The Kano Model: How the Pandemic Influences Customer Satisfaction with Digital Wallet Services in Indonesia

https://doi.org/10.22146/jieb.59879

Vanesa Hana Budiarani(1*), Rahmat Maulidan(2), Diki Putra Setianto(3), Ipuk Widayanti(4)

(1) Faculty of Economics and Business, Universitas Gadjah Mada
(2) Faculty of Economics and Business, Universitas Gadjah Mada
(3) Faculty of Economics and Business, Universitas Gadjah Mada
(4) Faculty of Economics and Business, Universitas Gadjah Mada
(*) Corresponding Author

Abstract


Introduction/Main Objectives: This study aims to evaluate the effectiveness of digital wallets service qualities using Kano Model. Understanding customer needs and satisfaction is crucial in developing products. Background Problems: In the “new normal” era, payment method is predicted to shift to digital wallets. For quality improvement, digital wallet companies should understand customer needs and satisfaction. This study used the Kano model to analyze customer needs and satisfaction in OVO and ShopeePay, two digital wallets widely used for online shopping transactions during COVID19. Novelty: Although studies into the Kano model implementation towards e-commerce exist, there are no specific studies on the model implementation concerning digital wallet payments amid COVID-19. The Kano model is significant in understanding which software products generate high customer satisfaction, which will give a greater influence, as well as necessary attributes for the customers. Research Methods: This study employed the Kano model as one of the most relevant method to measure customer satisfaction by measured of each attribute’s quality. Finding/Results: Most features of OVO and ShopeePay are categorized into the “must be” and “one dimensional” category. The satisfaction map results indicate that most items placed in the “indifferent” quadrant denote the unfulfilled customer expectations. Conclusion: OVO and ShopeePay should improve the items placed in the “indifferent” quadrant first. This study contributes empirically and theoretically by emphasizing the Kano model’s utility for digital wallet services and providing new insights for digital wallet companies and the government on Indonesians’ usage of digital wallets in the “new normal”. 


Keywords


digital wallet, COVID-19, Kano Model, customer satisfaction.

Full Text:

PDF


References

Amalia, P., Mihaela, D., & Ionuţ, P. (2012). From market orientation to the community orientation for an open public adminis­tration: a conceptual framework. Procedia - Social and Behavioral Sciences, 62(2001), 871–875. https://doi.org/10.1016/j.sbspro.2012.09.146

Ang, S. H., Cheng, P. S., Lim, E. A. C., & Tambyah, S. K. (2001). Spot the difference: consumer responses towards counterfeits. Journal of Consumer Marketing, 18(3), 219–233. https://doi.org/10.1108/07363760110392967

Ažman, S., & Gomišček, B. (2012). Asymmetric and nonlinear impact of attribute-level performance on overall customer satisfaction in the context of car servicing of four European automotive brands in Slovenia. Organizacija, 45(2), 75–86. https://doi.org/10.2478/v10051-012-0008-2

Berger, C., Blauth, R., & Boger, D. (1993). Kano’s methods for understanding customer-defined quality. Center for Quality Management Journal, 2(4), 3–36.

Chaudha, A., Jain, R., Singh, A. R., & Mishra, P. K. (2011). Integration of Kano’s model into quality function deployment (QFD). International Journal of Advanced Manufacturing Technology, 53(5–8), 689–698. https://doi.org/10.1007/s00170-010-2867-0

Chen, M. C., Hsu, C. L., & Lee, L. H. (2020). Investigating pharmaceutical logistics service quality with refined Kano’s model. Journal of Retailing and Consumer Ser­vices, 57(August), 102231. https://doi.org/10.1016/j.jretconser.2020.102231

Cooper, D. and Schindler, P., 2014. Business Research Methods. 12th ed. Boston: McGraw-Hill/Irwin

Das, K., Gryseels, M., Sudhir, P., & Tan, K. T. (2016). Unlocking Indonesia’s digital opportunity. McKinsey & Company, (October), 1–28. Retrieved from https://www.mckinsey.com/~/media/McKinsey/Locations/Asia/Indonesia/Our Insights/Unlocking Indonesias digital opportunity/Unlocking_Indonesias_digital_opportunity.ashx

Elmar Sauerwein , Franz Bailom, Kurt Matzler, H. H. H. (1996). The Kano model: How to delight your customers. In International Working Seminar on Production Economics (Vol. 1, No. 4, pp. 313-327).

Eloksari, E. A. (2020). Payment platforms should help SMEs go digital: mckinsey. Retrieved January 3, 2021, from www.TheJakartaPost.com website: https://www.thejakartapost.com/news/2020/10/07/payment-platforms-should-help-smes-go-digital-mckinsey.html

Eric, A., John, S., & Nicolas, B. (2016). The elements of value. Harvard Business Review, Sept(Sep 2016), 1–13.

