Masters Theses

Date of Award

12-1992

Degree Type

Thesis

Degree Name

Master of Science

Major

Forestry

Major Professor

John Rennie

Committee Members

Paul Winistorfer, Robert Woodruff, David Ostermeier, Tim Young

Abstract

It is important to understand customer value and satisfaction, i.e. to understand how customers and management judge product and service offering. The value judgements of customers are concerned with relationships between product attributes, situation and occasion, personal values and goals.

The purpose of this study was to explore the differences that existed between the customers' expectations and the managements' perceptions of product attributes, service attributes and desired benefits as related to the contribution and satisfaction to overall product value. A gap analysis for assessing product and service attributes, benefits and satisfaction of one selected hardwood lumber company was conducted. Twenty-one customers of the selected company were chosen for gap analysis.

In the method of "gap analysis" the key assumption is that, differences exist in the perceptions of product and service quality between the producer and customer. The hardwood lumber company that was selected for the gap analysis had an orientation for the customer, was proactive to change, and was an open system for new information.

Using a qualitative questioning format and a mail survey, data were collected to meet the following study objectives:

1) Identify the types of product and service attributes, and desired benefits (or consequences) that were considered to be important by a group of secondary hardwood lumber manufacturers, i.e. furniture, flooring, cabinets, dimension lumber etc. and their supplier;

2) Measure the perceived contribution and satisfaction of these attributes and benefits to the overall value of the product.

3) Analyze the differences ("gaps") between management perceptions (supplier) and customer expectations of attributes and benefits as related to "contribution to value" and "satisfaction" of these attributes and benefits.

4) Introduce this methodology to a hardwood lumber company as a tool for continually improving the understanding and delivery of product and service attributes, benefits and satisfaction.

A mail survey was conducted of a hardwood lumber company (producer) and its twenty-one customers (a group of secondary hardwood lumber manufacturers). The study revealed forty dimensions that customers and supplier used in forming expectations and perceptions of product and service. Twenty seven "gaps" existed between customer expectations and management perceptions as related to the contribution and satisfaction of the product attributes, service attributes and desired benefits to the overall product value. Two "negative gaps" occurred when the mean responses of the customer expectations were less than the mean response of management perceptions in product attributes and service attributes respectively. These "negative gaps" indicated that the supplier did not meet customers expectations in "absence of surface checks" and "competitive price". A loss of loyal customers and hence revenue may be eminent to the supplier. Twenty five "positive gaps" existed between the supplier perceptions and customers' expectations. These "positive gaps" occurred in most instances when the mean responses of the management perceptions were less than the mean responses of the customer expectations. This implied that the producer may be investing more resources than necessary to maintain the attributes benefits it supplies. Such resources may be critical in allocating them to areas where negative gaps existed.

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