A development of model for service quality, student satisfaction, student loyalty and perceived value in the University of Nottingham, Malaysia

Delivering superior service quality is becoming important elements in order to generate and maintaining loyal customers and it will be same in the higher education sector context. The higher education management or the universities have to provide superior service quality in order to retain loyal students and remain competitive in the industry. This study aims to investigate: i) the relationship between service quality and student satisfaction ii) the relationship between student satisfaction and student loyalty, and iii) the mediating effect of student’s perceived value on the relationship between service quality and student satisfaction. The research was conducted at University of Nottingham, Malaysia Campus and 355 students were selected randomly as a sample of this study. Then, a total of 220 set questionnaires were collected out of 355 set questionnaires distributed, indicating 61.97% of questionnaires returned. This study employs modified HEDPERF instruments (non-academic, academic, reputation, access, programme issues) and two additional dimensions (educational resources and financing). The Factor Analysis, Pearson Correlation and Hierarchical Regression model (to test mediation effects) were used in this study. The result of this study indicated that all dimensions of service quality have a positive relationship with student satisfaction. It also shows the high correlation between student satisfaction and student loyalty (r=0.787). Meanwhile, perceived value also identified has a partial mediator role on the relationship between service quality and student satisfaction. Based on this study, financing dimension has identified as an important role in influencing student satisfaction. This study also may provide useful information for University Nottingham, Malaysia in improving service quality, student satisfaction, student loyalty and perceived value