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Effect of customer satisfaction on water utility business performance
Author(s) -
Donkor Emmanuel A.
Publication year - 2013
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.5942/jawwa.2013.105.0114
Subject(s) - customer satisfaction , service quality , payment , business , sample (material) , nonparametric statistics , customer retention , marketing , service (business) , econometrics , mathematics , finance , chemistry , chromatography
Based on sample data from Ghana, West Africa, the study discussed in this article investigates the effect of customer satisfaction on water utility business performance. It considers customer satisfaction as a treatment variable and uses a nonparametric approach to test for differences in the conditional probability distributions of collection ratio and payment time, given pairs of customer satisfaction levels. Results show that the probability distributions of these performance indicators are significantly better for customers with high overall service‐delivery satisfaction than for those with low satisfaction, leading to the conclusion that customer satisfaction has a significant effect on water utility business performance; therefore, utility managers should take steps to ensure that service levels do not fall below customer expectations.