Developing a Macro-segmentation Model at Industry Level: Iranian Banking Industry

Seyyed Mahmoud Hosseini Kashkouyieh (), Gholam Hossein Asadi (), Mohammad Reza Hamidizadeh () and Mohammad Moqaddasi ()
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Seyyed Mahmoud Hosseini Kashkouyieh : Shahid Beheshti University, Faculty of Management
Gholam Hossein Asadi : Shahid Beheshti University, Faculty of Management
Mohammad Reza Hamidizadeh : Shahid Beheshti University, Faculty of Management
Mohammad Moqaddasi : Shahid Beheshti University, Faculty of Management

Journal of Money and Economy, 2015, vol. 10, issue 4, 95-123

Abstract: Drastic changes and turbulence in macro-economic factors have the greatest impact on banks target market attractiveness in Iran. It is assumed that conventional segmentation models at the corporate level are not efficient for banking system. This study aims to develop a new segmentation model at the industry level for banks of Iran. For this purpose, structures and variables at the industry level were identified and defined by reviewing the literature and with the help of bank experts in focus group sessions. Then, data of ISIC 3-digit factories with 50 and more employees were extracted from Iran Statistic Center and Tehran Stock Exchange databases during 2005-2013. We used Hierarchical Cluster analysis in each year and identified 4 study groups across 9 years. We found that identified groups are significantly different regarding industry size, deposit and loan market size, industry growth, deposit and loan market growth, profitability, investment risk, and transaction with other industries.

Keywords: Macro-segmentation; Manufacturing Industries; Segmentation based on industries; Hierarchical Clustering; Banking (search for similar items in EconPapers)
JEL-codes: C67 C82 E44 G21 L60 M31 (search for similar items in EconPapers)
Date: 2015
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