Abstract
This study introduces an alternative through two phases of goal programming to overcome the existing membership model problem that does not have a specific mathematical method to examine whether the receipt number of members is compatible with the criteria or characteristics that apply for membership through the lexicographic goal programming (LGP) and multi-choice goal programming with utility function (MCGP-U). It is applied for membership artificial data. The results indicate that both goal programming methods could meet the retail loyalty program membership modus operandi.
Highlights
The rising cost of living in Malaysia is not a foreign thing
This study introduces an alternative through two phases of goal programming to overcome the existing membership model problem that does not have a specific mathematical method to examine whether the receipt number of members is compatible with the criteria or characteristics that apply for membership through the lexicographic goal programming (LGP) and multi-choice goal programming with utility function (MCGP-U)
Before that Goal programming (GP) was extended through multiple objective goal programming (MOGP) [11], followed by Ignizio [12] by GP method based on priority through lexicographic GP (LGP), and Chang [8] through multi-choice goal programming with utility function (MCGP-U)
Summary
The rising cost of living in Malaysia is not a foreign thing. Customer’s action on spending regularly at the retail businesses to get the reward offered (as the reward could help in reducing cost of living) through the membership is regarded as less intelligent and only beneficial the trader. The study found LGP application can meet the priority criteria required in the membership program and combination of LGP [7] and MCGP-U [8] may helpful to solve the problem through membership model. The integrated goal programing used for the membership model could be a new alternative for the decision makers, marketing expert and loyalty program provider to measure the effectiveness of retail membership loyalty program developed by their institution based on members’ preferences (using utility function) and benefit sharing with the members (such as business profit and reward provider accessibility).
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