Importance‐performance analysis of service attributes and its impact on decision making in the mobile telecommunication industry

Abstract

PurposeCustomer relationship management (CRM) strategies rely heavily on the importance and performance of the attributes that define a service. The aim of this paper is first to investigate the asymmetric relationship between performance of service attributes and customer satisfaction, and second, through a case study in the mobile telecommunication industry to prove that the importance of a service attribute is a function of the performance of that attribute.Design/methodology/approachAn empirical study using questionnaires with a focus on service enquiring about the performance of service key attributes and overall customer satisfaction was conducted. The data were fed into the Kano customer satisfaction model and the importance‐performance analysis (IPA) method for analysis and comparison.FindingsThe results indicate that there is a dynamic relationship between service attributes and overall customer satisfaction. Service attributes have a different impact on customer satisfaction regardless of their classification. The importance of service attributes can be derived from their performance and this can be proved in the Mobile Telecommunication sector. Also this research concludes that the major weaknesses in the Mobile Telecommunication industry that cause the highest customer dissatisfaction are the range of phones, the accuracy of billing and payment, and the service plans, whereas the major strengths as a source of customer satisfaction are customer service quality, value for money and network performance.Research limitations/implicationsThe Kano model of customer satisfaction needs to be extended to other customer behaviour variables such as customer retention (e.g. purchase intention) and customer loyalty (e.g. word‐of‐mouth, feedback) for improved decision analysis. The paper does not include customer retention and loyalty factors.Practical implicationsThe methodology employed here can be easily applied by marketers for evaluating customer behaviours and service quality performance for improved decision making and resource allocation.Originality/valueThere is little evidence that extensive work has been dedicated to studying the relationship between service attributes and customer satisfaction through Kano's model. The paper specifically investigates the applicability of the model and the key factors in the mobile telecommunication industry.