Essay About Multi-Channel Service And Competitive Positioning

Extended Qfd: Multi-Channel Service
Essay title: Extended Qfd: Multi-Channel Service
Extended QFD: Multi-Channel Service
Concept Design
LUUK SIMONS & HARRY BOUWMAN
Delft University of Technology, The Netherlands
ABSTRACT The objective is to develop and test a multi-channel e-services design supportmethod that
meets relevant design criteria. On basis of the evaluation of existing service concept design methods, we
extracted relevant design criteria, such as customer orientation, channel coherence, channel synergy,
competitive positioning, speed, focus and communication, and developed an alternative service concept
design method, i.e. XQFD: extended quality function deployment focussed on achieving multi-channel
synergy. This paper illustrates how this design support method is used in six cases in the insurance and
telecommunication industry, and test on basis of a qualitative quasi-experiment the added value of this
new design approach. The results indicate that our XQFD method meets relevant design criteria and
that XQFD is an attractive approach due to its clear focus on channel synergy and coherence,
competitive positioning, and the relatively short time span required to come to relevant results.
KEY WORDS: Design, service design, multi-channel strategy, Internet service, case-studies
Introduction
Many traditional (click and brick) firms are struggling in their attempt to turn their Internet
presence into a competitive asset (Simons et al., 2002; Omwando et al., 2003; Latzer &
Schmitz, 2004). We focus on designing Internet or e-service concepts in situations
where other service and distribution channels (e.g. retail stores, personal sales representatives
or contact centres) are already available. These new e-service concepts have to be
aligned with existing channels and together they are expected to offer added value.
Service concepts and service design are among the least studied and understood areas
of services marketing. Even though service design has been identified as �perhaps the
most crucial factor for quality’ (Gummesson, 1993), the first concept definition phases
are ill-structured (Simons & Bouwman, 2004), time pressure is high (Gordijn, 2002)
and it is hard to guarantee customer orientation (Ramaswamy, 1996).
Service concept and service design methodologies, which we will discuss in more detail
in the next section, are not well-developed, nor are they used effectively and efficiently, and
Total Quality Management
Vol. 17, No. 8, 1043–1062, October 2006
Correspondence Address: Harry Bouwman, Delft University of Technology, Faculty of Technology, Policy and
Management, Information and Communication Technology, PO BOX 5015, 2600 GA Delft, The Netherlands.
Email: [email protected]
1478-3363 Print=1478-3371 Online=06=081043–20 # 2006 Taylor & Francis
DOI: 10.1080=14783360600748042
as a result services are often sloppily designed (Tax & Stuart, 1997; Johnston, 1999;
Goldstein et al., 2002; Menor et al., 2002). It is even more difficult to find methods that
support e-service design for a multi-channel context. A study of 19 cases shows that
e-service (concept) design is a chaotic process that often leads to service failures, channel
conflicts and financial losses (Simons & Bouwman, 2004). In this paper we present a
method that meets design criteria such as channel coherence and synergy, and using qualitative
quasi-experimental research we show that it is a method thatmeets