Productivity and Customer Satisfaction - a DEA Network Model

Working Paper Series in Economics and Finance No. 140

13 Pages Posted: 15 Aug 1997

See all articles by Mickael Lothgren

Mickael Lothgren

Stockholm School of Economics - Department of Economic Statistics

Magnus Tambour

Stockholm School of Economics

Date Written: December 1996

Abstract

This paper presents a network model incorporating customer satisfaction into efficiency and productivity measures. The network consists of a production node and a consumption node and offers flexibility in modelling the production and consumption process. Allocation of input resources to production and customer oriented activities is allowed. In the consumption process inputs and output characteristics result in customer satisfaction. The model solution identifies optimal allocation of resources between production and customer oriented activities. Data envelopment analysis estimators of the defined theoretical measures of efficiency and productivity are presented. An empirical application using data from a sample of Swedish pharmacies is included. Results from the network model and a direct productivity model indicate increased average productivity, although the productivity progress is somewhat lower in the network model.

JEL Classification: D11, D12, D24

Suggested Citation

Lothgren, Mickael and Tambour, Magnus, Productivity and Customer Satisfaction - a DEA Network Model (December 1996). Working Paper Series in Economics and Finance No. 140. Available at SSRN: https://ssrn.com/abstract=65089 or http://dx.doi.org/10.2139/ssrn.65089

Mickael Lothgren (Contact Author)

Stockholm School of Economics - Department of Economic Statistics ( email )

P.O. Box 6501
S-113 83 Stockholm
Sweden
+46 8 736 92 35 (Phone)
+46 8 34 81 61 (Fax)

Magnus Tambour

Stockholm School of Economics ( email )

P.O. Box 6501
Stockholm
SWEDEN

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