An Application of Fuzzy Clustering in Group-Positioning Analysis
Tsuen‐Ho Hsu · 2000
Before designing a product and selecting marketing strategies, a company must conduct consumer studies in order to determine the optimum combination of product benefits desired by consumers. Due to large market size and the various sought-after product benefits, a company may also need to properly analyze different market segments in order to survive and succeed in a competitive environment. It is especially important for a company to understand its own market position as well as competitors ' market strategies. This study integrates the concepts of market segmentation, strategic groups, and performance to construct a three-dimensional Fuzzy Group-Positioning Model (FGPM). The FGPM is proposed to closely emulate human thinking processes and better understand the relationship between consumer's consumption patterns, the competitive situation within the industry and the referential values of strategic position. In addition, this study modifies the "fuzzy cluster analytical method " to solve the cluster numbering and address the fuzziness among group boundaries. Key Words: Fuzzy clustering; strategic group; market segmentation; market position I.