Fuzzy Logic.v1
Fuzzy Logic.v1
v1
Article
Abstract: The term fuzzy refers to things that are unclear or vague. In the real world, we often en-
counter a situation where we cannot determine whether the state is true or false, and fuzzy logic
allows for more flexible reasoning. This is a form of multivalued logic where the truth values of
variables can be any real number between 0 and 1, as opposed to Boolean logic where the logical
values can only be 0 or 1. Fuzzy logic is therefore a problem-solving technique used to evaluate all
available information and thus make the best decisions. When applied to marketing, fuzzy logic
allows treating customers in an individual and personalized way, instead of being fully identified
within a particular market segment. Fuzzy marketing considers the degree to which a customer
belongs to certain segments and subsequently allows them to be targeted with messages that engage
them emotionally. To better understand the application and importance of fuzzy logic in marketing
strategy, we developed a systematic review of the bibliometric literature (LRSB). It was possible to
create a connection between these concepts, marketing and fuzzy logic, to increase the efforts of
marketing professionals to achieve competitiveness in the unpredictable business environment.
1. Introduction
The current business environment is characterized by high competition due to in-
creased diversification and globalization. As a result, companies have acknowledged the
significance of developing and implementing consumer-centered marketing strategies to
enhance customer retention and maximize lifelong profits. Consequently, the fuzzy logic
has been integrated into marketing models to create solutions for customer-specific mar-
keting and business issues. Hernández and Hidalgo [1] explain that fuzzy logic is based
on observing human behaviors. For instance, fuzzy logic mimics how people analyze
problems and make decisions using ambiguous or imprecise values instead of relying on
absolute facts or falsehoods. Scott [2] describes fuzzy logic as a computing approach that
stems from the mathematical study of multivalued logic that processes possible truth val-
ues through the same variable. Unlike classical logic, which requires statements to be ab-
solutely true or absolutely false [3], fuzzy logic involves the use of true values ranging
from 0 to 1, indicating that the algorithm can provide solutions based on data ranges ra-
ther than on one discrete data point [4]. In this case, fuzzy logic can be used in data inter-
pretation for informative with relative or subjective definitions. In real-life situations,
statements of absolute falsehood or truth are rare, given that people perceive and interpret
information differently [5]. For example, different customers can have varying interpreta-
tions of marketing information leading to other decisions and intentions. Thus, employing
fuzzy logic in marketing allows marketers to make decisions based on multiple data
ranges from different customers and partners.
Applying fuzzy logic principles to marketing decisions has led to the establishment
of the "fuzzy marketing" concept. It is used to reflect how people think and behave by
estimating the outcomes of their previous knowledge and experiences [6]. In this case, the
fuzzy logic in marketing finds that the truth coefficients lie somewhere on the scale of 0-
1. This suggests that consumer behaviors and consumption of marketing content cannot
be understood as simply black and white (i.e., true/false binary absolutes) but rather from
'shades of grey' perspectives [4]. Customers are not predictable or predefined, they are
fuzzy by definition. For example, just because a customer bought a specific product this
week does not mean they will buy the same product again next week [7]. Therefore, in-
stead of treating them collectively within a particular segment through signal data, fuzzy
logic encourages treating customers as individuals and real people [2]. Consequently, this
approach enables the creation of promotional messages that emotionally engage them and
increase potential positive behaviors and outcomes [8]. A systematic bibliometric litera-
ture review (LRSB) of 96 sources was conducted to illustrate further the connection be-
tween these concepts, marketing, and fuzzy logic, to enhance marketers' efforts to achieve
competitiveness in the unpredictable business environment.
The methodology approach began with a literature search on the SCOPUS indexing
online database of scientific articles, the most important peer-reviewed peer in the aca-
demic world. The use of Scopus alone is due to the fact that it is the main article base for
academic journals/magazines, covering around 19,500 titles from more than 5,000 inter-
national publishers, including coverage of 16,500 peer-reviewed journals in the fields sci-
entific, technical, and medical and social sciences. Thus, providing a very real view of the
researched subjects with scientific and/or academic relevance. However, we assume that
the study has the limitation of considering only the SCOPUS database, excluding the other
academic bases.
