Abstract
Product and service quality can only be effectively improved when the most important needs of customers are satisfied. Quality Function Deployment (QFD) is an approach used to guide R&D, manufacturing, and management toward the development of products and services that satisfy the needs of consumers. The QFD operations are performed by way of a diagram called the House of Quality (HOQ). The HOQ contains information about the customers' needs (what), mechanisms to address these needs (how), and the criterion for deciding which "what" is the most important and which "how" provides the greatest customer satisfaction. A less familiar application of QFD is for the improvement of retail services. When QFD is applied to retail services, a computerized HOQ approach becomes integral to the process for providing continuous, iterative quality improvement. The objective of this research is to develop a formal QFD methodology for the retail industry and to build a computerized retail QFD system. The system provides a HOQ architecture for specifying and analyzing the customers' needs, deriving improvement strategies, and formalizing records of progress. Furthermore, two ranking methods that apply customer satisfaction theory are used to assist managers improve retail services. This system provides an integrated workbench for building retail HOQs and designing retail service strategies. Copyright © 1996 Elsevier Science Ltd.