Title: A new procedure of market segmentation for dynamic CRM systems: a case study of airlines in Taiwan

Authors: Wen-Yu Chiang

Addresses: Department of Air Transportation Management, Aletheia University, 70-11 Pei-Shi-Liao, Matou, Tainan 721, Taiwan

Abstract: The purpose of this research is to propose a new procedure of clustering to establish new markets by customer values. The research method consists of the AHP procedure and RFM model for travel agencies or airlines industries. An empirical case of air economy class passengers' market in Taiwan is implemented in this research. The research proposed an equation for estimating customer values. Finally, the research found three air passengers' markets by customer values in Taiwan. The research suggests that the procedure and result of this research can be applied on dynamic CRM systems for travel agencies or airlines. However, the framework of this research can be applied on other businesses as well.

Keywords: market segmentation; high value passengers; AHP; analytical hierarchy process; RFM model; dynamic CRM systems; case study; airlines; Taiwan; clustering; customer values; airline passengers; travel agencies; economy class passengers; customer relationship management.

DOI: 10.1504/IJICT.2014.063227

International Journal of Information and Communication Technology, 2014 Vol.6 No.3/4, pp.422 - 430

Received: 09 Feb 2013
Accepted: 22 Oct 2013
Published online: 26 Jul 2014 *

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