scholarly journals What Drives Water Utility Selection of Pricing Methods? Evidence from California

Author(s):  
M. Allaire ◽  
A. Dinar

AbstractWater pricing is a demand management strategy to address the looming challenge of greater water scarcity in arid regions. Much of the literature on residential water rates focuses on evaluating the impact of pricing on household conservation. A separate, but rarely addressed question is what motivates a water utility to select a particular rate structure and the timing of doing so. We assess utilities’ decisions to adopt pro-conservation rate structures, such as increasing block rates and water budget rates. We develop a conceptual model of utility decision-making regarding the transition to pro-conservation rates and apply it to California.We examine the relationship between rate adoption and characteristics of utilities and customers using logistic regression and a balanced panel dataset of 323 California water systems from 2006-2015. We find a notable shift towards pro-conservation rates, which 71% of California utilities had by 2015, compared to 44% in 2006. Capacity factors associated with adoption include size of service population and customer income level, while motivating factors include peer adoption, greater customer engagement, and special district governance. Overall, this study provides insight into barriers to pro-conservation pricing, which can inform policies to enable transitions and advance conservation goals.

2020 ◽  
Vol 38 (7) ◽  
pp. 877-891 ◽  
Author(s):  
Xiaojun Fan ◽  
Nanxi Ning ◽  
Nianqi Deng

PurposePrevious studies have considered customers' psychological responses to intelligent retail technology adoption, but have not considered how technology integration systems could promote the relationship between retailers and consumers. Based on the Stimulus–Organism–Response framework, this paper proposes a customer engagement model in a fully intelligent retail environment. The concept of the quality of intelligent experience is constructed from the perspective of customer experience, and the effect of the mechanism of smart retail on the customer engagement relationship is discussed.Design/methodology/approachUsing two surveys, this study analyzes 201 (in study 1) and 321 (in study 2) questionnaires by using structural equation model in partial least square software.FindingsThe analysis shows that the human–machine interaction, intelligent systems and the product content of the quality intelligent experience significantly impact customer engagement on smart retail.Research limitations/implicationsThis research was designed for general retail products, without distinguishing between different product types. Thus, it did not consider the moderating effect of product types.Practical implicationsThe findings enrich the intelligent retail technology field and provide operable guidance to help smart retailers improve customer relations.Originality/valueThis paper proposes a customer engagement model to describe how technology integration systems promote the relationship between retailers and consumers.


Author(s):  
Nguyen Ngoc Dan Thanh ◽  
Nguyen Thuy Binh

This study aims to investigate the influence of e-quality and online trust on customer engagement and e-word of mouth. In particular, this study explored and analyzed a relatively new relationship, the impact of customer engagement on e-word of mouth. The measurement model and conceptual model describing the relationships hypothesized in the study was evaluated, based on responses from 370 online purchasing customers who are students or office workers in Ho Chi Minh City. E-quality has a direct impact on online trust, which impacts online customer engagement of customers and e-word of mouth. Online trust has a direct effect on customer engagement and e-word-of-mouth. In particular, online engagement impacts on e-word of mouth. This study provides not only theoretical and practical meaning, and enables companies to realize the importance of customer engagement and e-word of mouth but also a number of solutions to help businesses build and increase their customer engagement and positive e-word of mouth.


Author(s):  
KYEONGHO LEE ◽  
Byoung Chun Ha

In order to secure the continuous competitiveness of OTT content services such as YouTube and Netflix, content service SCM promoting the production and distribution of digital information materials is becoming increasingly important. However, previous studies on this are scarce. This study examines the causal relationship between customer engagement, customer response profitability, and service coordination costs from the perspective of a YouTuber, a content creation service provider. In particular, it examines the impact of customer response profitability, a quantitative indicator of customer response, on the use of social media that customers feel and on the relationship between customer engagement and service coordination costs. In this study, we surveyed a YouTuber in Korea, a service provider. SPSS 18, AMOS 20, and PROCESS Macro were used for statistical analysis and hypothesis testing. The analysis shows that the degree of customer engagement on the YouTube channel has a positive effect on customer response profitability and service coordination costs, and that customer response profitability negatively affects service coordination costs (the reduction of costs). The relationship between the customer response profitability and the degree of customer engagement could not be confirmed, but the relationship between customer engagement and the service coordination costs was confirmed. With this study, we contribute to the establishment of policies on the value co-creation framework from the service provider's perspective in content service SCM and on whether to invest in social media in content sourcing.


