Kano Model

Kano Model: Complete Guide for Six Sigma Black Belt DEFINE Phase

What is the Kano Model?

The Kano Model is a customer satisfaction theory that categorizes product features and characteristics based on how they affect customer satisfaction. Developed by Noriaki Kano in the 1980s, this model helps organizations understand which product features create delight, which are expected, and which are irrelevant to customer satisfaction.

The model identifies three primary categories of customer needs:

• Hygiene Factors (Basic Needs) - Expected features that prevent dissatisfaction
• Performance Factors (Linear Needs) - Features that increase satisfaction proportionally with quality
• Excitement Factors (Delighter Needs) - Unexpected features that create delight and competitive advantage

Why is the Kano Model Important?

In the context of Six Sigma Black Belt training, the Kano Model is critical for several reasons:

• Customer Voice Alignment: Helps translates customer needs into actionable project objectives during the DEFINE phase
• Differentiation Strategy: Identifies which improvements will genuinely create competitive advantage versus meeting minimum expectations
• Resource Allocation: Guides where to focus improvement efforts for maximum customer impact and organizational benefit
• Project Prioritization: Enables teams to prioritize which customer requirements to address first
• Quality Planning: Informs which product characteristics must be reliable and which can be enhanced for differentiation

How the Kano Model Works

The Three Customer Need Categories

1. Basic Needs (Hygiene Factors or Threshold Attributes):

These are the minimum expectations customers have. Their absence causes dissatisfaction, but their presence alone doesn't create satisfaction. Examples include:

• A car that starts reliably
• A smartphone that doesn't crash frequently
• Hotel rooms that are clean
• Customer service that responds to calls

Key characteristic: Customers assume these will be present. If they're missing, customers are very dissatisfied; if present, they simply accept them as normal.

2. Performance Factors (Linear Attributes or Performance Needs):

These features create satisfaction proportionally - the better the performance, the more satisfied the customer. Examples include:

• Fuel efficiency in a car - more efficiency equals more satisfaction
• Battery life in a smartphone - longer battery life increases satisfaction
• Processing speed of a computer
• Hotel room price - cheaper is better (within quality parameters)

Key characteristic: There's a linear relationship between performance level and customer satisfaction.

3. Excitement Factors (Delighters or Unexpected Attributes):

These are innovative features customers don't expect but truly appreciate when present. Their absence doesn't cause dissatisfaction, but their presence creates delight. Examples include:

• A car with a heated steering wheel
• Smartphone with wireless charging
• Hotel with complimentary upgraded room service
• Computer with innovative cooling technology

Key characteristic: Customers are pleasantly surprised and delighted when these features exist, creating strong positive impressions and brand loyalty.

The Kano Model Curve

The model is typically represented as a graph with:

• X-axis: Level of implementation or quality of the feature
• Y-axis: Customer satisfaction (from dissatisfaction to satisfaction)
• Three curves: Basic needs (drops sharply below zero if absent, flat above zero), Performance factors (diagonal linear relationship), Excitement factors (flat at zero until introduced, then curves upward)

How to Conduct a Kano Analysis

Step 1: Identify Customer Requirements
Gather all potential product features and customer requirements through brainstorming, customer interviews, and Voice of Customer (VOC) activities.

Step 2: Develop the Kano Questionnaire
Create pairs of questions for each feature:

• Functional question: How would you feel if this feature was present?
• Dysfunctional question: How would you feel if this feature was not present?

Response options typically include: 1) I like it that way, 2) It must be that way, 3) I'm neutral, 4) I can tolerate it that way, 5) I dislike it that way

Step 3: Categorize Each Requirement
Analyze response patterns to classify each requirement into one of the three categories.

Step 4: Create Priority Matrix
Plot requirements on a matrix showing impact on satisfaction versus implementation effort.

Step 5: Make Improvement Decisions
Prioritize which requirements to address in project scope based on category and organizational strategy.

Application in Six Sigma DEFINE Phase

During the DEFINE phase of a Six Sigma project, the Kano Model helps:

• Define Project Scope: Determine which customer needs are critical to address
• Establish CTQ (Critical to Quality): Identify which customer requirements directly impact satisfaction
• Prevent Scope Creep: Focus on features that actually matter to customers rather than nice-to-haves
• Align with Business Strategy: Choose whether to compete on basic needs, performance, or excitement factors
• Set Realistic Expectations: Understand that basic needs alone won't create competitive advantage

Exam Tips: Answering Questions on Kano Model

Tip 1: Remember the Three Categories Are Distinct

When answering questions, ensure you can clearly distinguish between:

• Basic Needs: Customer dissatisfaction if missing; neutral if present
• Performance Factors: More is always better; linear satisfaction increase
• Excitement Factors: Unexpected; create delight when present; no dissatisfaction when absent

A common exam mistake is confusing Performance and Excitement factors.

Tip 2: Understand the Customer Satisfaction Curve Shapes

For curve-based questions, remember:

• Basic Needs: Horizontal line (flat positive) - meeting the need doesn't increase satisfaction much
• Performance Factors: Diagonal line - clear positive correlation between quality and satisfaction
• Excitement Factors: Curved line - initially flat, then rises sharply with implementation

Tip 3: Recognize Real-World Examples Quickly

Build a mental library of examples for each category. When you see a feature described, immediately ask yourself: 'Will customers be upset if it's missing?' (Basic), 'Is more of this always better?' (Performance), or 'Will customers be surprised and delighted?' (Excitement)

Tip 4: Understand How Categories Shift Over Time

A key exam concept: What starts as an Excitement factor (delighter) can become a Performance factor, then eventually a Basic need (hygiene factor) as the market and technology evolve.

