Islamic Banking Segmentation in Indonesia

[JOURNAL OF ISLAMIC BUSINESS AND ECONOMICS] Vol.2 No.
2, 2008

ISLAMIC BANKING SEGMENTATION IN INDONESIA:

THE RELATIONSHIP BEETWEEN DEMOGRAPHIC AND
CONSUMER BENEFIT1
Rovvy Ocktora2
Department of Management, Faculty of Economics and Business, Gadjah Mada University

Indonesia
ABSTRACT
Islamic banking industry in Indonesia has developed quite rapidly in last decade. Nowadays,
the Islamic bank only used differentiation strategy in order to compete with conventional
bank, that is free of riba. To be able to compete between Islamic banks, they need to have
appropriate segmentation strategy. There are two segmentation strategy that can be use by
Islamic bank, benefit segmentation and demographic segmentation.
This research is used Wedel and Kamakura (1998) segmentation based. The demographic
segmentation is included in observable product specific based. And the benefit segmentation
is included in unobservable product specific based.
The objective of this research is to observe the relationship between demographic and benefit
of Islamic bank costumer. Before that, the desire consumer benefit must be found. Factor
analysis and cluster analysis are used to make the benefit segmentation. Then chi square test
are used to find the relationship between these two variables. This research is conducted in
Yogyakarta, Indonesia. The result is only age and occupation that have relation with the
benefit segmentation.
Keyword: segmentation, demographic segmentation, benefit segmentation, Islamic bank.

1
This paper was published in Journal of Islamic Business and Economics (JIBE), Laboratory of Islamic
Business and Economics (LIEB), Faculty of Economics and Business, Gadjah Mada University in December
2008. This paper originally in Bahasa Indonesia, and then translated into English with minor revision.
2
Researcher in Syariah Center P2EB, Faculty of Economics and Business, Gadjah Mada University. Address
correspondence to rofi.ocktora@gmail.com

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Electronic copy available at: http://ssrn.com/abstract=1729542

[JOURNAL OF ISLAMIC BUSINESS AND ECONOMICS] Vol.2 No.2, 2008

Background
The developments of Islamic banking in Indonesia are cannot be separate from the
appearance of the first Islamic bank, Bank Muamalat. This Bank Muamalat is existed
from 1991. The existence of this Islamic based bank is initiated by Majelis Ulama
Indonesia (MUI) and supported by Ikatan Cendekiawan Muslim Indonesia (ICMI).
The upcoming of Islamic bank in Indonesia actually too late if compared in other
countries in Middle East. But, the existence of Islamic bank gives an alternate choice
on Indonesian banking industry. That because Islamic banks are using profit and
loss sharing rather than the conventional banks are still using interest based.
In their first appearance, public are still skeptic with this Islamic bank. When
economic crisis strike Indonesia in 1998, a lot of national bank got the effect. So many
bank must be liquidated and merge with another bank in order to survive from high
inflation rate. But, bank Muamalat, the Islamic bank is survive from this economic
crisis. One of the reasons why these banks survive is not using interest system that
very fragile to inflation.
Some of bank practitioners are try to develop Islamic bank after they are successfully
again the crisis. Some of conventional bank started to open Islamic Banking Unit.
The government are begin to acknowledge this Islamic banking industry. In 1998,
the law no.10 year 1998 are obtained as replacement of law no.7 year 1992. With that
law, Islamic bank have a gold opportunity to grow bigger. The conventional bank
can also open a branch office with Islamic based system.
Based on Islamic banking statistic, if in year 1992-1998, there is only one Islamic
bank, and then on March 2007 there are twenty four Islamic banks. There are
consists of three Islamic Commercial Bank and twenty one Islamic Banking Unit.
Besides that, the number of Islamic Rural Bank reached 105 units in the same period.
The developments of Islamic bank can be seeing on table 1 and graphic 1.

