Ranking of public sector banks from customer view point using topsis

Services have emerged as the largest contribution to India's economy. The service sector's share in Gross National Product has increased from less than 2% in 1951 to 52% in 2002 (Shainesh and Sharma 2003). Hence the Service quality measurement in banking services is an area of growing interest to researchers and managers. The intangibility, perish ability, instantaneity and the heterogeneity of services leads to specific problems to service marketers and the intangibility makes service measurement a difficult task. One of the most prominent service quality measurement models has been developed by Parasuraman, Zeithaml and Berry (1990) known as SERVQUAL instrument which is the difference between what customers expect and what customers perceive about the service. SERVQUAL needs both expectations and perceptions of customers about the services. Cronin and Taylor (1994, 2004) have developed the concept of SRVEPERF which is based only on service perceptions. This paper uses SERVEPERF to measure the service quality of banking sector. TOPSIS is used to identify the bank that has the shortest distance from the positive-ideal solution and the longest distance from negative-ideal solution.