Low-income Customers Research Articles

Addressing Challenges to Ensuring Justice and Sustainability in Policy and Infrastructure for Texas Water Resources in the 21st Century

Environmental justice and sustainability have both become major concerns for water resource management, particularly with recent federal emphasis on environmental justice under the Biden administration in the United States. Texas, like many U.S. states, lags behind the federal government in this emphasis. While many localities have made progress in some respects—for example, some major Texas municipalities have included equity and sustainability metrics in their recent climate action plans—others have not. This has left a patchwork of persistent water management and availability issues that are exacerbated by extreme weather and worsening impacts of climate change. We provide a review of many of Texas’s water equity and sustainability challenges, both now and in a more extreme climate future. These include water access, affordability, contamination, flooding, drought, and aging infrastructure. For example, many Texas counties rank highest in the nation for flood risk, including coastal counties with high populations of disadvantaged communities and counties containing populations that live in persistent poverty in the Lower Rio Grande Valley. Additionally, approximately 44,000 Texans, or about 0.4% of the state population, lack access to complete plumbing facilities in their homes. The costs of water infrastructure leaks (estimated at about 51 gallons of water per day statewide) are shared across customers of all income levels, though they place a disproportionate burden on low-income customers. We then assess existing statewide and local policy and planning efforts and gaps in addressing these concerns in Texas. We focus particularly on the role of efforts to incorporate community voice—the ideas, concerns, needs, and expertise of impacted community members, dismantle causes of injustice, and improve equity in spending. If communities are not intentional with future development, new water infrastructure could continue to perpetuate existing harms. Thus, we provide a research agenda and recommendations for addressing some of the policy and planning gaps and persistent environmental justice issues. We aim to help water managers and policy makers identify and dismantle sources of inequity, particularly through including community voice.

The effects of buy now, pay later (BNPL) on customers’ online purchase behavior

Recent innovations in financial technology (FinTech) have introduced short-term financing options for customer loans, allowing customers to make purchases and pay for them in future installments without incurring interest, a model commonly referred to as Buy Now, Pay Later (BNPL). Despite the increasing provision of BNPL by online retailers, there remains a limited understanding of its effects on customers’ online purchase behavior. To address this gap, we utilize a synthetic difference-in-differences research design to estimate the impact of customers’ BNPL adoption on their online purchase behavior, specifically measured by order size. Our empirical results indicate that customers who adopt BNPL provided by a focal retailer have a higher order size than those who use traditional payment services. Our empirical estimates indicate an increase of 6.42% in online spending by customers adopting BNPL. Additionally, we examine the moderating effects of various customer segments - including loyalty, category experience, and promotion sensitivity - as well as demographic factors such as age, income, household size, and product characteristics, particularly low-ticket items. The impact of BNPL adoption is found to be amplified among customers with high levels of category experience and promotion sensitivity. Conversely, the effect is attenuated among older and higher-income customers, indicating that younger and low-income customers are the primary drivers of this effect. Moreover, our analysis demonstrates that purchases of low-ticket items predominantly drive the observed effect. This study provides strategic insights for online retailers concerning the implementation and targeting of BNPL as an effective online payment option.

Importance of voluntary usage among customers with difficulty using self-service technology (SST)

ABSTRACT Despite the growth in self-service technology (SST) usage in service settings, SST-centric service is difficult for some customers. Thus, this paper addresses how voluntary use of SST influences customers’ SST behavior based on a cognitive-affective-conative framework. Questionnaire data were collected from customers with difficulties using SST in the United States. Hypotheses were tested using partial least squares structural equation modeling with SmartPLS. The model sample comprised 218 retail service customers. Results showed that voluntary use positively impacts customer attitudes toward both SST and the service provider, which directly affects recommendation and repurchase intentions. Also, customer demographic characteristics were examined and indicated that the impact of voluntary use of SST on customer attitude is stronger among male, young, and low-income customers. This study highlights the importance of not forcing customers to use SST, especially when they have difficulties.

