Global Economy and Finance Journal
Vol. 11. No. 2., September 2018, Pages: 14 – 30
Effective Demand for Water Supply Service: The Case of Johor Water Company in Malaysia
This study assesses the residential customers’ preferences for water services in Johor State. The Johor Water Company (SAJH) is a privatised company that provides water from the source to the household. Choice modelling (CM) was applied as a tool for the assessment of effective demand for improved water supplies, particularly by residential customers. The findings indicate that customers are willing to pay for water service improvements. Additionally, the significant variables affecting demand are pipe bursts, (BUR), water quality (QUA), disruption (DIS) and connection (CON), as well as price (PRI). The most important factors influencing the WTP of water services are gender, age, number of persons in the household, and income. These patterns of customer behaviour are important and useful to the water company for improving their services.