COMPLETE SCHOOL PROJECT TOPICS & MATERIALS :
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CHAPTER ONE
INTRODUCTION
1.1 Background to Study
There is little exaggeration in the claim that consumers are to a financial company, what the church is to medieval civilization. In this era of alternative time intervals customer satisfaction has become an important variable in the provision of services. This explains why the psychology of consumers had a profound influence on the behavior of service providers; even those who enjoy a state monopoly often try to see the consumer as king. Although there is little or no competition in the electricity supply, effective monitoring of customer satisfaction is a prerequisite for the recovery of market competition and the acceptance of its customers (Cardozo, 2015). The available evidence shows that, despite the huge public investment in the energy sector, the PHCN is not better for the client. The industry players have attributed the poor performance of the sector in the grouping of the sector and, therefore, called for disaggregation. Others have attributed to the benefit of the state monopoly, and therefore privatization is called. In response to the clarification requests the government was not only disaggregated but also privatized.
Throughout the world, customer satisfaction has become a real instrument to measure the performance and relevance of the organization. This explains why in many countries the customer satisfaction (International Regulatory and Control Systems) has been established. The level of customer satisfaction is established for trade, commerce and industry from the point of view of consumers as the measure of consumers in terms of loyalty and acceptance of the manufacturer. In the United States, for example, we have the American Customer Satisfaction Index (ACSI), while in Sweden, the Swedish Customer Satisfaction Index (SCSI) has. In Europe we have a European customer satisfaction index (LIC). In today’s changing world economy is more difficult than in the past to do business. Today’s smart companies must transform their marketing and commercial strategies and transform in order to remain competitive. Customers in almost all product categories have a large selection; Due to this wide range, customers prefer only the companies that best meet their expectations. Most successful companies of today are those who are more beneficial and offer quality service to their target customers (Kotler, 2014).
Customer satisfaction shows the past, present and future performance of a company; Therefore, it is a critical approach has always been both the marketing academics as well as professionals (Oliver, 2014). Over the past two decades, more than 15,000 science and commerce articles were published on customer satisfaction, since it is inevitable for the economy (Peterson and Wilson, 2012). Higher customer satisfaction will result in average market share growth, improve customer loyalty, higher profitability and lower transaction costs (Buzzell and Gale, 2014, Fornell, 2012, Gale, 2012, Hallowell, 2016 Jacobson and Aaker, 2013). Anderson, Fornell and Lehmann (2014) found a relationship between customer satisfaction and profitability. Customer satisfaction was also largely associated with the intention to repurchase and willing, the company recommends (Anderson and Sullivan, 2013, Cronin and Taylor, 2012, Parasuraman, Zeithaml and Berry, 2013, Reichhel, 2016, Verhoef, Franses and Hoekstra, 2013; Zeithaml, Berry and Parasuraman, 2016).
According to (Onuka, 2016), the problem of ineffective management is one of the main problems of Nigeria as a whole. It also notes that Nigeria has not effectively developed its management, and many of those in management positions have little or no knowledge of management education, even at the rudimentary level. (Onuka, 2001) emphasized the need to provide executives or managers with a good leadership education. This will make an important contribution to solving the problem of poor management in the country.
Due to its situation and economic position compared to other African countries, Nigeria has faced challenges in the distribution of its electricity in recent decades. Investigating the challenges and opportunities of delivering and distributing electricity understands and effectively contributes to management’s ability to achieve the organizational objectives required.
Most organizations, such as PCHN, have the task of regulating and monitoring the Nigerian electricity industry. They serve to achieve specific or specific objectives that have been implemented with certain available resources. According to Jones, 2013, the efficient use of these resources to achieve their objectives demonstrates the ability of the administration to achieve realistic and planned organizational objectives. This, in turn, depends on the ability of the organization to organize, manage and control its resources, either financially, personally or otherwise. The inability of an organization to adequately manage its resources means that it has failed and cannot meet the limitations and challenges of providing goods and services to consumers. This is the case of PCHN (Ijewere, 2012).