2

Electronic copy available at: http://ssrn.com/abstract=1729542


Table1. Islamic banking share to total bank, December 2007

(Billion rupiah)
Islamic Bank Total Bank
Nominal Share
Total asset 36,539 1.84% 1,996,501
Deposit Fund 28,012 1.85% 1,501,834
Credit/Financing Extended 27,944 2.79% 1,002,012
Source: Islamic banking statistic – Bank Indonesia
Graphic1. The development number of office and deposit of Islamic bank,

January 2007 - January 2008.
Source: Islamic banking statistic – Bank Indonesia.
Watching this development of Islamic banking industry, there are good business
strategy needs to be applied. Even though Islamic banking market share is still less
than 5% from overall national bank, but the growth are increasing year by year. This
fact is very important and needs to be done by Islamic banking practitioners in order
to get costumer as much as possible.
Nowadays, Islamic banks are only made a differentiation against conventional

banks. They made positioning to costumers that they are free-interest bank. They see
that Muslims are prohibited to riba, and bank interest is part of riba. But, only some

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of the people in Indonesia are aware of this fact. The problem is, differentiation
between Islamic banks is still not clear. The effect is competition in order to get the
costumer become hard. That why a clear positioning between Islamic bank is
needed.
In more developed economic, the importance of market segmentation in financial

service sector has been well established. As competition between bank increases,
each financial service adopted an interesting segmentation strategy (Speed and
Smith, 1992; Harrison, 1994). Unfortunately Indonesian banking sector segmentation
that based on needs, wants, and preference are rarely found. Its need to understand
though, in the developed country, the numbers of segmentation variables are
limited. It’s different in western country, where market segmentation from
costumers has developed rapidly. Lifestyle segmentation or geo-demographic
segmentation is common in western country.
Problem Identification
According to the facts above, the purpose of this research to make an alternative
segmentation that can be applied in Islamic banking industry in Indonesia. This
research is trying to do segmentation on Islamic bank customers with some
variables. There are two kind classifications of segmentation based that used, that is
demographic and benefit (Wedel and Kamakura ,1998). This research also tries to
find the relationship between those two variables.
Segmentation
Market segmentation is the way to increase company’s marketing by grouping the

costumer into a group that have a similar needs and wants. Marketer cannot made a
segment, but a marketer job is to identified segment and determine where is to be
the target. The point is market segmentation offering more benefit than mass
marketing (Kotler, 2003).
Wedel Smith (1956) first time define market segmentation as “viewing a

heterogeneous market as a smaller homogeneous market, in response to differing

4


preference, attributable to the desire of consumer for more precise satisfaction of
their varying wants”. Based on the other definition of expert, its can generally
explain that segmentation appear because of heterogeneity of needs and desire of the
consumer.
There are many researches about segmenting the financial institution. To facilitate a
brief analysis of the most pertinent to the financial service sector, the author follow
Frank et al. (1972) and Wedel and Kamakura (1998). They suggest classifying those
segmentation variables according to whether they are “product specific” or
“general” (i.e. independent products or service), and also by the extent to which each
variable might be deemed observable. For more clear can see table2.
Table2. Classification of Segmentation Variables
General Product-specific
Observable Demographic, geographic User status, usage rate,
and socio-economics loyalty, stage of adoption
variables
Unobservable Psychographic, values, Benefit, perception,
personality and lifestyle preference, intention
Source: Wedel and Kamakura (1998)
Demographic Segmentation
In a demographic segmentation, market divided into groups based on variables.

