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Evaluating retail banking quality service and convenience with MCDA techniques: a case study at the bank branch level

Ronald W. Spahr
Sérgio P. Santos
Fernando A. F. Ferreira
Publication Year 
JEL Code 
C44 - Statistical Decision Theory; Operations Research
G21 - Banks; Other Depository Institutions; Mortgages
L25 - Firm Size and Performance
M10 - General
The intangibility of banking services makes the evaluation of service quality and customer convenience difficult to measure. Bankers obviously recognize the importance of intangible factors, but because of pressures placed on operating margins caused by the current economic climate and chronically low margins, the evaluation of factors related to quality service becomes paramount for bank managers. Bankers, by necessity, seek to promote improvement initiatives, which will assist banks in improving their perceived costumer portfolio quality. This paper aims to construct an integrated evaluation system for retail banking service quality and convenience at the bank branch level. By combining cognitive mapping with measuring attractiveness by a categorical based evaluation technique, we strive to introduce transparency in the decision making process and add to the performance literature in retail banking. Strengths, weaknesses and practical applications of our multiple criteria evaluation system are also discussed.
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