Ijewere (2012) goes on to say that the supply of energy and the distribution of electricity have played an important role in recent years due to the importance or role of electricity in our daily lives. Long periods of time or lack of electricity cause some inconvenience and affect productivity. According to (Mohammed, 2015) the parameter to measure the standard of living and the degree of industrialization of nations is the consumption of energy. These authors, along with others such as Darling et al., 2013, explain that there is an extreme power shortage in Nigeria and that the causes are structural, socio-political and financial causes. All this clearly indicates a problem of poor or inadequate management of electricity distribution in Nigeria. It is probable that the deficiencies in the management are correct from the planning to the implementation of the energy distribution plans in the country.
It has been observed that Nigeria has been experiencing for a long time an inadequate and unstable energy supply, which severely hampers the local economy (Oshodi, 2014). This author supports the idea that there are aspects of inefficiency in the distribution of electricity in Nigeria. As a result, the country is lucky and the economy is negatively affected. (Oshodi, 2014) also notes that the Nigerian electricity industry is one of the components of its economy that continues to maintain the status of Nigeria as a developing country. Given that approximately 48% of the country’s population does not have access to electricity, it is obvious that the distribution of electricity to consumers is problematic. It has been argued that there is a lack of planning or futuristic projections to improve the supply of electricity to consumers in Nigeria (Olawale et al, 2013). Lack of planning shows inefficiencies in management that have contributed to inefficiency and inefficiency in the supply and distribution of electricity. The author goes on to say that there is a lack of strategic planning by the agency and the investments caused by the misappropriation of funds.
The availability of adequate infrastructure is very important for the distribution and supply of electricity in each country. This is a big problem that has severely affected the distribution of energy in Nigeria. The infrastructure in the Nigerian electricity sector is very old and outdated and does not work adequately to meet the modern needs of the population. In terms of infrastructure (Awosope, 2014), it has been found that the damage caused by natural factors such as the cutting of trees on the Internet, the provision of lines and other natural disasters such as windstorms and lightning have greatly affected the electricity distribution in Nigeria. The inadequate maintenance of the infrastructure has negatively affected the distribution of electricity in Nigeria. This clearly shows a gap in the management guidelines, since management and planning aspects are not addressed correctly. This negatively affects the distribution of electricity in Nigeria.
In Nigeria, the demand and supply of electricity distribution are uneven. The current state of electricity distribution in Nigeria is extremely inadequate with respect to the current population (Awosope, 2014). He also points out that the challenge of inadequate generation and distribution of energy already existed in the 1970s, when the Udoji government improved the economic life of the workers, which led them to increase their electricity consumption by buying a large amount of energy sophisticated machinery. They consumed a lot of energy. This has negatively affected the distribution of electricity in the country, since electricity is insufficient to be distributed to Nigeria’s growing population. This means that the demand for electricity exceeds the power source. This is due to errors in management policies, since management planning, organization and control are not efficient.
Insufficient financing is also a factor that has greatly affected the distribution of electricity. According to (Awosope, 2014), the lack of funds has led to the lack of state-of-the-art equipment. Although there is a strong cry of mismanagement and corruption in the electricity sector, there is no denying the fact that there were only limited funds available in the electricity sector in Nigeria. This limited or insufficient financing has had a negative impact on the distribution of river ions in Nigeria, since it was very difficult for depreciation to be carried out in an adequate and timely manner. It is difficult to obtain funds to secure new sources of energy or preserve old ones (Lum, 2012). There are many broken pipes that have not been repaired due to lack of funds. (Lum, 2012) also states that until today there has been a major obstacle to achieving adequate power in Nigeria, and the main obstacle was the availability of capital (money). There are also many workers who are poorly paid and others who do not receive their payments because they do not use funds or mismanagement, and all this has a strong influence on the provision and distribution of electricity, since the staff is inefficient and inefficient. It affects the distribution and supply of electricity.