Age, gender, monthly income, occupation, and education are the most potential to
grouping the costumers. Demographic variables are also has very close relationship
with needs, preference, and consumer used level. Demographic variables are easy to
measure rather than the other variables. These variables are so important that if
market is divided into non-demographic variable, the demographic characteristic is
still needed. In order to measure segmented target and the medium effectively,
demographic variables are very important.
According to Wedel and Kamakura (1998), demographic variable are include in

general observable based. Information about demographic variable are easy to
collect and quite reliable. This variable also not gets much problem if it’s put in
marketing mix. Some of demographic variables that have been used in demographic

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segmentation research are: gender (Dikkens and Chappel, 1997; Frank 1989),
position in the family life cycle (Wells and Gubar, 1966; Lansing and Kish, 1957;
Reading, 1988; Jonak, 1988), culture (Joy et al., 1991), income (Allt, 1975; Slocum and
Mattews, 1970; Crisnall, 1992; Monk, 1970), and geographic location (Lunn, 1878). In
this research used age, gender, marital status, income, education and occupation
(Schiffman, 2004).
Benefit Segmentation
Benefit segmentation watching how the consumer satisfied from a product. Change
in a life style plays an important role in product benefit for consumer. This also gives
marketer a chance to create product and service. Main power of this benefit
segmentation is benefit has causal relationship with behavior in the future
(Schiffman, 2004).
Benefit is something that able to make someone to fell satisfied with their needs or
wants. Someone will choose one from many option because of the benefit from they
choose. Just like bank customers, they just hoping the benefit from the bank they
choose. There are many kind of benefit that they get from the bank they choose.
With many kind of benefit, that can be categorized into each segment.
Practically, a bank marketer will be successful if he is able to do benefit segmentation

combine with good marketing mix strategy. Banks are able to get their target
consumer with the benefit that they offer. With benefit segmentation that will be
easy.
According to Wedel and Kamakura (1998), benefit variable are include in

unobservable product-specific based. Some research must be done if wanted to
know what benefit that someone desired. There are some researches that using
benefits segmentation as variables (Tynan and Drayton, 1987; Loker and Perdue,
1992; McDougall and Levesque, 1994; Minhas and Jacobs, 1996).

6


Theoretical Framework
This research replied from Alfansi and Sargeant (2004) research. The title of the
research is “Market Segmentation in the Indonesian Banking Sector: the Relationship
Between Demographic and Desired Consumer Benefit”. On that research said those
general observable based variables are close to segment criteria such as
identifiability, sustainability, accessibility, and stability, but weak at actionability,
and responsiveness. At unobservable product-specific based variables are close to
actionability and responsiveness, but this variable weak to the other criteria.
That will be interesting if there is any relationship between those general observable
based and unobservable product-specific based variable. If there is a relationship can
be found, there will be an interesting potential segment. As the conclusion of that
research is, there only one demographic variable that have relation with benefit
segment, and that is occupation.
This research want to know the relationship between general observable based and
unobservable product-specific based variable as Wedel and Kamakura’s
segmentation criteria, if there will be different between conventional banking and
Islamic banking customers segment. This research tries to do segmentation based on
benefit from Islamic bank customer. And then if there is a significant correlation
demographic segmentation, such as age, gender, marital status, monthly income,
education, and occupation with those benefit segmentation.
Methodology
This research conducted in province Daerah Istimewa Yogyakarta, Indonesia. There

are 3.3 billion populations in this province. Yogyakarta is a representative place of
social strata existing in wider Indonesia. This area also has a highest development in
Islamic banking in Indonesia. Up now, there are 21 Islamic bank branch are open in
this area. Islamic banking growth is 40% per year, highest in Indonesia.
This research is use survey method, where the population is Islamic bank in
Yogyakarta. There are 300 questionnaires distributed as a sample, and only 275 are

7


obtained. Sampling method that used are convenient sampling and stratified
sampling. Stratified sampling is used to get heterogeneity and balancing the sample.
There are two kind of strata that used, place and occupation.
This research is using primary data. There are two kinds of data that will be collect,
demographic variables and benefit variables. The demographic variables that used
are just like mentioned before. The result of respondent demographic data can be
seen at appendix 1.
There are three instrumental tests that used in this research. The first one, factor
analysis, is used to derive the factors that construct the benefit variable. The item
that construct benefit variable is from the benefit item from questionnaire. The
second is cluster analysis, is used to create segment cluster of benefit variables from
the factors that created. And the last one is chi square test is used to know the
signification of relationship between demographic variables and benefit segment
variables.
Factor Analysis of Benefit Variables
Factor analysis is statistical method that used to explain variability among observed
variables into smaller variable called factor. In this study, factor analysis used to
classify and simplify the variables benefits received by customers of Islamic banks
into the factors that shape it, so that can know what are the factors that underlie the
benefits of Islamic bank customers.
An interview is held before the questionnaire is distributed. The purpose is to

