In service industry, benchmarking plays an important role as a tool for continuous improvement of service quality. Unlike products, customers can receive and experience services without charge in many cases, thus having more opportunities to make comparative judgments. Consequently, benchmarking, which evaluates comparative advantages of leading competitors and identifies best practices, has been employed by many service firms. As part of effort to extend its scope, integration of QFD and benchmarking has been proposed in previous research. However, sufficient analysis on activities of both firms, including its own firm and its competitor, was not possible due to the use of a single QFD. In response, this paper suggests a dual QFD as a means for benchmarking service quality. A dual QFD makes it possible to conduct detailed analysis on competitor;;s activities and on relationship between activities of the two firms, which should be preceded by benchmarking. From the structural perspective, this paper modifies original QFD into dual QFD by relocating benchmarking matrix to the main frame and including activities of both firms. From the procedural perspective, this paper suggests how to use the suggested dual QFD for benchmarking. By analyzing the activities of both firms, the activities of competitor are closely examined and the synergy effects of activities of both firms are evaluated to provide guidance on ways to improve customer satisfaction.
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A Dual QFD Approach for Benchmarking Service Quality