Factors influencing the intention to buy microinsurance: A case study of low-income customers in Ho Chi Minh City

Microinsurance is a form of insurance for low-income people that is being expanded in developing countries, including Vietnam. In addition, microinsurance plays the financial protection and savings role for individuals and families with low income, ensuring social security and sustainable economic development. Therefore, the article aims to determine critical factors influencing low-income customers' intention to buy microinsurance in Ho Chi Minh City. On that basis, the authors propose that the implication of corporate governance contributes to increasing the intent to purchase microinsurance products/services. In the research paper, the authors used a qualitative method by interviewing five managers of five companies related to insurance, finding five factors related to the research topic. Quantitative research was carried out with a sample of 400 customers with low income, using multivariate linear regression analysis, and five factors with a significance level of 5 percent were identified. Finally, the authors have proposed five governance implications in order of priority: Safety, social influence, convenience, ease of use, and benefits. Research applications contribute to orientation for insurance organizations to improve the quality of microinsurance products/services to better serve customers and other low-income people.

Implementasi Program KPR Syariah Bersubsidi terhadap Masyarakat Berpenghasilan Rendah di Bank Tabungan Negara (BTN) Kota Langsa Aceh

This research is entitled “Effectiveness of Subsidized Sharia Mortgage Financing for Low- Income Communities at BTN Syariah Langsa City. This study uses a qualitative descriptive method, with the formulation of the problem, 1) How is the implementation of Islamic mortgage financing for low-income customers at Bank BTN Langsa City?, 2) How is the effectiveness of Islamic mortgage financing for low-income people at Bank BTN Langsa City?, from the results of the research of the bank and the dispatcher have followed the regulations from the government from the housing mortgage program, but with regulations from the government, the depeloper is an obstacle they cannot freely choose customers, with regulations made by the government even though people who are gardeners are farmers and fishermen even though they are able to take mortgage housing, there are also people who feel helped by the KPR program from thegovernment.

Lessons for global microfinance from . . . the United States?

Abstract Questions about the future of global microfinance, and specifically the future of policy and subsidy for microfinance, abounded even before the pandemic. Competing policy priorities and limited budgets mean key questions must be answered. How should funders and policy-makers approach subsidy to sustain or increase the reach of microfinance? How do policy-makers find a balance between consumer protection and minimizing the costs of regulation for providers who attempt to serve low-income (and often unprofitable) customers? Can technology be a solution to long-standing challenges, increasing reach and lowering costs? Insight into these questions can be gained from an unlikely place: the United States. For decades, global microfinance advocates have suggested the US has much to learn from the innovations and successes of the global microfinance movement. However, the financial system in the US is best understood not as the result of an absence of microfinance, but an example of how a financial system evolves, and the enduring challenges, even when it includes microfinance. Microfinance has been historically present in the United States, since at least Benjamin Franklin, and extending through the present. A clear-eyed and informed view of that history provides several important lessons, including the necessity for on-going subsidy, the never-ending challenge of consumer protection, the rising costs that can come with robust market competition, and the inability of technology to fix systemic challenges. Policy-makers and funders the world over can benefit from learning from each other, particularly if the conversations start from a different point: the challenges are shared and fruitful ideas and valuable lessons can come from all parties.

The impact of support on behavioural intention in a customer-to-customer retail service context

ABSTRACT Although previous studies have focused on customer behaviour in an e-commerce context, few have examined experience with customer-to-customer (C2C) platforms. Thus, the main purpose of this study was to identify the relative impact of two types of support (i.e. emotional and information) on customers’ behavioural intention in the C2C area. A total of 181 valid questionnaires on the C2C platform experience was collected and analysed using partial least squares structural equation modelling. The results show that both emotional and information support are major drivers of customer trust in sellers and the C2C platform. Also, the impact of customer trust on behavioural intention was evaluated. Last, multi-group analysis identified the differences in customer behaviour across gender, age, and income. Emotional support is a stronger determinant of trust among male, old, and low-income customers, whereas information support is more impactful in female and young C2C customers. The current study contributes to the internet commerce literature by providing an integrative view of collaborative consumption.

Can Human Capital Explain Income-Based Disparities in Financial Services?