Example: Mobile phone touch screens were initially excitement factors (unexpected), became performance factors (larger, more responsive), and now are basic needs (all phones must have them).

Tip 5: Recognize Kano in Project Context

Exam questions often present a scenario requiring Kano application:

• 'A project team is struggling to prioritize customer needs. Which tool would help?' - Answer: Kano Model
• 'Which features should we focus on for competitive advantage?' - Answer: Excitement factors (with some basic needs as foundation)
• 'Why are customers still dissatisfied despite meeting basic requirements?' - Answer: Because meeting basic needs doesn't create satisfaction, only prevents dissatisfaction

Tip 6: Know the Kano Questionnaire Method

Exam questions may ask about conducting Kano analysis. Remember:

• Use paired functional and dysfunctional questions
• Analyze response patterns to categorize requirements
• Plot results to visualize priorities
• Use findings to guide project scope decisions

Tip 7: Connect Kano to CTQ and VOC

The exam often tests how Kano Model fits into Six Sigma methodology:

• Voice of Customer (VOC): Kano helps organize and prioritize VOC findings
• Critical to Quality (CTQ): Kano identifies which customer requirements are actually critical
• Project Charter: Kano findings inform what goes into the charter

Tip 8: Be Ready for Strategy Questions

Expect questions like: 'If a company wants to compete on innovation, which Kano category should they focus on?' Answer: Excitement factors (with adequate basic needs foundation)

Or: 'A competitor offers the same basic features at lower price. What should we do?' Answer: Identify and develop excitement factors for differentiation.

Tip 9: Understand Cost vs. Satisfaction Trade-offs

Exam questions test your understanding that:

• Investing heavily in basic needs has low ROI for satisfaction
• Performance factors offer moderate ROI
• Excitement factors offer high ROI initially, but satisfaction diminishes as they become expected

Tip 10: Watch for Trick Questions About Market Differences

A feature might be a basic need in one market segment but an excitement factor in another. For example:

• Anti-lock brakes (ABS) are basic needs in developed markets but excitement factors in emerging markets
• Luxury leather seats are performance/excitement factors in economy cars but basic needs in luxury vehicles

Good answers acknowledge this context-dependency.

Common Exam Question Patterns

Pattern 1: Category Identification
'Which of the following best represents an excitement factor for smartphone customers?'
Look for features that are unexpected and create delight, not core functions.

Pattern 2: Application to Project
'During DEFINE phase, a team identifies 50 customer requirements. Which tool would help prioritize them?'
Answer: Kano Model (or similar prioritization tools).

Pattern 3: Strategic Implications
'A company wants to create customer loyalty. Which Kano category should their innovation focus on?'
Answer: Excitement factors, because they create competitive differentiation and delight.

Pattern 4: Evolution of Needs
'Five years ago, extended warranty was an excitement factor. Today it is?'
Answer: A basic need (or performance factor) because customer expectations have evolved.

Pattern 5: Satisfaction Analysis
'Customers report low satisfaction despite excellent performance on all basic features. Why?'
Answer: Basic needs prevent dissatisfaction but don't create satisfaction; excitement or performance factors are needed for satisfaction.

Key Terminology to Master

• Hygiene Factors: Synonym for basic needs
• Delighters: Synonym for excitement factors
• Threshold Attributes: Another term for basic needs
• Linear Attributes: Another term for performance factors
• Kano Questionnaire: Two-part question method for categorizing requirements
• Functional Question: 'What if the feature is present?'
• Dysfunctional Question: 'What if the feature is absent?'

Practice Question Examples

Example 1: A restaurant is analyzing customer needs. A comfortable temperature in dining area is MOST likely which type of customer need?
Answer: Basic need (hygiene factor) - customers expect comfort; its absence causes dissatisfaction, but its presence doesn't increase satisfaction significantly.

Example 2: Which statement best describes an excitement factor in the Kano Model?
a) Its absence causes significant customer dissatisfaction
b) More of it always increases customer satisfaction
c) Its presence creates delight and competitive advantage
d) It is the easiest to implement
Answer: c) - This is the definition of an excitement factor.

Example 3: A software company discovers that all basic security features are now industry standard (basic needs), and customers have neutral satisfaction even with excellent performance. What should the company do?
Answer: Develop excitement factors (innovative features) to differentiate and create competitive advantage, because basic needs and even strong performance factors alone won't create competitive advantage or customer delight.

Summary and Quick Reference

Final Exam Preparation Advice:

• Understand that the Kano Model is about customer perception and satisfaction, not about product quality alone
• Remember that meeting basic needs is necessary but not sufficient for customer satisfaction
• Recognize that excitement factors have strategic importance for market differentiation
• Practice categorizing various product features into the three categories
• Be able to explain why the model matters for Six Sigma project success
• Connect Kano Model to other DEFINE phase tools like VOC, CTQ, and affinity diagrams