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Customer satisfaction from private utility companies: An explanatory study

Author

Listed:
  • Eleni-Plousia Kosteroglou

    (Eastern Macedonia and Thrace Institute of Technology, Agios Loukas, 65404, Kavala, Greece)

  • Georgios Theriou

    (Eastern Macedonia and Thrace Institute of Technology, Agios Loukas, 65404, Kavala, Greece)

  • Dimitrios Chatzoudes

    (Democritus University of Thrace, 12 Vasilissis Sofias Street, 67100, Xanthi, Greece)

Abstract

Purpose – The present study examines the factors that have an impact on "customer satisfaction" in the context of private utility companies. The main purpose of the study is accomplished through the development and the empirical testing of a conceptual frame-work (research model). The proposed framework includes six dimensions (research factors): (a) tangibles, (b) reliability, (c) responsiveness, (d) assurance, (e) empathy, and (f) customer satisfaction. Design/methodology/approach – The present study adopted the SERVQUAL approach (model), only after analytically testing its suitability for use within the investigated area. In that direction, the focus group methodology was used. Finally, the proposed con-ceptual framework was tested on a random sample of gas consumers residing in the area of Thessaloniki, Greece. The final sample consisted of 437 adult consumers. The reliability and the validity of the questionnaire were thoroughly examined. Empirical data were analysed using the “Structural Equation Modelling” (SEM) technique. The present study is empirical, explanatory, deductive and, mainly, quantitative. Findings – Empirical results indicate that "reliability" has the highest impact on "customer satisfaction", while "empathy" has no impact at all. More specifically, the impact of "reliability" on "customer satisfaction" is indirect, mediated through three other di-mensions of the conceptual framework (namely, "tangibles", "responsiveness" and "empathy"). Research limitations/implications – A limitation stemming from the implemented methodology is the use of self-reported scales for the measurement of the six research factors. Moreover, the paper lacks a longitudinal approach. Finally, the empirical research (survey) is focused on one organisation and, therefore, offers relatively limited generalizability. Originality/value – Very few studies have utilised the SERVQUAL approach in the context of an explanatory research. This approach offers a unique understanding of the relationship that exist between its five dimensions (factors) (tangibles, reliability, responsiveness, assurance, empathy). Such an approach has very rarely been attempted in the relevant literature.

Suggested Citation

  • Eleni-Plousia Kosteroglou & Georgios Theriou & Dimitrios Chatzoudes, 2016. "Customer satisfaction from private utility companies: An explanatory study," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 9(3), pages 13-23, December.
    • Handle: RePEc:tei:journl:v:9:y:2016:i:3:p:13-23
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    References listed on IDEAS

    as
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    4. Blut, Markus & Frennea, Carly M. & Mittal, Vikas & Mothersbaugh, David L., 2015. "How procedural, financial and relational switching costs affect customer satisfaction, repurchase intentions, and repurchase behavior: A meta-analysis," International Journal of Research in Marketing, Elsevier, vol. 32(2), pages 226-229.
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    6. Holt, Lynne, 2005. "Utility service quality--Telecommunications, electricity, water," Utilities Policy, Elsevier, vol. 13(3), pages 189-200, September.
    7. Colin Shaw & John Ivens, 2002. "Building Great Customer Experiences," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-55471-9, October.
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    Cited by:

    1. Irina N. Tkachenko & Ivan A. Chechulin, 2024. "Crisis resilience assessment and management of public utility companies," Journal of New Economy, Ural State University of Economics, vol. 25(1), pages 131-159, April.
    2. Hsien-Chih Kuo & Pin Luarn & I-Jen Chen, 2017. "Value Co-creation of Xiaomi in China," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 11(1), pages 26-33, December.

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    More about this item

    Keywords

    Customer satisfaction; Utility companies; SERVQUAL; Empirical study; Structural Equation Modelling;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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