The procedure began with the use of the keyword "fuzzy" in the Scopus directory to
identify appropriate sources. The screening was limited to the titles, abstracts, and key-
words, and a total of 370,090 references were generated. However, further search limits
were implemented based on Linnenluecke et al. [16] (2020) argument that only articles in
journals judged as "high-quality" should be synthesized in a literature review,
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recommending researchers adopt appropriate inclusion and exclusion criteria. Xiao and
Watson [17] further explain that literary analysis improves readers' understanding of the
breadth and depth of existing literature. Therefore, to narrow the search to more relevant
literature keyword "marketing" was added, reducing the numbers to 1,973 documents.
A further exact keyword, "marketing strategy," was added, reducing the document
results to 96 scientific and/or academic documents, included documents until February
2022, 47 Conference Papers; 46 are Articles; 2 Reviews; and 1 Book Chapter (Table 2).
14
12
Documents
10
8
6
4
2
0
Year
In Table 3 we analyze for the Scimago Journal & Country Rank (SJR), the best quar-
tile, and the H index by publication. The Administrative Sciences with 15,100 (SJR), Q1
and H index 181.
There is a total of 53 publications on Q1,16 publications on Q2, 10 publications on Q3,
and 6 publications on Q4. Publications from best quartile Q1 represent 30% of the 53 pub-
lications titles; best quartile Q2 represents 19%, best quartile Q3 represents 11%, best quar-
tile Q4 represents 2%, data from 20 publications are not available.
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As evident from Table 3, the significant majority of articles on Industry 4.0 and mar-
keting rank on the Q1 best quartile index.
The thematic areas covered by the 96 scientific and/or academic documents were:
Accounting (17); Decision Sciences (14); Energy (5); Environmental Science (2); Materials
Science (2); Medicine (2); Social Sciences (2); and with 1 (Arts and Humanities; Earth and
Planetary Sciences; Neuroscience; Physics and Astronomy; and Psychology).
The most cited article was "DEMATEL revised: resolving DEMATEL infeasibility" by
Hsuan-Shih et al. with 123 citations published in Applied Mathematical Modeling and
Environment with 1,110 (SJR), the best quartile (Q1) and with an H index (122). The article
shows that raising the initial relation matrix to the power of infinity may not converge to
zero and therefore the total influence may not converge.
In Figure 2, we can analyze the evolution of citations of documents until May 2022.
The number of citations shows a positive net growth with R2 of 54% for the year 2021 with
156 citations with a total of 905 citations.
200
150
Citations
100
50
0
≤2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Years
Figure 2. Evolution of citations between ≤2012 and until May 2022. Source: own elaboration.
The h-index was used to ascertain the productivity and impact of the published work,
based on the largest number of articles included that had at least the same number of
citations. Of the documents considered for the h-index, 17 have been cited at least 17 times.
In Annex A, Table A1, the citations of all scientific and/or academic documents up to
until May 2022 are analyzed; 30 documents were not cited in this period, making a total
of 905 citations.
In Figure 3, the bibliometric study is presented to investigate and identify indicators
on the dynamics and evolution of scientific information. The study of bibliometric results,
using the scientific software VOSviewe, aims to identify the main search keywords in
studies that integrate industry 4.0 and the marketing research area.
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The research was based on the articles analyzed on Industry 4.0 and Marketing. The
associated keywords are shown in Figure 4, making clear the network of keywords that
appear together/linked in each scientific article, thus allowing to know the themes studied
by the researchers and identify future research trends. In Figure 5, a profusion of biblio-
graphic couplings with a cited reference analysis unit is presented.
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4. Theoretical perspectives
4.1. The Fuzzy Logic
Fuzzy logic is a variable processing procedure that allows for processing multiple
truth variables using the same variable. In this case, the researcher uses an open, imprecise
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spectrum of data and statistical approaches to make accurate conclusions [18]. It encour-
ages the generalization of the standard logic by illustrating that a concept possesses a cer-
tain degree of truth that can range between 0.0 and 1.0. In standard logic, ideas are often
believed to be either entirely true (truth value 1.0) or completely false (truth value 0.0)
[19]. However, fuzzy logic suggests that some concepts humans use to define problems
or analyze situations are vague and characterized by subjective or relative definitions,
thus cannot be classified as either absolute truth or absolute false [20]. For example, de-
scribing someone as "beautiful" is subjective and thus cannot be categorized as indisput-
able facts or false. Fuzzy logic provides a flexible reasoning mechanism that can handle
partial truths or determine conclusions for real-life situations that are difficult to decide
whether or not they are false or true [21]. Therefore, fuzzy logic can be defined as a prob-
lem-solving technique used to evaluate all available information to make the best deci-
sions.
understands that a proposition can be partially true or false simultaneously and is based
on human thought and communication processes.
