Market Segmentation in Kenya:a Case of Commercial Banks

Abstract

The survey for this study report here was done between 5th Hay and 21st June, 1993. The study sought to determine whether commercial banks in Kenya segment their markets. and whether they find it useful. The population of interest included all commercial banks operating in Kenya. The information sought in this study was collected using a questionnaire having a both structural and non- structured questions. A scale was provided for measure of the market segmentation concept. The sample consisted of 30 subjects comprising top and middle level managers from various commercial banks operating in Kenya. 23 questionnaires were completed and provided the information used in this report.

The findings of the study suggest that commercial banks in Kenya segment their markets to a large extent and only a few do not segment theirs. Those who segment their markets found market segmentation to be useful. The findings of the study also suggest that the following are the variables that are commonly used by different groups of commercial banks in Kenya to segment their markets; benefits sought by customer, loyalty of customer. User status. region, population density, and Income.,