Service Quality and Customer Satisfaction of Electricity Distribution Company: A Study of Olumo Business Hub, Abeokuta, Ogun State

Abstract

This study examines the relationship between service quality and customer satisfaction in Ibadan Electricity Distribution Company. To achieve this, IBEDC customers residing in Ogun State were sampled to seek their opinion on their level of satisfaction with IBEDC's services. Survey research was employed which involved the distribution of questionnaires to customers. The questionnaire sought information based on the five SERVQUAL dimension of reliability, empathy, responsiveness, tangibles and assurance which were measured on a 7-point Likert scale. A total of 397 customers were surveyed with 19 SERVQUAL survey items and 3 customer satisfaction survey items. Data collected were analysed with the use of the arithmetic mean, standard deviation and Partial Least Squares Structural Equation Model (PLS-SEM) for testing the five hypotheses theorised in the study. From the study, it was established that the reliability of IBEDC does not have a significant effect on customer satisfaction in Olumo business hub, Abeokuta which implied that IBEDC’s ability to perform the promised service dependably and accurately or delivering on its promises is very poor. The study established that the empathy of IBEDC does not have a significant effect on customer satisfaction in Olumo business hub, Abeokuta which implied that IBEDC's caring and provision of individualised attention to customers by their staff are very poor. It established that the responsiveness of IBEDC does not have a significant effect on customer satisfaction in Olumo business hub, Abeokuta which implied that IBEDC’s willingness or readiness of staff to provide service is very poor. The study also established that the tangibles of IBEDC do not have a significant effect on customer satisfaction in Olumo business hub, Abeokuta which implied that IBEDC physical facilities (offices), staff appearance, materials associated to the service (transformers, wires etc. and equipment used to provide electricity are very old and obsolete. The finding from the study shows that the assurance of IBEDC does not have a significant effect on customer satisfaction in Olumo business hub, Abeokuta which implied that IBEDC’s staff knowledge and courtesy to convey trust and confidence is very poor.