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Evaluating relative value of customers via data envelopment analysis

journal contribution
posted on 2013-01-01, 00:00 authored by A Noorizadeh, Mahdi Mahdiloo, R F Saen
Purpose – The purpose of this paper is to propose a data envelopment analysis (DEA) method for customers’ evaluation.
Design/methodology/approach – This paper introduces a variable return to scale (VRS) cross-efficiency (one of the DEA models) to evaluate
customers. This new model can consider ratio values and give a complete ranking of customers.
Findings – It is found that the proposed model can evaluate customers in a multi criteria context; does not demand weights from the decision maker; and can consider both the ratio and absolute numbers. An aggressive form of the VRS model is formulated to evaluate the peer-appraisal value of customers instead of self-appraisal.
Originality/value – To the best of the authors’ knowledge, there is no reference that uses cross-efficiency model with the ratio values for customers’ evaluation.

History

Journal

Journal of business and industrial marketing

Volume

28

Issue

7

Pagination

577 - 588

Publisher

Emerald Group Publishing

Location

Bingley, Eng.

ISSN

0885-8624

eISSN

2052-1189

Language

eng

Publication classification

C1.1 Refereed article in a scholarly journal; C Journal article

Copyright notice

2013, Emerald Group Publishing

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