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Effect of customer satisfaction on water utility business performance (PDF)

  • Author(s): Donkor, Emmanuel A.
  • Publications: Journal - American Water Works Association
  • Issue Date: October 2013
  • Volume / Number: 105, Number 10
  • Page(s): E553-E560
  • DOI:
  • Product Number: JAW_0078722
Full Text: pdf

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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.

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