Improvement Of Water Services Research Articles

Perceived customer value and willingness to pay: strategies for improving and sustaining water service quality

PurposeSeveral studies have examined the relationship between service quality and willingness to pay in many industries. However, this relationship has not been explored through the lens of customer perceived value and their willingness to pay for improving and sustaining water service. This study aims to examine the impact of technical and functional service quality dimensions on customer perceived value and assess the influence of customer perceived value and socio-economic factors on customers' willingness to pay for improving and sustaining the water service.Design/methodology/approachTechnical service quality includes core water service such as water delivery and maintenance, while functional service quality refers to the appearance of facilities, employees’ dress, and communication. SERVQUAL questionnaire responses were collected from 333 Palestinian household customers. Cronbach’s alpha was conducted to measure internal consistency and convergent validity. Path analysis was utilized to evaluate a causal diagram by examining the relationships among the constructs.FindingsThe results showed that technical and functional service quality and relative price explain 52% of the customer perceived value variation. Additionally, the results revealed that customer perceived value, technical service quality, and relative price significantly impact the customer’s willingness to pay for improving and sustaining service. In contrast, the functional service quality and socio-economic factors have insignificant effects. These predictors explain 60% of the customer’s willingness to pay for improving and sustaining service.Practical implicationsThe study suggests that water providers should prioritize improving and sustaining technical service quality to increase customer willingness to pay. Furthermore, they should be aware that other factors, such as employee appearance and politeness, are less influential in driving customers’ willingness to pay.Originality/valueThe study presents a water service improvement model that utilizes data from a developing country to assess the influence of perceived customer value, along with its dimensions, on the willingness to pay for improving and sustaining water service quality.

Assessing Willingness to Pay for Improved Water Services from Forest Area in Bayas Jaya Village, Lampung Province

One of the important functions of the forest is to provide water to the community. Improvement of water services from forest areas requires the community’s participation. This study aims at (1) identifying the community’s willingness to pay for improved water services and (2) determining factors affecting the community’s willingness to pay. This study is located in Bayas Jaya Villages and the upland area of Kedondong Sub-District, Pesawaran District, Lampung Province. The study interviewed 75 farmers of 3 water services management, i.e.: (1) independent, (2) PAMSIMAS, and (3) PDAM. Each management water service was represented by 25 members who were randomly selected. Objective one is analyzed using descriptive analysis, and objective two is analyzed using a regression analysis model. The study suggests that, on average community received 10,6m3 per day, which is far higher than their daily consumed, i.e., 460 l per day. However, water surplus is not optimized as they are drained to the local sewer. Further, 56% of the community is willing to pay should water services be improved. The average willingness to pay is Rp 440,357.14 annually per family. Factors affecting the community’s willingness to pay, include (1) the PDAM model, (2) the PAMSIMAS model, (3) age, and (4) daily water discharge to family.

Does the urban poor want water service improvement? Residents’ preferences for future water service supply in the Central Rift Valley of Ethiopia

Abstract Access to clean and adequate drinking water supply has a significant contribution to public health and the economies of developing nations. However, leaders in developing countries continue to experience challenges in their attempt to provide citizens access to safe drinking water. This study examines residents’ preferences for improved water service supply attributes in the Central Rift Valley of Ethiopia. Using a conjoint experiment survey from 450 residents, the study estimates part-worth valuation for each attribute and shows that preference for future water service is heterogeneous. Finally, the researchers confirmed that the resident is willing to pay up to 75% surcharges on their current bill for improved drinking water supply.

An integrated approach to public’s perception of urban water use and ownership of water companies during a period of economic crisis. Case study in Athens, Greece

ABSTRACTThis study applies an integrated approach to investigate public perception of residential water issues during a period of economic crisis. The study investigates the perceptions and practices of Athenians in water conservation, their satisfaction with the supplied water, their opinion on the privatization of Water Company and their willingness for additional payment for the improvement of water services. A survey was conducted using a structured questionnaire. Results indicate that the respondents have adopted water conservation practices, but there is still room for further saving. Most of the respondents declared to be satisfied with the supplied water and do not agree to the privatization of water companies. Women, older participants and those having lower income are less willing for additional payment. Research findings are useful tool for policymakers to design policies and make decisions regarding water management, ownership of water companies and changes in behavior of water use.

