Assesssing the relationship between service quality and satisfaction of customers : a case study of Kenya Power Limited
The global general trend in the provision of electrical services by distribution companies is one emphasizing customer centric ity, efficiency and diversification of services. This move derives impetus from the observation that customers of utility services are appreciative of value-add services and that this appreciation translates into brand loyalty. The local context in Kenya however differs from most western countries in that Kenya Power and Lighting Company exercises a monopoly in the distribution of electricity services. It is thus the main aim of this study to assess whether customers of the rendered services, given the growing importance of customer-centricity in service rendering, are satisfied with the company's offerings. The specific objectives of the study are as follows; to establish the extent to which communication techniques influence customer satisfaction with service delivery by Kenya Power in Nairobi County; to establish how reliability of power supply influences customer satisfaction with service delivery by Kenya Power in Nairobi County; to determjne how cost of electricity influences customer satisfaction with service delivery by Kenya Power in Nairobi County; to determine how innovation of new products influences customer satisfaction with service delivery by Kenya Power in Nairobi County. The primary data was collected through a structured questionnaire via an e-survey platform targeting Kenya Power residential customers residing in Nairobi County. The calculated sample size for this population came to 384 respondents and the research was able to obtain a 72.4% response rate. A subsequent ordinary least squares multiple regression was run to assess the relationship between the variables highlighted in the obj ectives. Findings from the simple linear regression models indicated that communication techniques were the most impactful on overall customer satisfaction with a beta coefficient of 0.58 with the model explaining 18.9% variability in customer satisfaction. Reliability, cost of electricity and innovation, respectively, were also considered significant predictors as assessed through simple regression models. Innovation was the least impactful contributor to overall customer satisfaction. Cost and innovation were however not considered significant predictors in the multiple regression model. The study concluded that it was therefore apparent that improving communication techniques would result in a market increase in customer satisfaction. Reliability of service had the second highest impact on customer satisfaction. A unit increase in reliability scores was associated with a 0.250 lowering of dissatisfaction among clients. This finding was significant at the 95% confidence level. It was therefore inferred that reliability was the second most important construct in affecting customer satisfaction. The study recommends that Kenya Power consider leveraging on core systems that will enable them to seek knowledge on the information requirements of their consumer base as communication techniques play a critical role in their satisfaction.