Importance Performance Analysis for 7-eleven
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Measure 7-Eleven using Importance Performance Analysis (IPA)
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Importance Performance Analysis for 7-eleven
- 1. IMPORTANCE vs PERFORMANCE Analysis Casestudy: C d 7‐Eleven Bina Nusantara 7‐Eleven Rawabelong l b l 7‐Eleven Senayan
- 3. The Researchers The Researchers • Lina Widyatama Lina Widyatama • Susi Fauziah • Ronald M Sutedjo ld S dj
- 5. Problem Statement Problem Statement • What is the strength of 7‐Eleven that could What is the strength of 7 Eleven that could create new trends within youth lifestyle in Jakarta? • Why 7‐Eleven is never lack of numbers of visitor? • What are the critical success factors of 7‐ Eleven that cause them winning? El h h i i ?
- 6. Objectives • Describe the customer satisfaction toward expectation p and judgement about the performance • Investigate whether the performance met the user expectations t ti • Identify the areas for improvement and actions for minimizing the gap between importance and minimizing the gap between importance and performance • Finding recommendation in term of the growth of consumer satisfactory using the important – performance analysis
- 8. The Trend of Convienient Stores The Trend of Convienient Stores Current lifestyle trend from convienient stores : • The Legends: AMPM • Previously: Circle‐K • The leader: 7‐Eleven
- 9. The New Born King The New Born King • Looking back from AMPM Looking back from AMPM, most of convienience stores are practically hard to are practically hard to enhanced their biz • Circle K is quite player Circle K is quite player before 7‐Eleven • 7‐eleven crowned as new 7 eleven crowned as new king and could maintain the position
- 10. Critical Success Factors Critical 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
- 11. The IPA Analysis The IPA Analysis • 7‐Eleven factors are 7‐Eleven factors are 7‐Eleven considered as factors are factors are contributing factors contributing factors PORTANCE located here Q1 Q2 for customer Q3 Q4 satisfaction IMP • The performance of 7‐eleven can continue to sustain the PERFORMANCE achievements
- 16. The Attributes The Attributes • Using In depth Interview to 10 respondents Using In‐depth Interview to 10 respondents • Determine the attributes to be surveyed using IPA • The main group of attributes comes from “Retail Mix” and “Servqual”
- 18. Servqual • Tangibles: Appearance of physical facilities, g pp p y , equipment, personnel, and communication materials. • Reliability: Ability to perform the promised service dependably and accurately. d d bl d t l • 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
- 21. Factor Analysis Factor 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
- 22. Branding Performa ance Importa ance
- 23. Visually Appealing Facilities Visually Appealing Facilities Performa Importa ance ance
- 24. Sales Promotion Sales Promotion Performa Importa ance ance
- 25. 7‐ELEVEN Importance vs Performance Analysis IMPORTANCE PERFORMANCE IMPORTANCE PERFORMANCE ANALYSIS L
- 26. IPA • Methods Importance Performance Analysis (IPA) was p y ( ) first introduced by Martilla and James (1977) with the aim to measure the relationship between consumer perceptions and priority to improve the quality of perceptions 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 which, their satisfaction and loyalty and factors which according to customer service needs to be improved because the current conditions not satisfactory
- 27. The IPA Chart Explanation The IPA Chart Factors located in this quadrant is Factors located in this quadrant are considered as a very important factor to considered as contributing factors for , consumers, but current conditions do customer satisfaction so that the t ti f ti th t th not satisfy so that the management is management is obliged to ensure that obliged to allocate adequate resources the performance of institutions under to improve the performance of these its management can continue to sustain various factors. Factors located in this achievements. quadrant is a priority for improved quadrant is a priority for improved Factors located in this quadrant are Factors located in this quadrant have a considered not very important so that low level of satisfaction and well the management needs to allocate the considered less important to resources associated with these factors consumers, so that the management to other factors that have a higher does not need to prioritize or too give priority handling that still need attention to those factors. improvement, such as in the fourth quadrant.
- 28. Concentrate in here : •Smoking Area Q1 Q2 Good Job in here : •Kesamaan antar Gerai •Poster •Harga Produk g •Variasi Volume •Staf Senyum •24 Jam •Staf Rapi •Refrigerator Besar •Kursi Meja Iso‐Rating: •Kursi Meja Possible Overkill in here : •Staf Handal Q3 Q4 •Produk Unik •Staf Bersih •Suasana •Variasi Volume Those factors meet the Low Priority in: customer satisfaction •Perhatian Staf •Toilet •Staf Handal •Staf Bersih •Logo •Seragam Staf g •Staf Ramah •Suasana •Kecepatan Transaksi •Kemudahan Membeli
- 30. Conclusions • 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 24 the volume variation tables chairs open in 24 hours, posters inside the store, and large refrigerator g • The success of 7‐Eleven are contributed from their efforts in determine their tangibles & service provided and executed to meet consumer need & satisfaction level
- 31. Recommendations • There are few factors that met a high importance, but the performance is less than the expectation, 7‐Eleven should f i l th th t ti 7 El h ld concern about this factors, namely: – The outdoor area (smoking area) – Similarity among stores Si il i – 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
- 32. Any Questions ? Questions… Thank You ! BINUS BUSINESS SCHOOL 2011 BINUS BUSINESS SCHOOL 2011