Question

Southeastern Bank organizes its loan operations based on the market served—consumer, small business, or nonprofit organizations. Departmentalization based on ________ allows Southeastern to better serve borrowers with different needs.

Answer 1

Answer:

customer group

Explanation:

Customer departmentalization is where the organization’s activities are ready to respond to and interact with specific customers or customer groups.

This organizational form is used when great emphasis is placed on effectively serving different customer types.

If Southeastern Bank organizes its loan operation based on customers group, this will allow Southeastern Bank to better serve borrowers with different needs by offering customized loan arrangements according to the customers preferences.

Advantages of customer departmentalization

• Encourages concentration on customer needs.

• Gives customers feeling that they have an understanding supplier (banker).

• Develops expertness in the customer area.

• Saves customers’ time.