Measuring the efficiency of customer satisfaction and loyalty for mobile phone brands with DEA

The concept of customer satisfaction and loyalty (CS&L) has attracted much attention in recent years. A key motivation for the fast growing emphasis on CS&L can be attributed to the fact that higher customer satisfaction and loyalty can lead to stronger competitive position resulting in larger market share and profitability. Using a data envelopment analysis (DEA) approach, in this study we analyzed and compared CS&L efficiency for mobile phone brands in an emerging telecommunication market, Turkey. The constructs of European Customer Satisfaction Index (ECSI) model are treated and used as input and output indicators of our DEA model. Drawing on the perceptual responses of 251 mobile phone users, the DEA models reveal that from the top six mobile phone brands in Turkey, Nokia features as the most efficient brand followed by LG and Sonny Ericsson in terms of CS&L efficiency, while Motorola, Samsung and Panasonic rank as the least efficient brands.

► Higher customer satisfaction and loyalty lead to stronger competitive posture. ► Effective measurement of customer satisfaction and loyalty requires proven analytical techniques. ► DEA is an effective tool to analyze customer satisfaction and loyalty for consumer markets. ► European Customer Satisfaction Index constructs provides an effective set of indicators for DEA. ► The DEA model results revealed Nokia as the most efficient mobile phone brand in Turkey.