Abstract

This research aims to investigate the effects of service quality on customer satisfaction within the context of CAMWATER, a prominent water utility company in Cameroon. The study adopts a quantitative research design, employing both descriptive and explanatory research approaches to achieve its objectives.

The research population comprises all customers of CAMWATER, encompassing the entire population of Cameroon, which stood at approximately 25 million people as of the 2021 census. Using Taro Yamane’s formula for sample size determination, a sample of 400 households was selected, employing simple random sampling and convenience sampling techniques for data collection.

The primary data collection method employed structured questionnaires in English, encompassing personal information, service quality dimensions, and customer satisfaction assessment. The Likert scale with five response categories was used for measurement. The data was analyzed using Statistical Package for Social Science (SPSS) software, incorporating descriptive analysis, Pearson correlation analysis, and multiple regression analysis.

The findings reveal strong positive relationships between service quality dimensions (reliability, tangibility, responsiveness, assurance) and customer satisfaction, with high levels of statistical significance. However, the dimension of empathy exhibited a weak relationship with customer satisfaction, lacking statistical significance in this model. The study concludes that service quality dimensions significantly affect customer satisfaction in the context of CAMWATER. Notably, reliability, tangibility, responsiveness, and assurance are key drivers of customer satisfaction, emphasizing the importance of these dimensions in service delivery. These findings have practical implications for CAMWATER and similar service organizations, highlighting the need to prioritize service quality as a means to enhance customer satisfaction and loyalty.

CHAPTER ONE

INTRODUCTION

1.0 Introduction

This study is aimed at investigating the effects of service quality on customer satisfaction in Camwater. To achieve this aim, service providers will need to understand how customers evaluate the quality of their service offerings, how they choose one organization in preference to another and on what basis they give their long-term support.

According to Bitner (2010), “the main objective of service firms is to develop and provide offerings that would satisfy the needs and exceptions of consumers”. Kotler (2000) asserts that “if the exceptions of customers are exceeded, customers become highly satisfied “To achieve this objective, Mittal & Tsiros, (1999) stress the importance of service firms developing a customer satisfaction program for measuring performance/satisfaction over time. Zeithaml and Bitner (2003) affirm that “a sound measure of service quality is necessary for identifying aspects of service needing performance improvement and also assessing how much improvement is needed on each aspect of the service offerings”.

1.2 Background to the study

In recent decades the service industry has grown in importance (Schettkat & Yocarini, 2003) and manufacturing has declined (Berry, Wall & Carbone, 2006). The service sector accounts for 70% of the employment in all Organization for Economic Coporation and Development (OECD) member states, making most countries dependent on the service sector (Berry, et al., 2006). More insights into innovative service processes are needed (Arvanitis, Kubli & Woerter, 2008). Companies continuously seek for new and innovative ways to offer service quality, and differentiate their service offerings. This is used as a competitive advantage to attract and retain customers and make a profit through skill exchange and customer co-creation (Prahalad & Ramaswamy, 2004).

Service quality is the difference between a consumer’s perception and expectation of a service (Grönroos, 1982). Seth, Deshmukh & Vrat (2005) defined service quality as the ability for service providers to match expected service with perceived service to achieve customer satisfaction. While Grönroos (1982); Lehtinen & Lehtinen (1982) and Parasuraman, Zeithaml & Berry (1985) defined service quality as the comparison stemming from what customers feel a company is supposed to offer and the actual service performance of the company.

Service quality can be accessed with the SERVQUAL scale (Khan & Fasih, 2014). SERVQUAL scale measures the quality of a service before and after the consumption of a service, with five dimensions. Namely; tangibility (visible elements of a service such as buildings, sites and tools); responsiveness (how fast service providers respond to customer queries/ the willingness for service providers to assist customers and provide prompt services); reliability (the ability for a service provider to assure customers of a reliable and proper service); assurance ( the level of knowledge displayed by a service provider when delivering its services and their ability to inspire trust and confidence ); and empathy (ability for a service provider to pay attention to individual customer demands/ individualization of service).

Due to the increased competition faced by companies around the world, companies choose to expand their market size and increase customer expectations through advancement in technology and globalization (Lin, Lai, & Yeh, 2007). Hence necessitating businesses to be more customer centric (Khan & Fasih, 2014). The quality of a service positively influences customer satisfaction (Kaura et al (2012) and as such, service quality is of vital importance to customer satisfaction.

1.3 Problem statement

The impact of service quality as well as its effects on customer satisfaction of public businesses in Cameroon is a significant issue that affects both the businesses and customers. Public businesses in Cameroon are facing challenges in providing quality services to their customers, which has resulted in low levels of customer satisfaction. It is assumed that the lack of service quality has also led to a decrease in customer loyalty and trust, which can have long-term negative effects on the business.

One of the key issues affecting service quality in public businesses in Cameroon is the lack of training and development for employees. Many employees lack the necessary skills and knowledge to provide high-quality services to customers, which can result in poor customer experiences. Additionally, inadequate resources and infrastructure also contribute to poor service quality, such as out-dated equipment, insufficient staffing, and limited facilities.

Furthermore, poor communication between employees and customers can also impact service quality. When there is a lack of clear communication, misunderstandings can occur, leading to dissatisfaction with the service provided. Inadequate complaint resolution mechanisms also contribute to low levels of customer satisfaction as customers feel that their concerns are not being addressed.

Overall, improving service quality in public businesses in Cameroon is critical for enhancing customer satisfaction and loyalty. This can be achieved through investing in employee training and development, upgrading infrastructure and resources, improving communication channels between employees and customers, and implementing effective complaint resolution mechanisms.

1.4 Research Questions

The study seeks to find answers to the questions, “what is the effect of service quality on customer satisfaction of CAMWATER Cameroon?

Specific Research Questions

1. What is the organisational profile of Camwater business in Cameroon?
2. What is the effect of CAMwater business on customer satisfaction in the aspect of
   1. Reliability
   2. Tangibility
   3. Responsiveness
   4. Assurance
   5. Empathy
3. Is there any significant effect between the level of customer satisfaction and reliability of Camwater business

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