Strategic positioning and quality determinants in banking service

The aim of this paper is to investigate and define the competitive positioning of banks including state‐owned, domestic and foreign banks operating in Istanbul, Turkey. The aim is to check the competitive marketplace and to identify the major quality attributes, which bankers themselves and their customers used in determining the overall perception of a given bank and services offered.

The investigation was held in Istanbul, Turkey. In total, 30 banks were included in the research, which includes state‐owned, local and foreign‐owned banks. A total of 1,530 questionnaires were submitted, answers collected and analyzed. Reliability test and frequency analysis were used to analyze the data.

From the banks' customers' point of view, determinants relating to functional quality or how the customers wish to receive banking services became evident. It also became clear that customers of banks are not fully receiving what they want or need and their expectations, especially on the most important attributes of quality, are not being met.

The survey showed how the banks were selected and including their employees in relation to the other competitors' banks in the Turkish banking industry.

The paper demonstrates an integrated technology, use of staff talent and streamlined operations that respond to customer needs and encourage customers to use the whole range of banking products/services rather than only a few as the end game. The results were used by bank staff later on to reengineer and redesign creatively their positioning strategy and the future direction for creating more effective quality strategies.