Gap Analysis

Purpose Finding the difference (gap) between the importance of an attribute & the satisfaction
levels of the users for those attributes.

The Credit Card Case

1. The Attributes that are considered important are given to us. [Row A to Row G; prefixed by
imp].
2. Run the Descriptive Statistics on the above-mentioned columns.
3. Find the t-values of all the imp-constraints.
4. Formula for t-value ---- (Mean-2.5)/Standard Error
5. [Why 2.5; because we take the Median of the Likert Scale used. In this case it is a 4-point
scale, so the median=2.5]
6. All constraints having a t-value > 1.645 (for 95% confidence interval) are considered
significantly important (highlighted in Green) & the remaining (highlighted in Red) are not
part of the analysis anymore.
7. Insert a Radar Chart for the Mean values of the Importance Constraints (Graph Name
Imp). Click on the graph to see the rows used to construct the graph.
8. Similarly conduct the same steps for the Satisfaction Level Constraints of these attributes.
[Data given in Row H through Row N].
9. Once you have found the t-values of all the satisfaction constraints, check the significance of
only the Significantly Important Constraints.
10. All significantly important constraints that have a t-value > 1.645 are considered Satisfactory
(highlighted in Green) & the remaining (highlighted in Red).
11. Construct a graph for the mean values of both Importance & Satisfaction in the same Radar
chart (graph name Imp v Sat). Click on the graph to see the rows used to construct the
graph.
12. Analysis of the Data so far wide acceptance, low interest & brand constraints are
Significantly Important. Of these Constraints, only wide acceptance & low interest are
significantly satisfactory. Brand is not significantly satisfactory. So, for Credit Cards on the
whole (irrespective of the type of Credit Card), only Wide Acceptance & Low Interest
constraints are satisfied whereas Brand is not. ---- The Gap Analysis between Importance &
Satisfaction.
13. Now we do find the Descriptive Statistics for the Satisfaction Constraints separately for each
Credit Card Type [Credit Card Type is given in Column O]. Credit Card Type has four values
here 1, 2, 3, 4.
14. Once you have found the t-values of all the satisfaction constraints for each credit card type,
check the significance of only the Significantly Important Constraints for each Credit Card
Type.
15. You will find a huge difference in the Significance Levels of the individual credit cards & the
overall satisfaction of all credit cards that we found in Step 9.
16. Compile the importance mean & the satisfaction means of the individual credit cards in one
table & create the radar graph (Graph Name Graph 4) for the 5 rows of mean [1
importance mean; 4 credit card satisfaction means]. Click on the graph to see the rows
used to construct the graph.
17. Analysis of the graph - This graph shows us how each type of Credit Card each brand of
Credit Card satisfies the significantly important constraints.
 Graph 4
Imp CC1 CC2 CC3 CC4
international
3.5
3
2.5
brand accessible
2
1.5
1
0.5
0

low interest higher credit limits

wide acceptance ease of avail

The 3 Significantly important constraints wide acceptance, low interest & brand are
significantly for Credit Card type 3 (CC3) alone. The Purple line of CC3 is above the Blue
importance line in the graph. Similarly, we can interpret for the other Credit Card types. For
CC1 (Red line), all three attributes are not satisfactory.

This data can be deciphered from the t-values of the individual Credit Card Descriptive
statistics tables For Credit Card 3, all 3 significantly important attributes are satisfactory.
For Credit Card 2, wide acceptance & low interest are satisfactory but brand is not. For
Credit Card 2, only low interest is satisfactory. And with Credit Card 1, all 3 attributes are not
satisfactory.
The graph above also forms the basis of competitor analysis.

18. Now for the icing on the cake, we will do the competitor analysis by looking at the
performance indices of each Credit Card type. With the performance index, we can compare
the competitors with just one single number.

For Steps 19 to 22 refer to the Importance & Performance Index table in the Excel Sheet

19. Calculate the Sum of the Importance Means first.

20. Calculate the Importance Index for each of the Attribute/Constraint.
Importance Index = (Importance Mean of Attribute X/Sum of Importance Means)
21. Calculate the Performance Indices of each Credit Card Type. For this take the weighted
average or the SumProduct (in excel) of Credit Card Type i & the Importance Indices.
22. Select the Performance Indices & insert a Radar Chart (Graph Name Graph 3). This graph
shows us which Credit Card type or Credit Card brand is doing the best in the industry &
which is doing the worst.
 Graph 3
Company Comparison
1
2.8
2.7
2.6
2.5
2.4
2.3
4 2.2 2

Competitor Analysis The Credit Card Company 3 is the best in the industry, followed by the Credit
Card company 4, Credit Card company 2 & finally Credit Card company 1, which is the worst. The
attributes where each credit card company lags can be taken from the Descriptive Statistics Tables of
& Graph 4.