Abstract Research shows that access to high-quality financial services varies with local income and wealth. We study how financial firms’ internal allocation of human capital contributes to these disparities. Using a near-comprehensive panel of over 350,000 U.S. mortgage loan officers, we document large and persistent differences in productivity and performance. We find that firms’ hiring and promotion practices allocate workers with less experience or poor track records to branches serving low-income customers. Further, the consequences of poor performance differ by location: low sales, bad loans, and misconduct are more tolerated in low-income branches, exacerbating income-based disparities in financial services.

Prioritising climate adaptation options to minimise financial and distributional impacts of water supply disruptions

Climate-related disruptions to water supply infrastructure services incur direct financial losses to utilities (e.g. to repair damaged assets) and externalise a societal cost to domestic customers due to additional costs that they may incur (e.g. to acquire water from alternative sources). The latter often represents an uncompensated social burden, which should be properly accounted for in investment planning. Here we present a new framework for quantifying direct financial risks burdened by utilities and alternative water purchase losses incurred by domestic customers, including those in low-income groups, during flood- and drought-induced utility water supply disruptions. This framework enables the comparison of benefit-cost ratios of a portfolio of flood protection and leakage reduction for water supply systems across the island of Jamaica. A system-level optioneering analysis allows the identification of the optimal adaptation option per system. We estimate that 34% of systems would benefit from flood defences and 53% would benefit from leakage reduction to adaptation to droughts. The benefit that could be achieved by implementing all system optimised adaptation options is estimated to be 720 million Jamaican dollars per year on average, representing a substantial saving for the utility and its customers, including low-income customers. We identify options that offer strong synergies between economic and equity objectives for both types of adaptation option. The proposed framework is established to support the business case for climate adaptation in the water supply sector and to prioritise across flood and drought mitigation options. We take a first step towards mainstreaming equity considerations in water supply sector optioneering frameworks by estimating the contribution of adaptation options towards reducing household costs for low-income customers.

Sizing isolated mini-grids in Kenya: Risk transfer to deal with multidimensional uncertainties and constraints

Isolated mini-grids (MG) can be an efficient option for rural electrification worldwide. Nonetheless, a large share of MG fail after a few years and inadequate sizing has been identified as a major risk. Academia, public authorities and funding agencies tend to consider the sizing of mini-grids mostly from a technical and economic angle, looking to optimize performance for MG developers and operators with tools such as HOMER. This paper proposes a different approach. We study the strategies adopted by different MG stakeholders to deal with their own uncertainties and constraints in the sizing process. Based on field work in Kenya, we detail how MG funders and regulators transfer risks to private MG developers and operators. As a result, the latter face risks regarding demand estimation, funding and regulatory aspects when sizing MGs. In turn, they adapt their methods and business models, sometimes transferring risks to end users. While flexible sizing might be a solution, we show that regulatory and funding issues limit MG modularity, leading low-income customers to eventually bear the consequences of ill-suited sizing.

Frugal Entrepreneurship: Profiting With Inclusive Growth

Frugal entrepreneurship (FE) is increasingly considered an important change-maker in emerging markets, serving the unmet market needs of the poor. However, we lack an understanding of who the protagonists of the FE are, their constraints, drivers, and outcomes. Using an inductive research approach with multiple cases, we build a framework that explains constraints, drivers, and outcomes of the FE. We identify three types of constraints—resource, institutional, and scale-up constraints. FEs’ creation process involves an innovative approach and institutional support as drivers. Unlike conventional firms, the study points out the duality of outcomes of FEs—business growth and inclusive growth. Despite many constraints, FEs demonstrate proven success in providing affordable products for low-income customers and show a way of profiting with inclusive growth. Our article makes several contributions along with both theoretical and practical implications.

Antimalarial procurement in private-sector pharmaceutical outlets: decision-making complexities and implications for medicine quality in Tanzania

Poor-quality medicines are a major threat to healthcare provision in low-income countries. The problem exacerbates disease vulnerabilities of already disadvantaged populations including children, women, and the elderly. However, while the...

