Using the analytic hierarchy process for bank management: Analysis of consumer bank selection decisions

Bank decision makers depend on being able to identify and understand customer preferences in order to decide what programs and services the bank should offer. The Analytic Hierarchy Process (AHP) provides bank managers with the ability to integrate the multiattribute preferences of consumers using a hierarchical model to determine the bank's relative position in the marketplace. The suitability of AHP in examining bank selection by consumers for managerial decision making is demonstrated using an empirical analysis in a major metropolitan area. Implications of the findings of this analysis for strategic planning in the areas of marketing mix and organizational characteristics of a bank are explored. Suggestions for application of AHP to other areas of financial services management are included.