Methodology/Approach: A specific questionnaire was designed based on a list of selection criteria that was drawn from previous surveys as well as on the professional experience of the authors. Five hundreds forty nine (549) questionnaires were personally administered to customers of major banks in Thessaloniki; Greece. A total of 1770 customers were approached; yielding a response rate of 31%.
Findings: Exploratory factor analysis revealed six dimensions regarding bank customers selection criteria. These are: â€śSimple and effective serviceâ€ť; â€śInnovation Productsâ€ť; â€śPricingâ€ť; â€śWorking Hoursâ€ť; â€śNetwork Sufficiencyâ€ť; and â€śLocationâ€ť. Customers were categorized in six key market segments; based on their most frequently used bank products. These were: a) Housing Loans; b) Consumer Loans; c) Credit Cards; d) Savings Deposits; e) Time Deposits; and f) Funds.
Research limitations: Distributing questionnaires personally did not allow the creation of a completely representative sample of customers of the Greek bank industry.
Practical implications: Measuring customersâ€™ perceptions in terms of the six selection criteria dimensions that emerged can support decision making regarding initiatives to be taken. Findings were related to specific bank product categories assisting managers to customize key banking processes to meet customer needs.
Originality/value of paper: The findings of this study provide insights into customersâ€™ priorities when selecting a specific banking institution. Furthermore; they relate customer wants to specific market segments based on primary data; forming thus; a robust background for the next steps of the research.
Keywords: QFD; Banks; Customer criteria; Factor Analysis; Greece