An analytical methodology for identifying the latent needs of customers

Abstract

It is notoriously difficult for manufacturing and service firms to identify the real latent needs of their customers. As a consequence, firms have difficulty in identifying the critical attributes of a product/service that require attention if customers are to be truly satisfied. The present study addresses these problems by discussing several relatively new methodologies that have been suggested for ascertaining customers' latent needs. The study then incorporates some of these methodologies into an integrated model based largely on the refined Kano's model [Yang, C.-C. (2005). The refined Kano's model and its application. Total Quality Management and Business Excellence, 16(10), 1127–1137] and the four actions of the ‘blue ocean strategy’ [Kim, W.C., & Mauborgne, R. (2005a). Blue ocean strategy: From theory to practice. California Management Review, 47(3), 105–121, (2005b). Blue ocean strategy. Boston, MA: Harvard Business School Press]. Using this analytic model, firms can identify the latent needs and expectations of their customers, and then take opportunities to fulfil the customers' desired requirements through the provision of attractive and innovative attributes. The paper illustrates the practical application of the proposed model in a case study of a manufacturer of home air conditioner appliances.

Keywords:

• customer latent need
• value of product
• motivation force
• customer delight
• innovative attribute