An integrated framework to improve quality and competitive positioning within the financial services context

Purpose – The purpose of this paper is to propose a quality function deployment analytic hierarchy process (QFD‐AHP) framework to improve quality and competitive positioning within the financial services context. The applicability of the model is demonstrated through a case study. Design/methodology/approach – Results of two empirical surveys were utilized to detect the “Voice of the Customer”. The first identified main bank selection criteria and questionnaires and exploratory factor analysis were employed. The second utilized structured interviews for the development of the first house of quality (HOQ), relating customer requirements to key market segments. The AHP was used to determine the intensity of the relationships within the HOQ. Findings – In total, six key selection criteria were designated. Analysis incorporated customer needs and evaluations for the bank's current position, future goals related to specific market segments, and competition allocations. “Pricing” was the most important criterion, followed by “effective services” and “location”. Research limitations/implications – Data analysis was carried out with data from one relatively large organization. Future research might comprise additional financial institutions and possible comparative analysis regarding criteria and modeling alternatives. In addition, integration of tools such as fuzzy AHP to account for the volatility of bank selection criteria could be of great interest. Practical implications – Prioritizing selection criteria is a valuable tool to help managers focus future improvement efforts and goals in a sector which faces important challenges due to the global financial crisis. As selection criteria and relative importance change due to turbulent financial situation, models such as the proposed allow adaptation, echoing the evolving voice of the customer in the key attributes and performance improvement priorities. Originality/value – The paper develops a model that integrates the AHP and the QFD through which banks will identify key customer segments’ needs, as a first step in their effort to improve quality and performance. The authors emphasized the research design to foster face validity.