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Voice of the Customer cussion guide, either conducting or observing

and analyzing the interviews, and extracting and


Steven P. Gaskin, Abbie Griffin, John R. processing the needs statements. Only by being
Hauser, Gerald M. Katz, and Robert L. highly involved can the team fully internalize
Klein the VOC and make effective product-design
decisions (see PRODUCT DESIGN).
DEFINITION As noted in the definition, there are four
aspects of the VOC – customer needs, a hier-
The Voice of the Customer (VOC) is a term archical structure of the needs, priorities, and
used in business to describe the process of customer perceptions of performance.1
capturing customers’ requirements. The VOC is
a product-development technique that produces Customer needs. A customer need is a descrip-
a detailed set of customer wants and needs, which tion, in the customer’s own words, of the benefit
are organized into a hierarchical structure, and to be fulfilled by the product or service. For
then prioritized in terms of relative importance example, when describing diagonal lines on a
and satisfaction with current alternatives. computer monitor, a customer might want them
The VOC process has important outputs and ‘‘to look like straight lines with no stair-step
benefits for product developers. VOC provides effect.’’ Note that the customer need is not a
solution, such as a particular type of monitor
• a detailed understanding of the customer’s (XGA, Megapixel, flat screen, flat panel, etc.),
requirements nor a physical measurement (number of notice-
• a common language for the team going able breaks in the line), but rather a detailed
forward description of how the customer wants images
• key inputs for the setting of appropriate to appear on the monitor (Griffin and Hauser,
design specifications for the new product or 1993).2
service The distinction between physical measure-
• a highly useful springboard for product ments and customer needs has proven to be
innovation. one of the keys to the success of marketing
tactics. As illustrated in Figure 1, the ‘‘lens’’
There are four aspects of the VOC – customer model suggests that customers see the world
needs, a hierarchical structure, priorities, and through the lens of their perceptions (their
customer perceptions of performance. needs) (Brunswick, 1952). The lens model says
that customers choose (buy a product or service)
if they prefer that product over others and it is
DESCRIPTION AND COMMENTARY
available to them in the marketplace. However,
VOC studies typically consist of both qualitative preferences are based on how customers perceive
and quantitative market-research steps. They the world. This perception may or may not be
are generally conducted at the start (or ‘‘fuzzy totally accurate. It is based, of course, on the
front end’’) of any new product, process, or product’s features, but it is also based on the
service design initiative to better understand image created by advertising, packaging, word
the customer’s wants and needs (see FRONT of mouth, social context, and so on. Marketing is
END OF INNOVATION ). The VOC can also be a an integrated activity that attempts to design the
key input for new-product definition, QUALITY product (physical features) and the marketing
FUNCTION DEPLOYMENT (QFD) , or the to influence customer perceptions. Within the
setting of detailed design specifications (see context of the lens model, the VOC identifies
PRODUCT SPECIFICATIONS ). It is critical that the dimensions of customer value (customer
the product development core team own and be needs) and how customers form preferences
highly involved in this process. They must be with respect to those needs (importance of those
the ones who take the lead in defining the topic, customer needs). The VOC might also identify
designing the sample (i.e., the types of customers how advertising, and so on, affect perceptions,
to include), generating the questions for the dis- availability, and perceived price.

Wiley International Encyclopedia of Marketing, edited by Jagdish N. Sheth and Naresh K. Malhotra.
Copyright © 2010 John Wiley & Sons Ltd
10.1002/9781444316568.wiem05020, Downloaded from https://onlinelibrary.wiley.com/doi/10.1002/9781444316568.wiem05020 by Cochrane Germany, Wiley Online Library on [25/11/2023]. See the Terms and Conditions (https://onlinelibrary.wiley.com/terms-and-conditions) on Wiley Online Library for rules of use; OA articles are governed by the applicable Creative Commons License
2 Voice of the Customer

Product features Perceptions Preferences

Advertising, and Availability,


Choice
so on. price

Figure 1 The lens model of customer choice.

