Marketing of Public Water Utility Services: A Segmentation Analysis

Abstract

Market segmentation provides a valuable approach for identifying target markets. The study attempts to identify specific target markets of a water utility provider in a developing country. The study was conducted in Calabar. The cross-sectional research design was used for the study. Data was collected, from a systematic sample of 1000 city residents, using a well-structured written questionnaire. Hierarchical cluster analysis divided the respondents into four homogeneous groups entitled: (1) indifferent (2) loyalist (3) idealists and (4) moderates. The study investigated whether the water utility customers differ in their perception of the service provider and is there any significant difference in customers’ perceptions of service delivery on the basis of demographic characteristics and behavioural characteristics. Study reveals that all the perceptual items show significant difference between the four clusters (p≤0.05): for demographic characteristics, the place residency, marital status and occupational status of customers differ with the clusters (p≤0.05); for behavioural characteristics, the usage level, duration of usage and number of persons consuming water from a meter point show significant difference between the four clusters (p≤0.05). Since, the water customers differ in their level of perception; to attain the likelihood of having high consumer responsiveness resulting from targeting marketing; it is recommended the water utility service providers should target homogenous groups that have positive perception towards the firms.

Keywords: Water Marketing; Market Segmentation; Target Markets; Behavioural Characteristics; Demographic Characteristics; Customers Satisfaction; Service Quality; Customer Perception

Australian Academy of Business and Economics Review, vol 2, issue 2, April 2016, pp 118-134