Abstract

This paper reports on a critical review of the Importance-Performance Analysis (IPA) method using three different measures: customer self-stated importance, regression analysis and regression analysis with dummy variables. The study confirms that product attribute importance is an antecedent of attribute performance. The importance of product attributes from the customers’ point of view may change with the fluctuation in product performance level. The results of this research help in measuring the impact of service attribute performance on customer satisfaction, which in turn can help companies to identify the product attributes that have higher returns for the business.

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