explore what are benefits that Islamic bank customer gets. Some of literature study is
used to complete the benefit item that a banking customer can get. From that
exploration, there are benefit item that used in this research. The detail benefit item
and their source are in appendix 2.
Benefit Factor
In a validity test, KMO value of 0.896 is obtained so that the research is feasible to be
tested with factor analysis because its value is more than 0.05. KMO value

8


approaching 1 indicates that factor analysis can be used in the data. The method
used in the test reliability is Cronbach Alpha coefficient (α). According Sekaran
(2000) the instrument is considered reliable if the alpha value greater than or equal to
0.7, the measured variables and items can be trusted or relied upon. While the alpha
value greater than or equal to 0.6 is considered fairly reliable (Hair et al., 1998). In
this study the Cronbach Alpha reliability of the test is 0.961. Thus, existing data are
considered highly reliable.
Based on the data grouping score coefficient matrix that has the greatest value, there
are 11 grouping factors. Benefits of grouping factors can be seen in appendix 3. All of
these factors can be named respectively as follows:
1. Factor 1 = appearance
2. Factor 2 = ATM
3. Factor 3 = cost
4. Factor 4 = service
5. Factor 5 = various products
6. Factor 6 = sharia compliance
7. Factor 7 = branch office
8. Factor 8 = employee
9. Factor 9 = location
10. Factor 10 = reputation
11. Factor 11 = extra facility
Thus, all of factors that underlie all of the benefit variables of Islamic bank customer
can already be known.
Benefit Segmentation
F ratio values and significance levels are used to compare the differences between
the mean clusters. Giving a label or name on the cluster done accurately describe the
nature of these clusters. This study used three clusters as analysis. Results from the
cluster analysis can be see in appendix 4.

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From the table note that the level of significance of the table shows that the level of
significance of the table shows that the ten variables were significantly different with
sig <0.05 except sharia variables with significance level 0.105. Thus can be concluded
that each variable in the cluster do not have a relationship.
From the mean value can be seen that cluster 1 is more skewed in the ATM variables,
cost and sharia compliance. ATM usage, transaction costs are low showing members
of this segment tend to be sensitive to the cost. Thus, this cluster can be named with
the cost cluster.
In cluster 2 is more skewed to the variable appearance, services, various products,

branch offices, and good name. All these variables showed the main product from a
bank. So the cluster can be named the main product.
In cluster 3 more inclined to the variables of employees, locations and extra facilities.
The existence of employees who can help, strategic location, and extra facilities will
facilitate the bank's customers to do banking transactions. Thus, this cluster can be
called easiness.
From the three clusters are formed, the second cluster has many members of the
segment, which is 191 members. Then the first cluster has a member of 72 members,
and then the third cluster have a member of as many as 12 members.
Chi Square Test
Chi Square test is used to test the differences in proportions of the characteristics of
each cluster or segment. In this study, chi square test used to determine whether
there are correlations between segments of the demographic variables with the
variable segments of benefits.

