Customer Departmentalization: This method categorizes departments based on the type of customers they serve. It aligns services and strategies with the specific needs and characteristics of different customer groups.

Examples of Customer Departmentalization:

Community Banking: Focuses on services tailored for local communities, often involving personal banking services.

Institutional Banking: Caters to large organizations, offering specialized financial products and services.

Agricultural Banking: Provides financial services to farmers and agricultural businesses, addressing their unique needs.

Comparison with Other Options:

Product Departmentalization: Option B categorizes by products offered, such as mortgages and credit cards.

Geographical Departmentalization: Option C categorizes by regions, such as south and southwest.

Functional Departmentalization: Option D categorizes by job functions, such as teller and manager.

References:

Customer departmentalization is exemplified by categorizing banking services into community, institutional, and agricultural sectors, focusing on the distinct needs of different customer groups​​​​.