Integrating Importance-Satisfaction Model and Performance Evaluation Matrix to improve service quality

Published: Dec 19, 2023

Abstract:

Purpose: The Taiwanese coffee market is growing every year, together with progressive changes in national habits and the concept of drinking coffee. This study examines a particular coffee studio and explores its service quality within a competitive environment as a basis for improvement.

Research methodology: The design of service elements for the questionnaire was based on the relevant literature. The study identified 19 quality attributes as survey items, all of which were then subsumed under the Importance-Satisfaction Model (I-S Model) and Performance Evaluation Matrix (PEM) for service quality.

Results: There are 8 service elements falling in “Excellent area,” 3 service elements falling in “To be improved area,” 3 service elements falling in “Surplus area,” and 6 service elements falling in “Care-free area” as shown by the results of Importance-Satisfaction Model introduction. With regard to the Performance Evaluation Matrix which are introduced later on, 2 service elements fall in “Priority improvement area,” 17 service elements fall in “Improvement area,” and 1 service element falls in “Maintenance area.”

Limitations: The results of this study are only applicable to the analysis of the coffee studio survey, and cannot be extrapolated to explain improvements in service quality across the entire coffee industry.

Contribution: It is expected that items in dire need of improvement can be confirmed by introducing a service quality model to enhance service quality, build a corporate image, and increase competitive advantage.

Keywords:
1. Coffee studios
2. Chain coffee shops
3. Service quality
4. Importance Satisfaction Model (I-S Model)
5. Performance Evaluation Matrix (PEM)
Authors:
1 . Shun-Hsing Chen
2 . Yu-Lan Shun
How to Cite
Chen, S.-H., & Shun, Y.-L. (2023). Integrating Importance-Satisfaction Model and Performance Evaluation Matrix to improve service quality. International Journal of Financial, Accounting, and Management, 5(3), 373–386. https://doi.org/10.35912/ijfam.v5i3.1641

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References

    Amegayibor, G. K. (2021). Training and development methods and organizational performance: A case of the local government organization in Central Region, Ghana. Journal of Social, Humanity, and Education, 2(1), 35-53.

    Bitner, M. J. (1990). Evaluating service encounters: the effects of physical surroundings and employee responses. Journal of marketing, 54(2), 69-82.

    Chen, B.-S., & Chen, S.-H. (2016). Study on service satisfaction of Rotary Club Members by Importance-Satisfaction Model. International Journal of Research in Business Studies and Management, 3(6), 31-37.

    Chen, F.-Y., & Chen, S.-H. (2014). Application of importance and satisfaction indicators for service quality improvement of customer satisfaction. International Journal of Services Technology and Management, 20(1-3), 108-122.

    Chen, J. H., Wu, Y. S., Chen, C. C., & Syu, J. N. (2011). Enhance service quality and customer satisfaction on the coffee shop chain-stores. Journal of Global Business Operation and Management, 3, 157-167.

    Chen, K.-S., Chiou, W.-C., & Ko, M.-H. (2018). Service quality evaluation model of automated teller machines using statistical inference and performance evaluation matrix. Journal of Economics and Management, 14(2), 173-190.

    Chen, S.-H. (2009). Establishment of a performance-evaluation model for service quality in the banking industry. The Service Industries Journal, 29(2), 235-247.

    Chen, S.-H. (2011). A performance matrix for strategies to improve satisfaction among faculty members in higher education. Quality & quantity, 45(1), 75-89.

    Chen, S.-H. (2012). Integrating service quality model in quality improvement: An empirical study of employees satisfaction for hot spring industry. Information technology journal, 11(5), 658.

    Chen, S.-H., Chen, Y.-J., & Leung, W.-C. (2023). Analyzing differences in customer satisfaction on the video streaming platform Netflix. Annals of Management and Organization Research, 4(3), 193-209.

    Chen, S.-H., & Yeh, T.-M. (2015). Integration PEM and AHP methods to determine service quality improvement strategy for the medical industry. Applied Mathematics & Information Sciences, 9(6), 3073.

