Introducing Importance-Performance-Impact Analysis (IPIA): A method to strategically prioritize resources allocation

The importance–performance analysis (IPA) model has been widely used as a strategic resource allocation tool for improving customer satisfaction. There are several shortcomings associated with IPA which could lead to incorrect decisions. In this paper, we propose a novel analytical framework, the “Importance-Performance-Impact Analysis” (IPIA) to overcome those shortcomings so as to provide managers with a powerful decision making tool. The IPIA takes advantage of several advanced analytical techniques, such as Back Propagation Neural Network (BPNN), Decision Making Trial and Evaluation Laboratory (DEMATEL) and Analytic Network Process (ANP). We illustrate IPIA using the case of an airline company in China. Two primary data sources were used: A passenger survey to obtain the attribute importance and performance, and an expert panel survey to obtain attribute impact. Resources allocation recommendations for improving passenger satisfaction were then derived from the IPIA. We discuss limitations and provide recommendations for future research.