An improvement of service HOQ based on Economic perspective

House of quality (HOQ) is a useful tool for quality improvement. This paper, based on analysis of recent improvements of researches on HOQ, reveals limitations of current models in applications. On the view of customer focus and value maximization, it constructs a new model of HOQ namely Economic House of Quality, EHOQ, which has three dimensions: service characteristics, customer concerns and economic concerns, to balance the quality improvement with economic gain in service industry. The paper uses structure equation to present relevant matrix of the EHOQ in order to avoid over-depending on experts´ experience and wasting in survey information. The EHOQ adds an economic edge into the traditional flat model of HOQ to meet the need of corporate concern on economic value for quality improvement. Finally, this paper presents the full HOQ modeling process and proves its feasibility by a practical case study.