IDEAS home Printed from https://ideas.repec.org/a/ids/ijsoma/v25y2016i3p390-412.html
   My bibliography  Save this article

Multi-attribute market segmentation for the major customers of an Iranian steel-making company using value proposition elements

Author

Listed:
  • Zahra Yavari
  • Bahram Ranjbarian
  • Saeedeh Ketabi

Abstract

Mass market strategy does not have a big chance for success in a competitive market. Therefore, by segmenting a heterogeneous market in to some smaller and homogenous markets in which customers have similar characteristics, it is expected that the resources can be more efficiently utilised. The purpose of this study was a mathematical modelling of market segmentation of an Iranian steel-making company using value proposition elements. The model mentioned was used for the analysis of data related to six value proposition elements from 129 major customers of the company. This model was solved using GAMS software and the optimal number of segments was 9. In this study, the results obtained were compared with those achieved by the conventional segmentation methods such as K-means and SOM and two-step clustering. Further, for the validation of the mathematical model used, discriminant analysis of research data was done after segmentation and the success percentage of the ranking rule was found to be 95.3%. Also, the similarity criterion was computed for each potentially new customer.

Suggested Citation

  • Zahra Yavari & Bahram Ranjbarian & Saeedeh Ketabi, 2016. "Multi-attribute market segmentation for the major customers of an Iranian steel-making company using value proposition elements," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 25(3), pages 390-412.
    • Handle: RePEc:ids:ijsoma:v:25:y:2016:i:3:p:390-412
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=79521
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijsoma:v:25:y:2016:i:3:p:390-412. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=150 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.