Strategic improving actions based on the refined analysis of service and quality attributes

Abstract

In the competitive business environment, customers are increasingly seeking quality products, excellent service, low price, and perceived value for money. The present study proposes a strategic improving action model based on the combination of refined Kano's model and customers' satisfaction level. This integrated model can provide the guidance for service industries to offer customers enhanced value through lower prices while maintaining high quality. The model also provides decision guidance on prioritising improvements in various service items or attributes by taking into account the importance-satisfaction model and the frequency of use of service items,. The practical application of the proposed model is demonstrated empirically in a case study of a five-star hotel in Taiwan. The study concludes that strategic improving decisions based on the composition of service modules can simultaneously enhance service quality and increase the customer value for the service industries.