- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS, ESCI
ISSN : 1738-3110
Lifestyle Segmentation: The Comparison of Islamic and Conventional Banking Customers in Indonesia
Rustiana, Elly
Hanum, Rizky Amalia
Gunawan, Wibiksono K
Abstract
Understanding customer' lifestyles important for banks because it will guide in determining marketing policies, such as services, pricing, service delivery and promotion decisions. From the customer' lifestyle, banks will know what kind of customers' attitudes, interests and opinions, so they also will understand what the costumer' needs and what services needed by them. For Islamic banks, customers understanding are important because, nowadays, the competition of the banks is not only with other Islamic banks but also with the well-established conventional banks offering Islamic products or services The aims of this research paper are to describe what factors underline the customer's lifestyle of both Islamic and conventional bank, to segment the bank customers based on their lifestyles and investigate the profile of each segments, to compare the characteristics of the segments, and to identify marketing policies based on the characteristics. The population of the study is banking customers in Indonesia, in which the researchers have used judgment sampling as sample selection. There were 186 customers of Islamic banks and 244 customers of conventional bank as respondents in this study. Statistical methods employed were exploratory factor analysis and cluster analysis. The finding of the study shows that there are twelve factor underlining the customers' lifestyle, namely: factor of fashion conscious, internet usage, sports spectator, financial and technology optimism, price sensitivity, independent, compulsive housekeeper, new brand tryer community activities, opinion leader, credit usage, and homebody. In addition, for Islamic banking, there are two market segments, namely fashionable-independent and innovative-social segment. Based on the lifestyle characteristics, the first segment has higher level in factor of fashion conscious, homebody, independent, optimism and price conscious, which is therefore called fashionable-independent segment. On the other hand, the second cluster has higher level in factor of new brand tryer, community minded, sport spectator, credit user, internet usage, opinion leader, and compulsive housekeeper, which is therefore called the innovative-social segment. Furthermore, for conventional banking, there are also two segments, namely persuasive-optimistic and sensitive-independent segment. The first segment has higher level on some factors, namely: opinion leader, optimism, internet usage rate, credit usage level, sport spectator, and new brand tryer. On the other hand, the second cluster is characterized by higher level in factor of price conscious, confidence, community minded, homebody, fashion conscious, and compulsive housekeeper. Managerial implications for the management of Islamic banks could be identified in this study as follows. Firstly, the twelve lifestyle factors of this study could be an alternative view in observe Islamic banking customers. The domination of both the fashionable conscious and the internet usage factor show that the aspects are quite instrumental in perceiving the customer' lifestyles, in which reflects the importance of these two aspects to customers. Secondly, in serving their customers, Islamic banks need to understand the customer lifestyle, in which the lifestyle segments found in this study provide a guide of how their needs were reflected. Finally, by understanding the segments and the characteristics each segment of the conventional banks, Islamic banks could adjust their marketing strategies differently from the conventional banks.
- keywords
- Islamic Banking, Lifestyle Segmentation, Bank Marketing, Indonesian Banking Customer
Reference
Aaker, J. L. (1997), “Dimensions of brand personality”, Journal of Marketing Research, 34 (3), 347-357.
Al-Ajmi, J., Hussain, H.A. & Al-Saleh, N. (2009), “Clients of conventional and Islamic Bank in Bahrain: how they choose which bank to patronize”, International Journal of Social Economics, 36 (11), 1086-1112.
Alfansi, L. & Sargeant, A. (2000), “Market segmentation in The Indonesian Banking Sector, The relationship between demographic and desired customer benefit”, International Journal of Bank Marketing, 18 (2), 64-74.
Anderson, K. & Kerr, C. (2002), Customer Relationship Management, McGraw-Hill USA,
Ansell, J., Harrison, T. & Archibald, T. (2007), “Identifying cross-selling opportunities, using lifestyle segmentation and survival analysis”, Marketing Intelligence & Planning, 25 (4), 394-410.
Bank Indonesia (2011), Statistik Perbankan Syariah : Maret 2011, Direktorat Bank Syariah,
Belch, G.E. & Belch, M.A. (2004), Advertising and Promotion: An Integrated Marketing Communication Perspective, Sixth Edition, Mc Graw Hill, USA.
Brunner, T.A. & Siegrist, M. (2011), “A consumer-oriented segmentation study in the Swiss wine market”, British Food Journal, 113 (3), 353-373.
Chernev, A., Hamilton, R. & Gal, D. (2011), “Competing for consumer identity: limits to self-expression and the perils of lifestyle branding”, Journal of Marketing, 75 (May), 66 –82.
Cooper, D. R. & Schindler, P.S. (2008), Business Research Methods, Tenth Edition, Mc. Grow Hill International Edition, USA.
De Run, E. C., Butt, M.M., Fam, K-S. & Jong, H.Y. (2010)“Attitudes towards offensive advertising: Malaysian Muslims’views”, Journal of Islamic Marketing, 1 (1), 25-36.
Du. R.Y. & Kamakura, W.A. (2006), “Household life cycle and lifestyle in United States”, Journal of Marketing Research, 43 (February), 121-132.
