Bank Selection Criteria in the Iranian Retail Banking Industry

Abstract

Iranian retail banks need to identify criteria which bank customers consider when they select a bank in order to plan their marketing strategies and survive in an intense competition that exist in this industry. This study designed to examine the bank selection criteria being employed by bank customers in Iran. A total of 798 customers (55.7 percent male and 44.3 percent female) served as a sample for the study. 38 selection factors extracted from relevant literature and interviews with five bank officials. Factors analysis is used to extract important selection criteria and Friedman analysis ranks the factors according to their importance. Findings show that the important factors determining customers' selection are: quality of services and new banking methods, innovation and responsiveness of bank, friendliness of staff and confidence in manager, price and cost, staff attitudes and convenience of bank location and services.