Product Performance Evaluation - a Super-Efficiency Model
International Journal of Business Performance Management, Vol. 7, No. 3, 2005
16 Pages Posted: 12 Feb 2007
This study introduces the concept of product performance from the perspective of customers. Product performance is measured as a ratio of outputs that customers obtain from a product relative to inputs that customers have to spend for purchasing and using the product. The output side is modelled by a set of customer-relevant parameters such as technical performance attributes but also non-functional benefits and brand strength; the input side reflects user costs. More than 60% of the cars in this study are rated as efficient and obtain the maximum efficiency value of unity. They form the efficient frontier of the compact car market representing a reference function for performance evaluation. Using a super-efficiency model, it is possible to differentiate the efficient products that are left with a score of 100% by standard efficiency models. Our approach is relevant for companies because implications for product design and market segmentation can be derived.
Keywords: customer value, product marketing, Data Envelopment Analysis (DEA), super-efficiency model, market segmentation, marketing productivity
Suggested Citation: Suggested Citation