THE BILLING SYSTEM AND CUSTOMER SATISFACTION: A CASE

STUDY OF NATIONAL WATER SEWERAGE CORPORATION

BWAISE BRANCH (NWSC)

BY

ATUHAIRE FIONA

REG. NO. 07/U/6963/EXT

SUPERVISOR: PASTOR. SHALOM YOEL

A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT

OF THE REQUIREMENT FOR THE AWARD OF A DEGREE OF

BACHELOR OF COMMERCE (EXTERNAL) OF

MAKERERE UNIVERSITY

MAY 2011

DECLARATION

I, Atuhaire Fiona, declare that the material in this report has never been submitted to any

university or institution of Higher learning for any academic qualifications. All the work

is original unless otherwise stated.

Signed………………………………………………… Date:……………………………

i

APPROVAL

This is to approve that Atuhaire Fiona carried out a study entitled “the effectiveness of the

billing system and customer satisfaction: A case study of NWSC Bwaise branch. She has

been under my supervision and her research is now ready for submission for the award of

Bachelor of Commerce (Accounting) of Makerere University.

Sign:…………………………………….. Date:……………………………

SUPERVISOR: YOEL SHALOM

ii

DEDICATION

This study is entirely dedicated to my mother Lydia Sayuni and my relatives who helped

my during my stay at the University.

iii

ACKNOWLEDGEMENT

I would like to express my sincere appreciation to God Almighty who has led me all the

way.

My sincere appreciation goes to my supervisor pastor Yoel Shalom who tireless handled

me to see that I produce this work. May God bless you pastor.

I am grateful to my brothers and sisters, uncles, aunties and all my beloved relatives who

really used what they had to see that I complete this course especially Mr. & Mrs.

Tumusiime Fred, Eng. Bwengye Tadeo, Eng. Ronald Kankya and Mr. & Mrs. Mugenyi

Richard. May the Lord award you.

Special thanks to Sister Mabel who did a lot in typing my work and advising me sister

God will pay you.

Further appreciation go to the staff of National Water and Sewerage Corporation Bwaise

branch especially the Manager Mr. Bigabwa Moses and every one who helped me to

collect the data by responding to my questionnaires.

Further thanks to all my friends Mar, Charles, Monica, Susan, Marina, Sarah, Kenneth,

Diana, Tumwesigye, Mike, Loise and everyone who discussed for me during the course.

Finally, I will not forget the entire staff of Makerere University who guided me right away

from first year up to fourth year.

iv

TABLE OF CONTENTS

DECLARATION.........................................................................................................................i

APPROVAL...............................................................................................................................ii

DEDICATION...........................................................................................................................iii

ACKNOWLEDGEMENT.........................................................................................................iv

TABLE OF CONTENTS............................................................................................................v

LIST OF TABLES.....................................................................................................................ix

LIST OF ACRONYMS..............................................................................................................x

ABSTRACT...............................................................................................................................xi

CHAPTER ONE.........................................................................................................................1

1.0 Introduction.....................................................................................................................1

1.1 Background.....................................................................................................................1

1.2 Problem Statement..........................................................................................................2

1.3 Objectives of the study....................................................................................................3

1.3.1 General objective/purpose..............................................................................................3

1.3.2 Specific objectives...........................................................................................................3

1.4 Research Questions.........................................................................................................3

1.5 The areas and scope of the study....................................................................................3

1.5.1 Content scope..................................................................................................................3

1.5.2 Geographical scope........................................................................................................3

1.5.3 Time scope......................................................................................................................3

1.6 Significance of the study.................................................................................................4

CHAPTER TWO........................................................................................................................5

LITERATURE REVIEW...........................................................................................................5

2.0 Introduction.....................................................................................................................5

2.1 Billing System Defined...................................................................................................5

2.2 Roles of the billing system..............................................................................................6

2.3 Factors of billing system.................................................................................................6

v

2.4 Components of the billing system...................................................................................6

2.4.1 Data collection................................................................................................................6

2.4.2 Data input, process and output.......................................................................................6

2.4.3 Bills Delivery..................................................................................................................7

2.4.4 Payment System..............................................................................................................7

2.4.5 System Integration..........................................................................................................7

2.5 Customer satisfaction......................................................................................................8

2.6 Importance of customer satisfaction...............................................................................8

2.7.1 Expectations....................................................................................................................9

2.7.2 Complaints....................................................................................................................10

2.8 Relationship between billing system and customer satisfaction...................................10

CHAPTER THREE..................................................................................................................12

RESEARCH METHODOLOGY..............................................................................................12

3.0 Introduction...................................................................................................................12

3.1 Research Design............................................................................................................12

3.2 Study population...........................................................................................................12

3.3 Sampling.......................................................................................................................12

3.3.1 Sampling design............................................................................................................12

33.2 Sampling procedures....................................................................................................12

3.3.3 Sampling size................................................................................................................13

3.4 Data Type and Sources.................................................................................................13

3.4.1 Primary data.................................................................................................................13

3.4.2 Secondary data..............................................................................................................13

3.5 Data Collection Methods..............................................................................................13

3.6 Data Presentation and Analysis....................................................................................14

3.7 Limitations....................................................................................................................14

3.8 Budget and timeframe of satisfaction and the study.....................................................14

3.8.1 Budget...........................................................................................................................14

