Using qualitative reasoning to evaluate performance: An application in the retail sector

This paper offers a new method inspired by classic importance-performance analysis (IPA) that provides a global index of importance versus performance for firms together with a new version of the IPA diagram. The index compares two rankings of the same set of features regarding importance and performance, taking into account under-performing features. The marginal contribution of each feature to the proposed global index defines a set of iso-curves that represents an improvement in the IPA diagram. The defined index, together with the new version of the diagram, enables, by means of qualitative reasoning techniques, the assessment of a firm's overall performance and therefore enhance decision making in the allocation of resources. The proposed method has been applied to a Taiwanese multi-format retailer and managerial perceptions of performance and importance are compared to assess the firm's overall performance.