Penalty Reward Factor Method

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The penalty reward factor method is a customer-related and feature-oriented measurement method. It is used to examine the perception of a service and the associated reaction of the customer, assuming that quality factors are present for every service.

Penalty or reward factors

Services must be worked out by a provider in such a way that they meet and satisfy the demands of the customer / customer. For this purpose, methods were developed to measure the quality of these services. A distinction is made between performance and customer-related methods.

A non-fulfillment or poorer quality than expected leads to dissatisfaction and a quality gradation for the customer. These are called penalty factors. The customer can distribute here as “penalty points”, the so-called “demerits”. Special services, or if the quality is better than expected, does not lead to a better result. If, on the other hand, the customer is satisfied, one speaks of reward factors. A higher quality rating is given if special services have been achieved in this area. However, a poorer quality fulfillment does not have a negative impact on the perception of quality.

The aim of this measurement is to identify the penalty factors.

Customer survey

In this type of customer survey, first the overall assessments and then the individual aspects are asked. The overall quality assessment of a service is determined by specifying a 5-point scale for evaluation, from "very satisfied" to "very unsatisfied". The individual services are rated on a given scale from “much worse than expected” to “much better than expected”. Using this data, a multiple regression analysis is performed.

The influence of several independent variables on one dependent variable is examined, which makes it possible to describe the situation.

Interpretation of the customer survey

The results of the individual characteristics are interpreted as already described:

  • Penalty factors:
    • The quality rating does not increase, although the quality of the service is better than expected.
    • However, the quality rating drops if the quality of the service is worse than expected.
  • Reward factors:
    • The quality rating rises when the quality of the service is assessed to be better than expected.
    • However, the quality rating does not decrease if the performance was worse than expected.

example

Penalty reward factors arise, for example, when customers are traveling by plane or public transport. Penalty factors often include “punctuality” or “safety”. These are aspects that are expected to be met and adhered to. Therefore, the quality rating does not increase here if the service has been fulfilled. However, if this is worse than expected, the customer is dissatisfied and the quality rating decreases.

“Service” or “comfort” are aspects of the reward factors and are not necessarily expected by customers and are viewed as a special service. Therefore, there is no reduction in quality if the service is not met. However, the customers are very satisfied when the service is fulfilled and give a better quality assessment.

Transportation Quality of service Quality judgment
Penalty factors Punctuality, security better than expected does not rise
Penalty factors Punctuality, security worse than expected sinks
Reward factors Service, comfort better than expected increases
Reward factors Service, comfort worse than expected does not sink

Process variant

The customers are divided into "satisfied" and "dissatisfied" according to their satisfaction with the quality of a service.

  • A positive non-performance is a performance that was rated better than expected.
  • A fulfillment is a performance characteristic that has been rated as expected.
  • A negative non-compliance is a performance that was rated worse than expected.

A characteristic is a "Satisfier" if the satisfaction increases, if more customers perceive a positive non-fulfillment.

  • There is a “dissatisfiers” when dissatisfaction increases, when more customers perceive a negative non-fulfillment.
  • It is called “Criticals” when satisfaction is high and positive non-fulfillment is perceived.

Satisfaction is low when there is a negative non-compliance.

It is called "neutrals" when the proportions of satisfied customers cannot be distinguished from one another. Even when positive or negative non-fulfillment is perceived, no increase in satisfaction or dissatisfaction can be seen.

By subdividing the determined relationships between positive and negative non-fulfillment and overall satisfaction, the characteristics can be divided according to two criteria. On the one hand, the potential of a feature that can be used to achieve customer satisfaction. On the other hand, whether it avoids dissatisfaction.

Purpose and procedure

Feature-oriented methods are usually combined with other methods, e.g. B. with a complaint measurement. With regular implementation, this enables reliable quality measurement. By measuring the results from the customer's point of view, it becomes clear which services of a company have particular effects and can thus be developed or improved with targeted quality management. It is important that the deficiencies in the penalty factors and thus the more serious dissatisfaction factors must be eliminated at the beginning. Only then should you increase your performance and turn to the reward factors.

Problem

The problem with this measurement method is that it turns out to be quite difficult to determine and select the individual aspects. The customer does not decide for himself which criteria are considered relevant for the quality and assessed in the measurement process. The company specifies the quality criteria that were previously selected through previous studies, e. B. through expert surveys.

