marketing journal europe

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Journal of Marketing and Consumer Research www.iiste.org

ISSN 2422-84! "n International #eer-re$iewed Journal

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Market Segmentation by Commercial Banks in Kenya

(r. )rancis *fun+a "fande& #h(.& )CIM ,/

(edan imathi ni$ersit+ of 0echnolog+& #.*. 1o 3& !'!''& N+eri en+a

Abstract0he current stud+ has eamined the market segmentation 5ractices of the commercial 6anks in en+a 6+

commercial 6anks in en+a. 0he stud+ was guided 6+ the following s5ecific o67ecti$es to anal+9e the etent to

which market segmentation strateg+ is used in ser$ice 5ro$ision 6+ the commercial 6anks in en+a: to assess the

factors that influence market segmentation 6+ commercial 6anks in en+a: and to e$aluate challenges to

effecti$e im5lementation of market segmentation. " descri5ti$e design was used to undertake the current stud+.

In this case& it was 5ossi6le for the researcher to administer the data collection tools to the res5ondents in their

workstations& which was relati$el+ eas+& with high likelihood of increasing the res5onse rate. 0he 5o5ulation of

interest in this stud+ was all the commercial 6anks in en+a. "ccording to the Central 1ank of en+a re5ort as

at ;'th

June 2''8& there were 42 commercial 6anks in en+a. " census was considered for the stud+ owing to the

fact the all the commercial 6anks ha$e their offices strategicall+ located within the Nairo6i Central 1usiness

(istrict and its en$irons. 0he stud+ res5ondents from each of the 6anks were the heads of 6usiness de$elo5ment

or their e


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6eha$iour into segments& so that each segment can 6e reached with a distinct marketing 5rogramme. 0he conce5t

attem5ts to 6ridge the ga5 6etween di$erse customer needs and limited com5an+ resources& 6+ encouraging

distinct 5roduct and marketing offerings to 6e de$elo5ed to suit the re


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sector which make it difficult to generali9e a6out the im5lementation 5ro6lems.

"cademic research in the financial ser$ices sector& as in other industries& has sought to identif+

a55ro5riate segmentation a55roaches. )or eam5le& S5eed B Smith ,!2/& who ha$e undertaken a re$iew of

financial ser$ices segmentation& suggest that a 5riori segmentation& which charges the researcher with

determining the si9e and character of segments ,reen& !/ is the most widel+ used a55roach. 0he use of

demogra5hic $aria6les& such as age and social class& are es5eciall+ 5o5ular ,for eam5le& 1urnett B Dilkes&!8: Mathews B Slocum& !3: orke and Fa+es& !82/. #ost hoc segmentation is less widel+ used. 0his

entails the grou5ing of res5ondents according to their res5onses to 5articular $aria6les. Multi$ariate techni


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arri$ing at segments which are measura6le& accessi6le& su6stantial& actiona6le and differentia6le. otler et al.

refers to a measura6le segment as one where the si9e of the segment and the related 5urchasing 5ower can 6e

sslemont ,!3/ ha$e argued that at an intuiti$e le$el& market segmentation a55ears

worthwhile in terms of increasing sales and re$enue. )or eam5le& $endors of +acht fittings would a55ear to

increase their chances of making sales if the+ target +acht owners rather than a 6road market that has not 6een

segmented. Fowe$er& market segmentation strategies go 6e+ond such clearl+ rational 7udgments aiming to gain a

com5etiti$e ad$antage 6+ identif+ing and ser$ing the needs of customers more effecti$el+ than com5etitors.

Com5le segmentation eercises use a wide num6er of consumer $aria6les as the 6asis for segmenting marketsand then ado5t so5histicated statistical anal+sis to grou5 customers together 6ased on these $aria6les. 0he

dilemma facing such segmentation studies is how to actuall+ segment the market from a m+riad of 5ossi6le

a55roaches and how to choose the statistical techni


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include a reduction in com5etiti$e ri$alr+& 5ricing sta6ilit+& 5rotection against su6stitution and an o55ortunit+ to

6uild differentiation.

0he credi6ilit+ attached to a market segmentation strateg+ is 5redicated u5on two ke+ assum5tions ,!/

consumers can 6e grou5ed into segments that dis5la+ homogeneous 5references relati$e to other segments: and

,2/ returns are likel+ to 6e greater if com5anies match their 5roducts and marketing mies to 5articular segments

within the market ,reen and rieger& !!/. *wing to the increasing $ariet+ of consumer 5roducts a$aila6le onthe market& $ariations in demogra5hic characteristics and the growing num6er of ad$ertising media& man+

organi9ations ha$e acce5ted such assum5tions and used segmentation as a method of categori9ing consumers

into discrete and managea6le classifications ,1ickert& !/.

