Customer Satisfaction Analysis of Banks: The Role of Market Segmentation

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.

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