Corresponding author. E-mail: alireza.arshadikhamseh@gmail.com (A. Arshadi Khamseh) © 2013 Growing Science Ltd. All rights reserved. doi: 10.5267/j.msl.2013.02.001 Management Science Letters 3 (2013) 845–860 Contents lists available at GrowingScience Management Science Letters homepage: www.GrowingScience.com/msl A hybrid of Kano and QFD for ranking customers’ preferences: A case study of bank Melli Iran Mohammad Hassan Pourhasomi a , Alireza Arshadi Khamseh b* and Yaser Ghorbanzad c a Master of Science, Department of Industrial Management, Science and Research Branch, Islamic Azad University, Tehran, Iran b Assistant Professor Department of Industrial Engineering, Kharazmi University, Tehran, Iran c Master of Industrial Management (OR), Department of Management and Economy, Science and Research Branch, Islamic Azad University, Tehran, Iran C H R O N I C L E A B S T R A C T Article history: Received October 25, 2012 Received in revised format 8 January 2013 Accepted 20 January 2013 Available online February 1 2013 Nowadays, many service provider organizations compete to survive and surpass other competitors in the world. They apply new techniques and instruments to identify and to prioritize important criteria for their customers to gain customer satisfaction. Banks, as one of the service provider organizations, are no exception. Quality plays essential role in banking industry and customer’ gratification is considered as one of the major and essential goals in this field. Recognition and awareness regarding the customers’ needs and requirements would facilitate providing satisfactory services. It could be said that improved understanding, accurate identification and prioritization of bank customers’ requirements are the keys to success for bank managers. The present study aims to integrate two approaches of Quality Function Deployment (QFD) and Kano's model through implementation of Analytical Hierarchy Process (AHP). This study proposes a novel approach to identify and to analyze the priorities of bank customers’ requirements. The results indicate that the priorities of bank customers are different before and after integration of Kano’s Model in the planning matrix of QFD. © 2013 Growing Science Ltd. All rights reserved. Keywords: Bank Criteria Customer Satisfaction Quality Function Deployment (QFD) Kano Model Analytical Hierarchy Process (AHP) 1. Introduction Banks are among the most influential economical firms in any country, privatization has tremendous effect on this industry, and it has changed into a competitive market in which they offer services considered valuable in customers’ point of view (Yuksel et al., 2010). Today, banking industry necessitates applying new methods, effective customer-orientation, new technologies, providing services based on customers’ requirements. Successful functions would also lead to making further profit, continual survival and progress, and higher efficiency for the banks (Zaribaf et al., 2011). The bank managers are well aware that customers’ satisfaction with the quality of bank services is an important competitive advantage and source of making profit (Sureshchandar et al., 2009). Customers’ satisfaction is the most important issue among bank managers and they need to know