A satisficing DEA model to measure the customer-based brand equity

CENTRUM Católica Graduate Business School, Pontificia Universidad Católica del Perú, Calle Daniel Alomıa Robles 125-129, Los Álamos de Monterrico, Santiago de Surco, Lima 33, Peru
vcharles@pucp.pe; jzavala@pucp.edu.pe

Received: 7 January 2016
Accepted: 3 June 2016

Abstract

Ever since the inception of brand values, these have become a benchmark for many data-driven strategies, eventually providing a basis for vertical/horizontal integrations, as well. In recent decades, brands have become comparable across the industries, based on their value derived either from the customer perception or in terms of the firm financials. Numerous models have been developed in time to measure the customer-based brand equity; nevertheless, they all evaluate brand equity in an absolute sense. The present research paper provides an avenue to measure the customer-based brand equity in a relative sense using a satisficing DEA model. The information for this model has been collected through a customer-based survey questionnaire in line with predefined brand equity dimensions, which have been verified through a confirmatory factor analysis. We demonstrate the approach by means of applying the proposed model to measure the efficiency of cell phone brands.