Best marketing strategy selection using fractional factorial design with analytic hierarchy process

Anas Al-Dawalibi,Ibrahim H Al-Dali,Bandar A Alkhayyal

doi:10.1016/j.mex.2020.100927

Anas Al-Dawalibi, Ibrahim H Al-Dali + Show 1 more

Open Access

https://doi.org/10.1016/j.mex.2020.100927

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Abstract

Marketing strategies selection for the purpose of increasing the sales revenue is an essential problem that can face any marketing team. Many companies facing difficulties of identifying the best marketing strategy for certain product or service, because the marketing plan involves a large number of strategies (factors) that can affect the sales revenue response. Fractional Factorials Design has been used as screening experiment to identify the most important factors which have a main effect to response the (sales revenue). Then further decision-making technique has been introduced to compare the criteria of selected strategies (factors) using analytic hierarchy process technique (AHP). Basically, AHP will provides a comprehensive and rational framework for structuring decisions criterial to each main factor where it provides the best factor or marketing strategy that can increase the sales revenue for the company.In which, the suggested methodology aims to enable decision maker the following:•The opportunity to investigate a large number of marketing strategies with minimum experiments run and to enable the decision maker to identify which strategies have significant effect on response.•Select the best marketing strategy that maximize the targeted response (sales revenue)

Highlights

IntroductionIntroduction & backgroundApplying the experimental design can provide potential value for different types of applications, in which it can help companies or organizations to maximize their profits and minimize their costs [1,4]
Introduction & backgroundApplying the experimental design can provide potential value for different types of applications, in which it can help companies or organizations to maximize their profits and minimize their costs [1,4]
The inherent advantages of the fractional factorial design should contribute to increased use of experimental designs by marketing researchers, as it allows the marketing researcher to investigate a large number of marketing strategies and identifying which of these strategies have a significant effect on the response

Summary

Introduction

Introduction & backgroundApplying the experimental design can provide potential value for different types of applications, in which it can help companies or organizations to maximize their profits and minimize their costs [1,4]. A two-level fractional factorial design of 16 runs is used by [6] to increase the direct mail response of Mother Jones Magazine which has 7 factors influencing its response. This is in complete contrast to the traditional method where factors are changed only one at a time. In the literature there are many different applications have been used AHP in order to provide the researchers the opportunity to compare among different decisions strategies These applications included but not limited to: examines the buying behavior of potential furniture buyers [11], selection of the natural fibers for composite materials [10], and selection of appropriate channels of marketing. In theses researches there are different quantitative and qualitative characteristics have been studies using AHP to enable decision maker of selecting the best alternative strategy

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