Purpose - This article demonstrates the application of geodemographic segmentation to the service industry by using commercial banking as a case example. Design/methodology/approach - Data were collected through self-administered questionnaires. Two sets of variables were used to profile market segments. Findings - Study results indicate that there are substantial differences between customers of local and national US banks in their evaluation of the relative importance of bank service charges and overall confidence in the bank. Compared to national banks, local banks were evaluated more positively by customers in areas such as extra services offered by the bank, image of the bank, and convenience of the bank. Originality/value - More focused and concentrated marketing strategies are suggested to achieve better local bank performance.
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