3.8.1 Time frame....................................................................................................................15

vi

CHAPTER FOUR.....................................................................................................................16

DATA PRESENTATION OF INTERPRETATION OF FINDING........................................16

4.0 INTRODUCTION........................................................................................................16

4.1 Research objectives.............................................................................................................16

4.2 Descriptive statistics.....................................................................................................16

4.2.1 Cross Tabulation...........................................................................................................16

4.3 Objective 1........................................................................................................................19

4.3.1 Customer satisfaction....................................................................................................20

4.3.2 Service Quality..............................................................................................................21

4.3.3 Customer Complaints....................................................................................................22

4.3.4 Overall customer level satisfaction...............................................................................22

4.4. Objective 2: Determine the various aspects of NWSC billing system..............................23

4.5 Objective 3: The relationship between the billing system and customer satisfaction........26

CHAPTER FIVE......................................................................................................................28

DISCUSSION, CONCLUSION AND RECOMMENDATIONS............................................28

5.0 Introduction...................................................................................................................28

5.1 Demographic Characteristics........................................................................................28

5.1.1 The Sample....................................................................................................................28

5.1.2. Sex of respondents..........................................................................................................28

5.1.3 Title of the respondents....................................................................................................28

5.1.5 Tariff of the respondents.................................................................................................28

5.2 Inferential Findings............................................................................................................29

5.2.1 Level of customer satisfaction......................................................................................29

5.2.2 Customers Expectations and actual service delivered..................................................29

5.2.3 Customer complaints.......................................................................................................29

5.2.4 Over all level of customer satisfaction............................................................................30

5.2.5 Aspects of the billing system...........................................................................................30

5.2.6 The manual aspect of the billing system..........................................................................30

5.2.7 The computerized billing system......................................................................................30

5.2.8 The relationship between the billing system and customer satisfaction.........................31

vii

5.3 Conclusion.........................................................................................................................31

5.4 Recommendations...............................................................................................................32

5.5 Areas for further research..................................................................................................32

REFERENCES.........................................................................................................................33

APPENDICES..........................................................................................................................34

Appendix 1................................................................................................................................34

viii

LIST OF TABLES

Table 3.1: Sample size .............................................................................................................. 13

Table 4.1: Distribution of Respondents by sex ........................................................................ 16

Table 4.2: Distribution of Respondents by age ........................................................................ 17

Table 4.3: Distribution of Respondents by Title ...................................................................... 18

Table 4.4. Distribution of respondents by tariff ....................................................................... 19

Table 4.5: Respondents expectations ....................................................................................... 20

Table 4.6: Responses based on perceived service quality ........................................................ 21

Table 4.7: Customer complaints ............................................................................................... 22

Table 4.8: Response to overall customer level satisfaction ..................................................... 23

Table 4.9: Response to the billing system ............................................................................... 23

Table 4.10: Various aspects of the billing system ................................................................... 24

Table 4.11: Individual satisfaction with the billing system ...................................................... 25

Table 4.12: The relationship between the billing system and customer satisfaction ................ 26

ix

LIST OF ACRONYMS

GIGO - Garbage in and Garbage Out

NWSC - National Water and Sewerage Corporation

FAO - Finance Administration Officer

CO - Commercial Officer

x

ABSTRACT

The purpose of the study was to establish the relationship between the billing system and

customer satisfaction in National Water and Sewerage Corporation (NWSC) basing on the

following objectives;

(1) To determine the level of customer satisfaction in NWSC.

(2) To determine the various aspects of the billing system of NWSC

(3) To establish the relationship between the billing system and customer satisfaction

in NWSC.

The research was descriptive in nature involving quantitative methods which was

administered through questionnaires. The total sample comprised 35 respondents of the

staff of NWSC Bwaise branch and the customers of NWS. Random sampling was used

where by the researcher went to NWSC, Bwaise branch and administer questionnaires to

the sampled or selected clients or customers. Purposive sampling was also used to get the

manager, FAO, CO, billing officer.

Primary data was obtained from respondents through questionnaires. Secondary data was

obtained from library materials, textbooks, NWSC brochures and magazines, internet and

journals. Data analysis was carried out using frequency distribution tables, charts and

percentages and Pearson’s correlation was used to analyse the data.

Findings revealed that high levels of customer dissatisfaction among NWSC customers.

There were cases of mismatch between customers’ expectations and actual services

received. Perception of services received was very poor with complaints of over billing,

estimated bills, high and unreasonable water tariffs.

In addition there was a strong relationship between the billing system and customer

satisfaction.

xi

CHAPTER ONE

1.0 Introduction

1.1 Background

National Water and Sewerage Corporation (NWSC) is a monopoly utility parastatal of the

government of Uganda. It was established in 1972 under decree No. 34 by the government

of Uganda as a non-profit making parastatal body. It’s establishment followed the

recommendations from the study carried out by world health organization (WHO). To

provide water and improve on the water and sanitation in the urban areas.

The corporation is fully owned by the government of Uganda and it is a parastatal directly

under the Ministry of Water, Mineral and Natural Resources. The mandate of the

corporation is spelt in NWSC statute of 1995 S5(1), as to operate and provide water and

sewerage services in arrears stated there in on a sound commercially viable basis.

