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A Super Efficiency Model for Product Evaluation

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  • Matthias Staat

    (University of Mannheim)

  • Maik Hammerschmidt

    (University of Mannheim)

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.

Suggested Citation

  • Matthias Staat & Maik Hammerschmidt, 2004. "A Super Efficiency Model for Product Evaluation," Microeconomics 0402011, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpmi:0402011
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/mic/papers/0402/0402011.pdf
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    References listed on IDEAS

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    7. Cook, Wade D. & Seiford, Larry M., 2009. "Data envelopment analysis (DEA) - Thirty years on," European Journal of Operational Research, Elsevier, vol. 192(1), pages 1-17, January.
    8. Bearden, William O & Etzel, Michael J, 1982. "Reference Group Influence on Product and Brand Purchase Decisions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(2), pages 183-194, September.
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    Cited by:

    1. Nguyen Khac Minh & Giang Thanh Long & Nguyen Viet Hung, 2013. "Efficiency And Super-Efficiency Of Commercial Banks In Vietnam: Performances And Determinants," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 30(01), pages 1-19.

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    More about this item

    Keywords

    Customer Value; Data Envelopment Analysis (DEA); Marketing Efficiency; Product Marketing; Super Efficiency Model;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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