Gailevičiūtė, I. (2011). Kano model: how to satisfy customers? Global Academic Society Journal: Social Science Insight, 4(12), 14–25. Retrieved from: www.ScholarArticles.net

Gustafsson, A., Johnson, M. D., & Roos, I. (2005). The effects of customer satisfaction, relationship commitment dimensions, and triggers on customer retention. Journal of Marketing, 69(4), 210–218. https://doi.org/10.1509/jmkg.2005.69.4.210

Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): an emerging tool in business research. European Business Review, 26(2), 106–121. https://doi.org/10.1108/EBR-10-2013-0128

Hoffman, D. L., & Novak, T. P. (2009). Flow Online: Lessons Learned and Future Prospects. Journal of Interactive Marketing, 23(1), 23–34. https://doi.org/10.1016/j.intmar.2008.10.003

Husnaini, A. (2020). Riset Snapcart: Shopee Paling Diminati dan Jadi Pilihan Konsumen Belanja. Retrieved January 3, 2021, from www.industri.kontan.co.id website: https://industri.kontan.co.id/news/riset-snapcart-shopee-paling-diminati-dan-jadi-pilihan-konsumen-berlanja

Hussain, A., Mkpojiogu, E. O. C., & Kamal, F. M. (2015). Eliciting User satisfying require­ments for an e-health awareness system using Kano model. 14th International Conference On Applied Computer And Applied Computational Science (ACACOS’15), Kuala Lumpur, 156–165. Retrieved from http://www.wseas.us/e-library/conferences/2015/Malaysia/COMP/COMP-20.pdf

Ingaldi, M., & Ulewicz, R. (2019). How to make e-commerce more successful by use of Kano’s model to assess customer satis­faction in terms of sustainable development. Sustainability (Switzerland), 11(18), 1–22. https://doi.org/10.3390/su11184830

Issac, G., Rajendran, C., & Anantharaman, R. N. (2006). An instrument for the measurement of customer perceptions of quality management in the software industry: An empirical study in India. Software Quality Journal, 14(4), 291–308. https://doi.org/10.1007/s11219-006-0037-2

Kahandawa, K., & Wijayanayake, J. (2014). Impact of mobile banking services on customer satisfaction:a study on Sri Lankan state commercial bank. International Journal of Computer and Information Technology, 03(03), 2279–2764. Retrieved from www.ijcit.com

Kano, N. (2001). Life cycle and creation of attractive quality. In 4th QMOD Conference, Linköping, Sweden, (1984), 18–36. Retrieved from: http://www.huc.edu/ckimages/files/KanoLifeCycleandAQCandfigures.pdf

Kodó, K., & Hahn, I. (2017). Mobile payment analysed from the aspects of Kano model. 1–11.

Lin, F. H., Tsai, S. B., Lee, Y. C., Hsiao, C. F., Zhou, J., Wang, J., & Shang, Z. (2017). Empirical research on Kano’s model and customer satisfaction. PLoS ONE, 12(9), 1–22. https://doi.org/10.1371/journal.pone.0183888

Lubinski, G., & Oppitz, A. (2012). Applying the Kano model in mobile services world: a report from the frontline. How to probe customer satisfaction without agile approaches and most cost effective. Proceedings - 2012 8th International Conference on the Quality of Information and Communications Technology, QUATIC 2012, 161–164. https://doi.org/10.1109/QUATIC.2012.21

Martin, J., Mortimer, G., & Andrews, L. (2015). Re-examining online customer experience to include purchase frequency and perceived risk. Journal of Retailing and Consumer Services, 25, 81–95. https://doi.org/10.1016/j.jretconser.2015.03.008

Matzler, K., & Hinterhuber, H. H. (1998). How to make product development projects more successful by integrating Kano’s model of customer satisfaction into quality function deployment. Technovation, 18(1), 25–38. https://doi.org/10.1016/S0166-4972(97)00072-2

McKinsey & Company. (2020). The 2020 McKinsey Global Payments Report. (October). Retrieved from: https://www.mckinsey.com/~/media/mckinsey/industries/financial services/our insights/accelerating winds of change in global payments/2020-mckinsey-global-payments-report-vf.pdf

Mehta, S., Saxena, T., & Purohit, N. (2020). The new consumer behaviour paradigm amid covid-19: permanent or transient? Journal of Health Management, 22(2), 291–301. https://doi.org/10.1177/0972063420940834

Mkpojiogu, E. O. C., & Hashim, N. L. (2016). Understanding the relationship between Kano model’s customer satisfaction scores and self-stated requirements importance. SpringerPlus, 5(1), 1–22. https://doi.org/10.1186/s40064-016-1860-y

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailling, Vol. 64, p. 1.

