Title: Bank segmentation at the bottom of the pyramid: a developing country perspective

Authors: Sonal Purohit; Rakhi Arora

Addresses: USB-MBA, Chandigarh University, Chandigarh University, Mohali, India ' USB-MBA, Chandigarh University, Chandigarh University, Mohali, India

Abstract: The paper explored the segmentation of the financial services sector at the bottom of the pyramid (BoP) in India. This could help managers in financial institutions to devise appropriate marketing strategies to address the needs of various segments. The study used a benefit segmentation approach and studied the demographic characteristics of various segments. A structured questionnaire was used to collect data from a sample of 400 individuals in the BoP from both urban and rural areas of Delhi National Capital region. To identify the segments, factor analysis and cluster analysis were employed. The study shows that there are several statistically distinct segments in the BoP. There was a significant difference in the benefits sought by individuals with varying demographic profiles. The study contributes to the existing literature on bank segmentation at the BoP, particularly in the context of developing countries, where the area is under-researched.

Keywords: bottom of the pyramid; BoP; financial services; segmentation; services marketing; cluster analysis; factor analysis.

DOI: 10.1504/WRSTSD.2022.10047870

World Review of Science, Technology and Sustainable Development, 2022 Vol.18 No.3/4, pp.324 - 345

Received: 14 Jun 2020
Accepted: 06 Jan 2021

Published online: 04 Jul 2022 *

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