Prioritizing the Main Influencer Factors of Service Quality by Using the Hysteresis Model: A Case Study on Retail Banking

Abstract

Purpose - previous researches in service quality and customer satisfaction in retail banking because of their partial viewpoint have only partial applications. Fact is that, managers in the process of decision making need comprehensive information about customers. Decisions made with partial information have a little reliability. This study attempts to debate about service quality and customer satisfaction in comprehensive way.

Design/methodology/approach - the sample of the study consists of Iran's Melli bank customers located in Tehran, the capital of Iran. The questionnaire was based on hysteresis model's variables (Attractiveness, zone of tolerance) and effect. Psychometric properties of the scale (such as reliability) were tested.

Findings - the hysteresis model presented here and the results of the study reveal the integrity of staff, security of account information and accuracy in operations as the most important factors in retail banking.

Research limitations/implications - first the sample of the study is small and is limited to the Melli bank customers. Second, the number of factors which were investigated are low.

Originality/value - it has not been conducted any empirical research using hysteresis model to see whether it replicates previous researches. This study is necessary, useful and relevant because; it focuses on the service quality and the study explores service quality in a comprehensive way (hysteresis model).

Keywords: service quality, Kano model, hysteresis model, banking

JEL Classification: G20, G30, C39