A fuzzy expert system (FES) is an expert system used to interpret vague or incom-
plete information to overcome data challenges by utilizing fuzzy sets and logic. This type
of expert system is used to solve decision-making problems with no exact algorithm by
utilizing human-like mechanisms of approximate reasoning expressed in fuzzy IF-THEN
rules [41]. Integrating the fuzzy set theory into the FES increases its ability to describe a
particular process or phenomena linguistically and represent it with few flexible rules
[42]. One primary advantage of the FES is that the use of specified steps, mathematical
formulas, and interconnected subsystems makes it possible to explain how results are de-
rived [43]. The subsystems or components making up the FES are: fuzzification, inference
rules, knowledge database, and defuzzification, as shown in Figure 7 [44]. Therefore, FES
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is well-suited for solving challenges resulting from vagueness, inexactness, and subjectiv-
ity.
The Rules base contains all the rules and if-then conditions provided by experts to
regulate the decision-making process. Fuzzy inputs and rules must be provided for the
inference generator to produce fuzzy productions [45]. However, recent updates in fuzzy
theory demand a significant decrease in rules and conditions by providing various meth-
ods of designing and tuning fuzzy controllers. The fuzzification process converts inputs
by turning crisp numbers into fuzzy sets [41]. Under this subsystem, sensors measure the
crisp numbers before passing them into the control system for further processing [46]. The
inference engine is the subsystem used to determine the degree of match between the rules
and the fuzzy input [47]. After deciding the % match, the inference engine identifies the
specific rules to be applied to develop the control actions [48]. The final component of the
fuzzy expert system is the defuzzification which performs the crisp yield operations that
involve converting the fuzzy sets to crisp value that indicates the degree of truth.
The FES can be designed for implementation in multiple fields, including marketing,
medicine, and automotive [49]. While the factors and variables tested are different de-
pending on the area, the successful design of a good FES follows the following steps iden-
tified by Ghaderi and Maihami [50]:
i) Identifying the problem and selecting the appropriate type of fuzzy system: Iden-
tifying the issues that need solving helps determine the required fuzzy system based on
the problem requirements. It is recommended to adopt a modular system since it can be
configured in multiple ways to serve various purposes and satisfy multiple needs [51].
Besides, the system's modules can be improved over time to accommodate changes and
new challenges, thus improving performance;
ii) Defining the input and output variables: In this case, it is critical to identify the
input parameters and classify the crisp values based on ambiguity indices into different
fuzzy sets [52]. Some aspects considered include their membership function and linguistic
attributes;
iii) Defining the fuzzy heuristic rules: the if-then rules provide a convenient way of
expressing knowledge by providing interpretations that can process information in a spe-
cific way at the inference level [53]. For instance, some rules express certainty or obliga-
tion, while others describe possibility or feasibility [54]. Various types of fuzzy rules con-
sidered in this step include gradual inference rules, certainty rules, and possibility rules,
depending on intended applications and uses;
iv) Selecting the fuzzy inference method: fuzzy inference refers to the process of for-
mulating the mapping from a specific input to output using fuzzy logic [55]. It thus
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involves determining the aggregation operators for preconditions and conclusions [56].
This procedure creates the foundation from which decisions are made and patterns iden-
tified;
v) Defuzzification methods: this step involves converting the fuzzy output into a
crisp value. Examples of ways that can be used for this procedure include center-of-max-
imum (CoM), center-of-area (CoA), smallest-of-maximum (SoM), weighted average
(WA), and largest-of maximum (LoM);
vi) Test the fuzzy system prototype to ensure it functions appropriately and make
appropriate adjustments in membership functions, fuzzy rules, and goal function between
input and fuzzy output variables.
development strategy, and market diversification strategy [66]. These classifications are
based on the firm's nature of existing and new products and customers.
modifying existing and creating new products, specializing and customizing, finding new
markets, and increasing product value [72]. A solid and clear product development strat-
egy can help an organization turn an idea into a profitable product and enable modifica-
tions to remain competitive in the market.
