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Benefit Segmentation Based on Service Quality Dimensions in Retail Banking in Iran

Arjomandi, Faramarz | 2009

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 39437 (44)
  4. University: Sharif University of Technology
  5. Department: Management and Economics
  6. Advisor(s): Modarres, Abdolhamid
  7. Abstract:
  8. Banks and financial services typically focus on geographic, demographic, socio-economic, and psychological characteristics to segment the market, in spite of the fact that these are not efficient predictors of future buying behavior of customers. In the present study, benefit segmentation has been used to group retail banking customers in relation to their particular attitudes and behavior. In particular, the identification and measurement of the two major dimensions of service quality, process (how the service is delivered) and outcome (what is delivered) have been investigated to better understand of what constitutes service quality from the customer’s viewpoint. In order to derive segments, service quality attribute importance and performance measurements have been used by means of questionnaire which was developed by deep interview with customers and banking experts as well as by SERVPERF instrument. It should be noted that the questionnaires are examined through reliability test. The rationale for employing benefit segmentation to the financial services market has been discussed by factor analysis and cluster analysis. In order to find out the demographic and psychographic characteristics of segments, the cross tabulation analysis is used. Five factors with 63.3% total variance explained and five clusters are introduced. In each cluster, the factors of utmost importance are found. The first factor comprises variables pertaining to employee-customer relationship. The seconed factor includes tangible and output variables. The third and forth factors comprise e-banking and variety of services with respect to special needs of customer variables respectively. The fifth factor includes two variables; the appropiarte waiting time of customers as well as the performance rapidity of employees. Through observing the results of the both mentioned analysis and performance measurements, the ranking of service improvement for every individual segment has been done. At first the variety of services and performance rapidity of 4th segment should be improved. Moreover, tangibles variables for 5th segment should be improved. However, in this segment , no more improvement in service variety is needed
  9. Keywords:
  10. Banking ; Benefit Segmentation ; Service Quality Dimensions ; Service Process ; Service Output

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