Share:


A strategic cooperative game-theoretic model for market segmentation with application to banking in emerging economies

    Faramak Zandi Affiliation
    ; Madjid Tavana Affiliation
    ; Aidan O’Connor Affiliation

Abstract

Market segmentation is essential to target efficaciously core-segment customers and to obtain a competitive advantage. Firms when confronted by the range of market segments, have difficulty in deciding the core-segment customers who are the most probable purchasers of their product and services. We propose a novel fuzzy group multi-criteria method for market entry and segment evaluation and selection. This proposed method provides a comprehensive and systematic framework that combines bi-level multi-objective optimization with real option analysis (ROA) and fuzzy cooperative n-person game theory. The contribution of the proposed segment evaluation and selection method is fivefold: (1) it addresses the gaps in the marketing literature on the efficacious and effective assessment of market segments; (2) it provides a comprehensive and systematic framework that combines bi-level multi-objective optimization with ROA and fuzzy cooperative n-person game theory; (3) it considers fuzzy logic and fuzzy sets to represent ambiguous, uncertain or imprecise information; (4) it does not insist on consensus but synthesizes a representative outcome based on qualitative judgments and quantitative data; and (5) it is applicable to national and international market segmentation. The practical application of this proposed framework illustrates the efficacy of the procedures and algorithms.

Keyword : bi-level multi-objective optimization, real option analysis, cooperative n-person game, services and product segmentation, emerging market economies, bank market entry

How to Cite
Zandi, F., Tavana, M., & O’Connor, A. (2012). A strategic cooperative game-theoretic model for market segmentation with application to banking in emerging economies. Technological and Economic Development of Economy, 18(3), 389-423. https://doi.org/10.3846/20294913.2012.688072
Published in Issue
Oct 2, 2012
Abstract Views
327
PDF Downloads
221
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.