Customer Satisfaction Analysis of Banks: The Role of Market Segmentation

Francis Osei; Gloria Ampomah; Collins Kankam-Kwarteng; Daniel Opoku Bediako; Reagan Mensah

doi:doi:10.11648/j.sjbm.20210902.19

| Peer-Reviewed

Customer Satisfaction Analysis of Banks: The Role of Market Segmentation

Francis Osei, Gloria Ampomah, Collins Kankam-Kwarteng, Daniel Opoku Bediako, Reagan Mensah

Published in Science Journal of Business and Management (Volume 9, Issue 2)

Received: 3 June 2021 Accepted: 18 June 2021 Published: 30 June 2021

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

In today’s competitive banking industry, market segmentation as a serious strategic alternative is very important if players in the banking industry are to achieve customer satisfaction which can influence customer loyalty and profitability. In the study of Ghana Commercial Bank, the investigation focused on how market segmentation has affected customer satisfaction in the Ghana banking industry. The study evaluates the effects of market segmentation on customer satisfaction in the banking industry in Ghana. To achieve the purpose of the study a descriptive research design was adopted. The target population was 200 respondents from five banks (branch) in Kumasi metropolis in Ghana. The primary source of data and secondary source of data was utilized in the entirety of the study. Data collected were analyzed using the Statistical Package for Social Scientists (SPSS) and Smart PLS software. The results proved that there was a positive relationship between geographical segmentation, demographic segmentation, behavioral segmentation on customer satisfaction. The nature of behavioral segmentation provides the opportunity for real-time communication across a wide range of marketing channels including direct mail, email, point-of-sale devices, and mobile channels as well as personal contact at the branch or call center level. The downside of using behavioral data as a marketing driver is that it does require detailed, in-depth data sets, models, and market testing. Also, prices, distribution, and advertising can all be tailored to control variables that are problematic for customers, because today's customers demand simple, convenient, flexible, and timely products and services. The recommendations are intended to represent as a framework for banking industries as they try to provide improved service to their customers.

Published in	Science Journal of Business and Management (Volume 9, Issue 2)
DOI	10.11648/j.sjbm.20210902.19
Page(s)	126-138
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Geographical Segmentation, Demographic Segmentation, Behavioral Segmentation, Customer Satisfaction

