Article

 

Estimating the efficiency of marketing expenses: the case of global Telecommunication Operators (p.23-41)

by

Athanasios C. Papadimitriou, University of Athens

Chrysovaladis P. Prachalias, University of Athens

Keywords : Data Envelopment Analysis, inputs, outputs, productive factors, efficiency

JEL classification : D6, D49, L5, L96

Abstract

This paper investigates the capability of global telecom companies to maximise the efficiency of the productive factors. The shown output is made up of the Total Revenues of the eighteen companies and the inputs consist of the productive factors, which are staff, investments, marketing expenses, traffic of fixed telephony and traffic of mobile telephony. In order to estimate the efficiency of the management of these companies, the Data Envelopment Analysis (DEA) is used. According to the findings of the present research, marketing strategies of telecommunication organizations are characterized by the decline of the traditional marketing expenses and the increased efficiency of investments. The application-driven development of the DEA methodology has led to different approaches being presented in the international literature with different uses and interpretations. The results of this study can be used for efficiency assessments in Decision Making Units.