Using a revised importance–performance analysis approach: The case of Taiwanese hot springs tourism

A revised IPA is presented which integrates three-factor theory concept, partial correlation analysis and natural logarithmic transformation and enables business managers to achieve a competitive advantage.

Abstract

Importance–performance analysis (IPA) is a simple and effective technique that can assist practitioners in prioritizing customer attributes when enhancing service quality and customer satisfaction. As numerous theoretical and empirical studies have shown, the relationship between customer attribute performance and overall satisfaction is asymmetrical, and the relationship between attribute importance and attribute performance is causal. These findings make the application of traditional IPA questionable. Therefore, this study presents a revised IPA which integrates three-factor theory concept, partial correlation analysis and natural logarithmic transformation. A Taiwanese hot springs tourism case is presented to demonstrate the implementation of the proposed revised IPA. The effective and appropriate action direction for each satisfaction attribute acquired by applying the revised IPA thus enables business managers to achieve a competitive advantage.