Timothy J. Tyrrell, Mark J. Okrant
Importance–Performance Analysis (IPA) is a popular, low-cost, easily understood way to organize information about the attributes of a product or service and provide intuitively appealing strategies for a business to set priorities for potential change. A variety of criticisms have been aimed at IPA and a number of extensions and modifications have been suggested to deal with these; but, to our knowledge, there has been no attempt to evaluate its overall usefulness as an economic planning tool. This article investigates linkages between IPA and the economic principles underlying several stages in the strategic planning process in an effort to determine the appropriate role for IPA and to provide recommendations for its use.
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