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This paper aims to present a methodology for the prioritization of innovations and improvements in services and products that integrates penalty–reward contrast analysis (PRCA) and improvement gap analysis (IGA).

The presented method is theoretically developed and simulated. It uses a case study with 290 clients of supermarkets, evaluating 16 attributes of this service, to demonstrate the advantages of integrating PRCA and IGA.

The integration of PRCA and IGA provides benefits that outweigh the use of each method individually. The joint use of these methods allows the identification of possible nonlinear impact of attributes on customers’ overall satisfaction, allowing managerial recommendations to be made with greater discriminatory power, in addition to qualifying the identification of innovative attributes.

Managers must be aware of the effect of the interaction of innovative attributes with attributes already used by the company. At the same time, it is appropriate to verify whether there is potential to improve the existing attributes. The literature shows that PRCA identifies the nonlinear influence of customers’ satisfaction with individual attributes on overall satisfaction, but it fails to identify the possible impact of innovative attributes. In turn, IGA identifies innovative attributes but does not identify how the attributes influence overall satisfaction. Thus, the benefits of integrating PRCA and IGA outweigh the individual limitations of each method, thereby increasing the quality of managerial recommendations. Moreover, a limitation of PRCA makes this method useful for identifying innovative attributes in relation to attractive attributes identified by the IGA method.

There is growing evidence that service quality attributes fall into three categories of factors that have a different impact on the formation of customer satisfaction. However, it is not clear which analytical procedure best identifies these factors. Vavra proposed a two‐dimensional importance grid based on customers’ self‐stated importance and derived importance using regression analysis. It is based on the assumption that there is a difference between self‐stated and derived importance and that by combining these importance weights, three groups of product or service attributes can be identified. Using data collected to measure customer satisfaction with the service of the IT department of a hospital, the authors test the underlying assumptions of the importance grid. They seem to be correct. When the results are compared with the penalty‐reward contrast analysis developed by Brandt, the two methods do not yield the same results. Therefore, the convergent validity of the importance grid has to be questioned. The paper closes with a discussion of the implications for research and practice.

The paper presents important measurement approaches in the field of costumer satisfaction with services and applies those empirically for service bundles at the level of the tourism destination. After working out the most prominent characteristics of existing satisfaction concepts according to the American and the Scandinavian school of thought, the latter will be critically evaluated for its potential practical use in measuring guest satisfaction. Based on this preparatory work, the Importance‐Performance Analysis, the Implicit Importance Analysis and the Penalty‐Reward‐Contrast Analysis are implemented and show that differing satisfaction models will lead to varying results and hence, ambiguous implications for destination management. However, due to its model parsimony and methodical stringency the Penalty‐Reward‐Contrast Analysis will be retained as the most valuable instrument for measuring tourist satisfaction. The paper concludes with implications for the management of destinations and a brief outlook for further research.

The purpose of this paper is: to review the most commonly used approaches to the classification of quality attributes according to the Kano model; to identify the theoretical/practical strengths and weaknesses of these techniques; and to provide guidance for future research and managerial practice in this area.

Based on an extensive review of the literature on the Kano model and the relevant marketing/management literature, five approaches (Kano's method; “penalty‐reward contrast analysis”; “importance grid”; qualitative data methods; and “direct classification”) are evaluated in terms of their validity and reliability for categorising attributes in the Kano model. Several illustrative examples provide empirical evidence for the theoretical arguments advanced in the study.

The Kano questionnaire and the direct‐classification method are the only approaches that are capable of classifying Kano attributes in the design stage of a product/service. Penalty‐reward contrast analysis (PRCA) is useful for assessing the impact of product/service attributes on overall satisfaction with a product/service, but its applicability to the classification of Kano attributes is questionable. The importance grid (IG) is not recommended for use with the Kano model. The critical incident technique and the analysis of complaints/compliments are valid for the Kano model, but have questionable reliability.

The study makes some important points about accurate semantic terminology in describing issues related to the Kano model. In particular, researchers should be aware that an attractive quality element (must‐be quality element, respectively) might in fact be a dissatisfier (satisfier, respectively), due to significant conceptual differences between performance in terms of the Kano model (i.e. objective performance) and subjective performance perceptions.

