A service quality model for the local water utility : a customer perspective

Abstract

This study develops an instrument to measure the service quality for both Water Services (WSC) and its subsidiary billing company ARMS. Ltd. The model developed was based on the recent SERVAQUA model for water utilities and the generic SERVPERF model for the billing company. The underlying structure of the model was explored using factor analysis and found to contain two dimensions for the WSC (technical and functional) and one dimension for ARMS Ltd. The analysis confirmed the SERVAQUA model in respect of its dimensions and its reliability. The survey incorporated other service aspects related to customer complaints, water use for drinking and sanitary purposes, and, willingness to pay, which were analysed with respect to service quality. Regression analysis show that participants with the lower income level are more satisfied with the service quality than their counterparts. Moreover, participants who are not willing to pay extra for improvement in water quality are scoring lower in service quality compared to those who are willing or perhaps willing to pay.