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A Super Efficiency Model for Product Evaluation

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Author Info
Matthias Staat (University of Mannheim)
Maik Hammerschmidt (University of Mannheim)

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Abstract

This study applies a Super Efficiency Data Envelopment Analysis model to evaluate the efficiency of cars sold on the German market. Efficiency is conceptualized from a customers' perspective as a ratio of outputs that customers obtain from a product relative to inputs that customers have to invest. The output side is modeled as a set of customer-relevant parameters such as performance attributes but also nonfunctional benefits and brand strength. More than 60% of the cars are efficient but the analysis shows marked differences regarding their degree of Super Efficiency. Super Efficiency indicates the extent to which the efficient products exceed the efficient frontier formed by other efficient units. Based on the parameter weights, segments of cars with a particular mix of characteristics can be identified; cars with a comparative advantage relative to their competitors who provide the same mix are characterized as the reference points within a given segment.

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Publisher Info
Paper provided by EconWPA in its series Microeconomics with number 0402011.

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Date of creation: 05 Feb 2004
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Handle: RePEc:wpa:wuwpmi:0402011

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Web page: http://129.3.20.41

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Related research
Keywords: Customer Value; Data Envelopment Analysis (DEA); Marketing Efficiency; Product Marketing; Super Efficiency Model;

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Find related papers by JEL classification:
D2 - Microeconomics - - Production and Organizations
D4 - Microeconomics - - Market Structure and Pricing
M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing

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References listed on IDEAS
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  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. 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)
  3. Mahajan, Jayashree, 1991. "A data envelopment analytic model for assessing the relative efficiency of the selling function," European Journal of Operational Research, Elsevier, vol. 53(2), pages 189-205, July. [Downloadable!] (restricted)
  4. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132. [Downloadable!] (restricted)
  5. H. H. Bauer & M. Staat & M. Hammerschmidt, 2003. "Value Based Benchmarking and Market Partitioning," Microeconomics 0309004, EconWPA. [Downloadable!]
  6. Matthias Staat & Hans H. Bauer & Maik Hammerschmidt, 2004. "Structuring Product-Markets: An Approach Based On Customer Value," Microeconomics 0401002, EconWPA. [Downloadable!]
  7. Doyle, JR & Green, RH, 1991. "Comparing products using data envelopment analysis," Omega, Elsevier, vol. 19(6), pages 631-638. [Downloadable!] (restricted)
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