Valuing the water supply: ecosystem-based potable water supply management for the Legedadie-Dire catchments, Central Ethiopia

BackgroundThere is a substantial interest in the values that consumers place on drinking water quality and supply. Financial resources are crucial to improving the urban potable water supply in developing countries that are characterized by low-cost recovery rates and a high and rapidly growing demand for more reliable services. This study examined households’ willingness to pay (WTP) for the improvement of water services by identifying their water choice decisions and the mode of water supply that they prefer the water supply authority to use among several alternative water supply options. Stated-preference data were collected from 322 randomly selected households in Addis Ababa, who were presented with three sets of choices (three alternative bundle choices, including the reference scenario). The data were analyzed using the mixed logit WTP space model. Three approaches to modeling the distribution of WTP (fixed, uncorrelated, and correlated) using mixed logit WTP space models were compared.ResultsThree-quarters of the households agreed to contribute money toward ecosystem-based water supply management (EBWSM) intervention programs on a monthly basis. The average contribution that the respondents were willing to pay was 150.5 Ethiopian Birr (ETB) as a one-off lump sum to kick off the EBWSM activities. Most of the respondents chose a bundle of water supply options that provides risk-free and high-quality water with no months of shortages than moderate water quality that is safe to drink and palatable with 1 month shortages annually. This implies that households would need to be supplied with risk-free, high-quality water without interruption at an appropriate flow pressure. The model with correlations fitted the data well with the highest simulated log-likelihoods at convergence and gave the best estimate of the households’ WTP for water improvement. Nearly 46% of the sampled households were willing to pay more than 33 ETB per month, and 49% of the households were willing to pay between 21 ETB and 33 ETB per month for the monthly water bill. Overall, approximately 95% of the sampled households were willing to pay more than 21 ETB.ConclusionCustomers are willing to pay to avoid most types of water supply restrictions. Moreover, WTP is sensitive to the scope of service improvement, income, affixed price, and elicitation method. In summary, mixed logit WTP-space models can help accurately predict household-level WTP, which can be used to select improvements in drinking water access and services in the Legedadie-Dire catchments.

Households’ preferences and willingness to pay for multiple use water services in rural areas of South Africa: An analysis based on choice modelling

Financing of multiple use (i.e. domestic and productive) water services was identified as an important ingredient to ensure improved water access for rural poor and broaden livelihood options in South Africa. Following the principles of integrated water resource management (IWRM), efficient, equitable and sustainable investments in improved water services should be based on a thorough understanding of actual demand by consumers. Comprehensive studies looking at multiple use water services are not common in South African rural areas, where most of the economic analyses focus on either domestic or irrigation water demand. This study aims at filling this gap by assessing the household demand for multiple use water services in Sekororo-Letsoalo area in the Limpopo Province. Choice modelling is the approach used to identify the attributes determining demand for water services and quantify their relative importance. Results show that households in rural areas are willing to pay for improvements in water services. Due to the current poor level of water services in the area, users are primarily concerned with basic domestic uses and, consequently, demand for productive uses is low. Only households already relatively well served are interested in engaging in multiple water uses.

Willingness to Pay for Improvements in Water Services in Terengganu, Malaysia: from Domestic Consumers’ Perspectives

Willingness to Pay for Improvements in Water Services in Terengganu, Malaysia: from Domestic Consumers’ Perspectives

Factors Influencing Water System Functionality in Nigeria and Tanzania: A Regression and Bayesian Network Analysis.

Sufficient, safe, and continuously available water services are important for human development and health yet many water systems in low- and middle-income countries are nonfunctional. Monitoring data were analyzed using regression and Bayesian networks (BNs) to explore factors influencing the functionality of 82 503 water systems in Nigeria and Tanzania. Functionality varied by system type. In Tanzania, Nira handpumps were more functional than Afridev and India Mark II handpumps. Higher functionality was associated with fee collection in Nigeria. In Tanzania, functionality was higher if fees were collected monthly rather than in response to system breakdown. Systems in Nigeria were more likely to be functional if they were used for both human and livestock consumption. In Tanzania, systems managed by private operators were more functional than community-managed systems. The BNs found strong dependencies between functionality and system type and administrative unit (e.g., district). The BNs predicted functionality increased from 68% to 89% in Nigeria and from 53% to 68% in Tanzania when best observed conditions were in place. Improvements to water system monitoring and analysis of monitoring data with different modeling techniques may be useful for identifying water service improvement opportunities and informing evidence-based decision-making for better management, policy, programming, and practice.