Hair, J. F., Anderson, R.E., Tatham, R.L. & Black, W.C. (2006), Multivariate Data Analysis, Six Edition, New Jersey, USA, Prentice-Hall International, Inc.
Hanzaee, K.H. & Aghasibeig, S. (2010), “Iranian generation Y female market segmentation”, Journal of Islamic Marketing, 1 (2), 165-176.
Haque, A., Ahmed, K. & Jahan, S.I. (2010), “Shariah observation: advertising practices of Bank Muamalat in Malaysia”, Journal of Islamic Marketing, 1 (1), 70-77.
He, Y., Zou, D. & Jin, L. (2010), “Exploiting the gold mine : a lifestyle analysis of affluent Chinese consumers”, Journal of Consumer Marketing, 27 (7), 615–628.
Kavak, B. & Gumusluoglu, L. (2009), “Segmenting food markets: the role of ethnocentrism and lifestyle in understanding purchasing intentions”, International Journal of Market Research, 49 (1), 71-94.
Kotler, P. & Armstrong, G. (2008), Principle of Marketing, Ninth Edition, Prentice Hall International Inc.
Kucukemiroglu, O. (1999), “Market segmentation by using consumer lifestyle dimensions and ethnocentrism: An empirical study”, European Journal of Marketing, 33 (5/6), 470-487.
Lee, H-J., Lim, H., Jolly, L.D. & Lee, J. (2009), “Consumer Lifestyles and adoption of high-technology products: a case of South Korea”, Journal of International Consumer Marketing, 21, 153-167.
Machauer, A. & Morgner, S. (2001), “Segmentation of bank customers by expected benefits and attitudes”, International Journal of Bank Marketing, 19 (1), 6-17.
Maixe´-Alte´s, J. C. (2010), “Competition and choice: banks and savings banks in Spain”, Journal of Management History, 16 (1), 29-43.
Malhotra, N.K. (2007) Marketing Research: An Applied Orientation, USA, New Jersey: Prentice Hall.
Minhas, R.S. & Jacobs, E.M. (1996), “Benefit segmentation by factor analysis : an improved method of targeting customers for financial services”, International Journal of Bank Marketing, 14 (3), 3-13.
Nagata, H., Sakai, K. & Kawai, T. (2007), “Public library and users’ lifestyle in a changing context”, Performance Measurement and Metrics, 8 (3), 197-221.
Naser, K., Jamal, A. & Al-Khatib, K. (1999), “Islamic banking: a study of customer satisfaction and preferences in Jordan”, International Journal of Bank Marketing, 7 (3), 135-150.
Plummer, J.T. (1974), “The concept and aplication of lifestyle segmentation”, Journal of Marketing, 38 (January), 33-37.
Rajiani, I. (2010), “Indonesian Islamic bank customer: the hero, the dupe, the snob or the social responsible?”, Proceeding 2nd International Conference, Langkawi Islamic Finance Economics (LIFE), December 13 – 15, 2010.
Rehman, A. & Shabbir, M.S. (2010), “The relationship between religiosity and new product adoption”, Journal of Islamic Marketing, 1 (1), 63-69.
Rivai, H.A., Lukviarman, N., Syafrizal, Lukman, S., Andrianus, F. & Masrizal (2011), “Indentifikasi faktor penentu keputusan konsumen dalam memilih jasa perbankan: bank syariah vs bank konvensional”, www.bi.go.id, retrieved August 5, 2011.
Sivan. A. (2003), “Has leisure got anything to do with learning? an exploratory study of the lifestyles of young people in Hongkong University”, Laisure Studies, 22,129-146.
Sutarso, Y., Mahardika, P. & Iramani, Rr. (2009), “Segmentasi nasabah perbankan Islam di Surabaya: hubungan antara manfaat dan aspek demografi”, Indonesian Journal of Banking and Finance, 1 (1),1-12.
Sutarso,Y. & Suminar, B. (2008), “The student lifestyle of higher education: the implication for managing student activities andservices”, Proceeding SEAAIR Conference, Surabaya, Indonesia.
Todd, S. & Lawson, R. (2001), “Lifestyle segmentation and museum/ gallery visiting behavior’, International Journal of Nonprofit and Voluntary Sector Marketing”, 6 (3), 269-277.
Wells, W.D. & Tigert, D.J. (1971), “Activities, interests and opinions”, Journal of Advertising Research, 11 (4), 27- 35.
Yang, K.C.C. (2004), “A comparison of attitudes towards internet advertising among lifestyle segments in Taiwan”, Journal of Marketing Communications, 10 (Sept), 195-212.
Yu, C-S. (2011), “Construction and validation of an e-lifestyle instrument”, Internet Research, 21 (3), 214 – 235.
Yu, J-P, and Yoon, N-S. (2011), “The Market Segmentation of Coffee Shops and the Difference Analysis of Consumer Behavior: A Case based on Caffe Bene”, Journal of Distribution Science, 9(4), 5-13.
Zhu, H., Wang, Q., Yan,L. & Wu, G. (2009), “Are consumers what they consume? - Linking lifestyle segmentation to product attributes: an exploratory study of the Chinese mobile phone market” Journal of Marketing Management, 25 (3-4), 295-314.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations