Technical and non-technical factors affecting level of customer satisfaction of electricity services in Dodoma City
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Date
2023
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Publisher
The University of Dodoma
Abstract
This study intended to assess the factors affecting level of customer satisfaction in electricity services in Dodoma City. Specifically, the study aimed to examine level of customers’ satisfaction for non-technical service factors; to determine level of customers’ satisfaction for technical service factors; to analyse the influence of non-technical service factors on the level of customer satisfaction; and to determine the influence of technical service factors on the level of customer satisfaction. The study used case study research design to a sample of 115 electricity consuming households who were randomly and carefully chosen from TANESCO population of households in Dodoma City. Data were coded and analysed quantitatively using SPSS and thematic coding for qualitative data. Gap analysis and the SERVQUAL model was used to respond to first and second objective while a robust logistic regression was used for objective three and four.
The first specific objective was approached by examining the level of satisfaction based on four aspects of non-technical factors, which are electricity demand, level of education, staff attitude, and distance to nearest office using the gap analysis. The results revealed significant customer dissatisfaction within the power utility sector. Customers expressed discontent with the impact of electricity demand on their daily activities (-1.638) and the lack of advance communication regarding power load shedding, indicating a supply-demand imbalance (-1.655). Customer education efforts by the utility were found to be lacking (-1.454), with customers reporting limited awareness of employee understanding, network reliability, bill calculations, and new technologies. Staff attitudes also raised concerns, as customers perceived a lack of commitment, impoliteness, and inadequate complaint resolution.
Moreover, using SERVQUAL model based on indicators of tangibility, reliability, responsiveness, assurance, and empathy to examine the level of technical satisfaction. Generally, based on the gap analysis on the evaluation of customer satisfaction, it became evident that customer expectations frequently outstripped the actual perceived service quality, resulting in negative gap scores. Notably, certain features, such as the willingness of employees to assist customers and their expertise in addressing customer inquiries, generated the highest expectations (-1.452). On the contrary, personal service provision emerged as the least anticipated service attribute from power utility employees. Among the dimensions assessed, factors related to reliability and responsiveness exhibited the most significant gap scores, indicating substantial levels of customer dissatisfaction.
A binary logit model showed that the odds of increasing customer satisfaction would increase by 17, 269, and 46 times higher if electricity demands, staff are educated to handle customer queries, and staff improve attitude by being more committed and cooperate well with customers. Moreover, the odds of improving customer level of satisfaction would increase 17, 28, and 49 times higher if company used modern equipment while appearing neat, become responsive by promptly addressing customer problems, and become assuring by ensuring customer safety and confidence.
Conclusively, customers of electricity were seen to be unsatisfied by the service quality offered by the power utility company, the level which was significantly influenced by technical and non-technical attributes of employees and the company itself. It was therefore recommended that; more effort is needed to upscale power utility company approach to customers by being more transparent and by informing its customers on how power usage is accounted and provide timely information on any planned power services. This also include educating its working staff how to be closer to customers. Furthermore, the company should be more responsive and prompter in responding to customer problems and discern on ways to elevate customer trust via assuring their confidence when transacting. Policymakers should also endorse stringent service quality standards, incentivize training and customer-centric conduct, and champion sustainable energy practices. Collaboration between utilities and regulators is pivotal to achieve these goals, with a concerted effort to integrate feedback mechanisms and acknowledge outstanding service as essential components of a customer-centric transformation in the power sector.
Description
Dissertation (MA Business Administration)
Keywords
customer satisfaction, electricity services, customers’ satisfaction, non-technical service factors, TANESCO
Citation
Fokas, D (2023) Technical and non-technical factors affecting level of customer satisfaction of electricity services in Dodoma City. (Masters Dissertation) The University of Dodoma