Authors: Matthias Staat, Maik Hammerschmidt
Addresses: School of Economics, University of Mannheim, L7, 3–5, D-68131 Mannheim, Germany. ' Department of Marketing, Mannheim Business School, University of Mannheim, L5, 1, D-68131 Mannheim, Germany
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; product performance; performance evaluation; product design; automobile industry; marketing performance; car sales.
International Journal of Business Performance Management, 2005 Vol.7 No.3, pp.304 - 319
Published online: 04 Apr 2005 *Full-text access for editors Access for subscribers Purchase this article Comment on this article