Abstract:

This paper describes a sophisticated choice modelling technique for the manipulation of quantative data on customers' needs, expectations, perceptions and values. These feed directly into the development of competitive strategies. Key questions addressed by this model include "Where should the company invest to improve quality in order to best meet the needs of its customers?" and "How much should be invested to obtain the most profitable payback?" Key outputs from the model include benchmarks and standards, relative importance of service aspects, improvement priorities, needs and value segmentation, service and price sensitivity, and customer risk profiling. A combination of gap analysis, relative importance and improvement priorities is used to highlight the most critical customer service aspects. A scenario testing facility is described which can be used to identify the impact of improved quality initiatives on customer loyalty and increased brand preference.