Pricing Strategy Selection Using Fuzzy Linear Programming

Authors: Elif Alaybeyoğlu, Y. Esra Albayrak

Abstract:

Marketing establishes a communication network between producers and consumers. Nowadays, marketing approach is customer-focused and products are directly oriented to meet customer needs. Marketing, which is a long process, needs organization and management. Therefore strategic marketing planning becomes more and more important in today’s competitive conditions. Main focus of this paper is to evaluate pricing strategies and select the best pricing strategy solution while considering internal and external factors influencing the company’s pricing decisions associated with new product development. To reflect the decision maker’s subjective preference information and to determine the weight vector of factors (attributes), the fuzzy linear programming technique for multidimensional analysis of preference (LINMAP) under intuitionistic fuzzy (IF) environments is used.

Keywords: IF Sets, LINMAP, MAGDM, Marketing.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1088210

References:

[1] S. P. Schnaars, Marketing strategy: a customer-driven approach 1991, New York Toronto: Free Press; Collier Macmillan Canada; Maxwell Macmillan International. xvi, 319 p.
[2] D. F. Abell and J. S. Hammond, Strategic market planning: problems and analytical approaches 1979, Englewood Cliffs, N. J.: Prentice-Hall. xii, 527 p.
[3] C. L. Hwang, S. J. Chen, and F. P. Hwang, Fuzzy Multiple Attribute Decision-Making: Methods and Applications 1992, Berlin: Springer - Verlag.
[4] V. Srinivasan and A. Shocker, Linear programming techniques for multidimensional analysis of preferences. Psychometrika, 1973. 38(3): p. 337-369.
[5] K. T. Atanassov, Intuitionistic Fuzzy-Sets. Fuzzy Sets and Systems, 1986. 20(1): p. 87-96.
[6] K. T. Atanassov, Intuitionistic fuzzy sets: theory and applications. Studies in fuzziness and soft computing 1999, Heidelberg; New York: Physica-Verlag. xviii, 323 p.
[7] D. F. Li, Extension of the LINMAP for multiattribute decision making under Atanassov's intuitionistic fuzzy environment. Fuzzy Optimization and Decision Making, 2008. 7(1): p. 17-34.
[8] C.-T. Lin, C. Lee, and C.-S. Wu, Optimizing a marketing expert decision process for the private hotel. Expert Systems with Applications, 2009. 36(3, Part 1): p. 5613-5619.
[9] C.-S. Wu, C.-T. Lin, and C. Lee, Optimal marketing strategy: A decision-making with ANP and TOPSIS. International Journal of Production Economics, 2010. 127(1): p. 190-196.
[10] W.-H. Tsai, W.-C. Chou, and J.-D. Leu, An effectiveness evaluation model for the web-based marketing of the airline industry. Expert Systems with Applications, 2011. 38(12): p. 15499-15516.
[11] Y. L. Wang and G. H. Tzeng, Brand marketing for creating brand value based on a MCDM model combining DEMATEL with ANP and VIKOR methods. Expert Systems with Applications, 2012. 39(5): p. 5600-5615.
[12] W. J. Stanton, Fundamentals of marketing. 6th ed. McGraw-Hill series in marketing 1981, New York: McGraw-Hill. xvii, 604 p.
[13] P. Kotler, Le Marketing Selon Kotler 1999, Paris: Village Mondial.
[14] P. Kotler and G. Armstrong, Principles of marketing. 14th ed 2012, Boston: Pearson Prentice Hall. xxiv, 613, 97 p.
[15] H. Freter and C. Baumgarth, Marktorientierte Unternehmensf uvhrung: Grundkonzepte, Anwendungen und Lehre : Festschrift fur Hermann Freter zum 60. Geburtstag 2004, Frankfurt am Main ; New York: P. Lang. 437 p.
[16] O. C. Ferrell and M. D. Hartline, Marketing strategy. 5th ed 2011, Australia; Mason, Ohio: South-Western Cengage Learning. xxiiI, 743 p.
[17] F. Bradley, Strategic Marketing: In the Customer Driven Organization 2003, Chicester, West Sussex, England; Hoboken, NJ: J. Wiley. xv, 287 p.
[18] E. J. McCarthy, Basic marketing, a managerial approach 1960, Homewood, Ill.: R.D. Irwin. 770 p.
[19] D. F. Li, Multiattribute decision making models and methods using intuitionistic fuzzy sets. Journal of Computer and System Sciences, 2005. 70(1): p. 73-85.
[20] E. Szmidt and J. Kacprzyk, Distances between intuitionistic fuzzy sets. Fuzzy Sets and Systems, 2001. 114(3): p. 505-518.
[21] D. F. Li, G. H. Chen, and Z. G. Huang, Linear programming method for multiattribute group decision making using IF sets. Information Sciences, 2010. 180(9): p. 1591-1609.
[22] D. A. Aaker and D. McLoughlin, Strategic market management: global perspectives. 1st ed 2010, Hoboken, N.J.: Wiley.
[23] W. C. Kim and R. e. Mauborgne, Blue ocean strategy: how to create uncontested market space and make the competition irrelevant 2005, Boston, Mass.: Harvard Business School Press. xv, 240 p.
[24] C. L. Hwang and M.-J. Lin, Group decision making under multiple criteria: methods and applications. Lecture Notes in Economics and Mathematical Systems 1987, Berlin; New York: Springer-Verlag. xi, 400 p.