By 1972 the corporation had its services extends only a few areas of Kampala, Jinja town

and Entebbe, however the corporation extended it’s services to several other places

including other up country stations like Fort portal, Kasese, Mbarara, Mukono, Lira, Gulu,

Masaka, Kabale and many others. This therefore makes NWSC to have a total of over 4m

customers scattered all over Uganda.

However despite of such extensions of its services the corporation of the years, like any

other state owned companies has registered many complaints from mostly customers

regarding the high bills. No water and other complaints from the general public.

NWSC has many sections of which there is the networking system, accounting, billing

system and many others.

Billing system and bills

1

A system is a collection of interrelated and interdependence parts that are organized in

such away to accomplish given objective (Kanter, 1983) therefore the billing system

deals with the finance of the organization which is for NWSC for this case.

According to Hussein (1987), billing was the creation of an account receivable in the

books of the seller. A bill is a charge to customer or clients to be entered in the books of

accounts. Hussein (1989) again defined a bill in a business language as a paper or

document on which money owned to an individual or company was reflecting.

Several complaints brought by customers are related to wrong bills presented to customers

with high charges most of which are being over billed monthly.

These are common to customers whose water meters are not read but their bills are based

on estimation. Estimation may be high or low. Most customers complain when there are

over estimated. Also it can be caused by faulty meters and other problems.

As a result of estimates leading to over billing which also leads to high charges which in

the end has led to most customers dropping. This is a disadvantage to the corporation

since it losses customers.

According to Bernard (1998), bills take long to reach customers, some bills are produced

with wrong customer references and addresses as well as incorrect amounts. This has

always caused poor performances in the corporation. Due to these problems and

complaints from the customers of NWSC. I have promoted to carryout a research on the

billing system and customer satisfaction.

1.2 Problem Statement

Despite the billing system, customer care in NWSC, customers have continued to

complain. Field supervision have been done, meeting with NWSC staff and the customers,

training of new employees have been done. It is not clear whether these complaints are

caused by the billing system itself or also some factors that need to be identified. There

2

was therefore a need to carry out a study to establish the causes of customer

dissatisfaction and it may result into deterioration in the performance of the corporation.

1.3 Objectives of the study

1.3.1 General objective/purpose

The purpose of the study is to examine the effect of the billing system in NWSC on

customer satisfaction

1.3.2 Specific objectives

- To determine the level of customer satisfaction in NWSC.

- To determine the various aspects of the billing system of NWSC.

- To establish the relationship between billing system and customer satisfaction

in NWSC.

1.4 Research Questions

(i) What is the level of customer satisfaction in NWSC.

(ii) What are the various aspects of the billing system of NWSC.

(iii) What is the relationship between billing system and customer satisfaction in

NWSC.

1.5 The areas and scope of the study

1.5.1 Content scope

The study examined the operation of the billing system in NWSC.

1.5.2 Geographical scope

National Water and Sewerage Corporation Bwaise branch on Bombo road.

1.5.3 Time scope

This research covered 2009 to 2011 the period of the study was limited to billing

and field.

3

1.6 Significance of the study

- The management of NWSC will use the findings to improve on the operations f

billings system.

- Potential investors will be able to use the findings to evaluate performances

given that NWSC is cited for privatization.

- It will help other organizations to improve on their billing systems.

Review

If I have to do chapter one again, I would consider the following research objectives;

(i) To find out the reasons for customer dissatisfaction

(ii) To examine the effectiveness of the billing system of NWSC.

(iii) To establish the relationship between the billing system and customer satisfaction

Future researchers should consider the above research objectives.

4

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter presents a review of published literature up on which this study rests. It

involves an explanation of the key constructs making the billing system (independent

variable) as well as customer satisfaction (dependent variable).

2.1 Billing System Defined

Anderson (1988) defines a billing system as “a collection of interrelated and inter-

dependent parts that are organized in such a way as to accomplish the objectives of

preparing and presenting written statements of charges for goods delivered and/or services

rendered to customers. It may be purely manual, that is calling for physical recording and

processing of bills by individual personnel or it may be semi-manual or computerized.

According to Van Home (1980) customer billing is defined as “the creation of accruing

receivables in the books of the seller. He looks at accounts receivable as an extension of

open accounts credit by one firm to other firms and individuals.

The literature cited above seems to suggest that services are often provided on credit and a

bill detailing units consumed and the unit price is provided to the customer after

consuming the service. Boggess (1967) suggested customer credit is a philosophy of “buy

now pay later”. The organization delivers a service or product now but there is a delay in

receiving payment from the customers. The credit extension function then becomes a

certain commitment of company funds for uncertain returns to an organization (Copeland

and Khoury, 1980).

According to Hussein (1987), billing was the creation of an account receivable in the

books of the seller. A bill is a charge to customer or clients to be entered in the books of

accounts.

5

2.2 Roles of the billing system

The water billing system has a critical role to play in the enhancing water users

satisfaction. The pricing and billing capabilities provide tools to educate the customer thus

acting as incentive programs which subsequently enhance water users’ levels of

satisfaction. An efficient billing system shows how usage patterns of customers, promotes

pricing programs to encourage reduced usage (Pitch 2002).

2.3 Factors of billing system

Level of technological advancement, financial status, level of competition with in an

industry, technical competence and inferiority of operation are some of the factors that

may affect the choice of billing system. (Bonhage 2003; Hunealt 2001; Anderson

1988).

