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A fuzzy analytic hierarchy process model for customers’ bank selection decision in the Kingdom of Bahrain

Minwir Al-Shammari () and Mehdi Mili ()
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Minwir Al-Shammari: University of Bahrain
Mehdi Mili: University of Bahrain

Operational Research, 2021, vol. 21, issue 3, No 2, 1429-1446

Abstract: Abstract Ranking the priorities of customers in selecting commercial banks is essential for the elaboration of bank development strategies. The purpose of this paper is to implement a fuzzy analytic hierarchy process (FAHP) multi-criteria decision model for commercial banks selection by customers. Six criteria and five Bahraini retail commercial banks are used to formulate a decision problem structured in three-level hierarchies. After structuring the hierarchies, the FAHP is applied to determine the relative weights of the evaluation criteria. The results show that most selected banks focus on pricing strategy more than bank facilities. Interest rates on credits and deposits as well as transaction costs are the main factors used to attract customers. The study provides several implications for decision makers to develop the appropriate strategies towards their customers’ preferences. An extensive numerical example for sensitivity analysis demonstrates the strength and plausibility of the FAHP approach.

Keywords: Multi-criteria decision making; Fuzzy logic; Analytic hierarchy process; Commercial banks; Bahrain (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s12351-019-00496-y

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