Young consumer engagement at the bottom of pyramid: applying S-O-R framework in e-commerce context

Purpose This study aims to identify the key drivers of consumer engagement in e-commerce among young consumers at bottom-of-pyramid (BoP) markets and their impact on continued usage intention. Design/methodology/approach A cross-sectional research design was used to understand low-income customers’ engagement in e-commerce, specifically online shopping. The data for this study were collected from BoP customers in the Indian market. A conceptual model was proposed, and hypotheses were developed using the stimulus–organism–response (S-O-R) framework. For analysis, structural equation modeling was performed using AMOS 20.0 software to test the structural model. Findings The results of the study highlight that perceived importance, technology and infrastructure and social influence are key drivers of e-commerce at BoP customers. Key drivers have shown a significant positive impact on customer engagement which leads to continue usage intention of e-commerce. Furthermore, customer engagement has shown a strong relationship with continue usage intention of e-commerce. Practical implications This study indicates that young consumers’ engagement is important for e-commerce service providers to gain a market share. BoP markets offer immense opportunities to create, develop and sustain e-commerce firms for a long time, especially in India. Managers should recognize the potential of BoP markets, which can generate a huge demand for products and services on e-commerce platforms. Originality/value This study contributes both theoretically and empirically. Theoretically, this adds to the existing knowledge of customer engagement, especially in e-commerce and BoP market segment. Empirically, it tested the conceptual research model of low-income customer engagement in the e-commerce marketplace using the S-O-R framework. The study recommended practical implications for e-retailers/e-commerce service providers engaging BoP customers in a digitally connected and intensively competitive era.

Frugal entrepreneurship: A way to seize business opportunities for low-income customers

Frugal entrepreneurship: A way to seize business opportunities for low-income customers

Customer Focus

Customers are at the center of each story in this month's Journal AWWA. Whether domestic, commercial, industrial, or institutional—water customers are taken to represent all water consumers in a service area. Customers should receive direct communication from utilities, and they likewise should be able to provide direct feedback through customer service. While the water industry must protect every single water consumer, young and old, even if they never see a bill, one can view the industry's focus on two overriding goals: regulatory compliance and customer satisfaction. Through political change, climate change, and even worldwide pandemics, water systems must deliver services that meet all regulatory requirements and customer needs. To complete the cycle, water systems must then be paid enough by customers to cover the cost of those services, sometimes with federal or state support, so that the cycle can continue. This means that utilities keep their customers top of mind in the decisions that affect them. The first story in this issue explores how households—especially low-income customers—can be sensitive to changes in water bills. As discussed, minor rate increases can have dramatic effects on customer budgets, which have been especially constrained in today's high-inflation environment. Water costs will continue rising, so water utilities need to position themselves to protect their customers from rate shocks and promote affordability, along with wise water use. Another feature this month describes how utilities use sophisticated models to anticipate and avoid complex damage to water distribution systems. Resilience analysis can develop optimal emergency responses to ensure that customers maintain safe water supplies or that services are restored as quickly as possible. These models can also help utilities achieve equitable resilience by considering socioeconomic vulnerability. Similarly, another feature presents how water safety plans (WSPs) can provide ways to augment public health protection and prioritize hazards. Where a risk to public health exists that crosses many processes and responsibilities within a public water system, a WSP can integrate those factors into a more effective risk management program. Another article this month highlights the importance of public communication and how local newspapers still play an important part in how utilities connect with their customers. News coverage can raise public concern, motivate public action, and soften public resistance to the investments needed for safe and reliable water service. Taken together, all the articles in this month's issue show how the water systems can improve their customers’ experience and strengthen their community support. Please consider writing an article for Journal AWWA to share your innovative ideas or management approaches by contacting me at [email protected].

