Title: Product performance evaluation: a super-efficiency model

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.

DOI: 10.1504/IJBPM.2005.006722

International Journal of Business Performance Management, 2005 Vol.7 No.3, pp.304 - 319

Published online: 04 Apr 2005 *

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