Practitioners and researchers are persistently trying to identify critical product/service attributes that generate greater customer satisfaction, which in turn yields multiple positive outcomes for the business. However, traditional measuring of attribute performance does not account for a non-linear nature of the relationship between attribute performance and customer satisfaction. The purpose of this paper is to apply an alternative method – penalty-reward contrast analysis (PRCA) grounded in Kano model – to a wine festival setting and to estimate the effects of each attribute on the overall satisfaction.

The aim of the study is to use a self-administered survey distributed to attendees of a large wine festival in the USA, resulting in a sample of 250 festival attendees.

Personnel and entertainment were considered “must-be” or basic factors for wine festivals. Failing to deliver on these dimensions will lead to attendees’ frustration and is likely to outweigh positive impact of other factors. Wine was considered to be a linear, or performance, factor with symmetrical positive and negative impact on satisfaction. Food and facilities were non-significant in predicting customer satisfaction.

Given that most wine festivals operate with rather scarce resources in a competitive environment, using an approach that helps determine how limited resources are best deployed to achieve the highest levels of customer satisfaction is beneficial for the industry. The study provides new insights to wine festivals managers as to how drivers of satisfaction may vary according to attributes of both the festival and the attendees.

The study adopts the novel approach of the PRCA in its application to wine festivals, making the study unique and noteworthy. It brings new knowledge about quality components of wine festivals and adds support to the new evaluation tool.

The purpose of this study is to demonstrate how to use customer spontaneous comments to identify which aspects influence the overall customer satisfaction with restaurant services from a nonlinear perspective.

The authors collected data from 399 spontaneous comments about a chain of fast-food restaurants in Brazil. The comments are freely available on the TripAdvisor portal and were extracted and classified according to seven dimensions related to the quality of services: tangibles, reliability, responsiveness, assurance, empathy, quality of the food and price. Next, the authors combine the critical incident technique (CIT) and the penalty-reward contrast analysis (PRCA) to investigate the nonlinear relationship between service quality assessment and overall customer satisfaction.

The method of integrating CIT with PRCA explains 64.7% of the variation in the customer's assessment of the services provided (RAdj2 = 0.647). This shows that spontaneous comments from customers are related to their overall satisfaction with the service provided. Besides, the findings suggest that consumers tend to comment more about positive than negative experiences regarding aspects related to food, attendants' empathy and service assurance, and more negative comments about aspects related to responsiveness and price. However, it was found that negative comments have a stronger influence on overall satisfaction than positive comments.

Using comments available for free on the Internet and evaluating how positive and negative comments can jointly influence customer satisfaction, the proposed methodology demonstrates how restaurants can use their customers' spontaneous comments to identify critical aspects to be managed and improved. To the best of authors’ knowledge, this is the first study presenting how restaurants can use customer spontaneous comments, freely available on the internet, to identify the relevance of different aspects of the services provided from a nonlinear perspective. In addition, the present study shows that although customers spontaneously tend to share more positive than negative comments about restaurant services, events related to negative experiences have a stronger influence on overall satisfaction.

The purpose of this paper is to study the nonlinear impact of quality dimensions of third-party logistics (3PL) services on customer satisfaction and loyalty.

By interviewing 167 small-size companies, and using penalty and reward contrast analysis, the paper explores the nonlinear impact of seven dimensions of 3PL services (safety, fault’s recovery, reliability, speed, flexibility, communication, and friendliness) on customer satisfaction and loyalty.

The results confirm the existence of the dimensions’ nonlinear impact on customer satisfaction. It also shows that some quality dimensions have a direct and nonlinear impact on loyalty. The dimension “friendliness” has a direct impact on loyalty if the company has a below market average performance, which may lead customers to switch service providers. “Flexibility on collection and delivery” has a direct impact if the company has a higher performance, contributing to customers’ intention to continue using the service. Another finding is that, if the company delivers good service recovery after the customer found faults in the service, and if customers trust the company service, they say they intend to continue to work with the company.

The present research focused only on small companies in one country (Brazil). Further studies should be carried out to explore different countries, with different realities, and different size of companies.

3PL companies should not only deal with customers’ satisfaction, but also with other quality aspects that directly affect customer intention to continue doing business with the 3PL service provider. These are friendliness, flexibility regarding time and frequency of collection and delivery and faults’ recovery.