References

[1]	Allenby, G., Fennell, G., Bemmaor, A., Bhargava, V., Christen, F., Dawley, J.,... & Yang, S. (2002). Market segmentation research: beyond within and across group differences. Marketing Letters, 13 (3), 233-243.
[2]	Amoah, F., & Radder, L. (2018). Profile Variables as a Basis for Segmenting Markets: A Guesthouse Perspective. Journal of Economics and Behavioral Studies, 10 (3 (J)), 60-73.
[3]	Anane, A. K. (2019). Sustainability for Portfolio Optimization.
[4]	Avornyo, P., Fang, J., Odai, R. O., Vondee, J. B., & Nartey, M. N. (2019). Factors Affecting Continuous Usage Intention of Mobile Banking in Tema and Kumasi. International Journal of Business and Social Science, 10 (3).
[5]	Berry, L. L., Parasuraman, A., & Zeithaml, V. A. (1988). The service-quality puzzle. Business horizons, 31 (5), 35-43.
[6]	Boyd, B., & Dyhr Ulrich, A. M. (2014). Market entry strategies into the BRIC countries–a comparison of Danish family and non-family businesses. International Journal of Globalisation and Small Business, 6 (1), 15-36.
[7]	Boyd, W. L., Leonard, M., & White, C. (1994). Customer preferences for financial services: an analysis. International Journal of Bank Marketing.
[8]	Calantone, R. J., Graham, J. L., & Mintu-Wimsatt, A. (1998). Problem-solving approach in an international context: antecedents and outcome. International Journal of Research in Marketing, 15 (1), 19-35.
[9]	Camilleri, M. A. (2018). Market segmentation, targeting and positioning. In Travel marketing, tourism economics and the airline product (pp. 69-83). Springer, Cham.
[10]	Cavusgil, S. T. (2021). Advancing knowledge on emerging markets: Past and future research in perspective. International Business Review, 101796.
[11]	Christopher, M. (2016). Marketing: an introductory text. Macmillan International Higher Education.
[12]	Clarkson, C., Mirosa, M., & Birch, J. (2018). Consumer acceptance of insects and ideal product attributes. British Food Journal.
[13]	Compeau, D. R., & Higgins, C. A. (1995). Computer self-efficacy: Development of a measure and initial test. MIS quarterly, 189-211.
[14]	De Mooij, M. (2019). Consumer behavior and culture: Consequences for global marketing and advertising. Sage.
[15]	Deepak, R. K. A., & Jeyakumar, S. (2019). Marketing management. Educreation Publishing.
[16]	Dibb, S. (1998). Market segmentation: strategies for success. Marketing Intelligence & Planning.
[17]	Dibb, S. (2005). Market segmentation implementation barriers and how to overcome them. The marketing review, 5 (1), 13-30.
[18]	Dolnicar, S., Grün, B. and Leisch, F., 2018. Market segmentation analysis: Understanding it, doing it, and making it useful (p. 324). Springer Nature.
[19]	Edgett, S., & Snow, K. (1996). Benchmarking measures of customer satisfaction, quality and performance for new financial service products. Journal of Services Marketing.
[20]	EDINAH BARONGO, N. Y. A. B. W. A. R. I. (2017). EVALUATION OF THE EFFECT OF MARKET SEGMENTATION ON SALES PERFORMANCE OF THE BANKING INDUSTRY; A SURVEY OF COMMERCIAL BANKS IN KISII TOWN, KISII COUNTY.
[21]	Ezeh, L. N., Abamara, N. C., Ugwuoju, A. C., & Obike, U. B. (2017). Influence of personality and educational level on Nigerian consumers preference for foreign goods. Research on Humanities and Social Sciences, 7, 4.
[22]	Farris, P. W., Bendle, N., Pfeifer, P. E., & Reibstein, D. (2010). Marketing metrics: The definitive guide to measuring marketing performance. Pearson Education.
[23]	Ferrell, O. C., & Hartline, M. (2013). Marketing strategy, text and cases. Cengage Learning.
[24]	Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics.
[25]	Freathy, P., & O’connell, F. (2000). Market segmentation in the European airport sector. Marketing Intelligence & Planning.
[26]	Gefen, D., & Straub, D. (2005). A practical guide to factorial validity using PLS-Graph: Tutorial and annotated example. Communications of the Association for Information systems, 16 (1), 5.
[27]	Giaoutzi, M., Nijkamp, P., & Storey, D. J. (Eds.). (2016). Small and medium size enterprises and regional development. Routledge.
