Abstract
This study distributed on-site surveys to examine customer satisfaction with the counter services provided at a local government branch office (Shisho ) in Higashihiroshima City, Japan. This survey was conducted at the place where the target government service is provided—the Kurose branch office of the Higashihiroshima City government. The questionnaire was designed to assess factors (explanatory variables) and items related to customer satisfaction with the counter services provided at the branch office. We obtained a total of 240 responses over six weekdays (from August 24–31, 2020). The participation rate was approximately 60%. The largest percentage of participants were in their 70s, at 22.9% of the total. Breaking this down by gender, however, the largest percentage of male participants (23; 27.7%) were in their 70s, but the largest percentage of female participants were in their 60s (25; 20.7%). The multiple-choice questionnaire items were divided into three groups, including A) hardware (e.g. physical office aspects), B) software (e.g. staff responses), and C) services (e.g. administrative practices). Results were then subjected to both a principal component analysis and multiple regression analysis. The sample for this analysis was composed of 205 valid questionnaires. Among all the explanatory variables comprising groups A through C, the regression analysis showed that group B’s dependent variables were the most influential, followed by groups C and A (adjusted R 2 value of .51; Model 2). The most important variables were staff responses and explanations (group B).
Keywords: Customer Satisfaction, Counter Service, Principal Component Analysis, Local Governments, Urban Management
Introduction
A government evaluation system was implemented in Mie prefecture, Japan during the 1990s. This was followed by the implementation of government evaluation systems in municipalities throughout the nation, thus influencing the central government to enact a law requiring all ministries to carry out policy evaluations in 2002. In this context, several surveys have shown that large municipalities are more proactive in introducing evaluation systems (Author, 2015; Tabuchi, 2010).
In Japan, government evaluation systems are typically introduced from a business administration standpoint, thus emphasizing the Plan, Do, Check, Action (PDCA) cycle. While the PDCA acronym is widely used in many areas of Japanese governance, the term originated in the private sector as part of the business improvement (Kaizen ) movement. Adherents of this notion usually highlight the Check (C) function, which places extra importance on the need for evaluation in many public organizations. As such, government evaluation systems are commonly found in smaller municipalities, but some larger municipalities have abolished their systems after successfully using them to improve specific programmes. Recently, more emphasis has been placed on methods diversification as well as the development and exploration of specific methods, including programme satisfaction surveys targeted at citizens, selective project analyses that use logic models, and systems designed for evidence-based policymaking. Under these circumstances, an increasing number of local governments are now focusing on customer satisfaction by offering specialized counter services and conducting on-site office surveys to improve their operations.
This study conducted a questionnaire survey to gauge the level of customer satisfaction with the counter services provided at a local government branch office, specifically by following the method implemented in the business management field when investigating private companies (for details, see Takahashi and Kawasaki, 2019). Noda (2013) and others have already used relevant academic concepts to examine the overall satisfaction levels reported by residents when dealing with local governments, while many local governments in Japan (including the Higashihiroshima City government) have conducted their own citizen satisfaction surveys, which are typically focused on policy issues (Sesaku Manzoku-do Chosa [Programs Satisfaction Survey]). More specifically, municipal residents are asked to respond to questionnaires concerning a variety of local government programmes. Their answers are then used to analyse each programme based on four categories that cover elements related to both importance and satisfaction.
On the other hand, some municipalities have conducted more specific surveys concerning the level of customer satisfaction with their counter services. In Hiroshima prefecture, for example, Kumano Town implemented an on-site survey over a two-month period in 2009, the results of which were published on their official website (Kumano Town, 2009). Ogaki City (2014) in Shiga prefecture also conducted a mail-based questionnaire survey among its 2,000 residents to aid in the construction of a new municipal building (response rate of 47.7%). Respondents were asked about a variety of relevant items, including whether they had previously visited the city hall, the purpose of their visit, means of transportation used, and their experiences while there.
Following the above literature, this study examined customer satisfaction with the counter services provided at a local government office by implementing an on-site survey at the physical branch location (Shisho ). Based on local ordinances, Shisho are usually located in the same areas as former local municipality offices prior to amalgamation. While there, residents may apply for and consult with servicepersons about the available administrative services.