0here are two ma7or t+5es of segmentation. " 5riori segmentation is 6ased on the identification of

6road 6ased easil+ identifia6le segments that are classed at the macro le$el. 0he o67ecti$e of using this a55roach

is to disaggregate a large market into a series of su6-grou5s ,Rao B Dang& !/. Dhile categories such as age&

gender& geogra5hic location and account si9e are widel+ used to formulate segmentation strategies& Farrison

,!4/ notes the limitations of using such criteria. )or eam5le& the t+5e and num6er of the segments aredetermined 6+ the researcher inde5endentl+ of the data collected with no 5resumed link 6etween the segment

and the 6eha$iour of the indi$iduals within it. 0he second a55roach to segmentation aggregates indi$iduals into

grou5s 6ased on manageriall+ rele$ant Gmicro-segmentsH ,Rao and Dang& !/. 0he o67ecti$e here is to cluster

indi$idual customers into homogeneous grou5s 6ased on their res5onses to attitudinal or 6eha$ioural data ,Doo&

!8/.Dhile acknowledging the alternati$e a55roaches to segmentation& otler ,!!/ maintains that to 6e

successful a segment has to meet four criteria ,i/ it has to 6e measura6le& i.e. the si9e and the 5urchasing 5ower

of each segment need to 6e arl+ a55roaches to segmentation


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included the use of demogra5hic& geogra5hic and 6eha$ioral characteristics of consumers ,1latt6erg et al.,!3/.

Fowe$er& there is e$idence of changing consumer 6eha$ior within contem5orar+ affluent societies& including an

increased em5hasis on the 5ersonali9ation of consumer 6eha$ior 5atterns& which are not well e5lained 6+ socio-

demogra5hic and economic criteria ,on9ale9 B 1ello& 2''2/. 0here has therefore& 6een a growing em5hasis in

marketing on the human 6eha$ioral sciences which has led to segmentation a55roaches seeking to measure less

tangi6le consumer characteristics such as lifest+le& 5ersonalit+& image and 6enefits ,"l5ert& !2: M+ers& !3:Sirg+& !82/.

0he earlier work of Dind ,!8/ argued that the selection of $aria6les to form the 6asis of a

segmentation model needs to relate to s5ecific management o67ecti$es and 6e informed 6+ the current state of

knowledge concerning the rele$ance of marketing and consumer 6eha$ior $aria6les as 6ases for& and descri5tors

of& market segments. Dind=s t+5olog+ shows a strong 5reference for what has 6ecome known as Kthe 6enefit

sought a55roach=. 0he 6enefit segmentation a55roach is 6ased u5on the 6elief that it is 5ossi6le to measure

consumer $alue s+stems in detail& together with consumer thoughts a6out $arious 6rands in the 5roduct categor+

of interest ,Fale+& !38/. rou5ing customers 6ased on the 6enefits sought from consum5tion will lead tomulti5le segments each with a num6er of 6enefits sought. Some 6enefits will a55ear in multi5le segments. It is

howe$er& the total configuration of 6enefits sought which differentiates one segment from another. Indeed Fale+

,!38/ argues it is likel+ all segments will seek multi5le 6enefits. It is the relati$e im5ortance each segment

assigns to a 5articular 6enefit that is likel+ to show differentiation 6etween segments. " summar+ of the main

a55roaches to market segmentation within marketing and consumer 6eha$ior literature are summari9ed anddiscussed 6elow

Geographical basis of segmentation: (i$iding a market 6ased on geogra5hical locations ,otler et al.,

!! ell+ and Nanker$is& 2''!/.

Demographic basis of segmentation:(i$iding a market 6ased on demogra5hic $aria6les such as age&

gender& famil+ si9e& famil+ life-c+cle& income& occu5ation& education& religion or nationalit+ ,1latt6erg et al.

!3/.

Psychographic/Lifestyle: (i$iding markets 6ased on consumer $alues& attitudes& interests& o5inions

,"l5ert& !2: )rank et al.!2 #essemier et. al,!3: @a9er& !3; #lummer& !4: ankelo$ich& !34/.

