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 isocurves 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.Peer ReviewedPostprint (author's final draft