Relationship between Demographic Segmentation and Customers' Patronage in Selected Banks in Lagos State

Relationship between Demographic Segmentation and Customers' Patronage in Selected Banks in Lagos State

Author by Dr. Margret Kabuoh

Journal/Publisher: International Journal Of Comparative Studies In International Relations And Development

Volume/Edition: 4

Language: English

Pages: 137 - 149

Abstract

The need to achieve optimal performance in the large market has become a  great challenge in a developing economy as Nigeria where competition is stiff in the banking sector with varieties of services positioned for customers of varied demographic variables and needs enhancing customers 'dissatisfaction. This study examined the relationship between demographic segmentation and customers' patronage in selected banks in Lagos state. The study adopted survey research design of descriptive type. The population of the research consisted of headquarters of four selected banks (First bank, Fidelity bank, Eco bank and Wema bank) with customer population of 73,800 and sample size of 1,960 was derived using Cochram formula and proportionate stratified random sampling technique. Structured questionnaire with a six point modified Likert- Scale was administered with a 73% response rate (1,425) copies of the questionnaires came correctly and were used for the study. There was instrument validation and the Crombach Alpha reliability coefficient for the construct range between 0,74- 0.85. Data generated were analysed using Pearson's Product Moment Correlation (PPMC) with the aid of IBM SPSS Statistics version 22.Generally, the results of the correlation analysis revealed that there is a relationship (i.e. both positive and negative) between demographic segmentation (DS) and customer patronage (CPTR) in the banking sector. [Age consideration (r = 0.108, at p < 0 xss=removed xss=removed xss=removed> 0.05) Income bracket (R = 0.050, at P > 0.05). Sex consideration (R = -.064, at P < 0 xss=removed xss=removed xss=removed> Keywords


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