The dark side of digital finance: evidence from environmental information disclosure of Chinese listed companies

PurposeThis study aims to explore the relationship between corporate environmental information disclosure and digital finance.Design/methodology/approachThe authors used Chinese listed enterprises as the sample. Data on digital finance are from the China Digital Inclusive Finance Index published by the Institute of Digital Finance of Peking University, and corporate environmental information disclosure is collected from the China Securities Market and Accounting Research database. Multivariate regression and Stata software were used for data analysis.FindingsThe findings suggest that digital finance significantly inhibits firms’ environmental information disclosure. Digital finance increases firms’ motivation to meet low-income customers’ demands, which is achieved at the expense of environmental performance, leading to deteriorated environmental information disclosure. Furthermore, this inhibitory effect is exacerbated by managerial power but mitigated by institutional shareholdings and political connections.Practical implicationsThe findings have important implications for policymakers and managers when formulating relevant policies regarding the co-development of digital finance and corporate environmental information disclosure.Social implicationsEnvironmental information disclosure is a crucial element in CSR disclosure quality.Originality/valueThis study enriches the literature on the environmental influences of digital finance by examining the relationship between digital finance and corporate environmental information disclosure, a crucial way through which external stakeholders obtain information about corporate environmental behaviours.

Value-for-Money Drivers in Public-Private Partnerships in Affordable Housing in Indonesia: An Analytic Network Process Perspective

This study aimed to identify the factors expected to drive value-for-money (VfM) when using public-private partnerships (PPPs) for affordable housing in Indonesia. Utilising economy, efficiency and effectiveness as the VfM criteria, the study employed the analytic network process to determine the relative importance of 13 factors compiled from the literature review. The factors were then grouped into five clusters: private sector capacity, transparent and competitive procurement, risk and reward allocation, public sector capacity and the nature of the long-term contract. The data were gathered through a survey of 20 experts with hands-on experience in Indonesia’s PPPs. Effectiveness was identified as the most critical VfM criterion, implying that bringing other VfM aspects into public decisions is indefensible if the outcome, providing low-income customers with suitable housing at rents they can afford, is not achieved. The justified scope and size of the project, clear output-based specifications, quality project planning and preparation and long-term service delivery emerged as the most critical factors enhancing VfM, each with a different focus on a specific VfM criterion based on local weights. At the cluster level, risk and reward allocation ranked the highest. This study also acknowledges several limitations and provides directions for future research.

The Future of Utility Governance

Governance is not an easy topic to talk about in the water utility world. The mere mention of the word governance evokes strong reactions related to the best and worst aspects of utilities and the regulatory systems that oversee them. America's approximately 50,000 community water systems are regulated under the Safe Drinking Water Act (SDWA), providing a common framework for many aspects of treatment and water quality—this is despite differences pertaining to system type and state primacy agency discretion. These rules apply to systems that serve the public, regardless of ownership model or governance structure. However, the commonalities largely end there. Numerous ownership types exist, broadly divided into publicly and privately owned, but with considerable variation and nuance in both categories. Many are functions of local governments; others are publicly owned by independent authorities or organized as a form of nonprofit organization. There are also investor-owned utilities that are either privately held or that have publicly traded parent companies; yet others are a part of homeowners associations, military bases, trailer parks, and several other ownership models. One study found 26 ownership types in California alone. Generally, although with exceptions, privately owned water utilities answer to an economic regulator (such as a public utility commission) for issues such as rate-setting, whereas publicly owned utilities answer to their local governments (city council, utility board, etc.). The present governance structure is complex and varied, so what is the vision for the future of water utility governance? This is a seemingly simple question that generates many more complex questions. First, is having 50,000 community water systems viable over the long term? The entirety of the United Kingdom (albeit much smaller than the United States) has only a handful of systems. Does this highly decentralized management create resilience and sustainability, or are they impeded without an economy of scale? If smaller systems end up being consolidated, how do we ensure all are involved to form a just and appropriate arrangement? And how do we ensure that customers receive comparable quality of service while paying rates that will allow utilities to meet future challenges? Second, will one or a few of the governance models eventually emerge above the rest? There are valid pros and cons for every type of governance. A successful future utility is one that will plan for the long term while also meeting present needs. This means investing in today's maintenance as well as necessary infrastructure upgrades, and identifying local funding sources for both to ensure long-term sustainability. At the same time, this investment must not leave low-income customers with unmanageable bills. There is no question utility leaders have a difficult challenge ahead, no matter what governance model is chosen. Third, is our regulatory system working? Despite the incredible advances in public health through the SDWA's history, our national regulatory system has made strong strides in recent years (see the existing primary standards in the United States), and we continue to look for new opportunities for additional risk reduction (e.g., unregulated contaminant monitoring). At the same time, a great deal of time, effort, and money have been spent scrutinizing chemical contaminants with less health-risk certainty, with some efforts abandoned while others have unclear futures (as examples, the former push for carcinogenic volatile organic compounds regulations and perchlorate). Are we really focusing on the largest threats to public health and safety in the water community? Or should we be more focused on, as an example, identifying and remedying systems that are at risk of failure from technical, managerial, and financial deficiencies? I will be the first to admit I do not have the answers to these questions, and more than likely there is no single “right” answer. However, as a sector we need to be thinking about these and other hard questions so we can work toward viable answers. AWWA is already working with experts across the water community and in adjacent sectors to develop a long-term vision of what water might look like in the future, including the future of utility governance. I encourage everyone to participate in AWWA's Water 2050 process, which has already begun, with a goal to unveil a vision at ACE 2023. But this is just the beginning, and it will take many years to achieve the appropriate solutions resulting from these difficult questions. The future of water is in our hands! Adam T. Carpenter is the manager of energy and environmental policy at the AWWA Government Affairs Office in Washington, D.C. He can be reached at acarpenter@awwa.org.

