The Relationship of Service Quality Process Improvements and Collection Rates of An Electric Cooperative in Bataan

Abstract

Electric cooperatives play a vital role in ensuring reliable electricity distribution and maintaining financial sustainability through efficient revenue collection. However, collection inefficiencies, service delivery issues, and evolving customer expectations continue to challenge the operational performance of many electric cooperatives. This study determined the relationship between service quality process improvements and collection rates of an electric cooperative in Bataan. Specifically, it examined customers’ assessments of process improvements in terms of reliability, assurance, tangibles, empathy, and responsiveness, evaluated collection rates, identified current collection challenges, and proposed additional process improvements. A descriptive-correlational research design utilizing a mixed-methods approach was employed. Data were gathered from 252 electric cooperative customers through a researcher-made questionnaire based on the SERVQUAL framework. Descriptive statistics, including weighted mean and standard deviation, were used to analyze service quality and collection rates, while Pearson’s correlation coefficient was applied to determine the relationship between variables. Qualitative interviews with key personnel were analyzed through thematic coding to validate and enrich the quantitative findings. Findings revealed that respondents rated the cooperative’s service quality process improvements as “Very Good” across reliability (M = 3.25), assurance (M = 3.21), tangibles (M = 3.27), empathy (M = 2.80), and responsiveness (M = 3.22). Collection rates were also rated Very Good (M = 3.25). Inferential analysis showed a significant positive relationship between service quality process improvements and collection rates (r = 0.452, p < .05), with process improvements explaining 20.4% of the variance in collection performance (R² = 0.204). Interview findings identified operational delays, outdated systems, data management issues, regulatory constraints, and external economic conditions as persistent challenges affecting collection efficiency. Service quality process improvements significantly contribute to improved collection rates. Strengthening customer-centered services, digital technologies, and data-driven collection strategies can further enhance revenue recovery, operational efficiency, and long-term sustainability of electric cooperatives.