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Productivity and Costumer Satisfaction - A DEA Network Model

Author

Listed:
  • Löthgren, Mickael

    (Department of Economic Statistics)

  • Tambour, Magnus

    (Centre for Health Economics)

Abstract

This 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.

Suggested Citation

  • Löthgren, Mickael & Tambour, Magnus, 1996. "Productivity and Costumer Satisfaction - A DEA Network Model," SSE/EFI Working Paper Series in Economics and Finance 140, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0140
    as

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    More about this item

    Keywords

    Customer satisfaction; data envelopment analysis; distance function; Malmquist productivity index; network model;
    All these keywords.

    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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