Product Performance Evaluation - a Super-Efficiency Model

International Journal of Business Performance Management, Vol. 7, No. 3, 2005

16 Pages Posted: 12 Feb 2007

See all articles by Matthias René Staat

Matthias René Staat

University of Mannheim

Maik Hammerschmidt

Mannheim Business School - Department of Marketing

Abstract

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

Staat, Matthias René and Hammerschmidt, Maik, Product Performance Evaluation - a Super-Efficiency Model. International Journal of Business Performance Management, Vol. 7, No. 3, 2005, Available at SSRN: https://ssrn.com/abstract=962232

Matthias René Staat

University of Mannheim ( email )

D-68131 Mannheim
GERMANY

Maik Hammerschmidt (Contact Author)

Mannheim Business School - Department of Marketing ( email )

Germany

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