When it comes to the number of individual features to be determined, care must be taken to keep this low, otherwise the respondents will quickly be overwhelmed. However, this in turn makes the results less meaningful. It is also assumed that customers perceive certain experiences as particularly relevant to quality. “In reality, we often experience that a particularly poor performance can be enough to make us dissatisfied overall. However well the company does in other dimensions - one particularly negative event spoils the entire customer experience ”. If all the positive performance of a company can no longer compensate for this event, one speaks of a “non-compensable” factor. This phenomenon also applies to positive performance.

literature

  • A. Kerres, B. Seeberger: Textbook care management. Volume 2, Springer-Verlag, Berlin / Heidelberg / New-York 2001, ISBN 3-540-41311-1 .
  • A. Buczkowski: Shaping innovative services, a study on the use of best practice methods. Igel Verlag RWS, Hamburg 2014, ISBN 978-3-95485-623-7 .
  • V. Bauer: An instrument for measuring customer satisfaction, theoretical principles, empirical studies and conceptual elaboration for service companies. Igel Verlag RWS, Hamburg 2014, ISBN 978-3-95485-743-2 .
  • C. Traub: Benchmarking success factors for customer satisfaction. Diplomica Verlag, 2003, ISBN 3-8324-7705-5 .
  • M. Kaiser: Compact customer satisfaction: Guide to lasting competitive advantages. Erich Schmidt Verlag, Berlin 2006, ISBN 3-503-09730-9 .
  • H. Pechlaner, D. Glaeßer: Risk and danger in tourism: successful handling of crises and structural breaks . Erich Schmidt Verlag, Berlin 2005, ISBN 3-503-08377-4 .
  • J. Gatermann: The central statements of a patient satisfaction analysis at a university hospital. DGL - Medizinberatungsgesellschaft mbH & Co. KG, Hamburg / Greifswald / Paussau,
  • Penalty Reward Analysis (PRA) , IfaD Institute for Applied Data Analysis GmbH (last query: June 25, 2018)
  • Knowing what counts: recording factors that cannot be compensated for in customer satisfaction research , specialist article issue 3, March 2011, p. 38 (last query: June 25, 2018)

Individual evidence

  1. ↑ T. Klosermann: optimization of cooperative services in the Technical Services of engineering. Gabler Verlag, Wiesbaden 2007, ISBN 978-3-8349-0903-9 , p. 39.
  2. ↑ a b c d e f M. Bruhn: Quality management for services, manual for a successful quality management. Basics - Concepts - Methods. 10th edition. Springer Gabler, Berlin / Heidelberg 2016, ISBN 978-3-662-50360-7 , p. 171.
  3. ↑ https://www.die-pa.de/-/lexikon-zeitarbeit-dienstleistungsqualitaet last query: July 5, 2018
  4. ↑ A. Kerres, B. Seeberger: Complete textbook care management. Springer Medizin Verlag, Heidelberg 2005, ISBN 3-540-23736-4 , p. 423.
  5. ^ A b M. Bruhn, K. Hadwich: Service Marketing , Basics - Concepts - Methods. 9th edition. Springer Gabler, Wiesbaden 2018, ISBN 978-3-658-19176-4 , p. 222 f.
  6. ↑ Franz Kronthaler: Statistics applied, data analysis is (not) an art with the R Commander. Springer Spectrum, Berlin / Heidelberg, 2016, ISBN 978-3-662-47118-0 , p. 243.
  7. ^ M. Bruhn: Quality management for services, manual for a successful quality management. Basics - Concepts - Methods. 10th edition. Springer Gabler, Berlin / Heidelberg 2016, ISBN 978-3-662-50360-7 , p. 173 f.
  8. ^ H. Meffert, M. Bruhn, K. Hadwich: Service Marketing , Basics - Concepts - Methods. 9th edition. Springer Gabler, Wiesbaden 2018, ISBN 978-3-658-19176-4 , p. 223.
  9. ^ H. Meffert, M. Bruhn, K. Hadwich: Service Marketing , Basics - Concepts - Methods. 9th edition. Springer Gabler, Wiesbaden 2018, ISBN 978-3-658-19176-4 , p. 223 f.
  10. ↑ a b https://www.research-results.de/fachartikel/2011/ausgabe-3/wissen-was-zhlt.html last query: June 25, 2018