Determinants of Customer Compliance in Public Water Utilities: The Roles of Service Quality, Corporate Image, And Social Influence
Authors/Creators
- 1. Lecture of Department of Industrial Engineering, Institut Teknologi Nasional Bandung, Indonesia
Description
Water is a fundamental resource for human life, public health, and sustainable development. For public water utilities, long-term operational sustainability relies not only on physical infrastructure but also on governance quality and financial capacity, both of which are closely associated with customer compliance. This research examines the role of service quality, corporate image, and social influence in shaping customer compliance among household customers of Perumdam Tirta Darma Ayu. The study adopts a quantitative design using a four-point Likert-scale questionnaire distributed to household customers with a minimum subscription period of one year, selected through purposive sampling. Data were processed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0, encompassing both measurement model and structural model evaluations. The findings show that all constructs meet the required validity and reliability standards. Service quality demonstrates a positive and statistically significant effect on customer compliance (path coefficient = 0.544; p-value = 0.000; f² = 0.159). By contrast, corporate image and social influence do not exhibit significant effects. The model explains a limited proportion of variance in customer compliance (R² = 0.289) and shows modest predictive relevance (Q² = 0.135). Overall, customer compliance appears to be shaped primarily by direct service experiences, particularly those related to staff behavior, service accessibility, and responsiveness. These results suggest that efforts to improve compliance in public water utilities should concentrate on service quality enhancement, including staff capacity building, expanded service access, and more effective communication and customer relationship management systems.
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