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Table3. Signification Test
Variables Chi Square Df. Sig.
Gender 5.316 2 0.070
Age 23.936 8 0.002
Monthly income 8.082 6 0.002
Occupation 15.082 6 0.232
Marital status 8.8839 4 0.065
Last education 4.553 8 0.804
From Table 3 it can be seen that the value of 0.05 significance demographic variables
significantly related to the variable benefit with significance value <0.05 was the age
variables with significance level 0.02 and variable occupation with significance level
0.020. Only of these two demographic variables that have a relationship with
variable benefits in the segmentation of Islamic banks customer.
The other demographic variables such as sex has a significance level of 0.070,
monthly income as sex has a significance level 0.232, marital status has significant
level of 0.065, and the last education has 0.804. All of significance level was not
significantly related to the variable benefit because the significance value> 0.05.
Thus, demographic variables related to the variable benefits in segmenting

customers of Islamic banks are the variables of age and occupation. As for the
variables of sex, monthly income, and last education did not have the relationship
with the segmentation of variable benefit.
Discussion of Results
In this research can be concluded that age differences can be categorized into the
benefit segmentation that created. In a different age level, customers will tend to be
associated with one of the benefits offered by Islamic banks, whether its cost
advantages, the major product benefits, convenience or profit.
So it is with monthly income. At a different level of income, customers will tend to

be associated with one of the benefits offered by Islamic banks, whether its cost
advantages, the major product benefits, convenience or profit.

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Managerial Implication
The results of this study concluded that demographic segmentation variables that
have a relationship with the benefits segmentation variables are the age variables
and occupation variables. This is considered quite disappointing because it was still
less able to benefit segmentation targeting the consumer to do targeting based on age
and employment, especially if the Islamic banks would like to offer specific benefits
to the clients.
Although only age and occupation variables that can be targeted to offer the benefits
of Islamic banking, Islamic banking practitioners can still get a lot of customers if
they can make the most of the intended target market. By knowing the benefits that
can be offered and the right target market demographic, the marketing focus will be
more to produce than on mass marketing (Kotler, 2003). Islamic banking
practitioners can perform combinations to focus on the benefits offered or
demographic target market.
Viewing of the three segments that form, namely the cost segment, the main
products, and convenience, the practitioners of Islamic banking can take advantage
of the benefits sought by the character of the community by focusing on one segment
of those profits. At the focus of these segments, Islamic banking marketers can do
concentrated segmentation with segment targeting certain advantages with a specific
target market demographics, whether based on age or occupation.
If every Islamic banks successfully targeting a variety of target markets in each

segment, the development of Islamic banking in Indonesia will be more organized
and focused. With the increasing number of Islamic banks that hold more and more
customers will not occur because the seizure of any Islamic bank already has a
different focus positioning that will be devoted to other prospective customers.

12


Suggestion
For further research on the same topic should be able to consider the suggestions as
follows:
1. Distribution of respondents demographic variables in order to more evenly

and to represent each of the variables such as gender, age, income,
occupation, marital status, and education last.
2. In finding the relationship between the general categories of variables that can
be observed with category-specific products that can not be observed in the
classification of Wedel and Kamakura (1998) not only between demographic
variables only, can also use the socio-economic variables.
3. To find out more about the relationship between demographic variables with
the variable benefit could use more information such as conjoint analysis

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Appendix 1. Respondent Demographic Data
Variables Frequency Percentation

Gender Male 165 60 %
Female 110 40 %
Total 275 100 %
Age Less than 25 year 208 75,6 %
Between 26-34 year 33 12 %
Between 35-44 year 18 6,5 %
Between 45-54 year 15 5,5 %
More than 55 year 1 0,4 %
Total 275 100 %
Monthly income Less than Rp.500.000 83 30,2 %
Between Rp.500.000 – Rp.1.000.000 107 38,9 %
Between Rp.1.000.000 – Rp.1.500.000 39 14,2 %
More than Rp.1.500.000 46 16,7 %
Total 275 100 %
Occupation Student 158 57,5 %
Employee 78 28,4 %
Entrepreneur 33 12 %
Others 6 2,2 %
Total 275 100 %
Marital Status Single 217 78,9 %
Married 57 20,7 %
Divorce 1 0,4 %
Total 275 100 %
Last education Junior High School 4 1,5 %
High School 168 61,1 %
DIPLOMA 25 9,1 %
Undergraduate 66 24 %
Master 12 4,4 %
Total 275 100 %