2.4 Components of the billing system

Several authors including Laudon (2000); Sweetney (1993) highlighted data collection,

data in put, process output; bills delivery; payment system and systems integration as the

key components of an efficient billing system.

2.4.1 Data collection

Billing system acquire their data from external environment.

According to NWSC, commercial officers and commercial assistants assign jobs to the

marketing assistants to collect the required data from customers. The required data mostly

is reading the meters and reporting the current meter reading to their supervisors. The

reports are their submitted to the billing department for preparation of the monthly bills.

2.4.2 Data input, process and output

According to Schuthes’s and Summer (1995) they argue that a billing system like any

other system, receives inputs of data and instructions, processes the data according to the

instructions, processes the data according to the instructions provided and then generates

the required output. They also argue that the quality of input data entered in a billing

6

system will determine the quality of output information generated by it. Once output is

generated, it is inform of reports needed by different functional managers for their

decision-making activities and invoices (bills) to customers to reflect their obligation

towards the organization.

2.4.3 Bills Delivery

In NWSC bills are delivered at the customers premises by the marketing assistants of

NWSC. These bills are delivered at the beginning of every month for the consumption of

the previous month.

After delivery of bills, customer respond by coming to settle their charges or complaining

about the bills.

2.4.4 Payment System

Payment systems are designed to transfer money between the customer and the water

providers. Although traditional payment methods, such as cash, cheques, invoicing or

direct debit are applicable, the idea of a fully integrated computerized billing system

cannot be easily achieved. The user friendliness of the payment system is one of the

aspect in relation to customer satisfaction especially during sales support.

In NWSC payments are made from the cashier’s desk at NWSC branches and different

banks in the country.

2.4.5 System Integration

An efficient billing system should be in position to exchange data and information with

other systems. The case with which data flows from one system to another depends on

the extent of integration between systems. The level of integration will depend on the

nature of the organization and systems involved. The cost of integration should be

considered against the benefits of integration (Dabhoker 1991).

7

2.5 Customer satisfaction

The concept of customer satisfaction has been defined in various ways.

Zeithaml, Bery and Parasuraman (1991: 9) suggested that “customer satisfaction is a

function of the customers assessment of service quality, product quality and price”.

Oliver & Bearden (1995: 26) suggests that satisfaction is a function of product

performance relative to consumer expectations.

Bachelet (1995: 61), considered satisfaction to be an emotion reaction by the consumer in

response to an experience with a product or service. He believed that this definition

included the last contact with a product or service, the satisfaction experience since the

time of purchase as well as the general satisfaction experienced by regular users.

2.6 Importance of customer satisfaction

For any organization to survive, even a government backed monopoly, it must satisfy its

market. To achieve this goal the market must perceive that its needs have been met

(Steward 2001).

The significance of customer satisfaction to the business world is the concept that a

satisfied customer will be a positive asset for the company through reuse of the service,

repurchase of the product or positive world of mouth; which should lead to increased

profits. The converse of this is that a dissatisfied customer will tell more people of their

dissatisfaction possible complaint to the company and if sufficiently disenfranchised,

change to another company for their product or service, or totally with draw from the

market (Anderson and Suvivan 1993; Fornel, Inter and Larcher 1995; Lovia, Liver

and Bearden 1995).

2.7 Customer Satisfaction Concept

Customer satisfaction studies tend follow two different models. These models have been

dubbed the customer concerns and the organizational concerns/approaches (Steward,

2001). There are also an infinite number of shades of gray in-between the two extreme

(Wittingslow and Markham, 1999).

8

The model of customer satisfaction chosen in a study reflects the culture of the

organization conducting the study. The type of model chosen has consequences of

defining customer satisfaction. A company that is driven by the importance of what it

believes it is doing and the importance of its market approach, tends to interpret customer

satisfaction as what the customer should want, against these organizational and marketing

need of defining customer satisfaction. A company that is driven by the importance of

what it believes it is doing and the importance of its market approach, tends to interpret

customer satisfaction as what the customer should want, against these organizational and

marketing needs (Yi, 1990; Dutka, 1994). If however the organization has a culture

where the customer is seen as being an independent entity who has his/her own motives,

beliefs and needs, then customer satisfaction will be defined as being based upon

customer thinking (Wittingsslow and Markham, 1999).

Writtingslow and Markham (1999), suggest that we perceive the world around us in an

egocentric and selective way. Because we cannot take in all the images, sensation and

feelings that are experiencing continually, we select those that are the most important. The

result of this filtering processing is we cannot evaluate, with any accuracy, a thing we

have either consciously or unconsciously selected out.

According to Haksik (1998); Ellis and Pizam (2000); Teas (2001), the concept of

customer satisfaction can be measured in terms of customers’ expectations, perceived

service quality and complaints.

2.7.1 Expectations

According to Haksik, (1998:7), expectations have a central role in influencing

satisfaction with a service, and these in turn are determined by a wide range of factors like

pervious experience, personal needs, values/beliefs, explicit service communications,

implicit service communications, word of mouth communications. Customer satisfaction

with a service is related to the size of disconfirmation experience, where disconfirmation

is related to the person’s initial experience. If experience of the service greatly exceeds

9

the expectations clients had with a service, then satisfaction will be high and vice versa

(Ellis and Pizam, 1999).

