Abstract
Although water is an essential commodity with virtually no substitute, poor bill payment on the part of water utility customers is constraining the effort of water utility companies, especially those in developing countries to sustain and expand its provision. In this backdrop, this article investigates the interrelationship and impact of a set of attitudinal and institutional factors on the bill payment behavior of water utility customers of Ghana. A conceptual model of payment behavior is developed and tested using data from a cross-sectional survey of households in the Greater Accra Region of Ghana (GARG) and the billing records of Ghana Water Company Limited (GWCL). Among the constructs considered in the analysis, service quality, corporate image, and monitoring and control are found to be the major determinants of customer satisfaction toward the water utility, which in turn, together with the direct influence of monitoring and control measures and transaction time at bill payment points, explains a significant part of the total variation in water customers’ bill payment behavior. We provide in-depth discussion and policy implications of our findings.
Highlights
Water and sanitation are important ingredients for sustainable development
In line with the conceptual framework (Figure 1), we estimate the following empirical model so as to appreciate the nature and extent of the influence of each of the previously defined constructs on customer satisfaction and how the latter is reflected in their bill payment behavior
We present the findings of estimating the system of equations comprising regression Equations 1 and 2 in Tables 5 and 6, respectively
Summary
Water and sanitation are important ingredients for sustainable development. In particular, water is needed for food, energy, and industrial production (United Nations Water [UN-Water], 2016; World Health Organization [WHO], 2016). Despite the importance of water to people, it is estimated that by 2050, at least one in four people, especially in developing countries, will be affected by infrequent water supply (Marson & Savin, 2015; United Nations Development Programme [UNDP], 2016)—a situation that will potentially undermine people’s health and dignity, and exacerbate the already precarious economic conditions in those countries. In recognition of this looming danger, the United Nations General Assembly in its recently adopted sustainable development agenda, known as the Sustainable Development Goals (SDGs), correctly sets out to “ensure availability and sustainable management of water and sanitation for all” (SDG 6; UNDP, 2015). The UNDP (2015) reports that, until adequate investments are made in water infrastructure, it will be difficult for water utilities to ensure universal access to safe and affordable drinking water for all by 2030
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