Knowing customer needs is critical to both computer. As the customer describes his or
product development and marketing. For her experience, the interviewer keeps probing,
example, if a product-development team focuses searching for better and more complete descrip-
too early on solutions, they might miss creative tions of how he or she views data, images, video,
opportunities. A computer-monitor team might or anything else, how he or she works with those
be tempted to focus on the size of the monitor images, working conditions, ambient lighting,
or the shape. However, readability might and so on. The goal is to experience the experi-
also depend on the ambient room light and ence of the customer. Sometimes, the interviews
reflections, the colors that the software designer take place at the site where the customer uses the
chooses, the ratio of the height of small letters product – for example, VOC interviews have
to that of capital letters, and even the style of been conducted on oil-drilling platforms for
the typeface (serif or sans serif, proportional or manufacturers of oil-drilling equipment. This
fixed, etc.). All of these design attributes interact method of data collection is sometimes referred
with the size and shape of a monitor to affect to as customer visits (McQuarrie, 2008), contextual
the customer need of ‘‘easy-to-read text.’’ Some inquiry, or ethnography.
may be less costly and more effective, some may The interviews are called ‘‘experiential,’’
be synergistic with changing the monitor’s size because they focus on the customers’ experi-
and shape, but all should be considered before a ences. In the interview, the customer might
final design is chosen for the monitor. be asked to voice needs relative to a number
Discussions with customers usually identify of real experiences. The interview ends when
75–150 phrases that might be considered an the interviewer feels that no new needs can be
articulation of customer needs. Such phrases elicited from that customer.
might include basic needs (what a customer While it is tempting to simply ask customers,
assumes a monitor will do), articulated needs ‘‘What are your needs?’’ customers often have
(what a customer will tell you that he, she, or difficulty articulating them. It is much better
they want a monitor to do), and exciting needs to infer customer needs from experiential inter-
(those needs which, if they are fulfilled, would views or observation.
delight and surprise the customer) (see also KANO
MODEL OF CUSTOMER SATISFACTION ). It is Hierarchical structure. The average marketing
extremely important that these customer needs manager cannot work directly with the 75–150
be stated in the customers’ own words, and not in detailed customer needs found in the first step of
industry or company jargon, in order to not lose the VOC process. A simpler structure is needed
the meaning. that focuses both strategy and tactics. The
Identifying customer needs is primarily a ‘‘Voice of the Customer’’ structures customer
qualitative research task. In a typical study, needs into a hierarchy of primary, secondary,
between 10 and 30 customers are interviewed and tertiary needs. Primary needs, also known as
for approximately one hour in a one-on-one strategic needs, are the 2–10 top-level needs that
setting. For example, a customer might be asked are used by the team to set the strategic direction
to picture him- or herself viewing work on a for marketing. Each primary need is elaborated
10.1002/9781444316568.wiem05020, Downloaded from https://onlinelibrary.wiley.com/doi/10.1002/9781444316568.wiem05020 by Cochrane Germany, Wiley Online Library on [25/11/2023]. See the Terms and Conditions (https://onlinelibrary.wiley.com/terms-and-conditions) on Wiley Online Library for rules of use; OA articles are governed by the applicable Creative Commons License
Voice of the Customer 3
into 3–10 secondary needs. Secondary needs team do so as a group. However, while conve-
indicate more specifically what the marketing nient, this approach has the important limitation
manager must do to satisfy the corresponding that the results tend to reflect the company’s
primary (strategic) need. (Secondary needs are organizational chart, that is, how the product
also known as tactical needs.) Tertiary needs, also is developed and produced, rather than the
known as operational or detailed needs, provide way customers think. It is far better to have
greater detail so that engineering, R&D, and, customers group the needs. One way this can
perhaps, the advertising agency, can develop be done is through the use of one or a few
a detailed set of product characteristics or focus groups. A moderator guides the process
advertising copy that satisfies the primary and and makes sure the groupings make sense and are
secondary needs. sufficiently disaggregate (i.e., that there are suffi-
For example, a VOC analysis for movie ciently many tactical needs so that they do not
theaters identified the following 17 secondary cover multiple topics). A more statistically repre-
(tactical needs) structured into 6 primary sentative method is to survey a random sample
(strategic needs): of current and potential customers and have
them sort the needs individually into piles based
• Theater selection on similarity. This results in a co-occurrence
– Offers a good selection of movies and matrix, which can be analyzed using a hier-
show times archical clustering routine. The output is a
– Easy to get information about show times dendrogram, which shows how the needs should
– I can always get into the movie I want to be grouped for any total number of needs, from
see the total number of detailed needs down to two
– A variety of easy and economical ways to or more strategic needs. The final number of
buy tickets primary and secondary needs are then deter-
• Getting to the theater mined judgmentally on the basis of the output
– The theater is conveniently located of the cluster analysis.
– There is safe, convenient parking Priorities. Some needs have higher priorities
• Food/refreshments for customers than others. The marketing
– Good food is available at a fair price manager uses these priorities to make decisions
– Concessions are well run that balance the cost of fulfilling a customer
• The theater building need with the desirability (to the customer)
– Quick and easy access to everything I of fulfilling that need. For a movie theater
need company, for example, the strategic decision on
– Handles crowds well whether to provide or communicate improved
– Friendly and available customer service movie-viewing experience depends upon the
– Clean, well-equipped restrooms cost and feasibility of improving the experience
– A comfortable feeling inside the theater and the priority to the customer of an improved
• Inside the theater auditorium viewing experience relative to the customer’s
– Clean, comfortable seating other needs. In the VOC, these priorities
– Auditoriums are clean apply to perceived customer needs rather than
• The movie experience product features or engineering solutions. As
– A great view and sound so I’m right in an example, a quantitative survey of people
the action who go to movie theaters yielded the following
– No disturbances during the show. importance weights for the 17 secondary needs
(Figure 2).
There are a number of ways to group the A number of new techniques have been
75–150 tertiary (operational) needs into a more developed recently to prioritize customer
aggregate set of tactical needs, and then further needs. One, called teaching agents to choose,
into an even smaller set of strategic needs. The is an incentive compatible direct-elicitation
easiest way is to have the product-development technique.3 During the survey, respondents
10.1002/9781444316568.wiem05020, Downloaded from https://onlinelibrary.wiley.com/doi/10.1002/9781444316568.wiem05020 by Cochrane Germany, Wiley Online Library on [25/11/2023]. See the Terms and Conditions (https://onlinelibrary.wiley.com/terms-and-conditions) on Wiley Online Library for rules of use; OA articles are governed by the applicable Creative Commons License
4 Voice of the Customer

