DEVELOPING A PRODUCT MIX DECISION MODEL FOR DIRECT MAIL IN THE DEPARTMENT STORE

This research develops a model for selecting the best-selling product mix in the direct mail (DM). The research was conducted in two stages. Firstly, the evaluation criteria of product mix are formed based on the reviews of literature and experts’ opinions collected via the modified Delphi method followed by the use of Analytic Hierarchy Process (AHP) to assess the criteria weight. Secondly, Grey Relational Analysis (GRA) was performed to select the best product mix. We also used this model to verify the effectiveness of discount marketing strategy. The results address that product promotion, product attractiveness, company collaboration, and layout of design are identified as the most critical criteria. The product mix is identified to have the most influences on individuals’ product selections during the discount campaigns. Hence, this research not only provides useful guidelines for marketers, but also given the advantages of obtaining an effective marketing strategy among department stores.

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