Benefits basis of segmentation:(i$iding the market into grou5s according to the different 6enefits that

consumers seek from the 5roduct or ser$ice ,Fale+ !38: M+ers& !3/.

Usage basis of segmentation: (i$iding markets 6ased on usage 5atterns such as non-user& e-user&

5otential user& first-time user& regular user& high $olume user ,0wedt& !34: oung et.al,!8/.

Loyalty basis of segmentation: (i$iding markets 6ased on 6rand lo+alt+& store lo+alt+& or 5urchase

situation lo+alt+ ,ro$er B Srini$asan& !8/.

Image basis of segmentation:(i$iding markets 6ased on the affecti$e associations relating to 6rand

image ,>$ans& ! Sirg+& !82 @eisen& 2''!/.

Situation basis of segmentation: Related to usage segmentation& situation segmentation di$ides

markets on the 6asis of the consum5tion or 5urchase situation of consumers. 0he 6eer market is segmented in

this wa+ some consumers will drink different 6rands de5ending on where and with whom the+ are drinking

,(ickson& !82/.

Behaioral basis of segmentation: (i$iding markets 6ased on consumer=s knowledge of& attitude

toward& uses for and res5onses to a 5roduct ,otler et.al.!!/.

0he 5rimar+ ad$antage of the 6enefit sought a55roach is the causal rather than descri5ti$e nature of thedata& making this a55roaches a more effecti$e tool for de$elo5ing marketing strateg+ ,oung et.al,!8: Fale+&

!38/. Fale+ ,!38/ for eam5le& argues that true market segments are 6ased on the causal relationshi5 6etween

the 6enefits sought from consum5tion and future 5urchasing 6eha$ior. )orms of segmentation including

geogra5hic& demogra5hic and 5s+chogra5hic tools 5ro$ide onl+ descri5ti$e data 6ased on Kafter the fact=

characteristics of consumers. Such a55roaches are therefore not necessaril+ seen to 6e successful 5redictors of

consumer choice ,Dind& !8: Minhas B Jaco6s& !3: 1otchsen& 0helen B #eiters& !/." ke+ ad$antage of using 6enefit segmentation is seen to arise from the fact that outcomes can then 6e

acted u5on& 5roducing segments which will react differentl+ to altered marketing mi $aria6les. 1otschen&

0helen B #ieters ,!/ argue that 6enefit segmentation has 6ecome the 5referred techni


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scale re5resenting low to high im5ortance and?or $aria6ilit+. 0he data is then anal+9ed using factor and cluster

anal+sis to identif+ 6enefit segments. Fowe$er& while 1otschen& 0helen B #ieters acknowledge that 6enefit

segmentation is a 5owerful tool for 5redicting consumer 5reference and 6eha$ior& the+ also 5oint out that man+

of the em5irical studies undertaken in this area ha$e not differentiated adesslemont& !3/. In making such decisions researchers im5licitl+ decide

how to allocate cases to segments& 5articularl+ in regard to outliers which ma+ fit e


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0he literature of market segmentation indicates that there are two schools of thought. )irstl+& the

6eha$iorall+-oriented school which is concerned with the identification and documentation of generali9a6le

differences among 6u+er grou5s. 0hese differences can lead to insights a6out the 6asic 5rocess of consumer

6eha$ior ,"ssael and Roscoe& !3: )rank et al., !2: @essing and 0ollefson& !!/. Second& the decision-

oriented school which focuses not so much on wh+ there are differences among consumers as on how these

differences can 6e e5loited to increase the 5roducti$it+ of the 6ank=s marketing 5rogrammes ,(halla BMahatoo& !3: )rank et al.,!2/. In 5ractice& these two a55roaches are not mutuall+ eclusi$e: indeed the+

o$erla5 in man+ segmentation studies. )or instances& research that aims at contri6uting to 6eha$iorist theor+ is

often moti$ated 6+ a normati$e 5ro6lem. Con$ersel+& a decision-oriented stud+ ma+ end u5 6+ contri6uting to

general knowledge a6out market segments.