Evaluation of Customer-Driven Level of Service for Water Infrastructure Asset Management

AbstractThere has been an increasing need to examine the level of service from a customer’s perspective in order to set the appropriate service level with a limited maintenance budget. This paper presents an evaluation of a customer-driven level of service based on a survey questionnaire. A hierarchical questionnaire has been developed. The survey result was analyzed based on 800 answers from eight provinces in Korea. Weights between hierarchy levels have been identified through multiple regression analysis. Of the 13 factors considered as governing customer satisfaction with regard to water service safe to drink and service life of water pipes were in the highest priority improvement quadrant in the water service improvement priority analysis. It has been found that there are clear gaps between the views of customers and utility managers regarding water service, and this would be a good starting point in allocating maintenance budgets in a way that achieves maximized and balanced improvement in customer ...

An Assessment Of The Performance Of The Cameroon Water Corporation For The Period 1967 To 2013

This paper assesses the performance of the Cameroon Water Corporation (CWC) in delivering services after four decades of existence (1967-2013) and relates that performance to organization theories. It uses secondary data on services provision and primary data on users perceptions of the CWCs performance. The assessment is conducted using descriptive as well as inferential methods of data analysis. The paper observes that despite political, technical, managerial, and financial constraints that impaired the efficient delivery of drinking water and sanitation services in the country over the years, the company registered modest successes that attracted the financial support of domestic and worldwide development partners. However, more than half of the population is sceptical about better future services delivery by the CWC. Classical organization theory (COT) explains most of the failure in the operating environment of the CWC, while the formulations in modern organization theory (MOT) are found to be relevant to the improvement of water services. As a policy recommendation, the CWC should focus on MOT, while maintaining some aspects of COT to improve performance.

The geography of multiple scarcities: Urban development and water problems in Lima, Peru

The paper discusses the contradictory evolution of water services and the politicised nature of water scarcity in Lima, the capital of Peru. It initially claims that water scarcity cannot be understood as an isolated phenomenon, but it is inserted in a wider multiplicity of scarcities that characterise contemporary urban development. The naturalisation of scarcity in the official policy discourse is then criticised for its tendency to overlook interconnected mechanisms of political differentiation and socioeconomic exploitation that influence the allocation and use of water. Against such reductionist readings, the analysis employs a non-essentialist interpretation of multiple scarcities related to water and emphasises the need to address the totality of the experience of scarcity. Based on qualitative fieldwork, which explored recent institutional reforms and the daily struggle for water in the periphery of Lima, three fundamental reasons were identified for the persistence of water scarcity: first, the expansion of water problems as a result of the poor quality of housing and the discriminatory practices against low-income residents; second, the modest improvements in water services provided by public investment programmes, which have primarily aimed to answer political and electoral demands of the ruling party; and third, the technocratic basis of new management approaches and the systematic exclusion of grassroots communities from the decision-making process. Genuine responses to the mounting water problems of Lima require a more critical appreciation of the production of circumstantial abundances and totalising scarcities in the city.

Willingness to Pay for Domestic Water Service Improvements in Selangor, Malaysia: A Choice Modeling Approach

Abstract: The tasks and responsibilities of domestic water service management in Malaysia are handled by various government agencies. Sufficient water service and resources management is required for sustainable water resources conservation. In order to realized water resource conservation, economic effectiveness of water utilization (consumers), maintenance of water quality supply (source of water supply) and efficiency in allocating water resources (agencies) needs to be addressed. The objective of the study is to assess community preferences and values relating to alternative water service management with particular concentration on water service improvement. This study has applied Choice Experiment (CE) to investigate the current policies and potential alternative of water service management in Selangor. The studies are based on 230 respondents in Subang Jaya that were randomly interviewed for data collection in October to December 2008. The findings indicates that respondents are willing to pay higher for drinking water as compared to the current rate with improved in water quality (WQ), reduced the frequency of water interruption (WI) and increases in the consumer trust to tap water (CT). The finding of this study is very important in order to assists and recommends the policy makers towards efficiency of domestic water service management in Malaysia. Key words: Choice experiment; Water conservation; Consumer preference; Choice modelling; Willingness to pay

