In customer satisfaction and product management, what is Kano Analysis and how does it classify different types of customer requirements?

Introduction / Context:
Kano Analysis is a popular technique in product management, business analysis, and service design. It helps teams understand how different features influence customer satisfaction, from basic expectations to delight factors. This question checks whether you know the purpose of Kano Analysis and the way it classifies requirements.

Given Data / Assumptions:

• The context is analysing customer requirements and expectations.
• Kano Analysis is used early in product planning and prioritisation.
• The model uses categories such as basic, performance, and excitement features.

Concept / Approach:
Kano Analysis groups requirements into several categories. Basic or must be attributes are those that customers take for granted; if they are missing, customers are very dissatisfied, but if they are present, satisfaction does not increase dramatically. Performance attributes are those where more is better, such as faster response time or lower price. Excitement or delight attributes are features that customers do not expect but that create high satisfaction when present. Some versions of the model also include indifferent and reverse attributes. By mapping potential features into these categories, teams can design product roadmaps that balance reliability, competitive performance, and delight.

Step-by-Step Solution:
Step 1: Recall that Kano Analysis is associated with customer satisfaction, not finance or algorithms.Step 2: Identify the key Kano categories: basic, performance, and excitement or delight.Step 3: Understand that the model studies how the presence or absence of each type of requirement impacts satisfaction.Step 4: Compare the answer choices and look for the option that mentions these categories and the satisfaction focus.Step 5: Select option A, which correctly describes Kano Analysis as a classification model for customer requirements.

Verification / Alternative check:
Product management references and Lean Six Sigma texts consistently describe Kano Analysis using this structure. No recognised source defines Kano as a financial net present value method or as a data compression algorithm. Therefore the explanations in options B, C, and D clearly do not match the established meaning of Kano Analysis.

Why Other Options Are Wrong:
Option B incorrectly shifts the topic to discounted cash flow analysis. Option C describes a programming algorithm that has nothing to do with customer satisfaction. Option D focuses on market share and revenue, which are outcomes but not part of the Kano classification model.

Common Pitfalls:
A common mistake is to treat all features as performance attributes and ignore basic or excitement categories. This can lead to over investment in incremental improvements while missing features that prevent dissatisfaction or create delight. Another pitfall is failing to revisit Kano classifications over time; excitement features can become basic expectations as markets mature. Understanding the Kano model helps business analysts have richer conversations with stakeholders about what to build next.

Final Answer:
A model that classifies customer requirements into basic, performance, and excitement attributes to analyse their impact on satisfaction.