[28]	Gichuru, M. J., & Limiri, E. K. (2017). Market Segmentation As A Strategy For Customer Satisfaction And Retention. International Journal of Economics, Commerce and Management. United Kingdom Vol. V, (12), 544-553.
[29]	Gil, I., Berenguer, G., & Cervera, A. (2008). The roles of service encounters, service value, and job satisfaction in achieving customer satisfaction in business relationships. Industrial marketing management, 37 (8), 921-939.
[30]	Gliem, J. A., & Gliem, R. R. (2003). Calculating, interpreting, and reporting Cronbach’s alpha reliability coefficient for Likert-type scales. Midwest Research-to-Practice Conference in Adult, Continuing, and Community Education.
[31]	Gogoi, D., & Jyoti, B. (2020). Changing Consumer Behavior: Segmenting Consumers to Understand Them Better. International Journal of Management, 11 (5).
[32]	Hair Jr, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European business review.
[33]	Hallikainen, H., Savimäki, E. and Laukkanen, T., 2020. Fostering B2B sales with customer big data analytics. Industrial Marketing Management, 86, pp. 90-98.
[34]	Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. In New challenges to international marketing. Emerald Group Publishing Limited.
[35]	Hunger, J. D. (2020). BM-542 Essentials of Strategic Management.
[36]	Ibrahim, A., Knox, K., Rundle-Thiele, S., & Arli, D. (2018). Segmenting a water use market: theory of interpersonal behavior insights. Social Marketing Quarterly, 24 (1), 3-17.
[37]	Kang, M., & Park, M. J. (2019). Employees’ judgment and decision making in the banking industry: The perspective of heuristics and biases. International Journal of Bank Marketing.
[38]	Kaynak, E., & Kara, A. (2012). Assessing tourism market potential in a dynamic emerging economy. Asia Pacific Journal of Marketing and Logistics.
[39]	Keller, K. L. (2016). Unlocking the power of integrated marketing communications: How integrated is your IMC program?. Journal of Advertising, 45 (3), 286-301.
[40]	Kımıloğlu, H., Nasır, V. A., & Nasır, S. (2010). Discovering behavioral segments in the mobile phone market. Journal of Consumer Marketing.
[41]	Konuk, F. A. (2019). The influence of perceived food quality, price fairness, perceived value and satisfaction on customers’ revisit and word-of-mouth intentions towards organic food restaurants. Journal of Retailing and Consumer Services, 50, 103-110.
[42]	Kotler, P., & Keller, K. L. (2006). Marketing Management 12e. France: Edition Pearson Education.
[43]	Kotler, P., Kartajaya, H., & Setiawan, I. (2019). Marketing 3.0: From products to customers to the human spirit. In Marketing Wisdom (pp. 139-156). Springer, Singapore.
[44]	Lantos, G. P. (2015). Consumer behavior in action: Real-life applications for marketing managers. Routledge.
[45]	Lin, C. F. (2002). Segmenting customer brand preference: demographic or psychographic. Journal of Product & Brand Management.
[46]	Lopez, J., Hart, L. K., & Rampersad, A. (2007). Ethnicity and customer satisfaction in the financial services sector. Managing Service Quality: An International Journal.
[47]	Madeira, A. B., Da Silveira, J. A. G., & Toledo, L. A. (2015). Marketing segmentation: your role for diversity in dynamical systems. GESTÃO. Org, 13 (1), 71-78.
[48]	Mahmoud, M. A. (2019). Gender, e-banking, and customer retention. Journal of global marketing, 32 (4), 269-287.
[49]	Manrai, L. A., & Manrai, A. K. (2007). A field study of customers’ switching behavior for bank services. Journal of retailing and consumer services, 14 (3), 208-215.
[50]	McCann, P. (2016). The UK regional-national economic problem: Geography, globalisation and governance. Routledge.
[51]	McDonald, M., & Dunbar, I. (2013). Market segmentation. Chichester: John Wiley & Sons.
[52]	Mende, M., Scott, M. L., van Doorn, J., Grewal, D., & Shanks, I. (2019). Service robots rising: How humanoid robots influence service experiences and elicit compensatory consumer responses. Journal of Marketing Research, 56 (4), 535-556.
