Poor urban communities in developing countries have a strong but largely unmet demand for water. Recent market-oriented approaches to water supply risk further excluding poor people if service providers assume they cannot pay. Incorporating consumer behaviour studies may be key to a sustainable water supply suited to poor urban residents.

A paper in the journal Water Policy applies the concept of consumer behaviour studies to the problem of how best to provide water to the growing number of poor people in cities, particularly in the developing world. The authors explain how understanding customers is essential to balance their needs with those of service providers over the long term.

In much of the developing world today, water supply services are limited to formal settlements. Many people living in informal settlements, or slums, are forced to use unsafe or expensive sources of water. With the number of Africa’s slum-dwellers expected to swell to 300 million by 2020, the developmental and political consequences of continued water shortages are severe.

The water sector currently views a market-based approach as best suited to supplying water in cities sustainably. Critics of this approach believe that private providers will prefer to provide services to those who can best afford it, excluding poor people. The authors therefore suggest that consumer behaviour studies of poorer groups be undertaken to understand how they get, use and manage water, and what affects their decisions. This will help in planning:

• Service options/levels: water supply can be tailored to the needs and capabilities of consumers, with variations in type, location and features of services.
• Tariff levels and structure: paying attention to consumer values, lifestyle and budgets can help in setting appropriate tariff levels (rates), structures and payment options for different groups.
• User participation: involving consumers in service design not only provides insights into their expectations but also makes use of their ideas, information and resources.
• Public policy formation: since water is a social and economic good, policymakers will have to ensure that the market approach safeguards public health, the environment and the economy, while covering all groups.

In applying consumer behaviour studies to a market-based approach to water supply, service providers and policymakers should consider the following:

• The significance of different customer preferences: fair levels of service based on need and capability are more realistic than ‘equal’ service, which may not be sustainable.
• Effective and relevant communication strategies are important in successfully involving users.
• Service design should not be based only on technical and functional considerations, as consumer decisions may rely on more subjective factors such as social status.
• Data on consumers has to be collected, interpreted and broken down (for example, separating groups by income or locality), or even well-intentioned polices will fail to account for the needs of particular groups.

Government policy will also have to be adjusted to allow the flexibility in water supply services that may be necessary.

Source(s):
‘The Role of Consumer Behaviour Studies in Improving Water Supply Delivery to the Urban Poor’, Water Policy, No.8, pages 111-126, by Felix. N. Addo-Yobo and C. Njiru, 2006

id21 Research Highlight: 9 February 2007

Further Information:
F. N. Addo-Yobo
Water Engineering and Development Centre
Institute of Development Engineering
Loughborough University
Leicestershire LE11 3TU
UK

Tel: +44 (0) 1509 224286
Fax: +44 (0) 1509 211079
Contact the contributor: F.N.Addo-Yobo@lboro.ac.uk

Water Engineering Development Centre, Loughborough University, UK

Other related links:
'Listening to African consumers about water sector reform'

'Success for water cooperative in Bolivia'

'Water partnerships in Haiti and Argentina supply poor communities'

'Addition to water bill stimulates household sanitation investment in Burkina Faso'

'Marketing water and sanitation to poor people'