Referring to the 6ank marketing literature& man+ studies ha$e 6een conducted on indi$idual customer

segmentation using 6oth the 6eha$ior and decision-oriented a55roaches ,1o+d et al.,!4: Che6at et al.,!88:

(enton B Chan& !!: a+nak et al.,!!: @aroche et al.,!83: Ruddick& !83& Stanle+ et al.& !8: 0an B

Chua& !83: a$as& !88& ue B 0om& !4-/. Similarl+& 6oth the 6eha$ioral and decision orientations would6e $er+ useful and 5roducti$e for an+ segmentation strateg+ of a 6ank=s 6usiness-customer market. In the latter

case& 6ank management should focus on differences 6etween its customers ,their selection 6eha$ior of a 6ank& or

their 5erce5tions of the ser$ice


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within the 5o5ulation ,win and @indgren& !82/. Some studies in this area use customer res5onses related to

nnis& !8/. In 5s+chogra5hic segmentation& 5ersonalit+

characteristics& $alues& 6eliefs& and lifest+le are considered ,for an earl+& 6ut still rele$ant& discussion of this

notion& see iff& !!/. In 6enefit segmentation& 5otential customers are grou5ed according to their desired or

e5ected utilit+ from consuming a 5roduct ,Fale+& !38/. 1enefit segmentation has 5ro$ed its usefulness in

consumer markets ,Fale+& !38: M+ers& !3/& in markets for industrial goods ,Moriart+ B Rei6stein& !83/ and

also in ser$ices markets ,Calantone B Saw+er& !8: Soutar B McNeil& !!/.

"


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segments& so that each segment can 6e reached with a distinct marketing 5rogramme. 0he conce5t attem5ts to

6ridge the ga5 6etween di$erse customer needs and limited com5an+ resources& 6+ encouraging distinct 5roduct

and marketing offerings to 6e de$elo5ed to suit the re


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@ifest+le segmentation di$ides the market into segments 6ased on acti$ities& interests& and o5inions

,#lummer& !4/. Fowe$er& in contrast to demogra5hics& where it is 5ossi6le to define characteristics& there are

no fied definitions for lifest+le. Moreo$er& identified lifest+le characteristics must 6e related to s5ecific 5roduct

categories if the+ are to 6e useful to marketers ,a segment identified as fashion conscious or communit+-minded

would seem not to 6e 5articularl+ rele$ant for marketing financial ser$ices/. #ersonalit+ $aria6les ha$e 6een

used in market segmentation 6+ endowing 5roducts with 6rand 5ersonalities that attem5t to corres5ond toconsumer 5ersonalities. Fowe$er& the o$erwhelming ma7orit+ of studies suggest that& if a relationshi5 6etween

5ersonalit+ and as5ects of consumer 6eha$ior eists& it is so weak that it is of little 5ractical $alue to marketers

,assar7ian B Sheffet& !!/.

0he a55roaches to market segmentation discussed so far are useful to locate and descri6e target

segments. Fowe$er& the+ suffer from the underl+ing disad$antage that all are 6ased on an e 5ost facto anal+sis

of the kinds of 5eo5le who make u5 s5ecific segments of a market. Dith these methods& we ne$er find out what

causes the segments to de$elo5& nor does 6u+ing 6eha$ior determine mem6ershi5 of a segment. De first identif+

the segments& and then look at the segment mem6ers= 6eha$ior& instead of first identif+ing a certain kind of6eha$ior& and then finding out what kind of 5eo5le are grou5ed in the segment. Clearl+& the wa+ we go a6out the

task will determine the nature and content of the segments identified& and will influence our marketing strateg+.

0he disad$antages of other methods can 6e o$ercome 6+ using 6enefit segmentation& a form of

6eha$ioral segmentation. Its 5ro5onents argue that the 6enefits that 5eo5le seek constitute the 6asic reason for

5urchase& and therefore form the 5ro5er 6asis for market segmentation ,"ssael& !: Fale+& !38/. otler ,!4/goes so far as to call it a G5owerful formH of segmentation. Marketing and ad$ertising eecuti$es constantl+attem5t to isolate the 5articular 6enefit or 6enefits that the+ should communicate to consumers& for eam5le&

Merrill @+nch=s concentration on financial securit+. Merrill @+nch=s 5ioneering Cash Management "ccount&

launched in !8 and integrating 6rokerage& credit?de6it card& and 6anking with the aid of a so5histicated

com5uter s+stem& still retained market leadershi5 in !8. nowing consumers= le$el of interest in alternati$e

6enefits is im5ortant in sha5ing& and 5erha5s changing& a com5an+=s 5roduct 5ortfolio. Moreo$er& such

knowledge is hel5ful in 5redicting the attention that will 6e 5aid to ad$ertising co5+ de$elo5ed around those

6enefits. 0hus& 6enefit segmentation can 6e used not onl+ to de$elo5 new 5roducts and re5osition or discontinue

old 5roducts& 6ut also to facilitate a two-wa+ communication 5rocess 6etween the consumers and the com5an+.

