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Product performance evaluation: a super-efficiency model

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  • Matthias Staat
  • Maik Hammerschmidt

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.

Suggested Citation

  • Matthias Staat & Maik Hammerschmidt, 2005. "Product performance evaluation: a super-efficiency model," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 7(3), pages 304-319.
    • Handle: RePEc:ids:ijbpma:v:7:y:2005:i:3:p:304-319
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    Citations

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    Cited by:

    1. Ljubica Nedelkoska, 2010. "Occupations at risk: The task content and job stability," Jena Economics Research Papers 2010-024, Friedrich-Schiller-University Jena.
    2. Dongxue Li & Xingping Wang, 2021. "Land-Use Change and Efficiency in Laos’ Special Economic Zones," Land, MDPI, vol. 10(10), pages 1-19, September.
    3. Qu, Jingjing & Wang, Baohui & Liu, Xiaohong, 2022. "A modified super-efficiency network data envelopment analysis: Assessing regional sustainability performance in China," Socio-Economic Planning Sciences, Elsevier, vol. 82(PB).
    4. González, Eduardo & Cárcaba, Ana & Ventura, Juan, 2015. "How car dealers adjust prices to reach the product efficiency frontier in the Spanish automobile market," Omega, Elsevier, vol. 51(C), pages 38-48.
    5. Chumpitaz, Ruben & Kerstens, Kristiaan & Paparoidamis, Nicholas & Staat, Matthias, 2010. "Comparing efficiency across markets: An extension and critique of the methodology," European Journal of Operational Research, Elsevier, vol. 205(3), pages 719-728, September.

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