The improvements in customer satisfaction and

loyalty contributed to a 12% increase in overall revenue.

Conclusion

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The application of the Kano Model at SkyHigh Airlines successfully identified
and prioritized key features and services that significantly impacted customer
satisfaction. By addressing basic needs, enhancing performance features, and
introducing attractive features, SkyHigh Airlines improved its overall customer
experience, leading to increased satisfaction, loyalty, and revenue. This case
study demonstrates the effectiveness of the Kano Model in the airline industry
and provides a structured approach for other airlines to enhance their service
offerings and meet customer expectations.

References

 Berger, Claes, et al. "Kano's methods for understanding customer-

defined quality." Center for Quality Management Journal 2.4 (1993): 3-
36.

 Witell, Lars, and Anders Löfgren. "Classification of quality attributes."

Managing Service Quality: An International Journal (2007).

 Griffin, Abbie, and John R. Hauser. "The voice of the customer."

Marketing Science 12.1 (1993): 1-27.

 Kano, Noriaki, et al. "Attractive quality and must-be quality." The

Journal of the Japanese Society for Quality Control 14.2 (1984): 39-48.

 Sauerwein, Elmar, et al. "The Kano model: How to delight your

customers." International Working Seminar on Production Economics.
Vol. 1. Igls, Austria: 1996.

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