Water pricing with household surveys: A study of acceptability and willingness to pay in Chongqing, China

In determining domestic water prices, policy makers frequently need to use demand-side information rather than only rely on supply-side data as previously did, and household surveys are often conducted to collect information on the demand side. This paper presents a multiple bounded discrete choice (MBDC) survey model for collecting information about acceptability of different water prices by different types of households and estimating households' willingness to pay for water service improvement. The results obtained from MBDC surveys can be directly utilized in the development of water pricing and subsidy policies. An empirical MBDC study is conducted in Chongqing, China, where domestic water service quality was seriously inadequate, but financial resources were insufficient to improve the service quality. With a survey of 1500 households in five suburban districts in Chongqing Municipality, this study shows that a significant increase in water price is economically feasible as long as the poorest households are properly subsidized. The analysis also indicates that the order in which hypothetical prices are presented to the respondents with the MBDC method can systematically affect the answers and should be taken into account when designing such survey instruments.

Attribute-Based Willingness to Pay for Improved Water Services: A Developing Country Application

Developing countries experience poor and deteriorating water services where the costs of improvements, water utilities assume, are not affordable by households. However, if water services are hypothetically improved, are households willing to pay? From employment of an attribute-based stated-preference method, the paper examines households' willingness to pay for improvements in water services in a city in south India. Aside of quantity, households are willing to pay for improvements in quality, pressure, frequency of supply, and increased quanta of supply during the dry season. In addition, households prefer regulation in water services, albeit from a public service provider. In Asian countries and other developing country regions households' willingness to pay is substantially higher than the costs of the provision of water, and on a par with mean water tariffs in developed regions of the world.

Demand management aspects of urban water policy in the industrial sector: the case of the city of Thessaloniki, Greece

The present paper presents the main results of a research project. It deals with consumers' perception of water issues in the industrial sector, and examines and analyses water use patterns, water conservation methods and water pricing issues. Issues presented are the contribution of water to production processes, water consumption levels, water conservation options, the possibility of construction of a dual water supply system, the evaluation of different pricing policies, the willingness to pay (WTP) and the potential impact of a price increase. The study has shown that there is limited use of recycling methods, few pollution control practices and small effect of industrial water price on water consumption levels. As far as industrial consumers are concerned, they present inaccurate perception of water consumption levels and low willingness to pay for the improvement of water services.

Urban Water and the Politics of Citizenship: The Case of the Mexico City Metropolitan Area during the 1980s and 1990s

The author focuses on the interrelations between access to urban water services and citizenship rights, taking the case of Mexico City Metropolitan Area as the empirical reference. Recent research has shown that social struggles over the access to and improvement of water services have been an important component of Mexican public life during at least the last twenty years. The author argues that mainstream explanations of the water crises tend to reduce the problem to its economic, technological, and physical – natural dimensions. Although the relevance of these factors affecting the provision of efficient and universal water and sanitation service is recognized the emphasis is placed on the socioeconomic and political inequalities that determine the exclusion of large sectors of the population from full access to essential living conditions, including water services.

Estimating the Willingness to Pay for Water Services in Developing Countries: A Case Study of the Use of Contingent Valuation Surveys in Southern Haiti

Progress in improving the quality and quantity of water used by people in rural areas of the developing world has been unsatisfactory in two respects: (1) supplies that have been built are frequently neither used correctly nor properly maintained and (2) extension of improved service to unserved populations has been slow. Though this poor record is not the result of a single factor, a major impediment to improved performance is inadequate information on the response of consumers to new service options. The behavioral assumptions that typically underlie most rural water supply planning efforts are simple. It is commonly assumed that so long as financial requirements do not exceed 5% of income, rural consumers will choose to abandon their existing water supply in favor of the "improved" system. Several reviews by the World Bank, bilateral donors, and water supply agencies in developing countries have shown, however, that this simple model of behavioral response to improved water supplies has usually proved incorrect.1 In rural areas many of those "served" by new systems have chosen to continue with their traditional water use practices.