One significant advantage of fuzzy classifications is that one element can be assigned
to multiple classes, expanding the degrees of analysis and accurate representation. For
example, Figure 4 shows that customers under the fuzzy ABC analysis can partly be clas-
sified into three classes, four classes under the fuzzy portfolio analysis, and multiple clas-
ses at the same time under the fuzzy scoring methods. Statistical analyses allow marketers
to compute the membership degree to each class and measure [93]. For example, fuzzy
methods can analyze, categorize, assess, and manage multiple marketing indicators [94].
In addition, it can be used to analyze various measures, including customer lifetime value
(CLV) and customer value, which are used to improve organizational marketing initia-
tives.
this case, most of the data used in developing and employing the classical marketing mix
model are based on estimations and pure reliance on expert judgment, which can be vague
and unreliable [98,99]. Other issues that make up the marketing mix problem are changing
market environmental conditions, availability of financial resources, market performance,
uncertainties with the organization's competitive strength, and estimating market re-
sponse and economic variations [100]. However, the fuzzy marketing mix model solves
these problems by allowing marketers to apply experts' If-Then decision rules.
The fuzzy logic sets allow marketers and marketing researchers to analyze and de-
duct accurate conclusions from vague, uncertain, subjective inputs, facilitating enhanced
decision-making. In addition, the fuzzy methods can explore nonlinear relationships be-
tween problem inputs and outputs, allowing the marketers to understand how a change
in one variable affects the rest of the marketing aspects [101]. Aly and Vrana [7] (2005)
created a fuzzy marketing mix model based on the Fuzzy decision-making system (FDMS)
that can be used to illustrate the integration of fuzzy logic and fuzzy methods in market-
ing, as shown in Figure 5 below. Thus, using fuzzy logic and strategies, which leverage
experts' knowledge, intuition, and experience in marketing in the form of if-then rules,
provides a more convenient analysis technique.
The input variables considered are the aspects that often affect the marketing deci-
sion-making processes in most organizations as identified through experts' viewpoints
and knowledge of their market environment. These factors affect the fixed output varia-
bles that make up the marketing mix settings: price (P), advertising (A), distribution (D),
and product quality (R) [102]. The fuzzification interface transforms the input data gath-
ered from experts and analysts into fuzzy variables. The rule-base encompasses experts'
decision rules to guide the input variables' transformation into the marketing mix settings
[103]. The inference engine is used to match the consequents of the inferring rules to the
knowledge base to deduce new information that is the deffuzified to obtain the crisp val-
ues of the outputs [104]. This process enables the company to determine the marketing
initiatives that accurately and approximately indicate all the requirements associated with
the factors affecting performance within a specific market environment (Wu et al., 2010)
[105]. Classifying elements into multiple classes throughout the analysis period enables
marketers to avoid strategic failures and economic loss since they have access to more
accurate and representative data [106]. Leveraging such reports enhances marketing de-
cision-making, planning, allocation of resources, and implementation of marketing
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initiatives and campaigns [107]. Therefore, integrating fuzzy logic and fuzzy methods into
marketing strategies can help improve a company's competitiveness and lead to higher
performance and productivity in the modern-day turbulently changing business environ-
ment.
5. Conclusions
Globalization and diversification have increased the competition in local and inter-
national markets, prompting companies to adopt consumer-centered marketing ap-
proaches. One significant way that they have embraced is using data-driven marketing
strategies to enhance targeting and customization. However, data overload and the re-
duction of customers into mere datasets have undermined these companies' capability to
optimize human marketing approaches achievable through the appropriate use of data
and information technologies. For instance, in a standard marketing strategy, customers
within a particular market segment are targeted collectively regardless of their differ-
ences. This approach leads to companies missing opportunities to emotionally engage
their customers for long-term, mutually beneficial relationships that increase their com-
petitive advantage. Integrating fuzzy logic and fuzzy methods into marketing strategies
solves this problem by encouraging marketers to understand their customers as unpre-
dictable, imprecise individuals. Unlike the classical logic that clarifies contents as either
absolutely truth or absolutely false, fuzzy logic recognizes that most information used in
real life is subjective or relative. It does not have a definite definition or truth value. Thus,
under fuzzy logic, truth values can be anything between 0 and 1. In this case, the fuzzy
reasoning recognizes that yes/no answers do not necessarily reflect on the customer's be-
haviors or intentions, encouraging consideration of the 'maybe's' and 'if's' that occur when
customers do not have absolute answers. Fuzzy marketing involves analyzing how a cus-
tomer fits into a specific market segment. In this case, instead of sending mass customized
promotional messages, the companies prioritize personalized marketing efforts that make
the customer feel understood and appreciated.
