Revised importance–performance analysis: three-factor theory and benchmarking

This study presents a revised IPA which integrates three-factor theory and benchmarking and identifies any shortcomings produced by applying the traditional IPA.

Abstract

Importance--performance analysis (IPA) is a simple and effective technique that can be applied to guide quality-based marketing strategies and can assist practitioners in prioritising attributes when enhancing service quality and customer satisfaction. As several studies have shown, the relationship between customer's perception of attribute performance and overall satisfaction is sometimes nonlinear. These findings make the application of IPA questionable. Furthermore, competition analysis is necessary for a firm's management to attain competitive advantage. Therefore, this study presents a revised IPA which integrates three-factor theory and benchmarking. An illustrative case demonstrates the revised IPA and identifies any shortcomings produced by applying the traditional IPA.