RECONCILING DIVERSE MEASURES OF PERFORMANCE - A CONCEPTUAL-FRAMEWORK AND TEST OF A METHODOLOGY

This paper examines the multidimensional aspects of performance measur es specifically studying variables related to ''marketing effectivenes s.'' A measurement model for assessing the validity and reliability of performance measures is developed. The framework provides a conceptua l platform from which further empirical and theoretical development ma y proceed. This is illustrated through an empirical analysis which add resses the issues associated with resolving conflicts among performanc e measures. The empirical results show the importance of carefully ass essing the performance measures chosen. The results confirm earlier fi ndings that the dimensions of performance can be mutually exclusive, l eading to confusion as to the appropriate means of resolving tradeoffs . Data Envelopment Analysis based on the performance measures allows t he creation of a performance frontier which inherently recognizes the tradeoffs. This method is used to further validate the characteristics of the performance measures chosen. The model incorporating profitabi lity, market growth and adaptability was the most consistent in both p redictive and concurrent validity checks.