The above and other issues that have not been addressed so far suggest that the distribution of electricity in Nigeria is a challenge. It is important to figure out how to use the available resources for the distribution of electricity in Nigeria and why the distribution of electricity in Nigeria is inefficient, even though the country is considered one of Africa’s leading oil producers. Therefore, this study focuses on the analysis of Nigeria’s energy sector management, the identification of its pitfalls and customers’ perception and satisfaction of service delivery. It comes from other countries that have successfully overcome distribution difficulties in their electricity sector and makes recommendations for Nigeria.
1.2 Statement of Objectives
The process of supplying electricity to the public begins with the generation, the transfer to the distribution process. All these different phases were managed by different entities and administrative bodies. The efficiency of the administrative level determines the results or results produced. As the research focuses on the management of electricity distribution in Nigeria, the level of management of electricity distribution is being investigated. At the management level, the study will determine whether senior management is well trained or qualified to perform the task. In Nigeria, during the last ten years, there have been many problems with the distribution of electricity, since many households still do not have access to electricity and even those who have access to electricity have cut off electricity constantly. Therefore, it is necessary to carry out an evaluation to find out what role the administration plays in electricity distribution in Nigeria and analyze the perceptions of customers about the provision of services and satisfaction with the quality of the service.
Developing an understanding of customer satisfaction is essential for marketing professionals, since it is one of the main reasons to repeat the buying behavior (Wells and Prensky, 2016). The key concept of customer satisfaction is based on the theory of “expectation-deception” proposed by Lewin (1938). This theory establishes that customer satisfaction is the comparison of the client between the expectation and the perception of a product or service (Cardozo, 2015). In other words, satisfaction is the general criterion of the client about the service provider (McDougall & Levesque, 2010). According to Oliver (2010), “satisfaction” can be defined as an opinion that a product or service or the product or service itself provides a pleasant level of compliance based on use, including levels below or above the level of compliance. “Oliver (2015) defined the rejection as the gap between the expectations of a product / service of the client and the actual performance of the product / service, which means that the satisfaction was determined by the non-confirmation when the performance of a product / service If the client’s expectations are not met, the quality of the product / service is perceived as low, resulting in a negative dissatisfaction, and if the performance meets or exceeds the client’s expectations, the quality is considered high Positive negative or satisfaction (Bitner, 2010, Kandampully, Mok and Sparks, 2011) Satisfaction, according to Oliver (1989), is a critical, affective or emotional response to the performance of a product / service, Crompton and MacKay (2012) It also affirms that satisfaction is a psychological result that comes from a Ner experience is generated Bolton and Drew (2011) stated that satisfaction was measured better according to perceived performance. It means that customer satisfaction refers to the fact that the customers’ needs are fulfilled, products/ services are capable of performing satisfactorily, and customers are positive toward the product or service experiences. There is therefore the need to identify the customers, their experiences with service satisfaction, evaluate the problems and use the result of the evaluation to assess the performance of service providers.
1.3 Objectives of the Study
The general objective of this study is to analyze customer perception of AEDC and PHCN; a case study of FCT Abuja, Nigeria. The following specific objectives have been determined to be achieved from the study:
- To uncover the gap in AEDC and PHCN service quality with reference to customer expectation and customer perception
- To identify the level of customer satisfaction regarding AEDC and PHCN service quality
- To examine the relationship between AEDC and PHCN service quality and customer satisfaction
- To suggest some measures to improve customer satisfaction of AEDC and PHCN with reference to the company’s distribution service quality.
1.4 Research Questions
The following questions were formulated based on the problem identified and the objectives of the study.
- Is there a gap in AEDC and PHCN service quality with reference to customer expectation and customer perception?
- What is the level of customer satisfaction regarding AEDC and PHCN service quality?
- What is the relationship between AEDC and PHCN service quality and customer satisfaction?
- What measures could be used to improve customer satisfaction of AEDC and PHCN with reference to the company’s distribution service quality?