Phua, K. (2020). Why Indonesia is the World’s Next Digital Payments Battleground. Retrieved January 3, 2021, from www.financederivative.com website: https://www.financederivative.com/why-indonesia-is-the-worlds-next-digital-payments-battleground/

Pink, B. (2020). Nilai Penjualan Marketplace Bulan Mei 2020 Melejit, Ini Penyebabnya. Retrieved January 3, 2021, from www.industri.kontan.co.id website: https://industri.kontan.co.id/news/nilai-penjualan-marketplace-bulan-mei-2020-melejit-ini-penyebabnya

Qiting, P., Uno, N., & Kubota, Y. (2005). Kano Model Analysis of customer needs and satisfaction at the Shanghai Disneyland. Semantic Scholar, 1–9.

Ramli, R. R. (2020). Ini Dompet Digital yang Paling Banyak Digunakan Selama Pandemi. Retrieved January 3, 2021, from KOMPAS.com website: https://money.kompas.com/read/2020/09/02/183400026/ini-dompet-digital-yang-paling-banyak-digunakan-selama-pandemi

Rose, S., Clark, M., Samouel, P., & Hair, N. (2012). Online customer experience in e-retailing: an empirical model of antecedents and outcomes. Journal of Retailing, 88(2), 308–322. https://doi.org/10.1016/j.jretai.2012.03.001

Saeidipour, B., Vatandost, T., & Akbari, P. (2012). Study the effects of development of electronic banking on customer satisfaction levels by using Kano model (Case Study: Refah Bank of Kermanshah, Iran). International Research Journal of Applied and Basic Sciences, 3(5), 950-960.

Sekaran, U. and Bougie, R., 2016. Research Methods For Business: A Skill Building Approach Seventh Edition. 1st ed. John Wiley & Sons.

Shahin, A., Pourhamidi, M., Antony, J., & Park, S. H. (2013). Typology of Kano models: A critical review of literature and proposition of a revised model. International Journal of Quality and Reliability Management, 30(3), 341–358. https://doi.org/10.1108/02656711311299863

Wang, Y., Hahn, C., & Sutrave, K. (2016). Mobile payment security, threats, and challenges. Proceedings of the 2016 2nd Conference on Mobile and Secure Services, MOBISECSERV 2016. https://doi.org/10.1109/MOBISECSERV.2016.7440226

Whitehead, A. L., Julious, S. A., Cooper, C. L., & Campbell, M. J. (2015). Estimating the sample size for a pilot randomised trial to minimise the overall trial sample size for the external pilot and main trial for a continuous outcome variable. Statistical Methods in Medical Research, 25(3), 1057–1073. https://doi.org/10.1177/0962280215588241

Xu, Q., Jiao, R. J., Yang, X., Helander, M., Khalid, H. M., & Opperud, A. (2009). An analytical Kano model for customer need analysis. Design Studies, 30(1), 87–110. https://doi.org/10.1016/j.destud.2008.07.001

Young, E. (2020). Shaping the new normal How can you prepare for a new normal that is yet to reveal itself ? (June).

Zhai, L. L., Hong, L. F., & Sun, Q. Y. (2011). Research on requirement for high-quality model of Extreme Programming. Proceedings - 2011 4th International Conference on Information Management, Innovation Management and Industrial Engineering, ICIII 2011, 1, 518–522. https://doi.org/10.1109/ICIII.2011.132

Zhu, D., & Tsai, C.-H. (2010). A study on the evaluation of customers’ satisfaction - the perspective of quality. International Journal for Quality Research, 4(2), 105–116. Retrieved from: https://doaj.org/article/2ea7d8c6b82247789147dcbcf273db39



DOI: https://doi.org/10.22146/jieb.59879

Article Metrics

Abstract views : 21357 | views : 16008

Refbacks

  • There are currently no refbacks.




Copyright (c) 2021 Journal of Indonesian Economy and Business

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Journal of Indonesian Economy and Business

Journal

Editorial Team
Focus and Scope
Peer Review Process
Publication Ethics
Screening for Plagiarism

Authors

Author Guidelines
Submission Guidelines
Online Submissions
Copyright Notice
Privacy Statement
Author Fees

Download

Author Pack
Submission Form & Manuscript Template

 

Reviewer

Reviewer Guidelines
Reviewer Acknowledgement

 

Reader

General Search
Achieves
Author index
Title index

 

 

The Journal of Indonesian Economy and Business (print ISSN 2085-8272; online ISSN 2338-5847) is published by the Faculty of Economics and Business Universitas Gadjah Mada, Indonesia. The content of this website is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License

© 2019 Journal of Indonesian Economy and Business 
 Visitor Statistics