Building students' loyalty in private higher education institutions: activities for competitiveness

Abstract

The purpose of this study is to examine the factors that influence students' loyalty in the private higher education (PHE) institutions. The survey is conducted on 225 respondents who are based from 27 PHE in Bandung City, Indonesia. The results reveal that the image of higher education institution does not affect students' satisfaction, but it affects the trust and loyalty of students. It is then discovered that the image of higher education institution and students' satisfaction indirectly affects students' loyalty through students' trust. Therefore, students' trust is a good mediator for higher education institution's image and students' satisfaction to students' loyalty. Based on the findings, this study also provides a strategy for managers in private higher education institutions in building students' loyalty. The implications of the study raise a number of opportunities for future research by both public and private higher education institutions on attracting and retaining students.