STRUCTURING PRODUCT-MARKETS: AN APPROACH BASED ON CUSTOMER VALUE

Abstract

We offer an efficiency-based approach to derive market partitions and respective benchmarks using Data Envelopment Analysis. Product efficiency is measured as an output to input value from the customer’s perspective. Products offering a maximum customer value relative to alternatives represent benchmarks for different sub-markets. The framework is applied to data on compact cars. relevant product segments.Customer Value, Product-Market Structuring, Market Partitioning, Data Envelopment Analysis, Product Efficiency, Frontier Functions