Impact of Service Quality Dimension on Customer Satisfaction of Domestic Electricity Consumers in Sri Lanka

Abstract

Electricity is becoming an essential part of life considering the increasing needs and wants of human beings. In Sri Lanka, Electricity is widely used for domestic purposes by Domestic Consumers. Customers are always expected to get the new connections within a short period of time, un-interrupted service at any time, affordable tariff system, easy payment facilities and customer-oriented attitudes of employees etc. Evidences do not prove that Ceylon Electricity Board (CEB) has been able to meet the above customer expectations fully. The problem was the gap between expected service and perceived service delivered to domestic electricity consumers by CEB. In some extent CEB is lacking behind of understanding about the customer expectations and thereby encountering difficulties in transforming customer expectations in to superior service quality specifications that employees can understand and execute. This study is an effort to come up with the solution to the major research problem that was identified by the authors as service quality identification through customer satisfaction. Current study desires to develop an empirical model of service quality in terms of electricity services that may form a basis for a better understanding of its determinants. Specifically, this study aims to identify the dimensions of service quality of electricity services provided by the Ceylon Electricity Board in North Western Province. Accordingly, scope of the present research is confined to service marketing concept: customer satisfaction. Customers are not only buying the product or arriving at the organization but including industry owners outside agencies, other outside personnel who are beneficiaries in the service offered by CEB. This study is based on the domestic electricity consumers in North Western Province in Sri Lanka. The North western province is divided in to seven areas. These seven areas are subdivided into twenty five consumer service centers. There were 863,581 consumers at the end of 2016.Using Johnson & Kuby (2007) simple sampling technique, sample size was found as 300. Therefore, 300 respondents were selected for 25 consumer service centers proportionate to the population of each consumer service center. Data were collected using a questionnaire, from 300 respondents. Customer satisfaction is measured with service quality dimensions of tangibility, empathy, responsiveness, reliability, assurance. Correlation analysis and multiple regression analysis were used to analyze the data. The model framework developed based on the SERVQUAL model invented by Parasuraman, Zeithamal and Berry (1988). The results showed that tangibility, empathy, responsiveness, reliability and assurance had significant positive relationships on customer satisfaction. Based on the findings some suggestions for electricity utility were discussed. Findings will be useful to CEB for enhancing its effectiveness and to build up the high level of customer satisfaction. Moreover, findings of the study enrich the empirical literature and provide important messages for the policy makers and enlightening substantial scope for future research.