Analyzing customer preference and measuring relative efficiency in telecom sector: A hybrid fuzzy AHP/DEA study

The purpose of this research paper is to develop a framework to understand the consumer’s preference affecting variables and consumer’s perception choice in telecommunication service providers in India. The present study use a hybrid approach to access the relative efficiency based on fuzzy AHP and DEA model. The fuzzy AHP is used to determine weights of the consumer’s preference as criteria and DEA method is used to identify the inefficient service providers in terms of efficiency. Findings of the study suggest that the most preferred value that determines consumer’s preference by mobile subscribers is network parameters, followed by low tariff scheme. Our results also show that technical efficiency and technical progress indicator are the main factors of resources allocation of Indian telecom industry. Most of the work on this hybrid FAHP–DEA is dedicated to either vendor selection, facility layout problem or supplier selection. A study of this kind, in the context of mobile subscriber’s preference is an original contribution to the literature of Indian telecom sector. This research paper identifies the different variables and then a model is prepared for benchmarking of the mobile service providers in India. Based on the efficiency analysis decision makers can develop strategy to improve their performance according to efficient service providers as their role model. The other advantage of this hybrid AHP/DEA method is that by using inputs and outputs data we can derive mathematically all pair wise comparisons in fuzzy AHP and DEA models and there is no any form of subjective analysis engaged within the methodology. 2014 Elsevier Ltd. All rights reserved.