This study’s author arranged the questionnaire items across three factor groups, including those for hardware (e.g. physical office aspects), software (e.g. staff responses), and services (e.g. administrative services)i (see Mansor and Razali, 2010). Then, questionnaire items belonging to four categories (A, B, C, and Y) were individually condensed into two principal components via principal component analysis. Following this, two principal components in each category were used as explanatory variables in a multiple regression analysis. The first component from question items in the Y category was set as the dependent variable. This type of two-stage analysis was previously referred to as ‘the selective principal component regression analysis’ by Kawasaki et al. (2014)ii.
Here, it is appropriate to outline and provide a brief history of the Kurose branch office of the Higashihiroshima City government, where the research was conducted. In February 2005, the five towns of Kurose, Fukutomi, Toyosaka, Kawachi, and Akitsu merged with Higashihiroshima City to form the new city of Higashihiroshima, which contained a population of 188,966 as of August 31, 2020 (Higashihiroshima City Government, 2016; 2020a). It is now the fourth most populous city in Hiroshima prefecture. Spanning an area measuring 635.16 square kilometres, it covers land from the inland Kamo plateau to the sea of Akitsu , which was referenced in songs from the ancientMan’yoshu anthology compiled by Abe no Tsugumaro in 736CE (Higashihiroshima City Government, 2020b). The second-class Kurose River is fed by a mountain in the former Saijo Town area and flows through what is now Kurose Town before reaching the sea in Kure City. At present, Kurose Town (Kurose cho ) is part of Higashihiroshima City. Before the merger, Kurose Town was in the process of forming a large-area administrative union [Koiki Gyosei Kumiai ] with Higashihiroshima City, Fukutomi Town, Toyosaka Town, Daiwa Town, and Kawachi Town (Kurose Town, 2001, p. 23), and was also engaged in a cooperative relationship with the former Higashihiroshima City. Each of the five towns that consolidated in 2005 now has their own branch offices that can perform nearly all the same functions that the individual towns handled before the merger. The first four towns that merged in 1974 also have satellite offices (Schuccho-sho ), which have limited administrative functions. Branch offices were often established in areas that were occupied by the former municipalities prior to the merger, thus maintaining the same quality of government services for some time. Some municipalities have even established general branch offices (Sogo Shisho ), thereby expressing that they hold particularly strong administrative powers and functions when compared with normal branch offices in other municipalities.
In sum, this study conducted a questionnaire survey among residents of Higashihiroshima City, specifically covering four main categories related to their level of satisfaction with the counter services provided at a local government branch office. The affecting factors thus obtained were statistically analysed through a selective multigroup principal component regression analysis developed by Professor Emeritus Takahashi, a combined principal component analysis and multiple regression analysis (Takahashi and Kawasaki, 2019). This study, therefore, explored the determinants of customer satisfaction for the purpose of improving administrative practices, providing policy recommendations concerning the functions of branch offices, and determining the desired state of those offices in older areas within the merged municipalities mentioned earlier.
Literature Review
In the field of public administration research, Wagenheim and Reurink (1991) focused on customer satisfaction. Their study divided customers into internal and external customers, proposing the hypothesis that the satisfaction of internal and external customers’ service needs leads to organisational efficiency and effectiveness, based on the discussions of previous studies. Noda (2013) published information on citizen satisfaction from a general perspective in the Japanese context and has since continued to publish administrative research on citizen satisfaction (Noda, 2014; 2019). More specifically, this includes a study that investigated statements made by politicians and photographs of road management practices to analyse the relationship between expectations, performance, and customer satisfaction (Noda, 2019). Additionally, he examined 2,997 responses from residents of cities in the Tokyo Metropolitan area based on an internet survey designed considering populational and age ratios (Noda, 2014). Meanwhile, Yamaoka (2015) focused on the Program Satisfaction Survey, from which data were used to calculate satisfaction and importance indexes for municipal programmes. Yamaoka and Hideshima (2012) employed an information management perspective to analyse the process by which customer satisfaction was improved at the local government level.
In the context of the Total Quality Management and Kaizenmovements, customer satisfaction surveys and related research have become increasingly popular throughout the Japanese private sector. In this regard, Ono (2010) published work through affiliates of theNihon Keizai Shimbun (a daily leading newspaper specializing in economic and business fields) showing that customer satisfaction knowledge was highly important for corporate employees in Japan. These studies specifically detailed notable customer satisfaction initiatives implemented by companies, such as Komatsu (a construction equipment manufacturing company), and are outlined in the annually conducted cross-industry survey of customer satisfaction (Japan Customer Service Index), which is managed by Nihon Seisansei Honbu (the Japan Productivity Centre). Indeed, customer satisfaction surveys are not only common throughout the corporate sector but have also become popular in the public sector. Many of these surveys have focused on the field of hospital management, with reference to examples of foreign practices. Notably, Maeda (2005) provided an overview of the field and presented the results of customer satisfaction surveys conducted in hospitals where this study’s author has practised. Researchers and practitioners in the field have recently shifted to a mindset focused on improving the customer experience, which is specifically referred to as the patient experience as it is based on actual events experienced at hospitals.
