Abstract
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.
Original language | English |
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Pages (from-to) | 531-558 |
Number of pages | 28 |
Journal | Journal of Industrial and Management Optimization |
Volume | 7 |
Issue number | 3 |
DOIs | |
Publication status | Published - Aug 2011 |
Keywords
- Analytic hierarchy process
- Cross-eficiency
- Customer value pyramid
- Data envelopment analysis
- Undesirable outputs
- Weight restrictions
ASJC Scopus subject areas
- Business and International Management
- Strategy and Management
- Control and Optimization
- Applied Mathematics