JURNAL OF SEGMENTATION AND CUSTOMER STATIFICATION

“Market Segmentation and Its Impact on Customer Satisfaction with Especial Reference to Commercial Bank of Ceylon PLC”

Puwanenthiren Premkanth

Abstract - In this competitive commercial world, an organization has to satisfy the needs and wants of the customers, and has to attract new customers, and hence enhance their business. Customer value is considered as a control element for all business strategies. Therefore, every organization has to emphasize on customer satisfaction. As far as the banks are concerned this phenomenon is very prominent .To carry out this research, defined the Hypotheses as “The Market Segmentation highly positive impact on customer Satisfaction”. The Customer satisfaction with Market Segment has higher positive correlation 0.726. This means that high level of four market segment leads to highly increase in the customer satisfaction. This Co-efficient of determination 0.526 that the customer satisfaction in accounted for by market segment. In this connection hypothesis is accepted.That is market segments and marketing mix has strong impact on customer satisfaction. Keywords : Market Segmentation, Customer Satisfaction, Commercial bank.

1.       INTRODUCTION

Having multi perspective on a concept is a power full source to capitalize the knowledge on a particular concept. According to that the concept of market segmentation will be illustrated in the following manner. “Market segmentation is no accident, but a result of careful planning and execution.” Through above phrase we can smell an initial idea about what is meant by the term Market segmentation. There are so much of strategies and techniques are available for an entrepreneur to segment the market. But this research concentrates on how to tune the market segmentation in ensuring achieving the efficient customer satisfaction. So that research topic falls into marketing field. In growing competitive world marketing plays a vital role in every business firm. Any firms in any industry realized that marketing management is an essential part in their business success. A well prepared counter argument is also believed by lot expert against to previous one. Marketing is not a magic tool which means a firm which produces worst goods can’t become as a market leader by using effective market segmetation. The firstrequirement for market segmentation is particular product or service should read the consumers’ pulse then meeting or exceeding the consumer expectation, then only marketing may play any role in market segmentation.

