Developing a new data envelopment analysis model for customer value analysis

Mahdi Mahdiloo, Abdollah Noorizadeh, Reza Farzipoor Saen*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

19 Citations (Scopus)


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 languageEnglish
Pages (from-to)531-558
Number of pages28
JournalJournal of Industrial and Management Optimization
Issue number3
Publication statusPublished - Aug 2011


  • 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

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