2.7.2 Complaints

The number of complaints received by a retailer is measure of customer’s satisfaction

with the service they receive. The measure does not seek to distinguish valid complaints

from those the retailer may consider invalid or frivolous, and is therefore a measure of

customer perceptions of service quality (Teas, 2001). Spreng, Harrell and Mackay,

(1995:88) defined complaints as “any expression of dissatisfaction with a product or

service offered”.

Billing complaints include matters directly relating to the amount of a bill, and any issuing

matters including disconnections due to a disputed bill remaining unpaid, as well as

complaints relating to affordability or hardship. This includes complaints about difficulty

in paying accounts, overcharging, prices, payment terms and methods, and debt recovery

practices (Ochieng, 2000).

2.8 Relationship between billing system and customer satisfaction

According to Sweetney (1992) a successful billing system will result in fewer customer

complaints as regards to delayed bills or inaccurate billing.

Ochieng (2000: 16) cites that a proper billing system should move a mechanism of

checking all errors in the bills and also double check them before actual distribution and

delivery is done which should reduce customer dissatisfaction.

MacDonald (1998) emphasized the importance of service companies to attach great

importance to customer satisfaction as regard billing. The billing system should meet

customers needs with complete integrated solution rather than stand along unplanned

products and technologies. The communication technologies should provide platforms for

data collection, input, processing, output, and the information that is necessary to

management to integrate the technologies with water use of customer facilities. Such

10

technology should provide an accurate reliable and timely bill to customers leading to

their satisfaction with the billing procedure.

Review

If I had to do chapter two again I would consider the following sources of literature.

- National Water and Sewerage Corporation reports.

- National Water and Sewerage Corporation magazines and brochures.

Future researchers should consider the above.

11

CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction

This chapter is about the methods the researcher used for collection of data and analysis of

data.

It describe the tools, instruments approaches, process and techniques where he collected

primary data and secondary data.

3.1 Research Design

- The researcher carried out both descriptive quantitative, and qualitative data to

collect primary and secondary data.

- The researcher used explanatory research design to explain the variables.

3.2 Study population

The study involved the management and staff of NWSC and the customers of the

corporation.

3.3 Sampling

3.3.1 Sampling design

The researcher took the sample to represent the whole population studied.

33.2 Sampling procedures

The researcher used random sampling to select some customers who responded to

questionnaires. The researcher also used random sampling to select staff in the sampled

areas to be interviewed.

The researcher used purposive sampling method to select managers and revenue collectors

to answer particular questions concerning the study.

12

3.3.3 Sampling size

The study involved 35 respondents as shown in the table below:

Table 3.1: Sample size

Manager Billing

officer

Commercial

officers

FAO Marketing

assistants

Customers Total

1 1 1 1 4 27 35

3.4 Data Type and Sources

The researcher used primary and secondary data.

3.4.1 Primary data

This is original information that was collected for the first time for the problem under

investigation: This data was got from the customers and employees of NWSC.

The researcher used questionnaires and interviews to get this data.

3.4.2 Secondary data

This data was collected from textbooks, journals, magazines and reports from the

corporation.

3.5 Data Collection Methods

The researcher used the survey method to collect primary data. The instruments used

include;

(i) Questionnaires

The researcher designed 2 sets of questionnaires one was for the customers/NWSC and

the other set was for the employees of NWSC.

(ii) Interviews

Face to face interview was conducted with some members of staff NWSC.

Telephone interviews was occasionally used with high level managers who were difficult

to get.

13

(iii) Focus ground discuss

This was held with group which composed of customers of NWSC interview schedule

was used.

3.6 Data Presentation and Analysis

Data was presented in form of tables, groups and charts. Data was analysed using

percentages and descriptions, some data were coded and later anaysed using computers.

3.7 Limitations

Time: The staff had limited time during the time of responding questionnaires. This was

solved by giving simplified questionnaires and in time.

This was solved by remaining through telephone calls. The problem of scarcity of

literature relating billing system and customers satisfaction. This was solved by

reviewing independently both billing system and customer satisfaction adjusted to fit the

study.

3.8 Budget and timeframe of satisfaction and the study

3.8.1 Budget

Activity AmountTwo computer diskettes 3000Typing reams of papers 1500Stapling machine & staples 14,000Binding charges 4000Transport and telephone charges 3000Meals 150,000Umbrella 50,000Pens and a ruler 5000Rain coat 1500Contingency 15,000

247,000

14

3.8.1 Time frame

ACTIVITY TIME (Days)

Research proposal writing 9

Distributing questionnaires and data collection (Field

work)

8

Data coding & ensuring completeness and accuracy 7

Analyzing, interpretation and presentation of findings 7

Report writing 8

Total 39 Days

Review

If I had to do chapter three again, I would consider the following data collection methods.

- Field survey

- Observation

- Discussions

I encourage the future researchers to consider the above data collection instruments.

15

CHAPTER FOUR

DATA PRESENTATION OF INTERPRETATION OF FINDING

4.0 INTRODUCTION

This chapter presents the findings of the study in reference to the research objectives set

out in chapter one.

4.1 Research objectives

1. To determine the level of customer satisfaction in NWSC.

2. To determine the various aspects of the billing system of NWSC.

3. To determine the relationship between the billing system and customer

satisfaction in NWSC.

