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IMPORTANCE-PERFORMANCE ANALYSIS REVIEWImportance-performance analysis, originally proposed by Martilla and James (1977), was to provide insights to management in order to identify the strengths and weaknesses of a company. Importance-Performance Analysis is typically viewed as a part of marketing re- search techniques that involve the analyses of customer attitudes toward salient product or service attributes and helps practitioners prioritize the improvement oppor- tunities for product or service attributes and direct quality-based marketing strategies (Joppe et al., 2001; Eskildsen and Kristensen, 2006; Shieh and Wu, 2009). More importantly, IPA is able to identify the most important attributes to the customer with the highest impact on customer satisfaction and, simultaneously, the low perfor- mance attributes required to be improved immediately (Matzler et al., 2003; Deng et al., 2008). Importance- performance analysis, constructed by a two-dimensional matrix, uses importance as an x-axis and performance as a y-axis to form four quadrants as shown in Figure 1.These four quadrants consist of “keep up the good work” (Quadrant I), “possible overkill” (Quadrant II), “low priority” (Quadrant III) and “concentrate here” (Quadrant IV) (Daniels and Marion, 2006; Deng et al., 2008; Wu and Shieh, 2009). Specifically, attributes located in Quadrant I have both high performance and high importance and are viewed as the opportunities to achieve or maintain competitiveness for organizations. Quadrant II has high performance but low importance, which indicates that the resources committed to these attributes are excessive and should be deployed elsewhere. Quadrant III has the characteristics of both low performance and low importance, and these attributes do not require additional efforts. Finally, attributes in Quadrant IV with low performance but high importance are considered as major weaknesses for an organization. As a conse- quence, immediate attention for improvement is required. The focal point is that the inability to identify the attributes in Quadrant IV might result in low customer satisfaction. In fact, immediate improvement efforts should be placed in the highest priority when major weaknesses are iden- tified, while attributes in Quadrant I regarded as major strengths should be maintained, leveraged and heavily promoted (Daniels and Marion, 2006; Deng et al., 2008; Wu et al., 2008)
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