Application of AHP Model and Survey Results in Deciding on a Product Line in Furniture Industry

Abstract

The paper presents a case study in which a potential investor wanted to invest into a furniture store in the part of the Republic of Croatia named Dalmatia. In four Dalmatian counties (Split, Zadar, Šibenik and Dubrovnik counties), 220 randomly selected persons (180 answered) were asked by telephone what kind of furniture they would like to buy in the next two years and how much they were prepared to pay for the purchase. Based on the results of a consumer survey, fi ve possible alternatives (product lines) were selected and the priorities determined, i.e. which product line was the most profi table taking into account criteria of successful business operations using the multi-criteria model.

Keywords

• market research
• furniture
• multi-criteria decision making
• AHP model