4.2 Descriptive statistics

4.2.1 Cross Tabulation

The descriptive statistics included cross-tabulation that were used to describe the

characteristics of the sample.

Table 4.1: Distribution of Respondents by sex

Sex No. of respondents Percentage (%)

Male 12 34.3

Female 16 45.7

Non response 7 20

Total 35 100

Source: Primary data

16

According to the above table women formed a bigger percentage of respondents (45.7%)

than men (34.3%). There was no significant difference between the different categories of

respondents.

Table 4.2: Distribution of Respondents by age

Age No. of respondents Percentage (%)

20 –30 14 40

31-40 11 31.4

41-50 3 8.6

50 above 1 2.9

Non response 6 17.1

Total 35 100

Source: Primary data

17

According to the table above the respondents decrease as the age increases. This shows

that most customers are connected at the age of (20 –40). The percentage is not 100%

because some people did not bring the questionnaires (17.1%).

Table 4.3: Distribution of Respondents by Title

Title No. of respondents Percentage (%)

Customers 17 48.6

Employers 9 25.7

Non response 9 25.7

Total 35 100

Source: Primary data

18

According to the table above a bigger number of customers participated in responding to

the questions forming 48.6%.

Table 4.4. Distribution of respondents by tariff

Tariff No. of respondents Percentage

Domestic 22 62.9

Institutional 4 11.4

Public stand pipe 2 5.7

Non response 7 20

Total 35 100

Source: Primary data

The table shows that most respondents are connected on water for domestic use with 62.9%.

Compared to other tariffs.

4.3 Objective 1

To determine the level of customer satisfaction in NWSC. Parasuraman’s (1991)

measurement scale based on expectations, perceived service quality and complaints were used

to measure the level of customer satisfaction at NWSC.

19

4.3.1 Customer satisfaction

A face to face interview was conduced in the field and he respondents were asked to express

their satisfaction on how NWSC was meeting their expectations. Their responses were

summarized and tabulated as in table 4.5.

Table 4.5: Respondents expectations

Reponses Good Poor

NWSC provides reliable, high quality services without

frequently interruptions

11 23

NWSC restores services quickly after a service

interruptions

7 26

Handing of customer complaints 10 19

Keeping promise to do something by a certain time 8 23

Average 9 22.8

Source: Primary data

20

4.3.2 Service Quality

Respondents were further asked to express their agreement or disagreement about data

collection procedures with a view of capturing their opinion about service quality and their

responses were summrised and tabulated as in table 4.6.

Table 4.6: Responses based on perceived service quality

Responses Agreement Disagreement Freq. % Freq. %

Bills are made based on actual reading and water

consumed

12 34.3 19 54. 3

Meter readers just estimate the readings 24 68.6 9 25.7

It is easy for a customer to verify meter reading 6 17.1 26 74.3

Field staff are courteous, understanding and helpful

towards customers queries

8 22.9 7 77.1

Average 35.5 57.9

Source: Primary data

21

4.3.3 Customer Complaints

Customers were asked how often they experience complaints and their responses ranged from

once, twice, many times, no. Their responses were tabulated as shown below;

Table 4.7: Customer complaints

Responses No. of respondents Percentage (%)

1 Once 6 17.1

2 Twice 4 11.4

3 Many 15 42.9

4 No 2 5.7

Source: Primary data

From the table above most customers expressed how they receive complaints many times by

42.9%.

4.3.4 Overall customer level satisfaction

To assess the over all level of satisfaction, respondents were asked to state whether the levels

at which they were satisfied as customers of NSWC and their responses were High medium

low and the information was tabulated.

22

Table 4.8: Response to overall customer level satisfaction

Level No. of respondents Percentage (%)

High 4 11.4

Medium 10 28.6

Low 14 40.0

Source: Primary data

Most respondents expressed that their level of satisfaction is low by 40%.

4.4. Objective 2: Determine the various aspects of NWSC billing system

The different aspects of the billing system: Manual and the computerized aspects.

Under manual there is data collection. Bills delivery, payment system and under

computerized aspect there is data input process output and systems integration. These were

used as the key parameters making up the billing system.

Questions were raised to the billing officer in the billing department about the system and the

following were her responses.

Table 4.9: Response to the billing system Subject Respondents

23

Good (%) Poor (%)Completeness of information 60 40

Accuracy of information 50 30

Use friendliness of system 60 30

External connectivity 40 60

Feedback channels 70 20

Security of the system 80 10

Average 60 31Source: Primary data

The respondents rated the billing system as good on average 60%.

The respondents were asked to examine whether the various aspects like fast (time) efficient

and reliability were either present or not present in NWSC. The responses are summarised in

table 4.9.

Table 4.10: Various aspects of the billing system

Aspects Respondents No present

Fast (Time) 10 14

24

Efficient 9 8

Reliability 8 31

Total 27

Average (%) 77.1 88.6

Source: Primary data

From the table above, the majority of the respondents rated the various aspects of billing

system as not being present by 88.6% compared 77.1%.

Table 4.11: Individual satisfaction with the billing system

Level of satisfaction Satisfied Very

satisfied

Not satisfied

Freq % Freq % Freq %

Respondents 6 16.2 7 18.9 13 35.1

Source: Primary data

From table 4.11, most of the customers are not satisfied with the billing system giving 35.1%.

