The Value of Public Library Service

Norman Walzer, Karen Stott and Lori Sutton

Public agencies, like private businesses, find it useful to know the extent to which customers value their services. This information allows managers to better identify their clientele's desires and market the delivery of services to achieve the best outcomes at the least cost. Times of rapid change that include the computer revolution and growth in Internet usage have created many opportunities for public libraries to expand their service offerings, and many libraries have responded with new services.

Accurate customer information is especially important when products and markets are rapidly changing, as is currently the case with public libraries. Effective management practices require access to information about customers' needs and desires. This information, unfortunately, often is not readily available in sufficient detail, or in the right format, to be used effectively in management decisions. Some of the services currently demanded by library customers could not have been anticipated even a few years ago.

The Alliance Library System', which serves libraries in 30 central Illinois counties, cooperated with the Illinois Institute for Rural Affairs on a research project to obtain detailed information, not only about preferences of library customers, but also about how much value they place on various types of library services. This information not only paints an interesting picture about the value of services received especially by customers in rural areas, but also illustrates the importance of libraries to the overall quality of life in the community. This information can be used by library administrators to target services and more clearly see which groups might generate additional support for the library.

Three groups are part of this research project. First, public library users in Alliance Library System libraries were surveyed with 2,776 responding. Second, 79 of the 115 public library administrators in the Alliance Library System region responded. Third, Illinois Rural Life Panel respondents who live in the 30 counties served by Alliance Library System were studied to obtain their overall perceptions of public libraries.

Perceptions of the Contribution by Public Libraries

Public libraries serve a diverse clientele with a wide range of age, income and occupational characteristics. In addition, specific services provided vary from library to library. While certain types of services are expected in virtually all libraries, the wide range of resources available through the Internet and shared licensing agreements means that, if resources permit, even relatively small libraries can tailor services to a specific clientele. In fact, this customization to local needs may be crucial in obtaining the funds needed to provide high-quality services. Resource sharing (inter-library loan) is available to all the libraries in the study to supplement the local customized collection of resources.

Library customers are very pleased with services provided by public libraries as shown by the fact that nearly 93 percent of the respondents in the Illinois Rural Life Panel reported satisfaction with the services received. While differences are found by age and income levels, a high degree of satisfaction is found among the entire range of respondents.

Public agencies often monitor customers' attitudes about specific services provided, but they may not always be aware of the full impact of service delivery on the community at large. For instance, library users in the Alliance Library System region were asked whether having a public library in the community adds to the overall quality of life. The result was overwhelming with 99 percent responding affirmatively. While some differences in satisfaction levels occur, for instance by size of population served, the responses in general are high for all age groups and income levels.

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Library users were asked whether public libraries help attract and retain residents in the community. Four-fifths (80 percent) responded that libraries do contribute to retention and attraction. This is an important finding for small communities interested in at least stabilizing populations.

Libraries also play a supportive role in educating youth in the community by working with teachers and providing educational materials. It is clear from the survey that library users expect this function from libraries and think that libraries are accomplishing this task. When asked whether having a public library improves students' performance in schools, 96 percent reported "yes".

In a broader sense, libraries are part of the total community and can be part of an initiative to promote economic development. Respondents were asked whether they thought that having a public library helps attract businesses to the community. Nearly two-thirds (64 percent) responded positively.

Willingness to Pay More for Service

Library users in this survey reported that they were satisfied with the services provided, but it is also useful for library administrators to know how much value the average user places on the services received. Thus, users participating in the survey were asked to estimate the value of library services received by their family during the past 12 months. The responses were tallied by age and income to gain more insight into the groups served.

A total of 1,466 survey participants placed an average value of $853 on the value of services received by their family during the previous year (Table 1). Overall, 41.6 percent reported benefits between $500 and $1,000 during the past 12 months. More than one in 10 respondents (11 percent) reported annual benefits of more than $1,000 to their family.

A brief review of the comparisons in Table 1 reveal several casual differences in preferences and willingness to pay, however. The highest average value ($1,267) received from library services was reported by customers who valued basic reference services most. The second highest average value reported ($1,132) was from those mainly interested in Internet and technology-related services. Customers who highly value interlibrary loan services also reported high overall benefits received ($972).

Also important was a broad category titled Public Information and Customer Services. These respondents reported an average value of $1,068, and we interpret this finding as confirming the importance of having knowledgeable librarians who provide friendly service. Thus, this finding supports the importance of a strong continuing education program provided by the Alliance Library System and participation by member libraries to enhance the quality of services provided. It is interesting, however, that the willingness of this group to pay additional amounts was among the lowest (65 percent) compared with those with other interests. However, among those who are willing to pay more, 84 percent are willing to pay $1 per month or more and 34 percent are willing to pay more than $2 per month.