A great view and sound so I'm right in the action

Clean, comfortable seating

No disturbances during the show

Auditoriums are clean

A comfortable feeling inside the theater

I can always get into the movie I want to see

Clean, well-equipped restrooms

Concessions are wellrun

Good food is available at a fair price

There is safe, convenient parking

Friendly and available customer service

Handles crowds well

Quick and easy access to everything I need

The theater is conveniently located

A variety of easy and economical ways to buy tickets

Easy to get information about show times

Offers a good selection of movies and show times

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Importance (0–100 scale)

Figure 2 Importance ratings for movie theater needs.

give instructions to a hypothetical ‘‘agent’’ about patterns of medical care serve as generic compe-
what rules to use when deciding to choose which tition for health-maintenance organizations.
product to buy. Priorities of the needs can be Automobile and bus transportation serve as
estimated by tallying the frequency of mention generic competition for Southwest Airlines.)
of the needs referenced in these rules. Another Knowledge of which products fulfill which
technique, MaxDiff, involves an exercise where needs best, how well those needs are fulfilled,
and whether there are any gaps between the best
respondents pick the most and least important of
product and ‘‘our’’ existing product provide
a series of subsets of needs. The resulting scores
further input into marketing decisions.
are not subject to scale usage bias, which can lead Customer perceptions are often displayed via
to problems, particularly in international studies. a ‘‘snake plot,’’ called so because each product’s
performance ‘‘snakes’’ across the page. These
Customer perceptions of performance. Customer
data are often obtained via a questionnaire in
perceptions are also derived from quantitative which each respondent rates each product
market research about how customers perceive (that they consider) on each of the secondary
the performance of products that compete in customer needs.
the market being studied. If no product exists For example, when people who go to movie
as yet, the perceptions indicate how customers theaters were asked to rate how well the
now fulfill those needs. (For example, existing theater they attend most often performed on
10.1002/9781444316568.wiem05020, Downloaded from https://onlinelibrary.wiley.com/doi/10.1002/9781444316568.wiem05020 by Cochrane Germany, Wiley Online Library on [25/11/2023]. See the Terms and Conditions (https://onlinelibrary.wiley.com/terms-and-conditions) on Wiley Online Library for rules of use; OA articles are governed by the applicable Creative Commons License
Voice of the Customer 5
10
Overall
9
Men
Performance (0–10 scale)