Marketing strategies are concerned with organizational plans and activities related
to promoting and selling products or services to consumers. Therefore, adopting ap-
proaches such as the fuzzy marketing model or the fuzzy marketing mix model enhances
the company's capability to build stronger customer relationships, enhance profitability,
and improve marketing performance. For instance, with a fuzzy marketing model, mar-
keters and researchers can accurately classify objects and allocate resources using fuzzy
methods that indicate the degree to which a particular factor or indicator contributes to
the marketing effort. Suppose a competitor's advertising expenditure is deemed to have
minimal impact on a company's marketing performance. In classical logic, it will be as-
signed an absolute 0 value. In contrast, in fuzzy logic, a specific value, for example, 0.3,
will be given to indicate that even though the impact is low, it does affect the company's
performance. In this case, the management using fuzzy logic, will assign appropriate re-
sources to increase the company's competitive strength. Therefore, fuzzy logic and fuzzy
methods provide a more explicit representation of reality, enabling companies to make
informed, accurate decisions.
Author Contributions: Conceptualization, A.R. and J.D.; methodology, A.R. and J.D.; software, A.R.
and J.D.; validation, A.R. and J.D.; formal analysis, A.R. and J.D.; investigation, A.R. and J.D.; re-
sources, A.R. and J.D.; data curation, A.R. and J.D.; writing—original draft preparation, A.R. and
J.D.; writing—review and editing, A.R. and J.D.; visualization, A.R. and J.D.; supervision, A.R. and
J.D.; project administration, A.R. and J.D.; funding acquisition, A.R. and J.D. All authors have read
and agreed to the published version of the manuscript.
Funding: This work was financially supported by the research unit on Governance, Competitive-
ness and Public Policy (UIDB/04058/2020) + (UIDP/04058/2020), funded by national funds through
FCT - Fundação para a Ciência e a Tecnologia. This research is supported by national funding’s of
FCT - Fundação para a Ciência e a Tecnologia, I.P., in the project «UIDB/04005/2020».
Preprints (www.preprints.org) | NOT PEER-REVIEWED | Posted: 28 June 2022 doi:10.20944/preprints202206.0378.v1
Acknowledgments: We would like to express our gratitude to the Editor and the Referees. They
offered valuable suggestions or improvements. The authors were supported by the GOVCOPP Re-
search Center of the University of Aveiro, and COMEGI.
Conflicts of Interest: The funders had no role in the design of the study; in the collection, analyses,
or interpretation of data; in the writing of the manuscript, or in the decision to publish the results.
Appendix A
Documents 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total
Research and implementation ofthe
2021 1 1 2
customer-oriented modem ...
Fine-Grained Context-aware Ad
2020 1 1
Targeting on Social Media Plat...
Modified dynamic fuzzy c-means
2020 1 6 6 13
clustering algorithm -Applic. ..
Evaluation of entrepreneurial support
2020 1 1
projects by using IFS ...
[Bidding Strategy ofComprehensive
2019 5 1 1 7
Energy Based Power Sellin ...
User sentiment analysis based on
2019 2 3 10 10 5 30
social network information ...
Predicting the helpfulness of online
2019 1 4 12 5 22
restaurant reviews usin ...
Exploring eWOM in online customer
2019 4 11 18 2 35
reviews: Sentiment analysi ...
lnnovative capacity-based approach
2019 2 2
to blue ocean strategies ...
Comparative analysis of store
2019 1 1
clustering tech niques in the r ...
A fuzzy DEMATEL method for
2018 3 1 4
analyzing key factors of the prod ...
lmpact ofinformation technology on
2018 2 9 28 10 49
information search chann ...
Optimal marketing strategy for
2018 2 2
electricity retailer consider ...
A Fuzzy ANP based weighted RFM
2018 1 4 1 6
model for customer segmentati ...
lmplementation of data mining
2018 1 2 4 4 11
technique for customer relatio ...
A fuzzy optimisation method for
2017 1 2 1 4
product variety selection un ...
An intelligent cloud-based customer
2017 1 2 3
relationship management ...
Application of artificial neural
2017 1 1
network method to analyze u ...
Predicting the influence of group
2016 1 1
buying on the restaurant's ...
Target marketing strategy
2016 2 1 3
determination for shopping malls u ...
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