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The Invisible Utility
Service Quality in Essential Services

Peter Prevos
PhD Candidate, School of Business
Manager Systems Monitoring, Coliban Water
From Asset Performance to
Customer Experience
Service Quality


Value
−



Quality
−



Meeting specifications

Satisfaction
−



Perceived benefits minus
perceived cost

Comparison with
expectations

Moments of Truth

Bad customer experience.
Source: yworld.co.za
Consumer Benefits


Needs
−
−

Sociological

−


Physiological
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.
Stakeholder Interviews
●

Customers
–

Low involvement

–

High expectations

–

Hardship as a
moderator

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

12 September 2013

The Invisible Water Utility

7
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
–
–

Experience qualities

–
●

Core services
Sensory experience

Functional Quality
Assisting customers with supplementary
services.

–

Supplementary services

–

Empathy

–

Responsiveness

–

Information provision, billing etc.
Technical Quality
●
●
●
●
●

Availability
Safe to drink
Visually appealing
Pleasant taste
Sufficient pressure
Financial hardship was found to be a predictor
of technical quality (F(1, 107) = 8.948,
p<0.005, r2 = -0.27).
Functional Quality
●
●

●
●
●
●

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).
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

12 September 2013

The Invisible Water Utility

13
“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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Service Quality in Water Utilities