The role of consumer market segmentation on the banking industry performance in Tanzania: the case of TPB Bank Plc.

The thrust of this study was to ascertain the role of market segmentation on the performance of banking industry in Tanzania the case being TPB Bank Plc. The study was positivist in nature of which the quantitative data were collected using structured questionnaire as a data collection tool. In total a number of 242 respondents were selected using a simple random sampling technique. Data were analyzed using a multiple regression tool to show the relation that exist between market segmentation and bank performance. The study found that all of the four constructs of market segmentation have an influence on the performance of the banks. It was further found out that only three constructs namely demographic, geographic and psychographic market segmentation have significant influence while behavioral variable has a positive result but less significant influence on the dependent variable. From the findings of the study, it may be concluded that managers of the banks need to employ the three variables and place efforts in dividing markets based on their demographic characteristics. The study recommend that future studies related to this area should concentrate on examining market segmentation attributes from the consumers’ perspective so that there will be an alignment between what is perceived by the providers of Tanzanian banking products and services and the consumers.