Improving customer service in the real estate industry: A property selection model using Taguchi loss functions

摘要

As severe competition prevails in every business, various improvement tools are adopted. Though Taguchi loss functions are effectively used in the manufacturing perspective, it is attempted to use the same in the real estate business by a broker to identify and present properties possessing qualities and characteristics sought by the buyer. The four types of Taguchi loss function are described. To demonstrate the application of Taguchi loss function in the real estate industry, an example Situation is presented where two buyers state specifications with preferences for the houses they would like to buy. It is further explained how the broker makes use of the Taguchi loss functions in finding the properties that closely match the buyers' requirements. (12 refs.)