Value-Based Benchmarking and Market Partitioning

Berlin, 2002

10 Pages Posted: 12 Feb 2007

See all articles by Hans H. Bauer

Hans H. Bauer

University of Mannheim

Matthias René Staat

University of Mannheim

Maik Hammerschmidt

Mannheim Business School - Department of Marketing

Abstract

The paper offers an analytical approach for an integrated treatment of market partitioning and benchmarking within a Data Envelopment Analysis (DEA) framework. Based on an empirical example from the automotive industry we measure product efficiency from the customer's perspective. This is interpreted as customer value, i. e., as a ratio of outputs that customers obtain from a product (e. g., resale value, reliability) and inputs that customers have to invest (e. g., price, running costs). Products offering a maximum customer value relative to all other alternatives represent efficient peers, which constitute benchmarks for different sub-markets. All products benchmarked via the same efficient peer(s) constitute a sub-market including the benchmarks.

Keywords: Data envelopment analysis, benchmarking, product efficiency

Suggested Citation

Bauer, Hans H. and Staat, Matthias René and Hammerschmidt, Maik, Value-Based Benchmarking and Market Partitioning. Berlin, 2002, Available at SSRN: https://ssrn.com/abstract=962238

Hans H. Bauer

University of Mannheim ( email )

Universitaetsbibliothek Mannheim
Zeitschriftenabteilung
Mannheim, 68131
Germany

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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