Applying Importance-Performance Analysis for Developing a Model of Quick Service Restaurant Innovation Strategies in Downtown Bangkok


  • Isaree Karnreungsiri Srinakharinwirot University

DOI: 10.14456/abacj.2022.3
Published: 2022-04-30


There is considerable research-based evidence supporting the idea that innovative restaurants are better able to improve their service quality and reputation, leading to an increase in sales revenue and profit growth. Consistent innovation enables restaurants to stay ahead of their competitors and maintain a competitive advantage over the long term. Thus, it is necessary for restaurant entrepreneurs to use a variety of innovative strategies to achieve such a competitive advantage. The purpose of this research was to apply importance-performance analysis (IPA) within the context of quick service restaurants (QSR) located in downtown Bangkok, the capital city of Thailand, as well as evaluating innovative attributes of QSRs from the customer perspective, regarding their expectations (perceived importance) and satisfaction (perceived performance). A total of 400 QSR customers were selected for the sample, with purposive sampling being employed to collect data, in order to ensure only working-aged respondents were selected for the sample; convenience sampling was also used alongside. Finally, the twenty-one predetermined innovation attributes were divided into four categories: marketing, organizational, product, and process innovations. These four factors were plotted two-dimensionally onto an IP grid using their mean values of performance and importance. These were then integrated into a matrix which can be used as a guide for Bangkok QSRs to identify appropriate innovation attributes. The paper concludes by providing a developed model of innovative strategies for utilization in QSRs.


Abalo, J., Varela, J., & Manzano, V. (2007). Importance values for importance-performance analy-sis: A formula for spreading out values derived from preference rankings. Journal of Business Research, 60 (2), 115-121.

Bacon, D. R. (2003). A comparison of approaches to importance-performance analysis. International Journal of Market Research, 45(1), 55-71.

Battisti, G. & Stoneman, P. (2010). How innovative are UK firms? Evidence from the fourth UK community Innovation survey on synergies between technological and organization innovations. British Journal of Management, 21(1), 187–206.

Chang, Y. C., & Chen, C. F. (2011). Identifying mobility service needs for disabled air passengers. Tourism Management, 32(5), 1214-1217.

Chen, L. F. (2014). A novel frame-work for customer-driven service strategies: a case study of a restaurant chain. Tourism Management, 41, 119-128.

Chen, L. F., Chen, S. C., & Su, C. T. (2018). An innovative service quality evaluation and improvement model. Service Industries Journal, 38(3–4), 228–249.

Child, D. (2006). The essentials of factor analysis. (3rd Ed). New York, NY: Continuum International Publishing Group.

Cochran, W. G. (1977). Sampling techniques. (3rd Ed). New York: John Wiley & Sons Inc.

Cohen, L., Manion, L. & Morrison, K. (2007). Research methods in education. (6th ed.). London: Routledge.

Cohen, R. J., Swerdlik, M. E., & Smith, D. K. (1992). Psychological testing and assessment: An introduction to tests and measurement. Mountain View, CA: Mayfield Publishing Company.

Cooper, D. R. & Schindler, P. S. (2006). Business research methods. (9th Ed). New York: McGraw-Hill/Irwin.

Cronbach, L. J. (1951). Coefficient alpha and internal structure of tests. Psychometrika, 16(3), 297- 334.

Damanpour, F. (1996.) Organization complexity and innovation developing and testing multiple contingency models. Journal of Management Science, 42(50), 693-716.

Davidson, M. C. (2003). Does organization climate add to service quality in hotels? International Journal of Contemporary Hospitality Management, 15(4), 206-213.

De Brentani, U. (2001). Innovative versus incremental new business services: Different keys for achieving success. Journal of Product Innovation Management, 18 (2001), 169-87.

Department of Business Development. (2017). Restaurant business. Business Information Division. Thailand: Ministry of Commerce.

Department of Tourism. (2017). Revenue from tourists. Thailand: Ministry of Tourism and Sports.

Dörnyei, Z. (2007). Research methods in applied linguistics. New York: Oxford University Press.

