Abstract
Determining the preferences of product attributes for customer value is a crucial issue driven by multiple requirements on the customers. However, arising from mental and psychological phenomena factors, people’s judgments on the importance of customer requirements is imprecise and vague. The fuzzy analysis hierarchy process (FAHP) with an extent analysis is utilized to determine preferences toward customer value to overcome this uncertainty in theAnalytic Hierarchy Process (AHP). With this method, the researcher can use triangular fuzzy numbers for the pair wise comparisons and derive the weight vectors. Based on the calculations results, the manufacturers could implement product design and quality management to prioritize customer requirements; besides, retailers are also able to understand what kind of benefits or performances are customers prefer and thereby develop strategic appeal for them. Key words: Fuzzy AHP, product attributes, extent analysis, customer value.
Highlights
Delivering value to customers is a critical issue in today’s competitive market
The fuzzy analysis hierarchy process (FAHP) with an extent analysis is utilized to determine preferences toward customer value to overcome this uncertainty in the Analytic Hierarchy Process (AHP)
Many scholars have engaged in the fuzzy extension of Saaty’s priority theory; such as Netherlands’s scholars Van Laarhoven and Pedrycg (1983) proposed a method, where the fuzzy comparing judgment is represented by triangular fuzzy numbers
Summary
Delivering value to customers is a critical issue in today’s competitive market. Some retailers believe “price” is the core value for customers. By applying the fuzzy AHP with extent analysis (Chang 1996) one can obtain the importance weights of product attributes that customers require. After a hierarchical model is constructed, experts are asked to compare a series of pairwise comparisons and establish the relative importance of customer requirements to attain the upper level criteria. The question asked to the expert is: “what is the relative impact of desired value A when compared to desired value B in using cosmetics on customer value?” In such comparisons, a linguistic scale is used to compare any two elements, namely moderately, strongly, very strongly, or extremely preferred. After averaging opinions from 12 experts, the fuzzy comparison matrix (FCM) of the value level of the hierarchy is obtained as follows: V1. The consistency of the judgment in all the comparison matrices is acceptable
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