2019 ◽  
Vol 10 (6A) ◽  
pp. 109-122
Author(s):  
Thembi Laura Motaung ◽  
Patrick Qena Radebe

Contemporary challenges facing organisations emphasise the need for a calibre of employees who exude organisational citizenship behaviour (OCB) and organisational commitment (OC), including a satisfactory level of job satisfaction (JS). Research is replete with supporting evidence that OCB is triggered by JS and that JS is positively related with OC. Although the relationship between these constructs is considered important, research exploring the relationship between these three constructs in the context of a water utility remains scarce. The primary objective of this research was to examine the impact of OC and JS on OCB at a water utility company in Gauteng. A survey was utilised to elicit responses from 400 sampled participants. A quantitative approach was adopted by which exploratory factor analysis (EFA), correlation and regression analyses were performed to analyse data. Using EFA, three factors of OC were extracted. The results further showed a positive correlation between affective commitment and normative commitment; JS and OCB; and no predictive relationship was observed between continuance commitment and OCB. Based on the findings, it was recommended that JS, OC and OCB should be improved through mechanisms such as job-fit, job enrichment career advancement performance-related pay and mentorship programmes.


Author(s):  
Hani H Al-Dmour ◽  
Wasim Khalil Ali ◽  
Rand H Al-Dmour

This article examines how customer engagement influences customer satisfaction, experience, trust, and loyalty in the context of mobile banking as well as the role of customer experience and trust as mediating variables in customer engagement with customer satisfaction and customer loyalty. For these purposes, a conceptual framework based on the content analysis of the previous studies was developed. The data for this research were collected from 406 customers using mobile banking services in Jordan. The responses are verified using structural equation modelling. Customer engagement positively influences customer trust and experience, while the impact of customer engagement on customer satisfaction and loyalty is partially mediated by customer trust. The study findings may aid future researchers in their quest in understanding the inherent relationships that lie between the constructs' questions and may provide a platform for banking managers in their efforts to improve their online banking customers satisfaction.


2017 ◽  
Vol 27 (4) ◽  
pp. 833-853 ◽  
Author(s):  
Wade Jarvis ◽  
Robyn Ouschan ◽  
Henry J. Burton ◽  
Geoffrey Soutar ◽  
Ingrid M. O’Brien

Purpose Both customer engagement (CE) and corporate social responsibility (CSR) have been linked to customer loyalty. Past studies use service dominant logic and customer value co-creation to explain this relationship. The purpose of this paper is to apply utility theory to develop and test a new theoretical model based on CSR initiative preference to understand the relationship between CE and customer loyalty to the organisation in a CSR platform. Design/methodology/approach This empirical study uses choice theory in the form of best-worst scaling, and structural equation modelling, to measure the impact of sports club members’ choice preferences for a range of CSR initiatives on their intention to engage with the initiative and subsequent loyalty to the club. Findings This study highlights the importance of engaging members in the CSR strategy they prefer as it enhances not only the extra value to the organisation via customer loyalty to the organisation, but also CE with the organisation. Furthermore, the study reveals age and gender impact on the relationship between CE in CSR initiatives and customer loyalty. Originality/value This study extends CE to CSR behaviours and provides empirical evidence for a unique theoretical framework of CE based on utility theory. It also highlights the need to take into account moderating variables such as customer demographics.


2021 ◽  
Author(s):  
Ivo Daniel ◽  
Newsha Ajami ◽  
Andrea Castelletti ◽  
Dragan Savic ◽  
Rodney Stewart ◽  
...  