2.       LITERATURE REVIEW

The paper of W. Boyd et al. (1994) the results of the study reveal that reputation, interest charged on loans, and interest on savings accounts are viewed as having more importance than other criteria such as friendliness of employees, modern facilities, and drivein-service. A study by Clarkson et al. (1990), suggests that the characteristics and financial service requirements of consumers vary with age, and that these differences could be used in developing marketing strategies for such services. Marla Royne Stafford (1996) stated that demographics continue to be one of the most popular and well-accepted bases for segmenting markets and customers. Even if others types of segmentation variables are used a marketer must know and understand demographics to assess the size, reach and efficiency of the market. The general conclusion of this study is that there is a significant relationship between demographics characteristics the service quality perception. However, for income the test statistic was not significant. The psychographic segmentation, in the literature, has been extensively researched. For example Beckett et al. (2000) presents and develops a model through which attends to articulate and classify consumer behaviour in the purchasing a range of financial products and services. Using and placing the two principal factors that motivate and determine individual contracting choices, namely involvement and uncertainty, on to a simple continuum running from high to low it is possible to construct a two-dimensional matrix of consumer behavior. Harrison (1994) concludes that the traditional segmentation variables of age, stage in the family life H cycle and social class have provided little insight into the financial services customer behavior. In order to take full advantage of the factors which could affect take-up and usage of financial services, Harrison develops a multidimensional model. The analysis has suggested four customer segments for financial services on the basis of customers’ own perceived knowledge, confidence and interest in financial maturity, defined by the type and complexity of financial services currently in use. Each of the four segments is distinct in terms of the financial objectives exhibited, motivations for financial services usages and attitudes and behaviour towards financial services. Machauer and Morgner (2001) prefer segmentation by expected benefits and attitudes could enhance a bank’s ability to address the conflict between individual service and cost-saving standardization. Using cluster analysis, segments were formed based on combinations of customer ratings for different attitudinal dimensions and benefits of bank services. The clusters generated in this way were superior in their homogeneity and profile to customer segments gained by referring to demographic differences. Booms and Bitner (1981) suggested 7Ps mix which extended the traditional 4Ps which including 3Ps: Participants, Physical Evidence and process. The 7Ps of marketing mix have been conducted by some researchers in marketing fields (e.g., Low and Tan, 1995; Pheng and Ming, 1997; Melewar and saunder, 2000). Nagar and Rajan (2005) studied the impact of satisfaction and other operational factors utilizing crosssectional data on US retail banks. Despite its importance to the banking industry, limited researches that consider customer requirements and service elements together have been conducted even though considerable researches have been done on service sector (Bolton and Drew, 1991; Parasuraman et al., 1988). Garwin (1988) did a research that considers customer requirements and service product quality separately. A number of models and views have been developed to identify the determinants of retail customer satisfaction in banking industry. Kearsley (1985) in his article discussed the types and uses of computerbased training (CBT) in bank training to achieve better customer satisfaction. Rust and Zahorik (1993) provided a mathematical framework for assessing the value of customer satisfaction. The framework enables managers to determine which customer satisfaction elements have the greatest impact, and how much money should be spent to improve particular customer satisfaction elements. They demonstrated the application of theirapproach in a pilot study of a retail banking market. Athanassopoulos (2000) performed a complete survey on customer satisfaction in retail banking services in Greece. The study proposed an instrument of customer satisfaction that contains service quality and other attributes. The performance implications of the customer satisfaction instrument are also explored. Manrai L. A. and Manrai A. K. (2007) developed and tested some hypotheses regarding the between customer satisfaction and bank service switching behavior as it is mediated by the importance of a particular bank service to a particular customer and by the nature of competitive offerings for different types of banking services available from other banks. Gil et al. (2007), in their research exhibited that services encountered directly and significantly affect perceived service value which is the final antecedent to customer satisfaction in banking industry. In the call center industry the empirical research for SERVQUAL model appears to be scarce. Warrenet.al. (2002) conducted a research to assess a case call center using SERVQUAL model. They found that as a customer never comes into contact with the physical appearance of a call center, the area covered by the tangibles criteria does not apply. Via the telephone, the only dimension of “tangible” contact is customer service representative’s (CSR) voice, which is extremely important in any encounter with a customer through telephone. It is not possible for the customer to evaluate the service level but the customer has to interact with other criteria. Responsiveness, reliability, assurance and empathy are all transmitted by CSR’s voice and are dependent on CSR’s communication skills In another research, Upal M. (2008)30 applied SERVQUAL approach in evaluating customer satisfaction in telecommunication industry in Bangladesh. The traditional SERVQUAL five dimension model was adjusted into four dimension model. These dimensions are responsiveness, assurance, communication and discipline. The research showed that call center agents are vital to the success of any call center. Satisfied employees reinforce customer satisfaction, which in turn reinforced employee satisfaction. In addition to that, customers’ education in the service delivery process contributes to their satisfaction. Managerial orientation also is one of the major forces that drive customer satisfaction. Beckett et al. (2000) draw tentative conclusions as to why consumers appear to remain loyal to the same financial provider, even though in many instances they hold less favourable views toward these service providers. For example, many consumers appear to perceive little differentiation between financial providers, making any change essentially worthless. Secondly, consumers appear to be motivated by convenience or inertia. Finally, consumers associate changing banks with high switching costs in terms of the potential sacrifice and effort involved. Market segmentation and customer satisfaction have been largely affected by banks’ massive involvement in technological banking activities (Keeton, 2001). De Young (1999) found that some consumers willing to pay high service charge since they are receiving e-banking services at the next foot step, however, some people still want to see banks are reducing fees/ charges where they believe in personalized attention instead of large technological investment, which may increase cost Studies on satisfaction of the customers in financial service sectors have been well known among the academicians since the mid of 80s’. Parasuraman et al. (1988) opened a new window of research in service quality by establishing SERVQUAL model. Their model has been replicated in many countries with multidimensional sectors, and found close to a big success. Since, customer satisfaction has close relationship with customer retention especially in markets that are highly competitive and saturated like financial services (Lopez et al. 2007); it is necessary to continuously monitor changes in satisfaction among different segments of customers.

3.       OBJECTIVES

This research is conducted with the intention of following objectives. · To evaluate how far bank follow the concept of market segmentation · To analysis the market segmentation in Commercial Bank of Ceylon Plc · To analyze what are they relationship between market segmentation & market mix and customer satisfaction in Commercial Bank of Ceylon Plc.