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Appendix 2. Benefit items that used
No Items Source
1 Bank reputation 1, 4, 6
2 Sharia compliance 7, 8
3 Free of riba 7, 8
4 Using profit and loss sharing system 8
5 Security of deposit 8
6 Fast and efficient service 4, 5, 6
7 Overall service 4, 6
8 Fast and accuracy transaction 2, 6
9 Financial counseling service provided 4
10 Bank employee wear an Islamic dress 8
11 Numbers of bank employee that ready to help 3
12 Knowledge of bank employee 3, 5
13 Friendliness of bank personnel 1, 4, 5, 6
14 The respect and consideration that shows bank 3

employee
15 Long banking hour 1, 5, 6
16 High profit and loss sharing deposit margin 8
17 Lower charges of monthly deposit 4, 5
18 Free drawing charges 4, 5, 8
19 Low charge in others service 4, 5
20 Gift that offered 1
21 Branch office facility 3
22 The numbers of branch office in the country 3
23 Size of branch office 3
24 Being able to pay bills 4
25 Wide range of service offered 4
26 Able to mobile banking 8
27 Able to internet banking 8

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28 Availability of ATMs 5, 6
29 Numbers of ATM booths 5, 6
30 Join in Union ATM 8
31 Free charge at Union ATM 8
32 Interesting ATM card 8
33 Convenience location 1, 4, 5, 6
34 Bank location that near resident 8
35 ATM location that near resident 8
36 Internal appearance of the bank 5
37 External appearance of the bank 5
38 Interior layout of the bank 2
39 The availability of parking space 1, 4
40 Confidentiality of the bank 2
41 Interesting advertising 6
42 Much known by people 1, 4, 5, 6
43 Recommended by friend or family 1, 4, 5, 6
44 Complete and open information in the bank 3, 6
45 No information being hide 3, 6
Source: 1 = Anderson et al. (1976); 2 = LeBlanc dan Nguyen (1988); 3 = Lewis (1991);
4 = Kaynak et al. (1991); 5 = Kaynak dan Kucukemiroglu (1992); 6 = Zineldin (1996);
7 = research of Bank Indonesia (2007); 8 = interview result

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Appendix 3. Factor Grouping
Coefficient
Factor Variable
Matrix Score
Interesting ATM card 0.149
Internal appearance of the bank 0.274
External appearance of the bank 0.254
1 Interior layout of the bank 0.252
Confidentiality of the bank 0.139
Interesting advertising 0.144
Availability of ATMs 0.246
2 Numbers of ATM booths 0.269
Join in Union ATM 0.249
Free charge at Union ATM 0.244
High profit and loss sharing deposit margin 0.214
3 Lower charges of monthly deposit 0.291
Free drawing charges 0.298
Low charge in others service 0.309
Fast and efficient service 0.337
4 Overall service 0.315
Fast and accuracy transaction 0.334
Being able to pay bills 0.295
5 Wide range of service offered 0.295
mobile banking 0.367
internet banking 0.304
Sharia compliance 0.353
6 Free of riba 0.307
Using profit and loss sharing system 0.296
Bank employee wear an Islamic dress 0.282
Financial counseling service provided -0.125
Branch office facility 0.472
7 The numbers of branch office in the country 0.422
Size of branch office 0.160
Convenience location 0.190
Knowledge of bank employee 0.150
8 Friendliness of bank personnel 0.444
The respect and consideration that shows bank
0.562
employee
Security of deposit -0.272
Numbers of bank employee that ready to help 0.307
9 Long banking hour 0.321
Bank location that near resident 0.403
ATM location that near resident 0.299

