Service Quality Perception in Tap Water
Peter Prevos |
1006 words | 5 minutes
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The concept that customer is always right is a controversial topic in service industries, including water utilities. There seems to be a paradox between how water professionals interpret the service quality perception of tap water and the way customers see it. Providing safe drinking water is not the same as providing good water. For example, water utilities add chlorine or fluoride to the water to protect public health. This article discuses the service quality perception that customers of water utilities hold.
In some communities, however, chlorine and fluoride are perceived as unwanted chemicals, leading to a reduction in the perception that customers have of the quality of service.1 We can investigate the perceptions that customers have of tap water by analysing the sentiment of tweets about tap water. This analysis shows that approximately 60% of tweets express a negative sentiment.
We surveyed customers of two Australian and three American water utilities to investigate possible moderators of service quality in water services. The preliminary conclusion of this pilot study is that external factors such as financial hardship and service involvement influence service quality perception. This research has potential implications to how water utilities report service quality and how they relate to customers.
Summary
- A sample of customers from two Australian water utilities reported their perceptions of tap water
- Customers with a higher level of financial hardship rated the level of service lower
- Customers with a higher level of involvement rated the level of service higher
- External factors influence service quality perception of water utility customers
Methodology
This article reports on a pilot of a research project investigating the relationship between organisational behaviour and customer perception. A sample of customers from two water utilities in Australia completed a survey about their perceptions of tap water. The survey asked customers their views on the following concepts:
- Involvement with tap water
- The frequency of contacting their water utility
- Level of experienced financial hardship
-
Service quality perception
- The technical quality of the services provided by their water utility
- The functional quality of the services provided by their water utility
Involvement with tap water was measured using the Personal Inventory Index. Consumer involvement is a person's perceived relevance of something based on their needs, values, and interests.2
A Likert scale measured the frequency of contacting the utility and the level of perceived hardship.
The level of technical service was assessed using five questions about the physical services, i.e. availability, pressure, taste, safety, visual appeal. The level of functional service was evaluated using a scale consisting of 13 items, such as billing accuracy, friendliness of staff, availability of information and so on.
Service Quality Perception in Tap Water Services
A total of 649 customers from six utilities in Australia and the United States completed the survey, with the standard error of responses at 0.9%. The diagonal in figure 1 indicates the distribution of replies. The scatter plots and large numbers show the correlations between variables.
Analysis revealed statistically significant correlations between some of the constructs. Financial hardship negatively influences service quality perception. A high level of involvement relates to a high level of service quality perception.
Most salient was a high negative correlation between the level of financial hardship and perceptions of functional quality \((r(649)=-0.16, p<0.001)\) and technical quality \((r(649)=-0.19, p<0.001)\).
The level of involvement revealed a positive correlation with functional quality \((r(649)=0.26, p<0.01)\) and with technical quality \((r(649)=0.35, p<0.01)\).
The data thus show that the more difficulty customers have with paying their bills, the lower their perceptions of the level of service provided by water utilities. The data also shows that customers with a high level of involvement in tap water rate the level of service provision higher than those with a low level of involvement.
The level of technical quality also shows a strong correlation between the degree of functional quality \((r(649)=0.35, p<0.01)\). The reason for this healthy relationship is unknown and is most likely caused by confounding variables.
Discussion
The idea that factors outside of the direct control of the service provider moderate service quality is a well-known phenomenon in marketing theory. Research in food marketing shows that the taste of water can be influenced by the firmness of the cup it was consumed from.3
This pilot study indicates that these types of effects may also exist in the provision of urban water services.
Although improving operational effectiveness will improve the physical quality of water services, many uncontrollable factors also influence the perception that customers hold of the level of service. Utilities can minimise the level of hardship through pricing controls and rebates. Customer engagement and communication can influence involvement with tap water. Involvement is important to water utilities as also relates to a consumer's willingness to pay for services.
Is the customer always right about their service quality perception?
The axiom that the customer is always right needs to be nuanced. The customer might not be right about the physical facts of water service. However, they are always right about their service quality perception. This research demonstrates that to provide a high level of service to customers, a focus on excellent engineering will not necessarily lead to increased customer satisfaction. Influencing customer perceptions requires a deep understanding of customers.
If you like to find out more about using marketing theory to manage the experience of water utility customers, then please consider reading Customer Experience Management for Water Utilities by Peter Prevos.
Customer Experience Management for Water Utilities: Marketing Urban Water Supply
Practical framework for water utilities to become more focused on their customers following Service-Dominant Logic.
Notes
Kot, M., Castleden, H., & Gagnon, G. A. (2011). Unintended consequences of regulating drinking water in rural Canadian communities: Examples from Atlantic Canada. Health & Place, /17/(5), 1030–1037.
Zaichkowsky, J. L. (1994). The personal involvement inventory: Reduction, revision, and application to advertising. Journal of Advertising, 23(4), 59.
Krishna, A., & Morrin, M. (2008). Does touch affect taste? The perceptual transfer of product container haptic cues. Journal of Consumer Research, 34(6), 807–818.
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