Assesssing the relationship between service quality and satisfaction of customers : a case study of Kenya Power Limited
Date
2020-06
Authors
Luusa, John
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
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.
Description
A Thesis submitted in partial fulfillment of the requirements for the award of the Degree of Masters of Business Administration at Strathmore University Business School
Keywords
Communications techniques, Customer satisfaction, Service provision