25

4.5 Objective 3: The relationship between the billing system and customer

satisfaction

Pearson correlation was used to ascertain the relationship between the variables

By comparing the level of customer satisfaction results and individual satisfaction with the

billing system. That is table 4.9 and 4.11

This relationship as shown below by the table.

Table 4.12: The relationship between the billing system and customer satisfaction T1 T2 T1 T2 T1

2 T22

4

10

14

6

7

13

24

70

182

16

100

196

36

49

169

T1= 28 T2 = 26 T1 T2 = 276 T1 2 = 312 T22 = 254

where n = the number of respondents

T1 = general level of customer satisfaction

T1 = general level of customer satisfaction

T2 = individuals satisfaction with the billing system

r = is correlation coefficient

r = 3 x 276 – 28 x 26 828 - 728 √ (3 x 312 – 282 ) (3 x 254 – 262) = √ 13072

= 0.875

Therefore 0.875 shows a strong relationship between the billing system and customer

satisfaction)

Review

26

r

If I were to do chapter four again I would consider the following data sources;

1. Primary source like meetings, face to face interviews,

2. Secondary source like customer policies

Future researchers should consider the above data sources

27

CHAPTER FIVE

DISCUSSION, CONCLUSION AND RECOMMENDATIONS

5.0 Introduction

The chapter discusses the findings of the study presented in chapter four. The data analysed

in the previous chapter related to the levels of customer satisfaction, the various aspects of the

billing system and the relationship between the billing system and customer satisfaction. The

discussion that follows will provide meaning to and relate the findings to the conceptual

framework and the research questions of the study.

5.1 Demographic Characteristics

5.1.1 The Sample

The study involved 35 respondents determined and selected using the random sampling to

select customer and purposive sampling method to select manager, FAO, billing officer,

commercial officer and marketing assistants. The sample was made of the branch manager

(1) billing officer (1) commercial officer (1) Finance administration officer (1), Marketing

assistants (4) and customers (27). Significant diversity in terms of gender, age, titles and the

tariff was considered in the study.

5.1.2. Sex of respondents

The majority of the respondents sampled this study was female (45.7%), male respondents

were 34.3%. the other 20% did not return the questionnaires.

5.1.3 Title of the respondents

Most of the respondents were customers with 48.6%, and the employees 25.7% and

questionnaires which were not returned 25.7%.

5.1.5 Tariff of the respondents

Most of the respondents were charged domestic tariffs (62.9%), and other institutional 11.4%,

public stand pipe 5.7% and 20% did not bring back the questionnaires.

28

5.2 Inferential Findings

This section discuses the presentations in relation to the three study objectives. In this study,

the study objectives were to determine the level of customer satisfaction, determine the

different aspects of the billing system and to establish the relationship between the billing

system and customer satisfaction.

5.2.1 Level of customer satisfaction

Customer satisfaction was investigated by exporing the three satisfaction dimensions as

advanced by Berry Parasuraman’s (1991) concerning customer expectations, service quality

delivery and complaints.

5.2.2 Customers Expectations and actual service delivered

The results from this study indicate that there was a mismatch between customers

expectations and the actual services received. Evidence indicates that 57.9% were not

satisfied with the services NWSC deliver to them. Service is always characterized by unaware

disconnections. Delays in responding to complaints, bills due to estimations and unfair

tariffs.

Bridging the gap between expectations and service is considered a prerequisite for customer

retention and loyalty and helps in realizing economic goals like profitability, market share,

return on investment etc.

This mismatch may also be attributed to monopolies parastatals that characterize water and

sewerage service delivery in Uganda.

5.2.3 Customer complaints

Results indicate that 42.9% customers receive complaints many times compared to others who

receive complaints once (17.1%), twice (11.4%), no (5.7) and 22.9% non-response.

Most complaints lie under estimate bills, delays in bill delivery and leakage and

disconnections. This revelation confirms sweating (1992) observation that an effectively and

29

efficiently managed billing system results in fewer customer complaints as regards inaccurate

bills and delayed.

5.2.4 Over all level of customer satisfaction

Using expectations, serviced quality and complaints as measures of customer satisfaction.

Results indicate that 40% of NWSC customers are at their low level of satisfaction compared

to medium level (28.6%), high level (11.4%). Non response to questionnaires were 20%.

This indicates that most of the customers are not satisfied with the services of NWSC.

The above findings imply that NWSC should borrow a leaf from pitches (2000)

recommendations about exploiting the potential benefits that an efficient billing system offers

in trying to satisfy customer needs.

An efficient billing system leads to economies of large operations which may lower rates,

ensures reliable water supply, checks all errors in the bills and also double checks them before

actual distribution and delivery is done, promotes pricing programmes to encourage reduced

usage, patterns of consumers, offers financial and helps to identify changes in consumption

patterns.

5.2.5 Aspects of the billing system

The study established 2 aspects of the billing system manual and computerized.

5.2.6 The manual aspect of the billing system

The manual aspect included reading and recording meter readings and delivery of bills to the

customers.

5.2.7 The computerized billing system

In terms of completeness and accuracy of information, user friendliness, external

connectivity, feedback channels and system security NWSC automated billing system was

found to be good and efficient. This was confirmed by about 60% of the respondents.