4.       HYPOTESESS

All activities of Commercial Bank of Ceylon Plc are Mainly providing services to its customers and by this it try to earn profit. This research work based on the servuices provided by the Commercial Bank Ceylon Plc. So, Hypothesis of any research spells that

H1 : The Market Segmentation highly positive impact on customer Satisfaction

5.       METHODOLOGY

To produce the above mentioned research objective, the data for this study was gathered from the Size of the sample is a one of the important determinants in measuring validity of the research customer satisfaction started warily came in the study done by Snow et al. (1996). This study concluded that there were clear differences in the service’s expectations for retail banks in Canada among different ethnic groups. Research continues with Furrer et al. (2000), which reported relationship between segmented customers based on cultural background and their satisfaction. They also developed a Cultural Service Quality Index (CSQI) and established multicultural market segmentation.

6.       RESULTS AND DISCUSSION

a)      Customers Ideas about Commercial Bank of Celon Pl’s Market Segmentation.

According to the below tabulation 3% of Customers agree that the Commercial Bank’s Segmentation is poor (Low). Majority of Customers (82%) say that the Segmentation is effective in the Banking industry. But 15% of Customers argue that the Bank’s segmentation is in the Good category.

b)      Customers Pulse about Commercial Bank of Ceylon Plc

 According to the below tabulation 2%  of Customers satisfy that the Commercial Bank’s Services

c)       Market Segmentation Vs Customer Satisfaction

According to the below tabulation 2 Customers agree that the Poor Segmentation leads to poor Customer satisfaction and 1 customer argue that the Poor Segmentation result to moderate level Customer satisfaction. Leven Customers say Good Segmentation leads to Moderate Customer’s Pulse and 4 customers highly satisfied with good segmentation. But 70 customers highly satisfied with effective Market Segmentation and only 12 customers moderately satisfied with effective Market segmentation.

d)      Under this below part Analysis- Correlation, Regression, Correlation Co efficiencies, ANOVA test and presentation of Scatter PLOT.

REFERENCESS

1. Baker, W.E. And Sinkula, J.M. (1999) “The Synergistic Effect Of Market Orientation And Learning Orientation On Organizational Performance”, Journal Of Academy Of Marketing Science, Vol. 27.

2. Phillip Kotler Marketing Management 11th edition.(India Pearson Education Inc 2003)

3. Schreiber, A.L. and Lenson, B. 2001. Multicultural Marketing: Selling to the New America, IL: NTC Business Books.

4. Skinner, T.J. and Hunter, D. 1997. “Developing Suitable Designators for a Multicultural Society”, Statistical Journal of the UN Economic Commission for Europe, 14 (3), pp. 217-228.

 5. The Australian. 2002. “McDonald’s Meets Religious Needs”, Multicultural Marketing Awards—A Special Advertising Report, 14 November 2002, p. 24.

6. Wainwright, R. 1996. “No. 4: Address the Chinese Avoid”, The Sydney Morning Herald, 14 March 1996, p. 3.

7. Wilkinson, I. and Cheng, C. 1999. “Multicultural Marketing in Australia: Synergy in Diversity”, Journal of International Marketing, 7(3), pp. 106-125.

8. Wilkinson, I. and Cheng, C. 2003. “Multicultural Marketing”, in Rugimbana, R. and Nwankwo, S. (Eds.), Cross-Cultural Marketing, South Melbourne: Thomson.

9. Zenthimal V (1988) “Customer perception of price quality and value a means end model journal of marketing vol 2, pp 2-22

Latar belakang Segmentasi dan kepuasan konsumen

Memiliki multi-perspektif tentang sebuah konsep adalah kekuatan sumber penuh untuk memanfaatkan pengetahuan pada konsep tertentu. Menurut bahwa konsep pasar segmentasi akan digambarkan berikut ini cara. "Segmentasi pasar adalah kebetulan, tapi hasil perencanaan yang matang dan eksekusi. " Melalui kalimat di atas kita dapat mencium awal Ide tentang apa yang dimaksud dengan istilah Market segmentasi. Ada begitu banyak strategi dan teknik yang tersedia untuk pengusaha untuk segmen pasar. Tetapi penelitian ini berkonsentrasi pada bagaimana tune segmentasi pasar dalam memastikan pencapaian kepuasan pelanggan efisien. Sehingga topik penelitian jatuh ke lapangan pemasaran. Dalam pemasaran dunia yang kompetitif berkembang memainkan peran penting di setiap perusahaan bisnis. Setiap perusahaan dalam industri apapun menyadari bahwa manajemen pemasaran merupakan bagian penting dalam mereka keberhasilan bisnis. Argumen kontra siap adalah juga diyakini oleh ahli banyak terhadap satu sebelumnya. Pemasaran bukan alat sulap yang berarti suatu perusahaan yang memproduksi barang terburuk tidak bisa menjadi sebagai pemimpin pasar dengan menggunakan segmetation pasar yang efektif. The firstrequirement untuk segmentasi pasar adalah particula produk atau jasa harus membaca pulsa konsumen kemudian memenuhi atau melampaui harapan konsumen, maka hanya pemasaran mungkin memainkan peran dalam pasar segmentasi.