Drucker, P. F. (1985). Innovation and entrepreneurship. Butterworth-Heinemann, Oxford.

Etikan, I., Musa, S. A. & Alkassim R. S. (2016). Comparison of convenience sampling and purposive sampling. American Journal of Theoretical and Applied Statistics, 5 (1), January 2016, 1-4.

Field, A. (2009). Discovering statistics using SPSS: Introducing statistical method. (3rd Ed). Thousand Oaks, CA: Sage Publications.

Fiscal and Investment Information Center. (2019). Important areas of all districts. Bangkok Metropolitan Administration.

Gheribi, E. (2017). Innovation strategies in restaurant business. Retrieved from

Groebner, D. F., Shannon, P. W., Fry, P. C., & Smith, K. D. (2004). Business statistics (4th Ed). New Jersey: Pearson Education, Inc.

Gunday, G., Ulusoy, G., Kilic, K. & Alpkan, L. (2011). Effects of innovation types on firm performance. International Journal of Production Economics, 133(2), 662-676.

Hamidizadeh, M. & Eghtesadi, G. (2012). Organization learning and organization innovation, Kuwait chapter of Arab. Journal of Business & Management Review, 1(5), 71-78.

Hammasi, M., Strong, K. C., & Taylor, S. A. (1994). Measuring service quality for strategies planning and analysis in service firms. Journal of Applied Business Research, 10(4), 24-34.

Hollenhorst, S., Olson, D. & Fortney, R. (1992). Use of importance-performance analysis to evaluate state park cabins: The case of the West Virginia state park system. Journal of Park and Recreation Administration, 10(1), 1-11.

Jin, N. P., Goh, B. K., Huffman, L. & Yuan, J. (Jessica). (2014). Predictors and outcomes of per¬ceived image of restaurant innovativeness in fine dining restaurants. Journal of Hospitality Marketing & Management, 24(5), 457-485.

Jin, N. P., Line, N. D., & Merkebu, J. (2016). Examining the Impact of Consumer Innovativeness and Innovative Restaurant Image in Upscale Restaurants. Cornell Hospitality Quarterly, 57(3), 268–281.

Jogaratnam, G., Tse, E. C., & Olsen, M. D. (1999). An empirical analysis of entrepreneurship and performance in the restaurant industry. Journal of Hospitality & Tourism Research, 23(4), 339-353.

Kahn, K. B. (2018). Understanding innovation. Business Horizon, 61(3), 453-460.

Kaiser, H. F. (1974). An index of factorial simplicity. Psychometrica, 39(1), 31-36.

Kankam-Kwarteng, C., Osman, B., & Donkor, J. (2019). Innovative low-cost strategy and firm perfor¬mance of restaurants. Asia Pacific Journal of Innovation and Entrepreneurship, 13(3), 266–281.

Karnreungsiri, I. (2020). Innovation management and entrepreneurial traits in restaurant business: An association to achieve SME restaurant performance. Proceeding of International Academic Conference on Management, Economics and Marketing, March 13 - 14, 2020, Budapest, Hungary. 65-76.

Kasikorn Research Center. (2018). Value of restaurant market 2018. Industry Outlook, issue 2904.

Lai, I. K. W. & Hitchcock, M. (2015). Importance-performance analy¬sis in tourism: A framework for researchers. Tourism Management, 48, 242-267.

Lee, C., Sardeshmukh, S. R., & Hallak, R. (2016). A qualitative study of innovation in the restaurant industry. Anatolia, 27(3), 367–376.

Levenburg, N. M. & Magal, S. R. (2005). Applying importance-performance analysis to evaluate e-business strategies among small firms. e-Service Journal, 3(3), 29–48.

Lewis, R. C. & Chambers, R. E. (1989). Marketing leadership in hospitality. New York: Van Nostrand Reinhold.

Martin, D. W. (1995). An importance-performance analysis of service providers' perception of quality service in the hotel industry. Journal of Hospitality & Leisure Marketing, 3(1), 5-17.