30

The important revelation seems to suggest that most of the anomalies in the billing system at

NWSC originated from the manual aspect and not from the computerized billing aspect. The

anomalies in estimates bills (billing errors) were normally keyed into the system, leading to

wrong results. This is in hire with the assertion that garbage in garbage out (GIGO).

5.2.8 The relationship between the billing system and customer satisfaction

The results of correlation analysis between the various aspects of the independent variable

(Billing system) and the dependent variable (customer satisfaction) were established as shown

in table 4.12.

The purpose was to find out those aspects of the billing system that enhance customer

satisfaction and those that lower levels of customer satisfaction.

System integration was defined as a mechanism which links and eases the flow of data and

information from one part or component to another at a high speed and accuracy.

Using Pearson’s correlation co-efficient the research found a positive and significant

relationship between the billing system and customer satisfaction (r = 0.875).

The billing system should meet customers’ needs with a complete integrated solution rather

than stand alone, unplanned and faulty products/services (Ochieng, 2000).

This means that if NWSC wants to increase satisfaction among its customers it must upgrade

its billing system from the current system to a more fully integrated, automated billing

system.

5.3 Conclusion

The main thrust of the study was to determine the relationship between the billing system and

customer satisfaction at NWSC. The study established a wide out cry of dissatisfaction

among NWSC. Customers as a result of huge bills, estimated bills, faulty meters and delays in

meter readings and bills delivery.

31

However, such anomalies, the study has established are not flaws in the automated billing

system but rather in the manual billing system where data collection and bills delivery are

performed.

In order to fulfill the duty of service delivery to all customers and in order to fulfill customers

expectations. NWSC should seriously address all these issues constituting its billing system

especially data collection and bills delivery.

Ignoring these billing system components would be a serious blow in customer satisfaction

improvement efforts, leading to loss of competitive advantage and market share.

5.4 Recommendations

Basing on the study findings in this last part of the study the researcher proves some

recommendations that she hopes will improve customer satisfaction at NWSC.

NWSC management should embark on an exercise of making sure that meter readers, bills

deliverers are adequately traced and motivated to appropriate the effect of their actions on the

outputs of the billing system, with a primary objective of reducing billing anomalies.

Management of NWSC should introduce the automated meter reading and disconnection

systems. It minimizes human errors, have little manual interaction. This would improve the

accuracy, efficiency and responsiveness of the critical and sensitive meter reading and

customer disconnection process.

5.5 Areas for further research

Having determined the relationship between the billing system and customer satisfaction in

NWSC it is now important for further research to examine whether the concept still

effectively applies to other utility private services in electricity and telecommunication.

It is also important to look at the effect of internal marketing on customer satisfaction.

Further research would go on how employees can be motivated to improve on the effectives

of the billings system.

32

REFERENCES

Anderson, E.W & Fernell, C. (1993). Customer Satisfaction Research Prospectus in Service

Quality New Directions in Theory and Practice. Ed. Oliver R.L.

Bitner M.J. (1990). Evaluating Service Encounters: The Effects of Physical Surroundings and

Employee Responses Journal of Marketing, vol . 54, No.4 Pageba.

Brown & Swart R. (1995). Customer Satisfaction Research. European Society for Opinion

and Marketing Research, Amsterdam.

http://www.nwsc.co.ug

Ochieng Robins (1997). Implementing Customer Satisfaction, National Water and Sewerage

Corporation, Kampala, Uganda.

Parasuramman A. Zeithaml V.A. & Berry L. (1994). Reassessment of Expectations as a

comparison Standard in Measuring Service Quality. Journal of Marketing Vo. 58, pp. 11 –24.

Pitch (2002). Energy Consumers Increasing Choosing Non-Utility Providers Marking

breakthrough Point for Deregulation. The Electricity Journal vol. 7 No. 4.

Schulters r. & Summer M. (1995). Management Information System: The Managers View,

third edition Southern Illinois University at Edwards vile, Irwin Publications.

Sweetney T. (1993). International Communication Newsweek (June edition).

Zeithaml & Bitner (2003). Service Marketing, Integrating Customer focus across the Firm,

Journal of Marketing vol. 7 pp. 25-45

33

MAKERERE UNIVERSITY

APPENDICES

Appendix 1

QUESTIONNAIRE FOR EFFECTIVENESS OF BILLING SYSTEM AND

CUSTOMER SATISFACTION

Dear Respondent

This questionnaire is intended to gather information for academic purposes only. The

information provided will be treated with confidentiality. Please kindly spare sometime to

answer the questions by either writing in the space or tick a box of your appropriate choice.

SECTION A

1. Sex Female Male

2. Age 20-30 31-40 41-50 50 & Above

3. Title Customer Employee

4. Tariff Domestic use Institutional use Public stand pipe

SECTION B

5. How satisfied are you with the billing system of NWSC? (Tick one)

Satisfied

Very satisfied

Not satisfied

6. Have you had any constraint due to high billing?

Once Twice Many

34

7. What is the level of your satisfaction as a customer of NWSC (Tick one)

High

Medium

Low

8. What are the various aspects of the billing system?

Aspects Present Not present

Fast

Efficient

Reliable

9. Please comment on the suitability of this questionnaire in terms of

Ease of understanding

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………

Order of Questions

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………

Any other concerns

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

…………………………………………………………………………

10. Which other issues would you wish to be investigated in relation to the research topic?

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………… ………………….

35