8 Women
7
6
5
4
3
2
1
0
Offers a good selection of movies and show times

Easy to get information about show times

I can always get into the movie I want to see

A variety of easy and economical ways to buy--

The theater is conveniently located

There is safe, convenient parking

Good food is available at a fair price

Concessions are wellrun

Quick and easy access to everything i need

Handles crowds well

Friendly and available customer service

Clean, well-equipped restrooms

A comfortable feeling inside the theater

Clean, comfortable seating

Auditoriums are clean

A great view and sound so I'm right in the action

Figure 3 Performance ratings for movie theaters. No disturbances during the show

the secondary needs, we obtained the plot in better understand customer needs surrounding
Figure 3. these applications, the company began to
develop its own VOC. Using a combination of
ethnography and sit-down interviews, followed
EXAMPLES OF VOC’S ROLE IN PRODUCT
by group affinitization processes and large-scale
DEVELOPMENT quantitative prioritization surveys, the company
During a VOC for the renal division of Baxter has now conducted more than 20 such studies on
Healthcare, users expressed a need to quickly a host of topics, ranging from extremely simple
understand the nature and seriousness of the consumer applications, to highly advanced
various alarms that typically sounded throughout applications with IT Directors at very large
the day. The product’s designers developed a companies.
traffic-light device with colored lights that indi- One of the most compelling products to
cated the gravity of the problem at a glance. emerge from this strategy is the v-Pro micro-
A few years ago, Intel, the world’s largest processor for business desktop computers. The
manufacturer of microprocessors, embarked on v-Pro technology addresses a number of crit-
a very public strategy to develop specialized ical problems for IT Directors who must manage
microprocessors for various applications. To a large ‘‘fleet’’ of company computers, and
10.1002/9781444316568.wiem05020, Downloaded from https://onlinelibrary.wiley.com/doi/10.1002/9781444316568.wiem05020 by Cochrane Germany, Wiley Online Library on [25/11/2023]. See the Terms and Conditions (https://onlinelibrary.wiley.com/terms-and-conditions) on Wiley Online Library for rules of use; OA articles are governed by the applicable Creative Commons License
6 Voice of the Customer
ensure their security from external corruption measures. This is why the definition used here
and tampering. The v-Pro offers several new is narrower than the generic use of VOC, which
features – which have proven to be extremely can refer to customer feedback in any form. See
attractive to IT Directors – that emerged from Griffin and Hauser (1993).
the identification of key unmet needs in the VOC 2 Much of the material used here is drawn from
process. Launched in mid-2006, the v-Pro an MIT Sloan Courseware document by John
became the fastest product in Intel’s history to R. Hauser, ‘‘Note on the Voice of the Customer,’’
exceed $1 billion in revenue. MIT, Cambridge, MA 2008. MIT Sloan grants
PPG Industries, a leading manufacturer the nonexclusive right to use this material.
of industrial coatings and other commercial MIT Sloan retains a nonexclusive right to this
materials, trained product development teams material.
across most of its major divisions in the use of 3
‘‘Incentive compatible’’ means the incentives
VOC. These teams then conducted a number for survey respondents are set up in a way that
of highly successful VOC studies throughout they benefit most from responding in a desired
the world, on topics as diverse as applications way (in this case, telling the truth).
for polyurethane coatings, auto paint used in
body shops, and eco-friendly uses for fiberglass.
Products that emerged from these applications Bibliography
include a chemical-agent-resistant coating used
in military applications, a new material used Brunswick, E. (1952) The Conceptual Framework of
for golf-ball covers, and an advanced fiberglass Psychology, University of Chicago Press, Chicago.
product used in wind-power generation. This Hauser, J.R. and Clausing, D.P. (1988) The house of
latter product allowed PPG to acquire a major quality. Harvard Business Review, 66 (3), 63–73.
Griffin, A. and Hauser, J.R. (1993) The voice of the
share of this rapidly expanding industry.
customer. Marketing Science, 12 (3), 1–27.
As may be seen in these examples, gathering
Katz, G. (2001) The ‘‘One Right Way’’ to gather the voice
the VOC is an extremely important part of the
of the customer. PDMA Visions, 25.
‘‘fuzzy front end’’ of the new-product develop-
Katz, G. (2004) The voice of the customer, in The PDMA
ment process. It forms a solid basis for design and Toolbook 2 for New Product Development, Chapter 7
marketing decisions from concept development (eds P. Belliveau, A. Griffin, and S. Somermeyer),
through product launch. John Wiley & Sons, Inc., Hoboken.
McQuarrie, E.F. (1998) Customer Visits, Sage Publica-
ENDNOTES tions, Thousand Oaks.
1
McQuarrie, E.F. (2008) Customer Visits, M.E. Sharpe,
The Voice of the Customer has its origins in New York.
the QFD process, where it is used to develop the
customer needs that are linked to performance

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