TY - JOUR
T1 - Direct mailing decisions based on the worst and best practice cross-efficiency evaluations
AU - Mahdiloo, Mahdi
AU - Noorizadeh, Abdollah
AU - Saen, Reza Farzipoor
PY - 2013
Y1 - 2013
N2 - The problem argued in the literature of direct mailing decisions generally contains three parts: 1) forecasting customers' future purchase/non-purchase responses; 2) evaluating the effectiveness of various strategies for increasing customers purchase responses; 3) prioritising the customers in terms of their values. A significant body of the literature has been dedicated to the first two components, and in particular, to purchase/non-purchase prediction modelling. However, in the current paper, we do not address these two components, but rather we focus on the third component. To this end, data envelopment analysis (DEA) technique and particularly cross-efficiency formulation of the best practice frontier Charnes, Cooper and Rhodes (CCR) (Charnes et al., 1978) (BPF-CCR) is used to determine those customers who should be put on the first priorities of marketing mailing list. In addition, the cross-efficiency formulation of worst practice frontier CCR (WPF-CCR) is developed to exclude the worst customers from mailing list and save the mailing expenses for the best practice ones. Using a numerical example, the application of the proposed model is demonstrated.
AB - The problem argued in the literature of direct mailing decisions generally contains three parts: 1) forecasting customers' future purchase/non-purchase responses; 2) evaluating the effectiveness of various strategies for increasing customers purchase responses; 3) prioritising the customers in terms of their values. A significant body of the literature has been dedicated to the first two components, and in particular, to purchase/non-purchase prediction modelling. However, in the current paper, we do not address these two components, but rather we focus on the third component. To this end, data envelopment analysis (DEA) technique and particularly cross-efficiency formulation of the best practice frontier Charnes, Cooper and Rhodes (CCR) (Charnes et al., 1978) (BPF-CCR) is used to determine those customers who should be put on the first priorities of marketing mailing list. In addition, the cross-efficiency formulation of worst practice frontier CCR (WPF-CCR) is developed to exclude the worst customers from mailing list and save the mailing expenses for the best practice ones. Using a numerical example, the application of the proposed model is demonstrated.
KW - Best practice frontier, BPF
KW - Cross-efficiency
KW - Data envelopment analysis
KW - Direct mailing
KW - Worst practice frontier
KW - WPF
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U2 - 10.1504/IJBIS.2013.056138
DO - 10.1504/IJBIS.2013.056138
M3 - Article
AN - SCOPUS:84883622621
SN - 1746-0972
VL - 14
SP - 182
EP - 201
JO - International Journal of Business Information Systems
JF - International Journal of Business Information Systems
IS - 2
ER -