[53]	Miswanto, M., & Angelia, Y. R. (2017). The influence of service quality and store atmosphere on customer satisfaction. Jurnal Manajemen dan Kewirausahaan, 19 (2), 106-111.
[54]	Munusamy, J., Chelliah, S., & Mun, H. W. (2010). Service quality delivery and its impact on customer satisfaction in the banking sector in Malaysia. International journal of innovation, management and technology, 1 (4), 398.
[55]	Muumob, D. D. (2016). Market Orientation Practices and Customer Satisfaction in the Ghananian Banking Sector (Doctoral dissertation, University of Ghana).
[56]	Narteh, B. (2012). Internal marketing and employee commitment: Evidence from the Ghanaian banking industry. Journal of Financial Services Marketing, 17 (4), 284-300.
[57]	Naughton, P., McCarthy, M., & McCarthy, S. (2017). Reducing consumption of confectionery foods: A post-hoc segmentation analysis using a social cognition approach. Appetite, 117, 168-178.
[58]	Oztaysi, B., Gurbuz, T., Albayrak, E., & Kahraman, C. (2016). Target Marketing Strategy Determination for Shopping Malls Using Fuzzy ANP. Journal of Multiple-Valued Logic & Soft Computing, 27.
[59]	Peterson, M. F., & van Iterson, A. (2015). Differences in work goals among regions of the Netherlands and Germany: functional, institutional and critical event influences. The International Journal of Human Resource Management, 26 (2), 277-297.
[60]	Pham, L., Limbu, Y. B., Bui, T. K., Nguyen, H. T., & Pham, H. T. (2019). Does e-learning service quality influence e-learning student satisfaction and loyalty? Evidence from Vietnam. International Journal of Educational Technology in Higher Education, 16 (1), 1-26.
[61]	Piercy, N. F. (2016). Market-led strategic change: Transforming the process of going to market. Taylor & Francis.
[62]	Rahim Mosahab, P. C. (2010). Service Quality, Customer Satisfaction and Loyalty: A Test of Mediation.
[63]	Rahmawati, R. (2019). Profiling Shopping Mall Costumer Based on Demographics and Shopping Motivation. J-MKLI (Jurnal Manajemen dan Kearifan Lokal Indonesia), 3 (2), 74-83.
[64]	Saeidi, P., Saeidi, S. P., Sofian, S., Saeidi, S. P., Nilashi, M., & Mardani, A. (2019). The impact of enterprise risk management on competitive advantage by moderating role of information technology. Computer Standards & Interfaces, 63, 67-82.
[65]	Sekaran, U. Bougie (2010). Research methods for business: A skill building approach.
[66]	Singh, M., Verma, A., & Sharma, N. (2018). Multi-objective noise estimator for the applications of de-noising and segmentation of MRI data. Biomedical Signal Processing and Control, 46, 249-259.
[67]	Stafford, M. R. (1996). Demographic discriminators of service quality in the banking industry. Journal of services marketing.
[68]	Stylidis, D., Kokho Sit, J., & Biran, A. (2018). Residents’ place image: a meaningful psychographic variable for tourism segmentation?. Journal of Travel & Tourism Marketing, 35 (6), 715-725.
[69]	Uncles, M. D., Dowling, G. R., & Hammond, K. (2003). Customer loyalty and customer loyalty programs. Journal of consumer marketing.
[70]	Verbeke, A., & Kano, L. (2016). An internalization theory perspective on the global and regional strategies of multinational enterprises. Journal of World Business, 51 (1), 83-92.
[71]	Vidili, I. (2021). Customer Experience: The New Competitive Advantage for Companies That Want Their Customer at the Center of Their Business. In Handbook of Research on User Experience in Web 2.0 Technologies and Its Impact on Universities and Businesses (pp. 183-209). IGI Global.
[72]	Zakaria, I., Rahman, B. A., Othman, A. K., Yunus, N. A. M., Dzulkipli, M. R., & Osman, M. A. F. (2014). The relationship between loyalty program, customer satisfaction and customer loyalty in retail industry: A case study. Procedia-Social and Behavioral Sciences, 129, 23-30.
[73]	Ze, Y., Abbas, H., Hussain, T., & Jiao, H. (2018). Analyzing the differentiation strategies of big companies competing with each other. Strategic Management, 23 (3), 25-37.
[74]	Zhou, J., Wei, J., & Xu, B. (2021). Customer segmentation by web content mining. Journal of Retailing and Consumer Services, 61, 102588.