While it is clear that library users in the Alliance Library System region see substantial benefits from public libraries, also important is whether they would be willing to pay additional taxes to receive more library services. Respondents were asked if they were willing to pay more and 1,513 (71 percent) of the 2,776 responding said "yes".

Respondents also were asked about the amount per month that they would pay for additional library services. According to the survey responses, more than 80 percent of the customers are willing to pay more than $1 per month extra, and 39 percent are willing to pay more than $2 per month.

Overall, willingness to pay increased with age. At the same time, a relatively small relationship was found between willingness to pay and income status. In fact, 82 percent of those making less than $15,000 are willing to pay between $1 and $3 per month compared with 84 percent of respondents earning more than $50,000. Library users are likely to be more willing to pay additional taxes than non-users. We did not collect information on the willingness of non users to pay additional amounts. Based on the findings of this survey, library customers are willing to spend more if the services in which they are interested are expanded.

Willingness to Pay and Service Preferences

Information on perceived benefits and willingness to pay more led the researchers to an attempt to profile respondents willing to pay according to types of services in which they expressed interest. To develop this analysis, the preferences expressed by users for 35 library services included in the survey were combined into nine broad service categories. Information about willingness to pay for overall service categories provides some insights into customer preferences and the extent to which they might be willing to support expan-

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sions in service. This type of customer market analysis, of course, is not unlike that conducted by many businesses.

No statistically significant difference was found between perceived value of overall library service and willingness to pay for additional service. Those willing to pay more were neither high nor low in perceived value of service. This might suggest that customers simply value having a public library in the community rather than basing their valuation only on the direct services they receive. At the same time, however, no statistically significant association is found between respondents who placed a high value on specific services received and those who reported that having a local public library attracts or retains residents in the community.

Of still further interest in Table 1 is a comparison of respondents willing to pay more than $1 per month for additional services. In some regards, this information reflects the intensity of customers' value of different library services. General programs for adults (89 percent); public information and customer services (84 percent); and hobby/leisure services (84 percent) had the largest percentage of those willing to pay the largest amounts.

Library Applications

So, how might library administrators use this type of information to improve the services delivered by their library? Several possibilities come to mind. First, as with any agency, public or private, that serves customers, it is important to know the customer base, their preferences and their willingness to pay for services. The information collected in this set of surveys can help formulate effective budget and management decisions.

Second, based on customers' responses, it is clear that they are willing to pay more for library services. Comparable information is not readily available for taxpayers in general.

Third, the types of information collected allow library administrators to better market their services because they have the responses organized by age, income and other characteristics. Targeted mailings, special promotions and other approaches might be especially useful when attempts are underway to expand library services or raise additional funds. Some of the information collected as part of this project can help in evaluating whether these approaches are worth the effort, especially for specific types of projects such as adding to the collection or adding a new service.

While public libraries are designed to serve the broad public the Internet, interlibrary loan and other innovations, such as licensed online resources, now allow specialized services to be provided in even small public libraries. The value of these specialized services to customers and the costs of providing them may warrant an increase in overall library budgets.

Systemwide data can help library administrators better understand their customer base, but this information is not a good substitute for detailed information regarding the customer preferences of a specific library clientele. Awareness of customer preferences is critical in designing library services. Library administrators are encouraged to continuously undertake surveys or, in other ways, identify overall needs of specific clienteles who might be willing to help support library services in the future.

Conclusions

Based on customer responses in the Alliance Library System, public libraries are held in high esteem not only by users but also by the rural population in general. Users think that libraries contribute to the quality of life in the community and can help attract or retain residents and businesses.

Library customers are willing to pay more for additional services and, in some cases, substantially more. This willingness, as well as the perceived value of services received, varies with the preferences for services as reported by survey respondents. Having this customer information can assist library administrators in evaluating the services currently provided and in designing services to meet the evolving needs of library customers. Public agencies are now being asked to respond to customers' desires in much the same way as businesses have done for years. Better customer information that can be used to make effective management decisions is needed to meet rapidly changing needs in today's libraries. As the role of public libraries evolves, they will continue to need customers' support so that public libraries can obtain the funding required to meet the needs of the future.

Acknowledgement: The authors thank Valerie Wilford, executive director, Alliance Library System, for her assistance and support throughout the project.

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End Note:

1 The Alliance Library System is an Illinois regional library consortiim of academic, corporate, public and school libraries, funded by Secretary of State and State Librarian Jesse White. For additional information on the Alliance Library System, visit their Web site at http://www.rsa.lib.il.us/.

Click here for   Table 1: Library Users by Type of Service

264 Illinois Libraries, Fall 2000