Market structure analysis: a foundation for developing and assessing bank strategy

Knowledge of how consumers perceive alternative banks on important attributes provides a foundation for understanding market structure. Market structure analysis can assist the bank in identifying potential opportunities in differentiation and in assessing the viability of low cost as a competitive advantage. This paper presents the results of a study that utilized perceptual mapping to assist in analyzing market structure and in developing marketing strategies based on this knowledge. The success of the strategies was tracked and assessed by a replication of the market structure analysis five years later.