Artificial Intelligence in Market Segment Portfolio for Profit Maximization

Chih-Piao Peng; Chiu-Chi Wei; Hsien-Hong  Lin; Su-Hui Chen

doi:10.5755/j01.ee.33.4.29543

Authors

Chih-Piao Peng Chung Hua University, Taiwan
Chiu-Chi Wei Chung Hua University, Taiwan
Hsien-Hong Lin Department of Logistics Engineering, Huaiyin Institute of Technology, China
Su-Hui Chen Department of Human Resources Management, Huaiyin Normal University, China

DOI:

https://doi.org/10.5755/j01.ee.33.4.29543

Keywords:

artificial intelligence, mathematical programming, market segments, segment portfolio, profit maximization

Abstract

This paper proposes an approach to select a market segment portfolio to maximize overall profit. The study first uses artificial intelligence algorithms to select the market segments with high profitability. The mathematical programming model is then used to identify the most profitable market segment portfolio. The single-objective programming model is used to find the optimal profit for the baseline condition, and a sensitivity analysis is performed to understand the impact of the variable changes on the results. Then, a multi-objective programming model helps to identify the best profit when the evaluated items reach extreme values. A sensitivity analysis is conducted to reveal the impact of the variable changes on the results. The above results are compared with those of the scoring method. It is found that the artificial intelligence algorithm combined with mathematical programming models can indeed find the market segmentation portfolio with better profits than the conventional methods.

Author Biographies

Chih-Piao Peng, Chung Hua University, Taiwan

Chih-Piao Peng is now a Ph.D. student in the Ph.D. program of Technology Management at Chung Hua University, Taiwan. His research interests include mathematical modelling, marketing management, and artificial intelligence.

Chiu-Chi Wei, Chung Hua University, Taiwan

Chiu-Chi Wei obtained Ph.D. in Engineering Management from the University of Missouri, USA. He is now a professor at Chung Hua University, Taiwan. Prof. Wei has published 80 papers in various journals. His research interests include marketing management, project management, R&D management, and artificial intelligence.

Hsien-Hong Lin, Department of Logistics Engineering, Huaiyin Institute of Technology, China

Hsien-Hong Lin obtained Ph.D. in Higher Education Administration from Kent State University, USA. Dr. Lin is now an Associate Professor in the Department of Logistics Engineering, Huaiyin Institute of Technology, China. His research interests include logistics management, human resources management, and marketing management.

Su-Hui Chen, Department of Human Resources Management, Huaiyin Normal University, China

Su-Hui Chen obtained Ph.D. in the Ph.D. program of Technology Management at Chung Hua University, Taiwan. Dr. Chen is now an Associate Professor in the Department of Human Resources Management, Huaiyin Normal University, China. Her research interests include human resources management, project management, and marketing management.