In Gustafsson and Johnson (1997) we describe a framework that links an external focus on customers, using customer satisfaction modeling (CSM), with a means of translating customer needs into their internal means of accomplishment, using quality function deployment (QFD). The linking of these traditionally separate systems poses certain problems when making customer-driven quality improvements. A lot of effort in QFD goes into the prioritization of the needs and making this as objective as possible in order to receive the best input possible to the house of quality. We, however, argue that this might not be the case. Rather it is one of the more fundamental problems encountered in QFD.

The goal of this paper is to take a scientific approach to this problem using theoretical empiricism, i.e. blending theory and practice (Wold 1989). The measurement of customer needs and determination of their relative importance requires a fundamentally different approach than is typically encountered in applications of QFD. We argue that the measures used to prioritize benefits and attributes should depend, at least in part, on whether the primary goal is to identify areas in need of improvement or to design and develop products and services per se.