Zeinab Rahimi Rise - Department of Industrial Engineering and Management Systems, Amirkabir University of Technology, Tehran, Iran;
Mohammad Mahdi Ershadi - Department of Industrial Engineering and Management Systems, Amirkabir University of Technology, Tehran, Iran;

We aim to provide a ranking for the factors that influence a customer’s selection of Iranian banks. Iranian banks have an Islamic interest-free basis and are classified as Islamic banking systems. Reviewing papers in literature review shows a gap in the customer satisfaction area in the Islamic and Iranian banking systems. Our contribution tries to fill this gap by making use of KANO’s Analysis in three stages. First customers' preferences are identified and classified according to their impact on customer satisfaction. Second, a Satisfaction Increasing Index (SII) is calculated. Third, a Dissatisfaction Decreasing Index (DII) is calculated. Taking on a case study in Iran, ۱۹ Factors were studied. The finding shows that Islamic banking attributes are, by nature required in Iranian banks. However, this does not make them significant in increasing satisfaction or decreasing dissatisfaction. This suggests that similar to conventional banks, other factors are significant in banks selection. The study findings can be of use to decision-makers in the Islamic and Iranian banking industries by helping in the adjustment of the planning and marketing strategies, improving the allocation of resources, and attracting new customers.

Islamic & Iranian Banking, KANO, FMEA, Customer preferences, Bank selection