0he main strength of 6enefit segmentation is that the 6enefits sought ha$e a causal relationshi5 to

future 6eha$ior. Fowe$er& difficulties can arise in choosing the correct 6enefits to 6e em5hasi9ed and making

certain that consumers= stated moti$es are their real moti$es. )ailure to understand the 6enefits which consumers

ma+ 6e seeking can 5re$ent market success ,oung et al.,!8/. ee5ing those ca$eats in mind& our research

has centered on the task of a55l+ing 6enefit segmentation to the financial ser$ices market& using the s5ecific

eam5le of 6uilding societies.

(.6 Concl$sionCommercial 6anks in en+a toda+ face intense com5etition inside and outside the countr+. 0his in turn has

forced these 6anks to 6e more oriented towards their customers. 0he main focus of this stud+ is on the 5ercei$ed

relati$e im5ortance of ser$ices offered 6+ en+an 6anks to the needs of 6oth 5ersonal and 6usiness customers

which re5resent a large segment in the en+an 6ank market.

"s re$ealed in the re$iew of the literature& the actual determinants of 6ank selection decisions are more

likel+ to 6e a function of 6oth the 5ercei$ed im5ortance of 6ank attri6utes and the differences among commercial6anks in en+a with regard to each of these attri6utes. 0he stud+ ado5ted this 5ractical a55roach to find out the

ke+ determinant factors of 6ank selection decisions made 6+ financial ser$ices customers in en+a. 0he re$iew

findings indicate that these determinants in$ol$e si9e of 6ank assets& efficienc+ of staff& hel5 in financial

emergencies& 6ank e5erience& friendliness of staff& re5utation& communication with staff& knowledge a6out the

firm=s acti$ities& 5rom5t 5ro$ision of ser$ices& and a$aila6ilit+ of 6ranches countr+wide. Dills ,!8/ argues that

a ma7or condition for successful segmentation is that the segmentation criteria must 6e rele$ant to the 5urchasecriteria of customers. It is 5recisel+ the linking of customer grou5s with the 6enefits the+ seek that makes 6enefit

segmentation such a useful and d+namic marketing techni


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research #rocedures and data anal+sis and 5resentation.

*.( esearc& design" descri5ti$e design was used to undertake the current stud+. 0his is a scientific stud+ done to descri6e a

5henomena or an o67ect. In this case the stud+ 5henomenon was market segmentation. 0his kind of stud+

in$ol$es a rigorous research 5lanning and eecution and often in$ol$es answering research


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(emogra5hic information 5resented include 5eriod of o5eration the 6anks ha$e 6een in o5eration in en+a& 6ank

ownershi5& num6er of full time em5lo+ees and 5eriod the em5lo+ees ha$e worked in their res5ecti$e

organi9ations. (ata 5ertaining to market segmentation 6+ commercial 6anks in en+a co$ers the etent to

which market segmentation strateg+ is used in ser$ice 5ro$ision 6+ the commercial 6anks& the factors that

influence market segmentation 6+ commercial 6anks and the challenges to effecti$e im5lementation of market

segmentation 6+ commercial 6anks in en+a.

.( )ro%ile o% res'ondents and t&eir res'ecti,e organi;ations0he 5rofile of res5ondents and their res5ecti$e organi9ations is summari9ed and 5resented in ta6le 4.! 6elow.

Table .1:)ro%ile o% res'ondents and t&eir res'ecti,e organi;ations

(emogra5hic data "lternati$e res5onse #ercent Mean Standard

de$iation

#eriod of o5eration of res5ondent 6ank in

en+a

! L +ears .4

3 L !' +ears !'.

!! L ! +ears ;.8

!3 +ears and a6o$e 4. 4.2 '.8

1ank ownershi5 #redominantl+ local ,! or

more/

!.4

#redominantl+ foreign ,!

or more/

;2.4

1alanced 6etween foreign andlocal ,'?'/

!3.2 !.3! '.;

Num6er of full time em5lo+ees 23 to ' !3.

! to 2.'

3 to !'' 2.'

!'! and a6o$e ;;.; ;. !.!!

Num6er of +ears res5ondent has worked in

the current organi9ation

@ess than ! +ear .4

! to +ears !'.8

3 to !' +ears !8.

