The Invisible Utility

Service Quality in Essential Services

Peter PrevosPhD Candidate, School of BusinessManager Systems Monitoring, Coliban Water

From Asset Performance to Customer Experience

Service Quality

Value

− Perceived benefits minus perceived cost

Quality

− Meeting specifications

Satisfaction

− Comparison with expectations

Moments of Truth

Bad customer experience.Source: yworld.co.za

Consumer Benefits

Needs

− Physiological

− Sociological

− 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

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

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.

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Stakeholder Interviews

● Customers– Low involvement

– High expectations

– Hardship as a moderator

Hardship was the most discussed topic.Source: neptunetg.com

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).

Water Quality Spectrum

ServAqua: Service Quality in Water

● Technical Quality– Core services– Experience qualities– Sensory experience

● Functional Quality– Supplementary services

– Empathy

– Responsiveness

– Information provision, billing etc.

Assisting customers with supplementary services.

● Availability● Safe to drink● Visually appealing● Pleasant taste● Sufficient pressure

Technical Quality

Financial hardship was found to be a predictor of technical quality (F(1, 107) = 8.948, p<0.005, r2 = -0.27).

● 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).

Functional Quality

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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

“In the past water utilities were managed by engineers. Now they are managed by

economists. In the future they should be managed by marketers”

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@invisibleH2O

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