Metode Segmentasi dan kepuasan konsumen

Untuk menghasilkan penelitian yang disebutkan di atas obyektif, data untuk penelitian ini dikumpulkan dari Ukuran sampel adalah salah satu yang penting penentu dalam mengukur validitas kepuasan pelanggan penelitian mulai waspada datang dalam penelitian ini dilakukan oleh Snow et al. (1996). Penelitian ini menyimpulkan bahwa ada perbedaan yang jelas dalam harapan layanan ini bagi bank ritel di Kanada antara berbagai etnis kelompok. Penelitian berlanjut dengan Furrer dkk. (2000), yang melaporkan hubungan antara tersegmentasi pelanggan berdasarkan latar belakang budaya dan mereka kepuasan. Mereka juga mengembangkan layanan Budaya Kualitas Index (CSQI) dan didirikan multikultural segmentasi pasar.

Kesimpulan Segmentasi dan kepuasan konsumen

a) Argumen pada membuktikan hipotesis

Berdasarkan argumen ini hipotesis yang diajukan adalah terbukti oleh peneliti dengan menggunakan data primer Peneliti dikumpulkan selama proses Metodologi. Empat Segmentasi Pasar campuran yang dimanfaatkan oleh Bank komersial Sri Lanka PLC untuk menyerang Pelanggan dalam cara yang efisien dengan maksud menangkap posisi pemimpin pasar dalam waktu dekat atau di jangka panjang disajikan untuk membuktikan hipotesis pelajaran ini. Mereka Pemasaran campuran diilustrasikan dalam cara seperti yang disebutkan dalam masalah penelitian. Pertama dari semua peneliti menganggap bauran pemasaran untuk mendukung argumennya pada membuktikan hipotesis.

Opsi pertama Marketing Mix adalah "harga": ketua Nike mengatakan "bisnis adalah perang tanpa kehilangan darah ", di bahwa harga perang adalah salah satu senjata populer dalam pemasaran karena merupakan satu-satunya bauran pemasaran lebih mudah untuk mengubah dari yang lain pada saat yang sama waktu itu adalah senjata yang baik untuk menarik pelanggan dengan mudah mendukung produk atau jasa tertentu.

b) Situs Peneliti pada Segmentasi Pasar dan

Kepuasan pelanggan Commercial Bank Sri Lanka PLC yang berjalan di Industri Perbankan mereka dapat disebut sebagai Top Perusahaan di Bank. Istilah "Top Firm" dapat ditafsirkan berarti istilah penuh dengan cara sebagai berikut, Sebuah perusahaan yang memiliki pangsa pasar tertinggi dalam industri tertentu dapat ditujukan sebagai Top Firm dari industri tertentu. Di bawah ini ide porsi Kepuasan Pelanggan pada pembentukan Segmentasi pasar dalam industri di kepentingan posisi pasar dengan tuning kelas yang berbeda dari pemasaran Mix disajikan dengan jelas. Berikut terpilih Bank disarankan Segmentasi Pasar yang tepat strategis dan Pemasaran mix yang digunakan oleh mereka di Pasar Jaffna mereka untuk menyerang Pelanggan dalam cara yang efisien dengan niat menangkap posisi pemimpin pasar di dekat masa depan dan atau jangka panjang. Model mereka disajikan dalam cara seperti yang disebutkan dalam masalah penelitian. Dari Mix, salah satu adalah Harga adalah variabel utama, sisa campuran adalah promosi tempat, produk.

c. Rekomendasi untuk Mengembangkan Pelanggan

Kepuasan Setelah pengujian hipotesis perlu memberikan rekomendasi untuk meningkatkan kepuasan dan mengelola segmen pasar dan bauran pemasaran berikut adalah beberapa rekomendasi untuk meningkatkan pelanggan kepuasan.