An internal customer service quality data envelopment analysis model for bank branches

Abstract

Over the last few years data envelopment analysis (DEA) has been gaining increasing popularity as a performance assessment methodology. DEA has been successfully applied to bank branch performance evaluation. However, most DEA models which have been developed for bank branch performance assessment do not include service quality as an output. Service quality has been considered by many as the key to gaining competitive advantage and customer loyalty. Develops a DEA model that can be used to provide direction for improvement to branches which do not use their resources in the most efficient way to produce service quality. Focuses on internal customer service quality which is sometimes easier to measure. Presents results from an empirical study undertaken at a bank to demonstrate the applicability of the model.