An aid for strategic marketing in the banking industry: A Markov analysis

This study illustrates the use of Markov analysis as a strategic planning method in the banking industry. A Markov model is developed and applied to demonstrate its use in the market segmentation problem for a medium-sized mid-western U.S. banking organization. The results of this study show that a bank can project service usage, segmented by product service markets. In addition, this study refutes an earlier study which used hypothetical data and assumed a stable, nonvolatile banking environment.