Measuring return on service quality using network DEA and ACSI

This study focuses on how to evaluate, analyze and improve productivity of service operation. Given the expanding share of gross domestic product in many countries, the improvement of service productivity has become one of the most promising research fields today. It is known that measuring and analyzing the service productivity is substantially challenging because most service delivery is often heterogeneous, simultaneous, intangible, and perishable. As one of approaches, Data Envelopment Analysis (DEA) have been widely applied to evaluate and analyze the productivity in the service sector such as banking and insurance, health care, universities, tourism, and real estate. In this paper, service evaluation and analysis model using network DEA, on the basis of a Customer Satisfaction Index as an output and 4M (Man, Machine, Material/Method), land/building, energy, and time as input have been constructed. Customer satisfaction is one of the most important drivers of service firm's profitability, and thus, can be considered appropriate as an output criterion. The customer satisfaction is given from the statistical analysis of customer's surveys on the basis of process specific questionnaire. Those values are evaluated incorporated with process specific resources using network DEA. By doing so, the improvement direction can be evaluated.