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Volume 5 • Issue 2 | July 2021

TOPSIS model based on entropy and similarity measure for market segment selection and evaluation

Truong Thi Thuy Duong, and Nguyen Xuan Thao

01/11/2021 62 0 0
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Multi-criteria decision-making Market segment selection Neutrosophic set Entropy Similarity measure

Abstract:

Purpose
The paper aims to propose a practical model for market segment selection and evaluation. The paper carries out a technique of order preference similarity to the ideal solution (TOPSIS) approach to make an operation systematic dealing with multi-criteria decision- making problem.

Design/methodology/approach
Introducing a multi-criteria decision-making problem based on TOPSIS approach. A new entropy and new similarity measure under neutrosopic environment are proposed to evaluate the weights of criteria and the relative closeness coefficient in TOPSIS model.

Findings
The outcomes show that the TOPSIS model based on new entropy and similarity measure is effective for evaluation and selection market segment. Profitability, growth of the market, the likelihood of sustainable differential advantages are the most important insights of criteria.

Originality/value
This paper put forward an effective multi-criteria decision-making dealing with uncertain information.

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JEL classification: C02,C44,D40,D81

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