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Measure 7-Eleven using Importance Performance Analysis (IPA)
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IMPORTANCE vs PERFORMANCEIMPORTANCE vs PERFORMANCEAnalysisAnalysis
C dCasestudy: 7‐Eleven Bina Nusantara
l b l7‐Eleven Rawabelong7‐Eleven Senayan
THE RESEARCHERS7‐ELEVEN Importance vs Performance Analysis
THE RESEARCHERS
The ResearchersThe Researchers
• Lina WidyatamaLina Widyatama
• Susi Fauziah
ld S dj• Ronald M Sutedjo
RESEARCH BACKGROUND7‐ELEVEN Importance vs Performance Analysis
RESEARCH BACKGROUND
S
Problem StatementProblem Statement
• What is the strength of 7‐Eleven that couldWhat is the strength of 7 Eleven that could create new trends within youth lifestyle in Jakarta?Jakarta?
• Why 7‐Eleven is never lack of numbers of visitor?visitor?
• What are the critical success factors of 7‐El h h i i ?Eleven that cause them winning?
ObjectivesObjectives
• Describe the customer satisfaction toward expectation pand judgement about the performance
• Investigate whether the performance met the user t tiexpectations
• Identify the areas for improvement and actions for minimizing the gap between importance andminimizing the gap between importance and performance
• Finding recommendation in term of the growth of consumer satisfactory using the important –performance analysis
EXECUTIVE SUMMARY7‐ELEVEN Importance vs Performance Analysis
EXECUTIVE SUMMARY
S
The Trend of Convienient StoresThe Trend of Convienient Stores
Current lifestyle trend from convienient stores :• The Legends: AMPM• Previously: Circle‐K• The leader: 7‐Eleven
The New Born KingThe New Born King
• Looking back from AMPM• Looking back from AMPM, most of convienience stores are practically hard toare practically hard to enhanced their biz
• Circle K is quite playerCircle K is quite player before 7‐Eleven
• 7‐eleven crowned as new7 eleven crowned as new king and could maintain the position
Critical Success FactorsCritical Success Factors
• 7‐Eleven create the ‘not importance’ factors for a convinience store into satisfaction for the market
• The most importance factors are also create satisfactory
• There are small differences in mean that concludes 7‐Eleven’s factors are mostly effective to their customers
The IPA AnalysisThe IPA Analysis
• 7‐Eleven factors are• 7‐Eleven factors are considered ascontributing factors
7‐Eleven factors are contributing factors
for customersatisfaction
Q1 Q2
Q3 Q4
PORTANCE
factors are located here
• The performance of 7‐eleven can continue
IMP
to sustain the achievementsPERFORMANCE
RESPONDENT PROFILING7‐ELEVEN Importance vs Performance Analysis
RESPONDENT PROFILING
S
Respondents Profiling (1)Respondents Profiling (1)
Respondents Profiling (2)Respondents Profiling (2)
RESEARCH ATTRIBUTES7‐ELEVEN Importance vs Performance Analysis
RESEARCH ATTRIBUTES
R
The AttributesThe Attributes
• Using In depth Interview to 10 respondents• Using In‐depth Interview to 10 respondents
• Determine the attributes to be surveyed using IPAIPA
• The main group of attributes comes from “Retail Mix” and “Servqual”
Retail MixRetail Mix
ServqualServqual
• Tangibles: Appearance of physical facilities, g pp p y ,equipment, personnel, and communication materials.
• Reliability: Ability to perform the promised service d d bl d t ldependably and accurately.
• Responsiveness: Willingness to help customers and provide prompt service.provide prompt service.
• Assurance: Knowledge and courtesy of employees and their ability to inspire trust and confidence.