The present research confirms that the personal relationship is a crucial aspect to be managed in order to keep customers in the long term. In addition, as opposed to most research looking for the antecedents of satisfaction and loyalty of 3PL customers, the present research shows that there is a direct nonlinear impact of the dimensions’ performance on customers’ loyalty, what should be taken in consideration by 3PL managers. It also shows how penalty-reward contrast analysis may reveal nonlinear antecedents that could be used for better understandings companies’ success in the long term.

The purpose of this paper is to consider the nonlinear impact of online retail stores’ quality dimensions on general customer satisfaction and loyalty.

Using a quantitative approach, 429 online users answered a closed questionnaire regarding their present satisfaction with 26 service attributes, their general satisfaction and loyalty. Using factorial analysis with Varimax rotation, five service-quality dimensions are studied: service accessibility/speed, fault recovery, buying reliability, service and site flexibility and site interaction/feedback. Penalty and reward contrast analysis identifies the Kano model classification of the service-quality dimensions, and the nonlinear impact of these dimensions, and customer satisfaction, on customer loyalty.

The results show that there is a nonlinearity between quality dimensions, customer satisfaction and loyalty. The dimension “service accessibility/speed” has a one-dimensional impact on customer satisfaction, but with higher reward impact than penalty impact. “Fault recovery” is a “must-be”, “buying reliability” and “service flexibility” are “attractive” and “site interaction/feedback” is one-dimensional. Besides, the dimension “service accessibility/speed” has also a direct impact on loyalty if achieving above-average performance, thus reinforcing general customer satisfaction.

Few previous papers explore this nonlinearity in online retail services. So, future studies should lead to a theoretical and practical understanding of managing these services. Understanding this nonlinearity may help companies to better identify what improve or offer to customers.

This paper aims to identify the influence of dimensions of movie theater service on customer behavior intention, comparing linear and nonlinear methods.

With a sample of 345 cinema customers, the analysis compares penalty–reward contrast analysis (PRCA) and multiple linear regression analysis (MLR).

This research demonstrates that PRCA brings a better identification of the antecedents of customer behavior intention than MLR, showing that a nonlinear analysis can bring superior decision information to movie theater managers. Also, this study shows that superior performance of aspects related to the client's feelings leads the consumer to a tendency to return and recommend the cinema (behavior intention). This study also confirms that successful recovery actions can compensate for failures.

Although the nonlinear antecedents of customer satisfaction have been studied in the scientific literature, there is a gap of studies applying methods to identify nonlinear antecedents of customer behavior intention (tendency to return and recommend), particularly in the industry of movie theater services. The findings of this research may allow movie theaters to improve the service provided, confronting the great challenges of online movie-watching alternatives.

The purpose of this paper is to evaluate the nonlinear impact of users’ memories on their general evaluation of outpatient healthcare services by the integration of two methodologies: critical incidents technique (CIT) and penalty-reward contrast analysis (PRCA).

The authors carried out a survey with 356 respondents, users of seven outpatient clinics located in the city of Blumenau/SC, Brazil, during 2016. The participants were asked about their perceptions of positive and negative aspects of the service; and, using CIT, the answers were categorized according to the following dimensions: empathy, communication, facilities, access, promptness, medicines availability, complementary services, safety/confidentiality and service performance. Then, the authors evaluated the nonlinear impact of critical incidents on users’ general evaluation of the service using the identified incidents as input variables in a PRCA.

The findings show that users of healthcare services tend to remember emotion and health aspects positively, while technical and formal aspects tend to be more negatively than positively remembered. On the other hand, PRCA identifies that incidents of three dimensions positively influence the overall perception of the service (empathy, complementary services and privacy) and five negatively (empathy, facilities, speed, drugs/pharmacy and health performance), explaining 26.3 percent of the variation in clients’ general satisfaction.

The present paper explores the integration of two methodologies, showing how we can use open listening to healthcare service users to identify the nonlinear impact of different incidents on their general evaluation of the service. The results show that what customers remember does not necessarily influence overall customer satisfaction. The present approach allows companies to improve the process of listening to customers. There are no other papers exploring this approach, particularly in relation to healthcare services.