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A Text Analytics-Based Importance Performance Analysis and Its Application to Airline Service

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  • Seungju Nam

    (School of Business, Korea Aerospace University, Goyang-si 10540, Korea)

  • Hyun Cheol Lee

    (School of Business, Korea Aerospace University, Goyang-si 10540, Korea)

Abstract

We introduce a new importance-performance analysis (IPA) methodology while making use of direct service experience perceptions represented by online reviews with numerical ratings. The proposed IPA, which we call the text analytics-based IPA (TAIPA), allows the real-time calculation of importance using the probability distribution of word frequency via the latent Dirichlet allocation (LDA) application to online reviews, and of performance using numerical rating values. The importance is also adjusted with the help of a sentiment analysis of online reviews to provide more precise measurements for service experience perceptions. To ensure an evaluation of the entire service process, we employ service encounters, in which service experiences occur and thus most customer perceptions are created, as a set of attributes composed of LDA topics that contain direct perceptions of service experiences. We investigate statistical correlations between TAIPA calculations and typical benchmarks of firm performance in the air-transport industry to verify how effective the proposed TAIPA is with respect to the degree that customer satisfaction is represented. As a primary result, TAIPA is more effective than comparison targets in that it shows stronger correlations with firm performance. TAIPA is specialized in determining which service step (i.e., a one-to-one relationship with a service encounter) needs to be improved. Moreover, TAIPA is flexible in considering multiple competitors.

Suggested Citation

  • Seungju Nam & Hyun Cheol Lee, 2019. "A Text Analytics-Based Importance Performance Analysis and Its Application to Airline Service," Sustainability, MDPI, vol. 11(21), pages 1-24, November.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:21:p:6153-:d:283447
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    3. Jun Hwan Kim & Woon-Kyung Song & Hyun Cheol Lee, 2023. "Exploring the Determinants of Travelers’ Intention to Use the Airport Biometric System: A Korean Case Study," Sustainability, MDPI, vol. 15(19), pages 1-21, September.
    4. Susan (Sixue) Jia, 2021. "Analyzing Restaurant Customers’ Evolution of Dining Patterns and Satisfaction during COVID-19 for Sustainable Business Insights," Sustainability, MDPI, vol. 13(9), pages 1-15, April.
    5. Babalola, Taiwo Oladapo, 2023. "Adopting Importance-Performance Analysis (IPA) model to assess land governance in the peri-urban areas of Ibadan, Nigeria," Land Use Policy, Elsevier, vol. 133(C).
    6. Nam, Seungju & Song, Woon-Kyung & Yoon, Heekweon, 2023. "An maintenance, repair, and overhaul (MRO) safety oversight system analysis: A case in Korea," Journal of Air Transport Management, Elsevier, vol. 107(C).

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