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Bank reputation 0.299
10 Much known by people 0.360
Recommended by friend or family 0.461
Gift that offered -0.211
11 The availability of parking space 0.283
Complete and open information in the bank 0.551
No information being hide 0.392
Appendix 4. Cluster Grouping
Mean Score
Variable F Ratio Sig
1 2 3
appearance -.80816 .31498 -.16446 43.412 .000
ATM .33276 -.00554 -1.90842 31.617 .000
cost .46263 -.18511 .17060 12.052 .000
service -.26890 .13488 -.53341 6.281 .002
Various products -.65452 .27248 -.40981 28.188 .000
Sharia compliance .17903 -.04287 -.39188 2.272 .105
branch office .09174 .09963 -2.13620 35.931 .000
employee -.40444 .12559 .42759 8.987 .000
location -.48320 .13753 .71014 14.546 .000
reputation -.10569 .08699 -.75045 4.623 .011
Extra facility .32237 -.14272 .33739 6.631 .002

21

Islamic Banking Segmentation in Indonesia

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Islamic Banking Segmentation in Indonesia

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[JOURNAL OF ISLAMIC BUSINESS AND ECONOMICS] Vol.2 No.

ISLAMIC BANKING SEGMENTATION IN INDONESIA:

Department of Management, Faculty of Economics and Business, Gadjah Mada University

Keyword: segmentation, demographic segmentation, benefit segmentation, Islamic bank.

Electronic copy available at: http://ssrn.com/abstract=1729542

Electronic copy available at: http://ssrn.com/abstract=1729542

Table1. Islamic banking share to total bank, December 2007

Graphic1. The development number of office and deposit of Islamic bank,

Source: Islamic banking statistic – Bank Indonesia.

Nowadays, Islamic banks are only made a differentiation against conventional

In more developed economic, the importance of market segmentation in financial

Market segmentation is the way to increase company’s marketing by grouping the

Wedel Smith (1956) first time define market segmentation as “viewing a

Table2. Classification of Segmentation Variables

In a demographic segmentation, market divided into groups based on variables.

According to Wedel and Kamakura (1998), demographic variable are include in

Practically, a bank marketer will be successful if he is able to do benefit segmentation

According to Wedel and Kamakura (1998), benefit variable are include in

This research conducted in province Daerah Istimewa Yogyakarta, Indonesia. There

Factor Analysis of Benefit Variables

An interview is held before the questionnaire is distributed. The purpose is to

In cluster 2 is more skewed to the variable appearance, services, various products,

Chi Square Test

Thus, demographic variables related to the variable benefits in segmenting

So it is with monthly income. At a different level of income, customers will tend to

If every Islamic banks successfully targeting a variety of target markets in each

1. Distribution of respondents demographic variables in order to more evenly

Alfansi, Lizar dan Sargeant, Adrian. (2000), “Market Segmentation in Indonesian

Andronikidis, Andreas I. dan Dimitriandis, Nikolaos I. (2003). “Segmentation of

Crisnall, P. (1992), Marketing Research, McGraw Hill, Maidenhead.

Garland, Ron. (2005), “Segmenting Retail Banking Customer”, Journal of Financial

LeBishawaab, (2007), “Potret Perbankan Syariah di Indonesia”, Buletin Ekonomika dan

LeBlanc, G. and Nguyen, N. (1988), “Customer’ perception of service quality in

Jonak, H. (1998), “Lifestyle segmentation approach to sales stresses costumer

Kaynak, E., Kucukemiroglu, O. and Odabasi, Y. (1991), “Commercial bank selection

Lansing, J.B. and Kish, L. (1957), “Family lifecycle as an independent variable”,

Luun, T. (1978), ”Segmenting and constructing market”, in Worchester R.M. and

Minor, Michael dan Mowen, John. 2003, “Consumer Behavior: A Framework”.

Tynan, A.C. and Drayton, J. (1987), “Market Segmentation”, Journal of Marketing

Wedel, M. dan Kamakura, W.A (1998), “Market Segmentation: Conceptual and

Wind, Y. (1978), “Issues and advances in segmentation research”, Journal of Marketing

Zineldin, M. (1996), “Bank strategic positioning and some determinant of bank

Variables Frequency Percentation

14 The respect and consideration that shows bank 3

Appendix 4. Cluster Grouping

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