Role of service quality in measuring customer satisfaction in power sector: a case of Dhaka Electric Supply Company (DESCO)

Abstract

The present study attempted to examine the role of service quality in measuring customer satisfaction in power sector of Bangladesh with reference to Dhaka Electric Supply Company (DESCO). Empirical in nature, the study focused on the distribution of electricity to the customers of DESCO. The survey took place in Dhaka since DESCO has its operation only in Dhaka division. Data were captured from 173 customers of DESCO under three zones (Mirpur, Gulshan, and Uttara) of Dhaka metropolitan city. Divided into three phases, the study first identified the customer expectation and perception of DESCO service quality and measured the gap between the two constructs. The second phase attempted to find out the level of customer satisfaction and investigated its relationship with DESCO’s perceived service quality. Finally, the third phase made an effort to suggest some measures to the management of DESCO to help the organization improve its service quality and the resulting satisfaction. The format of SERVQUAL instrument was used by modifying it to a 31-item questionnaire for both expectation and perception sections to measure the gap in DESCO’s service quality and a 1-item question was employed to measure the level of customer satisfaction with DESCO’s service quality. The study revealed that the overall mean perception of DESCO’s service quality was 3.8137 and the overall mean expectation was 4.4337 on a scale of 5.00. The gap between perception and expectation was found to be -0.62. The data showed that, in general, the customers’ perception did not match their expectation. The mean satisfaction (M = 4.1214) was found to be ‘not highly satisfactory’. The result of multiple correlation exhibited a moderately positive correlation (r = .613) between the perceived service quality and satisfaction. The study concluded suggesting some marketing implications for the management of DESCO to help them raise the level of customer satisfaction by means of improving the service quality of DESCO.