Strategic segmentation of ATM users in india

Abstract

This current research applies conjoint analysis to measure utilities of various ATM services attributes and the segment the market based on part worth utility. A conjoint-based survey was administered to 302 users of Automatic Teller Machines. Then segmentation of the market was done using cluster analysis. The ideal ATM profile for ATM users was one with ATM located at residential areas, providing banking services and utility bill, breakdown once in fifty visits, changing no fee for four transactions in a year, security guard always available and entry by card and can withdraw up to the balance in your account. A cluster analysis revealed there were four clusters with different ideal ATM profiles. The finding of the study may assist banks in designing optimal service or allocating resources for ATM services targeted at specific market segments, and provide guidance for effective positioning their banks.