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Structuring Product-Markets: An Approach Based On Customer Value

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Author Info
Matthias Staat (University of Mannheim)
Hans H. Bauer (University of Mannheim)
Maik Hammerschmidt (University of Mannheim)

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Abstract

We offer an efficiency-based approach to derive market partitions and respective benchmarks using Data Envelopment Analysis. Product efficiency is measured as an output to input value from the customer’s perspective. Products offering a maximum customer value relative to alternatives represent benchmarks for different sub-markets. The framework is applied to data on compact cars. relevant product segments.

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Paper provided by EconWPA in its series Microeconomics with number 0401002.

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Date of creation: 13 Jan 2004
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Handle: RePEc:wpa:wuwpmi:0401002

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Related research
Keywords: Customer Value; Product-Market Structuring; Market Partitioning; Data Envelopment Analysis; Product Efficiency; Frontier Functions;

Find related papers by JEL classification:
D1 - Microeconomics - - Household Behavior
D2 - Microeconomics - - Production and Organizations
D3 - Microeconomics - - Distribution
D4 - Microeconomics - - Market Structure and Pricing

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Papahristodoulou, Christos, 1997. "A DEA Model to Evaluate Car Efficiency," Applied Economics, Taylor and Francis Journals, vol. 29(11), pages 1493-1508, November. [Downloadable!] (restricted)
  2. Rao, Vithala R & Sabavala, Darius Jal, 1981. " Inference in Hierarchical Choice Processes from Panel Data," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 8(1), pages 85-96, June.
  3. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November. [Downloadable!] (restricted)
  4. DeSarbo, Wayne S. & Kim, Youngchan & Wedel, Michel & Fong, Duncan K. H., 1998. "A Bayesian approach to the spatial representation of market structure from consumer choice data," European Journal of Operational Research, Elsevier, vol. 111(2), pages 285-305, December. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Mika Kortelainen & Timo Kuosmanen, 2007. "Eco-efficiency analysis of consumer durables using absolute shadow prices," Journal of Productivity Analysis, Springer, vol. 28(1), pages 57-69, October. [Downloadable!] (restricted)
    Other versions:
  2. Matthias Staat & Maik Hammerschmidt, 2004. "A Super Efficiency Model for Product Evaluation," Microeconomics 0402011, EconWPA. [Downloadable!]
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