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Applications of Classical, Pairwise, and Hierarchical MCDM Techniques in Marketing Management

Book Chapter

Authors: Mallikharjuna Rao Jitta, Sangeetha Radhakrishnan, and Vijaya Kittu Manda

DOI: https://doi.org/10.4018/979-8-3693-9122-8.ch003

Book Name: Multiple-Criteria Decision-Making (MCDM) Techniques and Statistics in Marketing

ISBN: ISBN13: 9798369391228|ISBN13 Softcover: 9798369391235|EISBN13: 9798369391242

Publisher: IGI Global, USA

Editor(s): Theodore Tarnanidis, Jason Papathanasiou, Vasileios Ismyrlis, and Vijaya Kittu Manda

Book Chapter Number: 3

Publication Date: March 13, 2025

Pages: 49 - 74

Book Chapter Link on Publisher Website

Book Link on Publisher Website

Abstract: 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.

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