Influence of customer satisfaction and perceived water service quality on urban water supply management: A systematic review

Previous studies have found relationships among customer satisfaction, the management of water utilities, and users’ willingness to pay (WTP) for improved water service quality. However, these studies have captured only part of the water supply situation in each country. This study, through a systematic literature review of 62 studies published since 2010, aimed to clarify the measures taken for the effective management of water utilities, focusing on improvements in water supply service quality and customer satisfaction. A search of relevant databases using keywords such as “Water AND Consumer,” “Water AND Customer,” and “Water AND Willingness to Pay” originally yielded 4,131 articles for the sample period of 2010 to June 2023. The systematic literature review of the finally selected 62 studies showed that water service improvement generally had a positive impact on WTP. Countries or service areas with lower water supply service quality showed a higher WTP than countries or service areas in which services were already at a certain level. A number of studies indicated a significant correlation between customer satisfaction and water supply services. However, the factors that customers valued varied by the water supply conditions and needs in each country. Some studies suggested that customers evaluated water supply services based on their past experiences with reliability. Others showed that improving customer satisfaction may enhance management of water utility. As recommendations for policymaking, water utilities should conduct regular surveys to evaluate customers’ satisfaction with water services, focusing on customers’ priorities, WTP, and trust in the water utility.