Categorization of Customers’ Needs: Impact of Market Segmentation on Performance of Nigeria Banks

  • Modupe Motunrayo Fasanmi Nnamdi Azikwe University, Awka, Anambra State, Nigeria
  • Samuel Sunday Fasanmi Federal University, Gashua, Yobe State, Nigeria

Abstract

This study examines the impact of market segmentation on bank performance in Nigeria. Opinions of one hundred and eighty-four customers of Guarantee Trust Bank consisting of one hundred and three (103) males (56%) and eighty-one (81) females (44%) were accidentally sampled across five different locations in Lagos, Nigeria. Two hypotheses were generated and tested using an independent t-test. Results of the study revealed that age, occupation, gender, level of income, housing interest of the customers are suitable demographic segmentation parameters that could enhance banking effectiveness and performance in Nigeria. It was also found out that psychographic segmentation significantly impacts bank performance in Nigeria t (182) = 3.14; P < .05. Results also showed a significant impact of demographic segmentation on bank performance t (182) = 3.14; P < .05. It was recommended that Nigeria banks should make efforts to give their psychographic and demographic segmentation paradigms a human face. Like any other citizens of the developed world, Nigerians like comfort, especially when it can be bought. Since the outcome of this study has placed psychographic segmentation as a better profit spinning market strategy to gain a competitive advantage over other competitors than other segmentation synergies, putting customers first may make more sense for the bankers. Such a decision will boost customers’ loyalty and make their bank grow in cash assets.


Keywords: Bank Performance, Psychographic Segmentation, Demographic Segmentation, Customers

Published
2022-01-13
How to Cite
FASANMI, Modupe Motunrayo; FASANMI, Samuel Sunday. Categorization of Customers’ Needs: Impact of Market Segmentation on Performance of Nigeria Banks. KIU Journal of Social Sciences, [S.l.], v. 7, n. 4, p. 163-168, jan. 2022. ISSN 2519-0474. Available at: <https://ijhumas.com/ojs/index.php/kiujoss/article/view/1372>. Date accessed: 24 jan. 2022.