A Hybrid Fuzzy MCDM Approach for Market Segments Evaluation and Selection

Abstract

Market segments evaluation and selection are crucial marketing activities of all companies. This paper proposes a fuzzy multiple criteria decision-making (MCDM) model for the evaluation and selection of market segments. A set of essential criteria for evaluating market segments and selection are identified based on the literature survey. Two MCDM methods are then used in the decision model. More precisely, Fuzzy Analytic Hierarchy Process (AHP) is used to calculate the weight of each criterion, and fuzzy technique for order preference by similarity to ideal solution (TOPSIS) approach is proposed to prioritize market segments from the best to the worst ones. The use of fuzzy set theory allows incorporating qualitative information and imprecise linguistic terms into the decision model. A case study on a dairycompany is put forward to illustrate the performance of the proposed methodology. The proposed model could help companies to evaluate and select market segments.