Many studies have focused on customer/citizen satisfaction in the context of governments in other countries. The current study specifically referred to the framework developed by Mansor and Razali (2010) who conducted research in Malaysia. Furthermore, a similar study was performed on customer satisfaction in the Malaysian public sector (Agus et al., 2007), which involved two different surveys targeted at customers and managers in government branches, revealing co-relationships among service quality dimensions, service performance, and customer satisfaction. Surapto (2014) conducted a survey in Indonesia among 200 residents from urban villages in South Tangerang. Cripps et al. (2004) led a similar study in Australia, implementing a mail-based survey among 1,500 residents under three local governments comprising the city of Perth. Results showed that customer satisfaction was higher in newer, smaller municipalities. Akinboade et al. (2012) used the allocation method, which considers the populational ratios of municipalities, to survey 1,000 citizens about the delivery of various public services (e.g. health, housing, and water). Their questionnaire used a seven-point grading method to measure satisfaction, ranging from completely dissatisfied to completely satisfied.
As for academic research on the Kurose-cho area, Higashihiroshima City, this article’s target research area, Abe (2004) conducted a study from the perspective of agricultural economics, especially Japanese agricultural history. He revised and published a collection of previously published journal articles on agriculture, farming villages, and agricultural policy in Kurose Town these studies mainly focused on the Edo periodas a book (Abe, 2004). Chapters 2–4 discuss water control projects using reservoirs in the Kurose-gumi, an administrative unit of the Hiroshima-han clan during the Edo period consisting of 18 villages, and the rural economy, including teppou (gun) trading. In addition, several studies have recently been conducted on the remaining historical buildings in Kurose Town. One such study by Hojo and Tanigawa (2019) is an architectural study of the Kanemitsu Sake Brewery buildings in the Kurose town area. As for research on administrative services in Kurose Town, a study by Kitano and Uda (2003) can be highlighted. They are researchers at Hiroshima International University, which has a campus in Kurose-cho, and in their research, they use a GIS application to study the service delivery system of kindergartens and nursery schools, focusing on the distribution of facilities. For the official history of Kurose-cho, which was compiled before the merger with Higashihiroshima City, series of official history books called Kurosecho-shi (2000) exists, which is still sold at the Culture Division of the Lifelong Learning Department of Higashihiiroshima City government. This formal historical narrative shares information about events before and up to the Edo period.
To summarize the related studies so far, although there are many studies on Kurose Town based on other academic disciplines, the author cannot have found any studies on the government services of the Kurose Town area after the municipal merger in the field of public administration. The present study provides new insights into research on customer satisfaction based on the managerial perspective, especially regarding the satisfaction of counter services provided in municipal government offices.
Methods
Self-administered questionnaires were distributed to customers at the Kurose branch office of the Higashihiroshima City government after finishing their business at the counter. There were four total pages to each questionnaire. The author and research collaborators (third-year students majoring in public administration) conducted the survey on six business days (August 24–31, 2020). As such, desks were placed on the opposite side of the office counter so that respondents could complete their questionnaires on the spot. This resulted in a total of 240 respondents. Approximately 510 flyers containing survey outlines and thank you gifts for participating in the survey were submitted to the branch office. Of the 510 flyers, around 110 remained after the survey period, thus indicating that close to 400 were distributed. Based on these data, the survey participation rate was approximately 60%.
As discussed in the previous section, the questionnaire presented items based on respective concept groups designed to assess customer satisfaction across four categories (A–C and a group of questions related to dependent variable Y; a list of these questions is shown in Table 1). The questionnaire also asked respondents for some personal information (e.g., age and gender) and posed some general open-ended questions about both the survey and the city government.
Figure 1 shows the assumed relationships between customer satisfaction with the counter services at municipal branch offices based on the abovementioned questionnaire categories (A–C), the explanatory variables, and the items in group Y; the explained variable and the first and second principal components were synthesised in the principal component analysis based on each category.