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
12 September 2013 The Invisible Water Utility 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
“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
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