<p>Water utilities across the globe are facing numerous challenges to their operations and management posed by ageing infrastructure, urbanization, and climate change. Specific challenges include severe floods and droughts, changing urban water demands, costs related to the maintenance of infrastructure systems, and increasingly critical conditions for wastewater overflow in combined sewer systems. Recent developments of digital technologies offer opportunities to address these challenges. Smart monitoring and automatic control, advanced analytics, informed demand management, and digital customer engagement open new paths to more efficient water use, better understanding of resource availability and quality, or faster detection of failures and anomalies. Although many utilities have started the process of digital transformation, few of them are on the same track. The variety of possible approaches to digitalisation raises the following questions: How is digital transformation impacting the water utility sector? What are the drivers and challenges for such transformation? What are the key enabling technologies?</p><p>To address these questions, the online “Smart Water Survey” (http://smartwatersurvey.com) was designed to analyse common priorities, best practices and technologies, and challenges entailed by the digital transformation process in the water utility sector. The survey maps out a water utility’s operating network and company structure as divided into five different subsections: (1) water supply & drinking water treatment, (2) water distribution network & operating systems, (3) wastewater & rainwater management, (4) customers & demand management, and (5) data warehouse & IT systems. For each subsection, different aspects of the digital transformation are investigated. Besides providing a general overview on the ongoing digitalisation trends and its determinants, the answers obtained from over 60 utilities worldwide allow assessing the digital maturity of water utilities and deriving recommendations on future digital developments. Independent sections and targeted questions in the survey are organized in a way to overcome the potential information bias due to the utility’s perception of digitalisation and subjective evaluation of its importance.</p><p>While the survey will remain open for future updates, the authors have chosen to report the current results available at the end of 2020. The results indicate that most of the participating utilities have already taken on digitalisation and are moving forward by adopting new digital technologies, regardless of their geographic origin, company age, and size. However, differences are apparent among the five subsections mentioned above. For subsection (2), in more than 50% of the cases the digital technology in question was already implemented, while for (4) this number was roughly 30%. Additionally, in 50% of the cases in (4) technology was either being implemented or planned in the near future and not considered in 20% of the cases. As the driving elements for their transition, utilities reported economic factors as most influential across all subsections with a ratio of 66%. Governmental influence and ecologic factors had a comparably smaller influence with a ratio 26% and 8%, respectively.</p>


2019 ◽  
Vol 28 (2) ◽  
pp. 200-215 ◽  
Author(s):  
Muhammad Junaid ◽  
Fujun Hou ◽  
Khalid Hussain ◽  
Ali Ashiq Kirmani

PurposeThe purpose of this paper is to determine the impact on brand love of consumption experience at the dimensional level and to determine whether brand love mediates between consumption experience and customer engagement in the context of Generation M.Design/methodology/approachA sample of 265 Muslim smartphone users responded to a structured questionnaire adapted from existing literature. First, confirmatory factor analysis was carried out, and then data were analyzed through structural equation modeling using MPlus.FindingsThe findings indicate that hedonic pleasure and escapism directly, while flow, challenge and learning indirectly affect brand love and that brand love mediates the relationship between consumption experience and customer engagement.Practical implicationsThis paper explicates Generation M’s consumption experience, ascertains ways to supplement their love for brand and engage them in gainful relationships and provides suggestions for further investigation. From a managerial perspective, the paper has implications for the management of consumer experience, identifies the most valuable dimensions of consumption experience and proposes that managers can develop customer-engagement strategies via brand love.Originality/valueThe paper validates the mediating role of brand love in the relationship between consumption experience and customer engagement; is the first to investigate the relationship between all dimensions of consumption experience and brand love; is one of few studies to investigate consumption experience, brand love and customer engagement in developing countries; and is one of first investigations to use a sample of Generation M.


Sign in / Sign up

Export Citation Format

Share Document