    Chen, S. H., Yang, C. C., Lin, W. T., & Yeh, T. M. (2007). Service quality attributes determine improvement priority. The TQM Magazine, 19(2), 162-175.

    Deng, J., & Pierskalla, C. D. (2018). Linking importance–performance analysis, satisfaction, and loyalty: A study of Savannah, GA. Sustainability, 10(3), 704.

    Dong, T. W., Hung, W. T., & Chen, M. Y. (2015). A study on customers' store image and purchasing behavior in non-chain cafés. Journal of Leisure and Recreation Management, 2(1), 35-52.

    Hsieh, S. F. (2009). Formation of models for customer loyalty for coffee chain shops: An ordered logit approach. Journal of Sport, Leisure and Hospitality Research, 4(4), 199-224.

    Huang, H.-T., & Tsaih, L. S.-J. (2022). Prioritizing hotel lobby design factors: perspectives of hotel operators in China. Journal of Asian Architecture and Building Engineering, 21(5), 1801-1813.

    Juran, J. M. (1974). Quality Control Handbook. New York: Prentice Hall.

    Kotler, P. (1999). Marketing Management: Analysis, Planning, Implementation and Control: Prentice-Hall, Englewood Cliffs, NJ.

    Lambert, D. M., & Sharma, A. (1990). A customer?based competitive analysis for logistics decisions. International Journal of Physical Distribution & Logistics Management, 20(1), 17-24.

    Lee, S. W., & Xue, K. (2021). An integrated importance-performance analysis and modified analytic hierarchy process approach to sustainable city assessment. Environmental Science and Pollution Research, 28, 63346-63358.

    Liang, W. Y., & Lin, F. R. (2014). Study on brand image, perceived value, satisfaction, and loyalty: A case study of Chiu's Coffee. Agricultural Extension Anthology, 57, 95-120.

    Lien, C. F. (2017). Analyzing the importance and performance of customers for Starbucks Coffee. Journal of Tzu Chi University of Science and Technology, 65-82.

    Lin, C. C., Chuang, Y. C., Yang, S. M., & Lin, S. B. (2007). Student consumer behavior of coffee chain store. Review of Tourism and Hospitality, 1(1), 17-27.

    Liu, Y.-Y., Chen, S.-H., & Zhang, J.-X. (2021). Applying importance–satisfaction model to evaluate customer satisfaction: An empirical study of foodpanda. Sustainability, 13(19), 10985.

    Martilla, J. A., & James, J. C. (1977). Importance-performance analysis. Journal of marketing, 41(1), 77-79.

    Martineau, P. (1958). The personality of the retail store.

    MEA. (2022). Catering Industry Trends. Retrieved from https://www.twtrend.com/trend-detail/food-and-beverage-service-activities-2022/

    Research, T. T. (2021). Industry Analysis: Trends in the Food and Beverage Industry.

    Sikder, S., Rana, M. M., & Polas, M. R. H. (2021). Service Quality Dimensions (SERVQUAL) and Customer Satisfaction towards Motor Ride-Sharing Services: Evidence from Bangladesh. Annals of Management and Organization Research, 3(2), 97-113.

    Tonge, J., & Moore, S. A. (2007). Importance-satisfaction analysis for marine-park hinterlands: A Western Australian case study. Tourism management, 28(3), 768-776.

    Tsai, K.-C., Huang, P. B., & Yang, C.-C. (2017). The Evaluation of Service Quality for Higher Education in Taiwan by Using Importance-Satisfaction Model. Paper presented at the Theory and Practice of Quality and Reliability Engineering in Asia Industry.

    Widjaya, A., & Padmoprayitno, A. I. (2022). The Effect of Promotion Mix, Price, and Service Quality on Study Decisions. Annals of Management and Organization Research, 3(3), 221-230.

    Wu, C. L. (2009). A research on consumers’ sensible experience in coffee chain stores. Journal of General Education Tainan University of Technology, 237-256.

