Marketing professionals collect data from numerous sources, place them into variables, and subject them to various statistical and analytical tools to arrive at decisions. Due to the complexity of decision-making due to complex criteria, a branch of tools called multiple-criteria decision-making (MCDM) techniques is used. While numerous variants of MCDMs are available, this chapter focuses on three variants – Classical methods, Pairwise comparison, and Hierarchical methods. Classical methods are used when direct measurements are available and have a simple decision structure. CBA, SMART, MAVT, and WSM/WPM are popular techniques. Pairwise Comparison and Hierarchical methods are preferred when there are complex relationships in which many criteria are qualitative and require expert judgment. AHP, ANP, BWM, and FUCOM are popular methods in this class. As technologies progress, new MCDM methods that can be applied to other disciplines will evolve. Decision makers (DMs) benefit from understanding the use and applications of these tools in various marketing decision scenarios.
Authors: Mallikharjuna Rao Jitta, Sangeetha Radhakrishnan, Vijaya Kittu Manda
DOI: https://doi.org/10.4018/979-8-3693-9122-8.ch003
Publish Year: 2024
