Open AccessThe Segmentation Bases of the Islamic Banks in Indonesia: A Qualitative Analysis
Author(s) -
Gita Gayatri,
Sri Rahayu Hijrah Hati,
Hapsari Setyowardhani,
Sri Daryanti,
Kenny Devita Indraswari
Publication year - 2021
Publication title -
equilibrium
Language(s) - English
Resource type - Journals
eISSN - 2502-8316
pISSN - 2355-0228
DOI - 10.21043/equilibrium.v9i1.10461
Subject(s) - psychographic , market segmentation , islam , nonprobability sampling , segmentation , exploratory research , qualitative research , business , marketing , revenue , advertising , accounting , computer science , geography , sociology , artificial intelligence , social science , population , demography , archaeology
The market shares of several Muslim majority countries' Islamic banks have remained low (e.g., Malaysia, Turkey, and Indonesia) despite many Muslims. Targeted marketing can be an effective strategy to target potential customers, increase the market share, and ultimately Bank's revenue. This study firstly aims to explore potential segmentation bases for the customers of the Islamic Bank and the impact of segmentation analysis on the targeting and positioning of the Islamic Bank. This study applied an exploratory, qualitative research design. The data were collected via in-depth interviews with 30 Muslim participants using purposive sampling. The data were analyzed using inductive content analysis to find the emerged themes. The result shows that the psychographic segmentation would be more plausible to be used by the Islamic Bank than the demographic segmentation. Based on this finding, Islamic banks should consider using psychographic segmentation to target their markets.