TY - JOUR
T1 - Developing a new data envelopment analysis model for customer value analysis
AU - Mahdiloo, Mahdi
AU - Noorizadeh, Abdollah
AU - Saen, Reza Farzipoor
PY - 2011/8
Y1 - 2011/8
N2 - This paper proposes an application of data envelopment analysis (DEA) to measure the value of customers. In order to distinguish between expectations and needs of profitable and unprofitable customers and to allocate marketing investments among them, customers are compared with each other and ranked in a customer value pyramid. To this end, we use a combination of the Banker, Charnes and Cooper (BCC) model [3], assurance region (AR) model, and cross-eficiency evaluation. A numerical example demonstrates the application of the proposed model in an Iranian manufacturing company.
AB - This paper proposes an application of data envelopment analysis (DEA) to measure the value of customers. In order to distinguish between expectations and needs of profitable and unprofitable customers and to allocate marketing investments among them, customers are compared with each other and ranked in a customer value pyramid. To this end, we use a combination of the Banker, Charnes and Cooper (BCC) model [3], assurance region (AR) model, and cross-eficiency evaluation. A numerical example demonstrates the application of the proposed model in an Iranian manufacturing company.
KW - Analytic hierarchy process
KW - Cross-eficiency
KW - Customer value pyramid
KW - Data envelopment analysis
KW - Undesirable outputs
KW - Weight restrictions
UR - http://www.scopus.com/inward/record.url?scp=79960021807&partnerID=8YFLogxK
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U2 - 10.3934/jimo.2011.7.531
DO - 10.3934/jimo.2011.7.531
M3 - Article
AN - SCOPUS:79960021807
SN - 1547-5816
VL - 7
SP - 531
EP - 558
JO - Journal of Industrial and Management Optimization
JF - Journal of Industrial and Management Optimization
IS - 3
ER -