Return on Quality at Chase Manhattan Bank

Roland T. Rust, Timothy Keiningham, Stephen Clemens and Anthony Zahorik
Additional contact information
Roland T. Rust: Owen Graduate School of Management, Vanderbilt University, Nashville, Tennessee 37203
Timothy Keiningham: Marketing Metrics, Inc., 305 Route 17, Paramus, New Jersey 07652-2905
Stephen Clemens: HealthStream, 209 10th Avenue South, Nashville, Tennessee 37203
Anthony Zahorik: Burke Institute, 517 32nd Avenue South, Nashville, Tennessee 37212

Interfaces, 1999, vol. 29, issue 2, 62-72

Abstract: A method called “return on quality (ROQ)” has been proposed to evaluate the financial impact of efforts to improve service quality. It quantifies the projected net present value of an improvement project and calculates return on investment. During 1995 and 1996, Chase Manhattan Bank applied the method in a controlled experiment with four test branches and four control branches within the retail banking network, with a two-day training program aimed at enhancing service delivery and customer satisfaction. Its primary purpose was to assess the usefulness of the ROQ approach in improving customer service. Largely because of the bank's merger with Chemical Bank, the study was not executed as planned. Despite this, the study showed favorable results from the training effort. The ROQ model facilitated interpretation of the study and appears useful for estimating the financial returns arising from service quality initiatives.

Keywords: financial institutions; banks; organizational studies; personnel (search for similar items in EconPapers)
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://dx.doi.org/10.1287/inte.29.2.62 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:29:y:1999:i:2:p:62-72

Access Statistics for this article

More articles in Interfaces from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().