• Empathy: Caring, individualized attention the firm provides its customers
Attributes SettingAttributes Setting
FACTOR ANALYSIS7‐ELEVEN Importance vs Performance Analysis
FACTOR ANALYSIS
R
Factor AnalysisFactor Analysis
• In term of the validity for the grouping, we use Factor analysis
• The groups that are tested are branding, visually appealing facility, Employees who have a neat & professional appeareance, and sales promotion
BrandingBranding
Importa
Performaance
ance
Visually Appealing FacilitiesVisually Appealing Facilities
Importa
Performaance
ance
Sales PromotionSales Promotion
Performa
Importa ance
ance
IMPORTANCE PERFORMANCE7‐ELEVEN Importance vs Performance Analysis
IMPORTANCE PERFORMANCE ANALYSIS
L
IPAIPA
• Methods Importance Performance Analysis (IPA) was p y ( )first introduced by Martilla and James (1977) with the aim to measure the relationship between consumerperceptions and priority to improve the quality ofperceptions and priority to improve the quality of products / services (Brandt, 2000 and Latu & Everett, 2000)
• IPA has a primary function to display information relating to factors services by consumers influence their satisfaction and loyalty and factors whichtheir satisfaction and loyalty, and factors which,according to customer service needs to be improvedbecause the current conditions not satisfactory
The IPA ChartThe IPA Chart ExplanationFactors located in this quadrant is considered as a very important factor to consumers, but current conditions do
Factors located in this quadrant are considered as contributing factors for
t ti f ti th t th,
not satisfy so that the management is obliged to allocate adequate resources to improve the performance of these various factors. Factors located in this quadrant is a priority for improved
customer satisfaction so that the management is obliged to ensure that the performance of institutions under its management can continue to sustain achievements.
quadrant is a priority for improved
Factors located in this quadrant are considered not very important so that Factors located in this quadrant have a the management needs to allocate the resources associated with these factors to other factors that have a higher priority handling that still need improvement, such as in the fourth
low level of satisfaction and well considered less important to consumers, so that the management does not need to prioritize or too give attention to those factors.
quadrant.
Q1 Q2Concentrate in here :•Smoking Area•Kesamaan antar Gerai•Harga Produk
Good Job in here :•Poster•Variasi Volumeg
•Staf Senyum•Staf Rapi
•24 Jam•Refrigerator Besar•Kursi Meja
Q3 Q4
Iso‐Rating:•Kursi Meja•Staf Handal•Staf Bersih
Possible Overkill in here :•Produk Unik
•Suasana•Variasi VolumeThose factors meet the customer satisfaction
Low Priority in:•Perhatian StafLow Priority in:•Perhatian Staf•Toilet•Staf Handal•Staf Bersih•Logo•Seragam Staf
•Toilet•Staf Handal•Staf Bersih•Logo•Seragam Stafg•Staf Ramah•Suasana•Kecepatan Transaksi•Kemudahan Membeli
g•Staf Ramah•Suasana•Kecepatan Transaksi•Kemudahan Membeli
CONCLUSIONS &7‐ELEVEN Importance vs Performance Analysis
CONCLUSIONS & RECOMMENDATIONS
L
ConclusionsConclusions• 7‐Eleven are succedeed in creating new trend by forecast within consumer mind and delivered it into attributes of their product & services, esp in the volume variation tables chairs open in 24the volume variation, tables‐chairs, open in 24 hours, posters inside the store, and large refrigeratorg
• The success of 7‐Eleven are contributed from their efforts in determine their tangibles & service provided and executed to meet consumer need & satisfaction level
RecommendationsRecommendations• There are few factors that met a high importance, but the
f i l th th t ti 7 El h ldperformance is less than the expectation, 7‐Eleven should concern about this factors, namely: – The outdoor area (smoking area)
Si il i– Similarity among stores– The pricing– Smile and neat appearance from staffs
• Those high score factors are superb nowadays for 7‐Eleven. Foresee the previous trends in‐line with information technology, 7‐Eleven should prepare for upcoming trends and create more innovative attributes that serve their market more than this one
Any Questions ?Any Questions…?Thank You !
BINUS BUSINESS SCHOOL 2011BINUS BUSINESS SCHOOL 2011
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