A survey of customer satisfaction with service provision: a case study of Electricity Company of Ghana Limited (ECG) Kumasi
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Date
2001-12-14
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Abstract
Ensuring Customer Satisfaction is one of the most important tasks facing businesses today. Unless an organisation is able to meet the expectations of its consumers with the product or service performance, the long-term survival of the company is threatened.
The main focus of the study was on the extent of customer satisfaction with the provision of electricity and problems facing Electricity Company of Ghana Limited (ECG) Kumasi in its customer service satisfaction in the
Kumasi Metropolis.
Data were collected from both primary and secondary sources. The findings of the study revealed a number of important issues. First, the general/overall level of customer satisfaction was estimated using interval estimate at 95% confidence level. The satisfaction level fell within the range of 5.96 to 6.30 on a scale of 1 to 10 given that l(units) represents excellence and 10 represents worse. The satisfaction level was between average and unsatisfactory. That is, the satisfaction level was very low. The study also revealed statistical equivalence of customer satisfaction level and customer classes that is residential, non-residential and industrial. This was determined by using the chi-square. The critical value for chi-square distribution with 2 degrees of freedom at 0.05 significance level was 5.991.
Since the test value (1.035) was less than the critical value (5.991), it was established that there was statistical equivalence between customer class and customer satisfaction. In other words the sample data led to a conclusion that satisfaction was similar with regard to customer class. The implication of this is that ECG can apply the same policy measure on customer satisfaction for all classes of customers.
The study also brought to light some problems faced by ECG. Among them were inability of the company to charge economic price (tariffs), high operating cost and the depreciation of the cedi, loss of electric power through theft and transmission. Others were overdue debts and cash flow problems, generation capacity constraints as against growing demands, natural occurrences such as rainfall and inadequate materials and transport facilities.
In order for ECG to build, operate, maintain and expand capacity to meet energy demand and provide excellent delivery, the researcher offered a number of recommendations for policy consideration. For example it was recommended that there should be regular review of flat rates, installation of quality meters and ultimately the use of prepaid meters to ensure that customers pay the right amount for power consumed. It was also recommended that the company should establish more cash collection points to enable customers to easily pay their electricity bills and avoid joining long queues at ECG main office at Adum before paying their bills.
Description
A thesis submitted to the School of Graduate Studies,
Kwame Nkrumah University of Science and Technology, in partial
fulfilment of the requirements for the award of Master of Arts degree in Industrial Management, 2001