Service Quality in Water Utilities
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The document discusses the quality of water utility services, emphasizing the gap between customer expectations and actual service delivery, particularly during times of hardship. It highlights factors influencing consumer perceptions, including technical quality, functional quality, and the impact of financial hardship on these perceptions. The author argues for a shift in management focus from engineering to marketing to better meet consumer needs and enhance the overall experience of water services.
Service Quality in Water Utilities
- 1. The Invisible Utility Service Quality in Essential Services Peter Prevos PhD Candidate, School of Business Manager Systems Monitoring, Coliban Water
- 2. From Asset Performance to Customer Experience
- 3. Service Quality Value − Quality − Meeting specifications Satisfaction − Perceived benefits minus perceived cost Comparison with expectations Moments of Truth Bad customer experience. Source: yworld.co.za
- 4. Consumer Benefits Needs − − Sociological − Physiological Psychological Wants − Raw water − Potable water − Recycled water Gardening is an activity that covers all types of needs – from physiological (movement, food) to providing a sense of self actualisation. Source: theaustralian.com.au
- 5. Consumer Cost Monetary Psychological Sociological Time Women in Ethiopia carry water from a lake back to their homes. The time spent hauling water can be significant in areas where sources of domestic water supply are limited. Source: waterencyclopedia.com
- 6. Consumer Involvement Water and sanitation are considered low involvement services − Increases as perceived level of certainty of supply decreases − Limited empirical evidence During the drought, many customers spent large amounts of time and money to retain the ability to use water.
- 7. Stakeholder Interviews ● Customers – Low involvement – High expectations – Hardship as a moderator Hardship was the most discussed topic. Source: neptunetg.com 12 September 2013 The Invisible Water Utility 7
- 8. Consumer Involvement ● Involvement – – ● ● ● Cognitive Affective High cognitive involvement Medium Affective involvement “We care about water, even if you don’t” Water consumers were asked their views of tap water as a service (n=123).
- 10. ServAqua: Service Quality in Water ● Technical Quality – – Experience qualities – ● Core services Sensory experience Functional Quality Assisting customers with supplementary services. – Supplementary services – Empathy – Responsiveness – Information provision, billing etc.
- 11. Technical Quality ● ● ● ● ● Availability Safe to drink Visually appealing Pleasant taste Sufficient pressure Financial hardship was found to be a predictor of technical quality (F(1, 107) = 8.948, p<0.005, r2 = -0.27).
- 12. Functional Quality ● ● ● ● ● ● Accurate bills Reliable customer service Deliver on promises Empathy Willingness to help 17 items Financial hardship was found to be a predictor of functional quality (F(1, 103) = 14.53, p<0.0005, r2 = -0.29).
- 13. The Invisible Utility ● ● ● High level of service expectations Minimise contact Focus on experience, not technology Consumers are mainly interested in sensory qualities of water services. Source: understandinggov.or 12 September 2013 The Invisible Water Utility 13
- 17. “In the past water utilities were managed by engineers. Now they are managed by economists. In the future they should be managed by marketers” invisiblewater.org @invisibleH2O linkedin.com/in/peterprevos