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Efficiency, Profitability and Quality of Banking Services

TLDR
In this paper, the authors developed a general framework for combining strategic benchmarking with efficiency benchmarking of the services offered by bank branches, in particular, the service-profit chain is cast as a cascade of efficiency benchmarks.
Abstract
This paper develops a general framework for combining strategic benchmarking with efficiency benchmarking of the services offered by bank branches. In particular, the service-profit chain is cast as a cascade of efficiency benchmarking models. Three models—based on Data Envelopment Analysis (DEA)—are developed in order to implement the framework in the practical setting of a bank’s branches: an operational efficiency mode, a quality efficiency model and a profitability efficiency model. The use of the models is illustrated using data for the branches of a commercial Bank. Empirical results indicate that superior insights can be obtained by analyzing operations, service quality, and profitability simultaneously than the information obtained from benchmarking studies of these three dimensions separately. Some relations between operational efficiency and profitability, and between operational efficiency and service quality are investigated.

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

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Journal ArticleDOI

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

TL;DR: In this article, the authors present 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.
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The Impact of Perceived Service Quality on Students’ Intentions in Higher Education in a Jordanian Governmental University

TL;DR: In this paper, the authors investigated the impact of perceived service quality regarding the academic side on students' behavior intentions in a Jordanian governmental university, and found that perceived quality as well as the tangibility and assurance dimensions affect students' intentions of recommending to study at their university.
References
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Journal ArticleDOI

Measuring the efficiency of decision making units

TL;DR: A nonlinear (nonconvex) programming model provides a new definition of efficiency for use in evaluating activities of not-for-profit entities participating in public programs and methods for objectively determining weights by reference to the observational data for the multiple outputs and multiple inputs that characterize such programs.
Journal Article

SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality.

TL;DR: In this paper, the authors describe the development of a 22-item instrument (called SERVQUAL) for assessing customer perceptions of service quality in service and retailing organizations, and the procedures used in constructing and refining a multiple-item scale to measure the construct are described.
Journal Article

Putting the Service-Profit Chain to Work

TL;DR: The service-profit chain puts hard values on soft measures, helping managers quantify their investments in people and then integrate those measures into a comprehensive service picture as discussed by the authors, which can be used to evaluate the performance of service organizations.
Journal ArticleDOI

Efficiency of financial institutions: International survey and directions for future research

TL;DR: The authors survey 130 studies that apply frontier efficiency analysis to financial institutions in 21 countries and find that the various efficiency methods do not necessarily yield consistent results and suggest some ways that these methods might be improved to bring about findings that are more consistent, accurate, and useful.
Journal ArticleDOI

Reassessment of Expectations as a Comparison Standard in Measuring Service Quality: Implications for Further Research:

TL;DR: The SERVQUAL instrument and the perceptions-minus-expectations specification invoked by it to operationalize it are discussed in this paper, where the authors respond to concerns raised by Cronin and Taylor (1992) and Teas (1993).
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