Fuzzy extension of the CODAS method for multi-criteria market segment evaluation

Abstract

One of the important activities of a company that can increase its competitiveness is market segment evaluation and selection (MSE/MSS). We can usually consider MSE/MSS as a multi-criteria decision-making (MCDM) problem, and so we need to use an MCDM method to handle it. Uncertainty is one of the important factors that can affect the process of decision-making. Fuzzy MCDM approached have been designed to deal with the uncertainty of decision-making problems. In this study, a fuzzy extension of the CODAS (COmbinative Distance-based ASsessment) method is proposed to solve multi-criteria group decision-making problems. We use linguistic variables and trapezoidal fuzzy numbers to extend the CODAS method. The proposed fuzzy CODAS method is applied to an example of market segment evaluation and selection problem under uncertainty. To validate the results, a comparison is performed between the fuzzy CODAS and two other MCDM methods (fuzzy EDAS and fuzzy TOPSIS). A sensitivity analysis is also carried out to demonstrate the stability of the results of the fuzz CODAS. For this aim, ten sets of criteria weights are randomly generated and the example is solved using each set separately. The results of the comparison and the sensitivity analysis show that the proposed fuzzy CODAS method gives valid and stable results.

Keywords:

• market segment evaluation
• market segment selection
• MCDM
• decision-making
• fuzzy MCDM
• fuzzy CODAS

JEL Classification:

• D40
• M30
• D81
• C44
• C61

Additional information

Notes on contributors

Mehdi Keshavarz Ghorabaee

Mehdi KESHAVARZ GHORABAEE received the B.S. degree in electrical engineering from University of Guilan, Rasht, Iran in 2010 and the M.S. degree in production management from Allameh Tabataba’i University, Tehran, Iran in 2013. He is currently working toward the PhD degree in Operations Research at Allameh Tabataba’i University. He has published some papers in leading international journals such as Robotics and Computer-Integrated Manufacturing, The International Journal of Advanced Manufacturing Technology, Journal of Cleaner Production and Applied Mathematical Modelling. His research interests include multi-criteria decision making (MCDM), multi-objective evolutionary algorithms, genetic algorithm, fuzzy MCDM, inventory control, supply chain management, scheduling and reliability engineering.

Maghsoud Amiri

Maghsoud AMIRI is Professor at the Department of Industrial Management, Allame Tabataba’i University, Tehran, Iran. He received PhD degree in industrial engineering from Sharif University of Technology, Tehran, Iran. He has published many papers in leading international journals. His research interests include multi-criteria decision-making (MCDM), data envelopment analysis (DEA), design of experiments (DOE), response surface methodology (RSM), fuzzy MCDM, inventory control, supply chain management, simulation and reliability engineering.

Edmundas Kazimieras Zavadskas

Edmundas Kazimieras ZAVADSKAS is Professor, Head of the Department of Construction Technology and Management at Vilnius Gediminas Technical University, Vilnius, Lithuania, and a chief researcher at Research Institute of Smart Building Technologies. He has a PhD in building structures (1973) and DrSc (1987) in building technology and management. He is a member of the Lithuanian and several foreign Academies of Sciences. He is Doctor Honoris Causa at Poznan, Saint-Petersburg, and Kiev universities. He is Editor-in-Chief and a member of editorial boards of a number of research journals. He is author and co-author of more than 500 papers and a number of monographs. His research interests include building technology and management, multi-criteria decision-making (MCDM) theory, automation in design and decision support systems.

Reyhaneh Hooshmand

Reyhaneh HOOSHMAND received the B.A. degree in business management from Allameh Tabataba’i University, Tehran, Iran in 2016. She was identified as an exceptionally talented student from the department of business management of Allameh Tabataba’i University, and has been granted a permission to study for master degree without the entrance exam. She is currently working toward the master degree in strategic management at Allameh Tabataba’i University. Her research interests include strategic planning, market research, multi-criteria decision-making, marketing and strategy development.

Jurgita Antuchevičienė

Jurgita ANTUCHEVIČIENĖ is Professor at the Department of Construction Technology and Management at Vilnius Gediminas Technical University, Vilnius, Lithuania. She received a PhD in civil engineering at Vilnius Gediminas Technical University in 2005. She is author and co-author of about 80 scientific papers. Her research interests include multi-criteria decision-making (MCDM), fuzzy MCDM, decision support systems, sustainable development, construction management and investment.