Determinants of Customer Decisions to Pay Utility Water Bills Promptly

Cost recovery is a prerequisite for sustainable water service provision. For water utilities, one of the key determinants of overall cost recovery efficiency is the ability to recover payment, within a reasonable timeframe, for all the water bills sent to customers. This study used empirical data, o...

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Main Authors: Mugabi, J., Kayaga, S., Smout, I., Njiru, C.
Format: Journal Article
Language:EN
Published: 2012
Online Access:http://hdl.handle.net/10986/5300
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recordtype oai_dc
spelling okr-10986-53002021-04-23T14:02:21Z Determinants of Customer Decisions to Pay Utility Water Bills Promptly Mugabi, J. Kayaga, S. Smout, I. Njiru, C. Cost recovery is a prerequisite for sustainable water service provision. For water utilities, one of the key determinants of overall cost recovery efficiency is the ability to recover payment, within a reasonable timeframe, for all the water bills sent to customers. This study used empirical data, obtained through a cross-sectional survey in eight small urban centres in Uganda, to establish the determinants of customer decisions to pay utility water bills promptly. Regression analysis on the data showed that customer attitude towards prompt payment, perceived ease or difficulty of paying on time (perceived control), as well as social pressure, strongly influence intentions to pay, which in turn directly affects actual prompt bill payment behaviour. The results also show that attitudes towards prompt payment are informed by perceptions of benefits and sacrifices associated with the behaviour, while social pressure is perceived to come from family members, neighbours and the utility itself. Perceived control was found to reflect both internal and external impediments to prompt bill payment, many of which relate to service issues that are within the control of water utility managers. 2012-03-30T07:32:12Z 2012-03-30T07:32:12Z 2010 Journal Article Water Policy 1366-7017 http://hdl.handle.net/10986/5300 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Uganda
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
geographic_facet Uganda
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description Cost recovery is a prerequisite for sustainable water service provision. For water utilities, one of the key determinants of overall cost recovery efficiency is the ability to recover payment, within a reasonable timeframe, for all the water bills sent to customers. This study used empirical data, obtained through a cross-sectional survey in eight small urban centres in Uganda, to establish the determinants of customer decisions to pay utility water bills promptly. Regression analysis on the data showed that customer attitude towards prompt payment, perceived ease or difficulty of paying on time (perceived control), as well as social pressure, strongly influence intentions to pay, which in turn directly affects actual prompt bill payment behaviour. The results also show that attitudes towards prompt payment are informed by perceptions of benefits and sacrifices associated with the behaviour, while social pressure is perceived to come from family members, neighbours and the utility itself. Perceived control was found to reflect both internal and external impediments to prompt bill payment, many of which relate to service issues that are within the control of water utility managers.
format Journal Article
author Mugabi, J.
Kayaga, S.
Smout, I.
Njiru, C.
spellingShingle Mugabi, J.
Kayaga, S.
Smout, I.
Njiru, C.
Determinants of Customer Decisions to Pay Utility Water Bills Promptly
author_facet Mugabi, J.
Kayaga, S.
Smout, I.
Njiru, C.
author_sort Mugabi, J.
title Determinants of Customer Decisions to Pay Utility Water Bills Promptly
title_short Determinants of Customer Decisions to Pay Utility Water Bills Promptly
title_full Determinants of Customer Decisions to Pay Utility Water Bills Promptly
title_fullStr Determinants of Customer Decisions to Pay Utility Water Bills Promptly
title_full_unstemmed Determinants of Customer Decisions to Pay Utility Water Bills Promptly
title_sort determinants of customer decisions to pay utility water bills promptly
publishDate 2012
url http://hdl.handle.net/10986/5300
_version_ 1764394586272169984