Circular Entrepreneurship in Emerging Markets through the Lens of Sustainability

The purpose of this research paper is to explore the antecedents and consequences of circular entrepreneurship in emerging markets. The consequences of circular entrepreneurship will be explored through the lens of three dimensions of sustainability: social, economic, and environmental. This study used a multi-case approach, which is frequently applied in circular business literature. The study used convenient and purposeful sampling techniques to identify circular entrepreneurs starting a business by recognizing opportunities in CE. We interviewed the 15 entrepreneurs (all participants engage in plastic circular entrepreneurship) with more than 8 years of experience. We employed a semi-structured interview method because respondents explored important information during the interview. Atlas.ti, a prominent qualitative software package, was used for analysis. This study portrays the antecedents and consequences of circular entrepreneurship identified when circular entrepreneurs take the initiative to serve low-income customers. This study points out that circular entrepreneurs can be motivated both intrinsically and extrinsically. The consequences of circular entrepreneurship show how such enterprises impact on society, sustainability, and the economy. The study points out that circular entrepreneurship can have both positive and negative impacts on the environment. By investigating the determinants and consequences of circular entrepreneurship in emerging markets, the authors make a significant contribution to the field of circular economy and entrepreneurship. We have limited logistics and resources, thus we did not collect data from stakeholders, who might provide a richer picture and insights into how circular products affect their lifestyle. Policymakers can get a better understanding of such enterprises from the findings of this study. They should reassess policies regarding circular entrepreneurship and suggest ways to promote open innovation within circular entrepreneurship. Circular enterprises serve low-income customers by offering an affordable product with attractive features. The government should develop an open innovation action-packed forum to find, design, and create prototypes, as well as introduce more comprehensive sustainable solutions for wastable plastic products.

NALISIS PEMBIAYAAN KREDIT PEMILIKAN RUMAH SYARIAH BAGI NASABAH BERPENGHASILAN RENDAH (STUDI KASUS DI BANK SYARIAH MANDIRI KANTOR CABANG PEMBANTU BOGOR POMAD)

This research is motivated by the primary need in the form of a house, but until now the fulfillmentof the house is very difficult to obtain for low-income people, even though there have been manyfinancial institutions that can realize it in fulfilling housing needs for low-income people. Thereare limitations set by financial institutions, one of which is the applicant's income limit, whichadds to the difficulties mentioned above. Therefore, this problem is interesting to study, with theformulation of the research problem, namely how to analyze the financing of Sharia HomeOwnership Credit (KPR Syariah) for low-income customers (with a case study at Bank SyariahMandiri Bogor Pomad Sub-Branch Office or BSM KCP Bogor Pomad). This research is a fieldresearch with qualitative methods of primary data, secondary data and interviews. The process ofdata analysis in this study used descriptive analysis