Martilla, J. A. & James, J. C. (1977). Importance-performance analy-sis. Journal of Marketing, 41(1), 77-79.

Martin-Riosa, C. & Ciobanua, T. (2019). Hospitality innovation strategies: An analysis of success factors and challenges. Tourism Management, 70, 218-229.

National Statistical Office. (2017). Population statistics. Retrieved from

Okwiet, B. & Grabara, J. K. (2013). Innovation’s influence on SME’s enterprise attributes. Procedia Economics and Finance, 6, 194 – 204.

Organization of Economic Co-operation and Development [OECD] & Statistical Office of the European Communities [Eurostat]. (2005). Oslo manual: Guidelines for collecting and interpreting innovation data. (3rd Ed). Paris, France: OECD Publishing.

Ottenbacher, M. C. & Harrington, R. J. (2007). The innovation development process of Michelin-Starred chefs. International Journal of Contemporary Hospitality Management, 19(6), 444-460.

Ottenbacher, M., & Harrington, R. (2009). The product innovation process of quick‐service restaurant chains. International Journal of Contemporary Hospitality Management, 21(5), 523–541.

Pallant, J. (2016). SPSS survival manual. England: Mc Graw Hill Education.

Peterson, R. A. (1994). A Meta-analysis of Cronbach's coefficient alpha. Journal of Consumer Research, 21(2), 381–391.

Presser, S., Couper, M. P., Lessler, J. T., Martin, E., Martin, J., Rothgeb, J. M. & Singer, E. (2004). Methods for testing and evaluating survey questions. Public Opinion Quarterly, 68(1), 109–130.

Riivari, E., Lämsä, A., Kujala, J. & Heiskanen, E. (2012). The ethical culture of organizations and organization innovativeness. European Journal of Innovation Management, 15 (3), 310-331.

Rovinelli, R.J. & Hambleton, R.K. (1976). On the use of content specialists in the assessment of criterion-referenced test item validity. Paper presented at the annual meeting of the American Educational Research Association: California. April 19 – 23, 1976. Retrieved from

Savitz, L. A., Kaluzny, A. D. & Kelly, D. L. (2000). Life cycle model of continuous clinical process innovation. Journal of Healthcare Management, 45(5), 307-15.

Schumpeter, J.A. (1934), The theory of economic development. Harvard University Press, Cambridge, Massachusetts.

Schumpeter, J. A. (1952). Capitalism, socialism, and democracy. (4th Ed). London: G. Allen & Unwin.

Sheppard, B.H., Hartwick, J. & Warshaw, P.R. (1988). The theory of reasoned action: a meta-analysis of past research with recommendations for modifications and future research. Journal of Consumer Research, 15(3), 325–343.

Siniscalchi, J. M., Beale, E. K. & Fortuna, A. (2008). Using importance-performance analy¬sis to evaluate training. Performance Improvement, 47(10), 30–35.

Sum, S., Champahom, T., Jomnonkwao,S. & Ratanavaraha, V. R. (2019). An application of importance-performance analy¬sis (IPA) for evaluating city bus service quality in Cambodia. International Journal of Building, Urban, Interior and Landscape Technology (BUILT), 13(1), 55 - 66.

Van der Aa, W. & Elfring, T. (2002). Realizing innovation in services. Scandinavian Journal of Management, 18(2), 155–171.

Wang, M., Wang, J. & Zhao, J. (2007). An empirical study of the effect of customer participation on service quality. Journal of Quality Assurance in Hospitality & Tourism, 8(1), 49-73.

Wongnai B2B Team. (2019). The trend of Thai restaurant in 2019. Retrieved from

Yong, A.G. & Pearce, S. (2013). A beginner’s guide to factor analysis: Focusing on exploratory factor analysis. Tutorials in Quantitative Methods for Psychology, 9(2), 79-94.

Zikmund, W. G., Babin, B. J., Carr, J. C. & Griffin, M. (2013). Business research methods. (9th ed.). Southwestern: Cengage Learning.