Changing scenario of service attributes offered by E-retailers

Research paper by sangeeta sawhneyObjective-

The study has been conducted with the objective of tapping the consumers’ feelings that affect their attitudes regarding online shopping.

LITERATURE REVIEW

• Noriaki Kano – Professor at Tokyo Rika University– International Consultant– Received individual Demming Prize in 1997

Key Elements-Rank the attributes into three categories:

Dissatisfier - Must be’s – Cost of EntrySatisfier – More is better – Competitive Delighter – Latent Need – Differentiator

Evaluate Current Performance

It is necessary for a retailer to know how exactly his value offerings are perceived by the customers. But in this highly competitive scenario, customers’ perception of the service attributes offered by the e-retailers, are changing very rapidly.

Hence it becomes very important to know which of these service attributes remain- attractive or must-be or performance-based according to customers’ perception. Also it is useful to know how these service-attributes affect the customer satisfaction. This study uses ‘Kano Model’ to achieve the above objectives.

It is a descriptive study.Today we see two types of customer segments,

one are those who have been buying online and others who are new in buying online.

Studying service attributes for these two segments, in light of Kano Model will help in achieving the objective.

It is a quantitative analysis. Data-

primary data will mainly be used.

Structured questionnaire survey will be used.

• The analysis is done with the help of KANO MODEL which has been explained earlier. The variables have been bifurcated into 2 forms

• Functional form.

• Dysfunctional form.

Illustration• Q1a: How would you feel if the order is not ambiguous? • I like it.• I expect it.• I’m neutral.• I can tolerate it.• I dislike it.•  • Q1b: How would you feel if the order is ambiguous?• I like it.• I expect it.• I’m neutral.• I can tolerate it.• I dislike it.

• 1- Attractive feature (A)

• 2- Expected feature (E)

• 3- Reversal (inconsistent response) (R)

• 4- One dimensional or linear feature (O)

• 5- Questionable response (Q)

• 6- Indifferent response (I)

• Collecting all 78 responses across different variables gave a clearer picture of the satisfaction index.

• Frequency graphs are made for all 78 responses and the biggest responses attribute is considered to be the dominating one

ILLUSTRATION

implication

• ‘Providing extensive information’ is one of the core service attributes in service marketing this is brilliantly verified by this bar graph. People find it an attractive feature which means that it increases the satisfaction level exponentially if provided.

variablesAttractive

featureExpected feature

One dimensional or linear feature

Indifferent response

Questionable response

reversecoefiecient of

satisfactioncoefficient of dissatisfaction

dominant characterestics

order is not ambiguous

19.2 24.4 28.2 28.2 0.0 0.0 0.47 -0.53 O

taking the risk of delayed delivery

23.1 26.9 15.4 34.6 0.0 0.0 0.38 -0.62 I

waiting for a site to load

20.5 17.9 10.3 51.3 0.0 0.0 0.31 -0.69 I

getting prompt confirmation through e-mail

16.7 14.1 5.1 64.1 0.0 0.0 0.22 -0.78 I

simplicity in purchase transactions

7.7 41.0 7.7 43.6 0.0 0.0 0.15 -0.85 I

extensive product information is provided

56.4 5.1 6.4 32.1 0.0 0.0 0.63 -0.37 A

69.2 0.0 0.0 30.8 0.0 0.0 0.69 -0.31 A

46.2 0.0 0.0 53.8 0.0 0.0 0.46 -0.54 I

79.5 0.0 0.0 20.5 0.0 0.0 0.79 -0.21 A

5.1 66.7 11.5 16.7 0.0 0.0 0.17 -0.83 E

51.3 14.1 15.4 19.2 0.0 0.0 0.67 -0.33 A

FREQUENCY %

variables

19.2 24.4 28.2 28.2 0.0 0.0 0.47 -0.53 O

23.1 26.9 15.4 34.6 0.0 0.0 0.38 -0.62 I

20.5 17.9 10.3 51.3 0.0 0.0 0.31 -0.69 I

16.7 14.1 5.1 64.1 0.0 0.0 0.22 -0.78 I

7.7 41.0 7.7 43.6 0.0 0.0 0.15 -0.85 I

56.4 5.1 6.4 32.1 0.0 0.0 0.63 -0.37 A

product tracking process is included

69.2 0.0 0.0 30.8 0.0 0.0 0.69 -0.31 A

receive individual attention during the purchase process

46.2 0.0 0.0 53.8 0.0 0.0 0.46 -0.54 I

able to interact with the sales person to resolve all uncertainties and doubts

79.5 0.0 0.0 20.5 0.0 0.0 0.79 -0.21 A

Orders are fulfilled accurately

5.1 66.7 11.5 16.7 0.0 0.0 0.17 -0.83 E

uncertainty about warranties is not there

51.3 14.1 15.4 19.2 0.0 0.0 0.67 -0.33 A

refunds are made correctly and promptly

26.9 6.4 3.8 62.8 0.0 0.0 0.31 -0.69 I

personal details are not divulged to other Customers

5.1 21.8 2.6 70.5 0.0 0.0 0.08 -0.92 I

the site that is structurally well-arranged

57.7 9.0 9.0 24.4 0.0 0.0 0.67 -0.33 A

the site is aesthetically beautiful

43.6 5.1 5.1 46.2 0.0 0.0 0.49 -0.51 I

you are given rare and unique goods to buy

28.2 20.5 29.5 21.8 0.0 0.0 0.58 -0.42 O

you get discounts on the products you want to

47.4 9.0 15.4 28.2 0.0 0.0 0.63 -0.37 A

you get complementary gifts with the products you want to buy

48.7 9.0 9.0 33.3 0.0 0.0 0.58 -0.42 A

COEFFICIENT OF SATISFACTION

COEFFICIENT OF DISSATISFACTION

CONCLUSION AND SUGGESTIONS

The value proposition that should be changed should include-

• Extensive product information is provided

• Product tracking process is included

• Interaction with the sales person to resolve all uncertainties and doubts during and after the purchase process

• Uncertainty about warranties is not there

• The site that is structurally well-arranged

• Discounts on the products you want to buy

• It is seen that most of these variable are supplementary service attributes rather than core service attributes. As it is said that supplementary service attributes are generally used to differentiate or enhance the service levels of an organization, it is well-reflected in the responses and the indexes made.

• Apart from that from any start-up e-retailer organization it won’t be possible to account in every service attribute mentioned.

The indexes also tells another set of variable which if included will increase the satisfaction level, but if not included WILL DECREASE satisfaction level. Hence these variables are kind of threshold without which the organization won’t be able to sustain.•Product tracking process is included.•Interaction with the sales person to resolve all uncertainties and doubts during and after the purchase process•Uncertainty about warranties is not there•The site that is structurally well-arrangedAnother aspect is the variables which can be avoided in order to enhance value proposition •Simplicity in purchase transactions•Personal details are not divulged to other Customers•Getting prompt confirmation through e-mail.

THANKYOU