Geographic information systems and spatial analysis of market segmentation for community banks

The purpose of this research was to determine the value of incorporating consumer behavioral datasets, specifically lifestyle market segmentation, into traditional site selection and location models for community banks. A bank provided the sample of 3,803 customers in 161 Census block groups in its trade area.;The trade area was created using GIS. The necessary customer and lifestyle market segmentation data were also prepared using GIS. Four separate ANOVAs showed that consumer behavioral datasets are significant in predicting market penetration. Market penetration is a critical element of assessing a firm's strength; therefore consumer behavioral datasets are valuable in market analysis and site selection for community banks.