    Wu, W. C., & Cheng, H. H. (2002). A study of customer satisfaction in Taipei coffee chain shops. Journal of Tourism Studies, 8(2), 71-86.

    Xu, Y., Li, S., Juan, Y.-K., Guo, H., & Lin, H. (2022). A Kano–IS Model for the Sustainable Renovation of Living Environments in Rural Settlements in China. Buildings, 12(8), 1230.

    Yang, C.-C. (2005). The refined Kano's model and its application. Total Quality Management & Business Excellence, 16(10), 1127-1137.

    Yang, C. C. (2003). Establishment and applications of the integrated model of service quality measurement. Managing Service Quality: An International Journal, 13(4), 310-324.

    Yang, K.-J., Chen, S.-H., & Yang, C.-C. (2020). Establishment and applications of quality management system for service industries. International Journal of Financial, Accounting, and Management, 1(4), 199-207.

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  2. Bitner, M. J. (1990). Evaluating service encounters: the effects of physical surroundings and employee responses. Journal of marketing, 54(2), 69-82.
  3. Chen, B.-S., & Chen, S.-H. (2016). Study on service satisfaction of Rotary Club Members by Importance-Satisfaction Model. International Journal of Research in Business Studies and Management, 3(6), 31-37.
  4. Chen, F.-Y., & Chen, S.-H. (2014). Application of importance and satisfaction indicators for service quality improvement of customer satisfaction. International Journal of Services Technology and Management, 20(1-3), 108-122.
  5. Chen, J. H., Wu, Y. S., Chen, C. C., & Syu, J. N. (2011). Enhance service quality and customer satisfaction on the coffee shop chain-stores. Journal of Global Business Operation and Management, 3, 157-167.
  6. Chen, K.-S., Chiou, W.-C., & Ko, M.-H. (2018). Service quality evaluation model of automated teller machines using statistical inference and performance evaluation matrix. Journal of Economics and Management, 14(2), 173-190.
  7. Chen, S.-H. (2009). Establishment of a performance-evaluation model for service quality in the banking industry. The Service Industries Journal, 29(2), 235-247.
  8. Chen, S.-H. (2011). A performance matrix for strategies to improve satisfaction among faculty members in higher education. Quality & quantity, 45(1), 75-89.
  9. Chen, S.-H. (2012). Integrating service quality model in quality improvement: An empirical study of employees satisfaction for hot spring industry. Information technology journal, 11(5), 658.
  10. Chen, S.-H., Chen, Y.-J., & Leung, W.-C. (2023). Analyzing differences in customer satisfaction on the video streaming platform Netflix. Annals of Management and Organization Research, 4(3), 193-209.
  11. Chen, S.-H., & Yeh, T.-M. (2015). Integration PEM and AHP methods to determine service quality improvement strategy for the medical industry. Applied Mathematics & Information Sciences, 9(6), 3073.
  12. Chen, S. H., Yang, C. C., Lin, W. T., & Yeh, T. M. (2007). Service quality attributes determine improvement priority. The TQM Magazine, 19(2), 162-175.
  13. Deng, J., & Pierskalla, C. D. (2018). Linking importance–performance analysis, satisfaction, and loyalty: A study of Savannah, GA. Sustainability, 10(3), 704.
  14. Dong, T. W., Hung, W. T., & Chen, M. Y. (2015). A study on customers' store image and purchasing behavior in non-chain cafés. Journal of Leisure and Recreation Management, 2(1), 35-52.
  15. Hsieh, S. F. (2009). Formation of models for customer loyalty for coffee chain shops: An ordered logit approach. Journal of Sport, Leisure and Hospitality Research, 4(4), 199-224.
  16. Huang, H.-T., & Tsaih, L. S.-J. (2022). Prioritizing hotel lobby design factors: perspectives of hotel operators in China. Journal of Asian Architecture and Building Engineering, 21(5), 1801-1813.
