Please use this identifier to cite or link to this item: https://doi.org/10.1016/j.ejor.2004.04.050
Title: Efficiency, effectiveness and productivity of marketing in services
Authors: Keh, H.T.
Chu, S. 
Xu, J.
Keywords: Data envelopment analysis
Effectiveness
Efficiency
Marketing
Productivity
Services
Issue Date: 2005
Source: Keh, H.T., Chu, S., Xu, J. (2005). Efficiency, effectiveness and productivity of marketing in services. European Journal of Operational Research 170 (1) : 265-276. ScholarBank@NUS Repository. https://doi.org/10.1016/j.ejor.2004.04.050
Abstract: How can a service firm right-size marketing expenses and yet strive to maximize revenue? This paper represents the first attempt to model these efficiency and effectiveness issues using a 49-unit Asia-Pacific hotel chain as illustration. We employ a triangular DEA model with total expenses (controlling for number of rooms) as the raw input, marketing expenses as intermediate output/input and revenues from room rentals and F&B as final outputs. We infer that efficiency tails off when more than 12% of the budget is expended on marketing activities. In terms of effectiveness, we find that all the units rated as relatively inefficient can accrue increasing returns to scale in revenues from marketing activities. By contrast, in the productivity stage linking the raw inputs to the revenues, we observe mostly decreasing returns to scale. Our results highlight the crucial role of marketing in service organizations. © 2004 Elsevier B.V. All rights reserved.
Source Title: European Journal of Operational Research
URI: http://scholarbank.nus.edu.sg/handle/10635/44056
ISSN: 03772217
DOI: 10.1016/j.ejor.2004.04.050
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.

SCOPUSTM   
Citations

95
checked on Dec 6, 2017

WEB OF SCIENCETM
Citations

76
checked on Nov 21, 2017

Page view(s)

58
checked on Dec 10, 2017

Google ScholarTM

Check

Altmetric


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.