Productivity and Costumer Satisfaction - A DEA Network Model
AbstractThis paper presents a network model incorporating customer satisfaction into efficiency and productivity measures. The network consists of a production node and a consumption node and offers flexibility in modelling the production and consumption process. Allocation of input resources to production and customer oriented activities is allowed. In the consumption process inputs and output characteristics result in customer satisfaction. The model solution identifies optimal allocation of resources between production and customer oriented activities. Data envelopment analysis estimators of the defined theoretical measures of efficiency and productivity are presented. An empirical application using data from a sample of Swedish pharmacies is included. Results from the network model and a direct productivity model indicate increased average productivity, although the productivity progress is somewhat lower in the network model.
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Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 140.
Length: 12 pages
Date of creation: Dec 1996
Date of revision:
Publication status: Published in European Journal of Operational Research, 1999, pages 449-458.
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Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
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More information through EDIRC
Customer satisfaction; data envelopment analysis; distance function; Malmquist productivity index; network model;
Find related papers by JEL classification:
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
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