Integration of the Analytic Hierarchy Process (AHP) and Importance-Performance Analysis (IPA) in Optimizing the Accuracy of the Customer Satisfaction Index

William Suhardjo; Santi Novani

doi:10.33395/owner.v10i4.3893

Authors

William Suhardjo
✉ Corresponding author: suhawilli@gmail.com School of Business Management, Institut Teknologi Bandung
Santi Novani School of Business Management, Institut Teknologi Bandung

DOI:

https://doi.org/10.33395/owner.v10i4.3893

Keywords:

Analytical Hierarchy Process (AHP), Balanced Scorecard, Customer Satisfaction Index (CSI), Importance-Performance Analysis (IPA), Strategic Management

Abstract

Measuring the Customer Satisfaction Index (CSI) is a crucial instrument in formulating strategic planning and developing Balanced Scorecards in the construction industry. However, the current CSI evaluation still assumes that all assessment attributes carry equal importance weights, potentially leading to bias in decision-making. This study aims to enhance CSI accuracy within a private construction company in Indonesia by integrating weighting factors into each primary attribute. Using a quantitative approach, the methodology combines the Analytical Hierarchy Process (AHP) to determine the priority and strategic weight of attributes, and Importance-Performance Analysis (IPA) to map improvement priorities utilizing historical CSI data.. The results indicate that implementing AHP-based weights yields a more precise CSI score, objectively reflecting the reality of customer preferences. Through the IPA matrix, the company can precisely identify strategic attributes categorized as top priorities for improvement (Concentrate Here) and those that have met or exceeded customer expectations. This integrated AHP-IPA approach provides a more robust foundation for management in steering corporate strategies effectively to maintain customer retention.

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