The Weighted Product Method and the Multi-Objective Optimization on the Basis of Ratio Analysis Method for Determining the Best Customer

Abstract


 The objective of this study is to compare the effectiveness of the Weighted Product (WP) and Multi-Objective Optimization on the Basis of Ratio Analysis (MOORA) methods in determining the best customers. Onesnet, the case study service provider, provides discounts and rewards to eligible customers to support this objective. The problem addressed in this study is how to determine the most relevant method for selecting eligible customers for bonuses. To achieve this, sensitivity testing was conducted by altering the weights of each criterion in both methods and observing the percentage changes of the results. The Weighted Product method multiplies the rating of each connected attribute, which is raised to the appropriate attribute weight, to decide. Data for this study was collected through interviews and observations at Onesnet and processed using the Rank Order Centroid (ROC) method for weighting, and the WP and MOORA methods for evaluating and selecting a decision. The WP and MOORA methods produced different total values and rankings, but the modeling with either method can be used equally for selecting the best customers. While there was a 60% similarity in data between the two methods, the WP method is recommended over MOORA, as it prioritizes customers with high loyalty criteria as the best customers.