  17. Juran, J. M. (1974). Quality Control Handbook. New York: Prentice Hall.
  18. Kotler, P. (1999). Marketing Management: Analysis, Planning, Implementation and Control: Prentice-Hall, Englewood Cliffs, NJ.
  19. Lambert, D. M., & Sharma, A. (1990). A customer?based competitive analysis for logistics decisions. International Journal of Physical Distribution & Logistics Management, 20(1), 17-24.
  20. Lee, S. W., & Xue, K. (2021). An integrated importance-performance analysis and modified analytic hierarchy process approach to sustainable city assessment. Environmental Science and Pollution Research, 28, 63346-63358.
  21. Liang, W. Y., & Lin, F. R. (2014). Study on brand image, perceived value, satisfaction, and loyalty: A case study of Chiu's Coffee. Agricultural Extension Anthology, 57, 95-120.
  22. Lien, C. F. (2017). Analyzing the importance and performance of customers for Starbucks Coffee. Journal of Tzu Chi University of Science and Technology, 65-82.
  23. Lin, C. C., Chuang, Y. C., Yang, S. M., & Lin, S. B. (2007). Student consumer behavior of coffee chain store. Review of Tourism and Hospitality, 1(1), 17-27.
  24. Liu, Y.-Y., Chen, S.-H., & Zhang, J.-X. (2021). Applying importance–satisfaction model to evaluate customer satisfaction: An empirical study of foodpanda. Sustainability, 13(19), 10985.
  25. Martilla, J. A., & James, J. C. (1977). Importance-performance analysis. Journal of marketing, 41(1), 77-79.
  26. Martineau, P. (1958). The personality of the retail store.
  27. MEA. (2022). Catering Industry Trends. Retrieved from https://www.twtrend.com/trend-detail/food-and-beverage-service-activities-2022/
  28. Research, T. T. (2021). Industry Analysis: Trends in the Food and Beverage Industry.
  29. Sikder, S., Rana, M. M., & Polas, M. R. H. (2021). Service Quality Dimensions (SERVQUAL) and Customer Satisfaction towards Motor Ride-Sharing Services: Evidence from Bangladesh. Annals of Management and Organization Research, 3(2), 97-113.
  30. Tonge, J., & Moore, S. A. (2007). Importance-satisfaction analysis for marine-park hinterlands: A Western Australian case study. Tourism management, 28(3), 768-776.
  31. Tsai, K.-C., Huang, P. B., & Yang, C.-C. (2017). The Evaluation of Service Quality for Higher Education in Taiwan by Using Importance-Satisfaction Model. Paper presented at the Theory and Practice of Quality and Reliability Engineering in Asia Industry.
  32. Widjaya, A., & Padmoprayitno, A. I. (2022). The Effect of Promotion Mix, Price, and Service Quality on Study Decisions. Annals of Management and Organization Research, 3(3), 221-230.
  33. Wu, C. L. (2009). A research on consumers’ sensible experience in coffee chain stores. Journal of General Education Tainan University of Technology, 237-256.
  34. Wu, W. C., & Cheng, H. H. (2002). A study of customer satisfaction in Taipei coffee chain shops. Journal of Tourism Studies, 8(2), 71-86.
  35. Xu, Y., Li, S., Juan, Y.-K., Guo, H., & Lin, H. (2022). A Kano–IS Model for the Sustainable Renovation of Living Environments in Rural Settlements in China. Buildings, 12(8), 1230.
  36. Yang, C.-C. (2005). The refined Kano's model and its application. Total Quality Management & Business Excellence, 16(10), 1127-1137.
  37. Yang, C. C. (2003). Establishment and applications of the integrated model of service quality measurement. Managing Service Quality: An International Journal, 13(4), 310-324.
  38. Yang, K.-J., Chen, S.-H., & Yang, C.-C. (2020). Establishment and applications of quality management system for service industries. International Journal of Financial, Accounting, and Management, 1(4), 199-207.