Cite This Article

Plain Text BibTeX RIS

APA Style

Francis Osei, Gloria Ampomah, Collins Kankam-Kwarteng, Daniel Opoku Bediako, Reagan Mensah. (2021). Customer Satisfaction Analysis of Banks: The Role of Market Segmentation. Science Journal of Business and Management, 9(2), 126-138. https://doi.org/10.11648/j.sjbm.20210902.19

Copy | Download

ACS Style

Francis Osei; Gloria Ampomah; Collins Kankam-Kwarteng; Daniel Opoku Bediako; Reagan Mensah. Customer Satisfaction Analysis of Banks: The Role of Market Segmentation. Sci. J. Bus. Manag. 2021, 9(2), 126-138. doi: 10.11648/j.sjbm.20210902.19

Copy | Download

AMA Style

Francis Osei, Gloria Ampomah, Collins Kankam-Kwarteng, Daniel Opoku Bediako, Reagan Mensah. Customer Satisfaction Analysis of Banks: The Role of Market Segmentation. Sci J Bus Manag. 2021;9(2):126-138. doi: 10.11648/j.sjbm.20210902.19

Copy | Download

@article{10.11648/j.sjbm.20210902.19,
  author = {Francis Osei and Gloria Ampomah and Collins Kankam-Kwarteng and Daniel Opoku Bediako and Reagan Mensah},
  title = {Customer Satisfaction Analysis of Banks: The Role of Market Segmentation},
  journal = {Science Journal of Business and Management},
  volume = {9},
  number = {2},
  pages = {126-138},
  doi = {10.11648/j.sjbm.20210902.19},
  url = {https://doi.org/10.11648/j.sjbm.20210902.19},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20210902.19},
  abstract = {In today’s competitive banking industry, market segmentation as a serious strategic alternative is very important if players in the banking industry are to achieve customer satisfaction which can influence customer loyalty and profitability. In the study of Ghana Commercial Bank, the investigation focused on how market segmentation has affected customer satisfaction in the Ghana banking industry. The study evaluates the effects of market segmentation on customer satisfaction in the banking industry in Ghana. To achieve the purpose of the study a descriptive research design was adopted. The target population was 200 respondents from five banks (branch) in Kumasi metropolis in Ghana. The primary source of data and secondary source of data was utilized in the entirety of the study. Data collected were analyzed using the Statistical Package for Social Scientists (SPSS) and Smart PLS software. The results proved that there was a positive relationship between geographical segmentation, demographic segmentation, behavioral segmentation on customer satisfaction. The nature of behavioral segmentation provides the opportunity for real-time communication across a wide range of marketing channels including direct mail, email, point-of-sale devices, and mobile channels as well as personal contact at the branch or call center level. The downside of using behavioral data as a marketing driver is that it does require detailed, in-depth data sets, models, and market testing. Also, prices, distribution, and advertising can all be tailored to control variables that are problematic for customers, because today's customers demand simple, convenient, flexible, and timely products and services. The recommendations are intended to represent as a framework for banking industries as they try to provide improved service to their customers.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Customer Satisfaction Analysis of Banks: The Role of Market Segmentation
AU  - Francis Osei
AU  - Gloria Ampomah
AU  - Collins Kankam-Kwarteng
AU  - Daniel Opoku Bediako
AU  - Reagan Mensah
Y1  - 2021/06/30
PY  - 2021
N1  - https://doi.org/10.11648/j.sjbm.20210902.19
DO  - 10.11648/j.sjbm.20210902.19
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 126
EP  - 138
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20210902.19
AB  - In today’s competitive banking industry, market segmentation as a serious strategic alternative is very important if players in the banking industry are to achieve customer satisfaction which can influence customer loyalty and profitability. In the study of Ghana Commercial Bank, the investigation focused on how market segmentation has affected customer satisfaction in the Ghana banking industry. The study evaluates the effects of market segmentation on customer satisfaction in the banking industry in Ghana. To achieve the purpose of the study a descriptive research design was adopted. The target population was 200 respondents from five banks (branch) in Kumasi metropolis in Ghana. The primary source of data and secondary source of data was utilized in the entirety of the study. Data collected were analyzed using the Statistical Package for Social Scientists (SPSS) and Smart PLS software. The results proved that there was a positive relationship between geographical segmentation, demographic segmentation, behavioral segmentation on customer satisfaction. The nature of behavioral segmentation provides the opportunity for real-time communication across a wide range of marketing channels including direct mail, email, point-of-sale devices, and mobile channels as well as personal contact at the branch or call center level. The downside of using behavioral data as a marketing driver is that it does require detailed, in-depth data sets, models, and market testing. Also, prices, distribution, and advertising can all be tailored to control variables that are problematic for customers, because today's customers demand simple, convenient, flexible, and timely products and services. The recommendations are intended to represent as a framework for banking industries as they try to provide improved service to their customers.
VL  - 9
IS  - 2
ER  -

Copy | Download

Author Information

Francis Osei

Department of Marketing, School of Business, Kumasi Technical University, Kumasi, Ghana
Gloria Ampomah

Department of Revenue, Afigya Kwabre North District Assembly, Kumasi, Ghana
Collins Kankam-Kwarteng

Department of Marketing, School of Business, Kumasi Technical University, Kumasi, Ghana
Daniel Opoku Bediako

Department of Commercial, L’oreal West Africa, Takoradi, Ghana
Reagan Mensah

Department of Cocoa Health and Extension Division, Ghana cocoa Board, Nyinahin, Ghana

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Francis Osei, Gloria Ampomah, Collins Kankam-Kwarteng, Daniel Opoku Bediako, Reagan Mensah. (2021). Customer Satisfaction Analysis of Banks: The Role of Market Segmentation. Science Journal of Business and Management, 9(2), 126-138. https://doi.org/10.11648/j.sjbm.20210902.19

Copy | Download

ACS Style

Francis Osei; Gloria Ampomah; Collins Kankam-Kwarteng; Daniel Opoku Bediako; Reagan Mensah. Customer Satisfaction Analysis of Banks: The Role of Market Segmentation. Sci. J. Bus. Manag. 2021, 9(2), 126-138. doi: 10.11648/j.sjbm.20210902.19

