Design/methodology/approach: The sample of the study consists of Iranâ€™s Melli bank customers located in Tehran; the capital of Iran. The questionnaire was based on hysteresis modelâ€™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