!! to ! +ears ;.8

!3 +ears and a6o$e 2.' ;.3 !.!N = 37

.* Market Segmentation by Commercial Banks in KenyaIn order to meet the first o67ecti$e of the stud+& Hto anal+9e the etent to which market segmentation strateg+ is

used in ser$ice 5ro$ision 6+ commercial 6anks in en+a&H the res5ondents were first asked to indicate the etent

to which their res5ecti$e organi9ations had used market segmentation 6+ ticking as a55ro5riate against gi$en

alternati$es. (ata was collected with the aid of a closed


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Table .*: 4tent o% $sage o% basis o% segmentation by commercial banks in Kenya

1ases of segmentation used 6+

commercial 6anks

Commercial 6anks Mean

score

Standard

de$iation)retent to which Com5etition has moti$ated market segmentation in Commercial

1anks

;.3 !.! 2

N = 37

It can 6e concluded that ado5tion of market segmentation was moti$ated 6+ changing customer

5references& technological changes and com5etition. 0hough each of the factors moti$ated ado5tion of market

segmentation& each of the factors influenced the ado5tion to a $ar+ing etent. 0he findings indicate that

technological changes are the factor that influenced the commercial 6anks most to ado5t market segmentation.

)urther the res5ondents were asked to list and 6riefl+ e5lain an+ other moti$ating factors for segmentation in

their res5ecti$e organi9ations. Multi5le res5onses were allowed. 0he res5onses are summari9ed and 5resented in

ta6le 4..

Table .2: !t&er Moti,ating %actors %or segmentation in commercial banks in Kenya

*ther moti$ating factor for segmentation Res5onse

)re


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Table .3: 4ternal c&allenges to e%%ecti,e im'lementation o% market segmentation

>ternal challenges to effecti$e im5lementation of market segmentation Mean Standard

de$iation

Ranking

#olitical factors 2.44 !.!;

0echnological changes ;.!4 !.22

@egal factors 2. !.2 3

>conomic factors ;.3 !.;2 ;

Changing customer 5references ;.8 !.' !

Customer social 6ackgrounds ;.22 !.2' 4

Religious 1ackgrounds 2.28 !.2! 8

Com5etition ;.8 !.2 2

N < *5

0he findings show that the economic factors affected market segmentation strategies of the $arious

commercial 6anks most& while the factors least affecting market segmentation 6+ commercial 6anks werereligious 6ackgrounds of the customers. )urther the res5ondents were asked to indicate the etent to which

internal factors affected im5lementation of market segmentation in their res5ecti$e 6anks. " listing of 5ossi6le

internal challenges was 5ro$ided and the res5ondents asked to tick as a55ro5riate the etent of effect along a fi$e

5oint scale. 0he data collected was anal+9ed using descri5ti$e statistics. "here:Not at all O ,!/: " little etent O,2/: Moderate etent O ,;/: reat etent O ,4/: %er+ great etent O ,/. 0he res5onses are summari9ed and

5resented in ta6le 4. 6elow.

Table .5: Internal c&allenges to im'lementation o% market segmentation

Internal challenges to effecti$e im5lementation of market segmentation Mean Standard

de$iation

Ranking

nsuita6le organi9ational structure that is not su55orti$e of market

segmentation

;.28 !.23 3

0he eisting distri6ution s+stems are not su55orti$e of market segmentation ;.3 !.2! !

0he degree to which managers understand and im5lement segmentation

conce5t is low

;.3 !.! 2

ns+stematic and ina55ro5riate grou5ing of customers ;.34 !.!' ;

@ack of to5 management su55ort for market segmentation ;.4 !.!8 4

(ifferences in 5reference and 5urchase 5atters for financial ser$ices do nota55ear to emerge along regional lines& there6+ remo$ing the usefulness of

geogra5hic segmentation

;.42 !.;'

N < *5

)urther& the res5ondents were asked to indicate an+ other challenges that their res5ecti$e challenges

organi9ations faced in im5lementation of market segmentation strateg+. Multi5le res5onses were allowed. 0he

res5onses were ca5tured& summari9ed and anal+9ed using content anal+sis. 0he res5onses are summari9ed and

5resented in ta6le 4.8 6elow.


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Table .6: !t&er c&allenges %acing im'lementation o% market segmentation strategy

*ther challenges facing im5lementation of market segmentation strateg+ Res5onse

)re


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com5etiti$e 5ressures ha$e increased and 5rofits ha$e 6een s


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%ol.!!& 2'!

;!

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#ournal of 1rael &esearch& 42& 55. 244-2'

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