Copy | Download

AMA Style

Francis Osei, Gloria Ampomah, Collins Kankam-Kwarteng, Daniel Opoku Bediako, Reagan Mensah. Customer Satisfaction Analysis of Banks: The Role of Market Segmentation. Sci J Bus Manag. 2021;9(2):126-138. doi: 10.11648/j.sjbm.20210902.19

Copy | Download

@article{10.11648/j.sjbm.20210902.19,
  author = {Francis Osei and Gloria Ampomah and Collins Kankam-Kwarteng and Daniel Opoku Bediako and Reagan Mensah},
  title = {Customer Satisfaction Analysis of Banks: The Role of Market Segmentation},
  journal = {Science Journal of Business and Management},
  volume = {9},
  number = {2},
  pages = {126-138},
  doi = {10.11648/j.sjbm.20210902.19},
  url = {https://doi.org/10.11648/j.sjbm.20210902.19},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20210902.19},
  abstract = {In today’s competitive banking industry, market segmentation as a serious strategic alternative is very important if players in the banking industry are to achieve customer satisfaction which can influence customer loyalty and profitability. In the study of Ghana Commercial Bank, the investigation focused on how market segmentation has affected customer satisfaction in the Ghana banking industry. The study evaluates the effects of market segmentation on customer satisfaction in the banking industry in Ghana. To achieve the purpose of the study a descriptive research design was adopted. The target population was 200 respondents from five banks (branch) in Kumasi metropolis in Ghana. The primary source of data and secondary source of data was utilized in the entirety of the study. Data collected were analyzed using the Statistical Package for Social Scientists (SPSS) and Smart PLS software. The results proved that there was a positive relationship between geographical segmentation, demographic segmentation, behavioral segmentation on customer satisfaction. The nature of behavioral segmentation provides the opportunity for real-time communication across a wide range of marketing channels including direct mail, email, point-of-sale devices, and mobile channels as well as personal contact at the branch or call center level. The downside of using behavioral data as a marketing driver is that it does require detailed, in-depth data sets, models, and market testing. Also, prices, distribution, and advertising can all be tailored to control variables that are problematic for customers, because today's customers demand simple, convenient, flexible, and timely products and services. The recommendations are intended to represent as a framework for banking industries as they try to provide improved service to their customers.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Customer Satisfaction Analysis of Banks: The Role of Market Segmentation
AU  - Francis Osei
AU  - Gloria Ampomah
AU  - Collins Kankam-Kwarteng
AU  - Daniel Opoku Bediako
AU  - Reagan Mensah
Y1  - 2021/06/30
PY  - 2021
N1  - https://doi.org/10.11648/j.sjbm.20210902.19
DO  - 10.11648/j.sjbm.20210902.19
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 126
EP  - 138
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20210902.19
AB  - In today’s competitive banking industry, market segmentation as a serious strategic alternative is very important if players in the banking industry are to achieve customer satisfaction which can influence customer loyalty and profitability. In the study of Ghana Commercial Bank, the investigation focused on how market segmentation has affected customer satisfaction in the Ghana banking industry. The study evaluates the effects of market segmentation on customer satisfaction in the banking industry in Ghana. To achieve the purpose of the study a descriptive research design was adopted. The target population was 200 respondents from five banks (branch) in Kumasi metropolis in Ghana. The primary source of data and secondary source of data was utilized in the entirety of the study. Data collected were analyzed using the Statistical Package for Social Scientists (SPSS) and Smart PLS software. The results proved that there was a positive relationship between geographical segmentation, demographic segmentation, behavioral segmentation on customer satisfaction. The nature of behavioral segmentation provides the opportunity for real-time communication across a wide range of marketing channels including direct mail, email, point-of-sale devices, and mobile channels as well as personal contact at the branch or call center level. The downside of using behavioral data as a marketing driver is that it does require detailed, in-depth data sets, models, and market testing. Also, prices, distribution, and advertising can all be tailored to control variables that are problematic for customers, because today's customers demand simple, convenient, flexible, and timely products and services. The recommendations are intended to represent as a framework for banking industries as they try to provide improved service to their customers.
VL  - 9
IS  - 2
ER  -

Copy | Download