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Market segmentation in the banking industry of Iran based on customer expected benefits

Author Affiliations

  • 1Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran

Res. J. Recent Sci., Volume 10, Issue (1), Pages 8-20, January,2 (2021)

Abstract

Nowadays, analysis of customer behavior is necessary for active organizations in the field of banking that deal with many customers with different characteristics. In recent years, Iran\'s banking industry has faced many problems because of the poor customer orientation and customer service. Previous studies have focused mostly on identifying customers expected. Therefore, to solve the existing problem, the current study concentrated on customer segmentation of the banking industry of Iran based on their expected benefits. This study is applied and descriptive-survey research. To achieve the research objectives, through field studies and exploratory interviews with customers and banking experts, 165 benefits were extracted; then, by using expert questionnaires, these benefits reduced. Through factor analysis, nine factors of expected benefits and using cluster analysis, four customer segments of benefit-oriented, peace-oriented, interest-oriented, and moderate were identified. Peace-oriented customers show the highest relation with the banking industry of Iran and moderate customers have the largest population. Finally, consistent with the most important features of the segments, a suitable marketing solution was provided. For bank managers, this paper provides a view that identified customers\' preferences. Customer identification helps banks in increasing profitability because services and products that are presented in the banks should be based on a better understanding of customers.

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