Modeling Educational Quality and Student Loyalty: A Quantitative Approach Based on the Theory of Information Cascades

Abstract

Customer loyalty is widely accepted as a critical factor in the long-term success of a service organization. This study develops a model of information cascades-based student loyalty (ICSL) by embedding information cascades in the context of educational services with insight from more traditional educational research. In the ICSL model, student loyalty is influenced directly by the perceived quality of teaching services (QTS), the perceived signal of retention (PSR), and the perceived quality of administrative services (QAS), while also being influenced indirectly by QTS, QAS, and perceived others’ retention via the mediation of PSR. This study tests the ICSL model using the structural equation modeling approach, implementing empirical data from a survey done on a large private university in Taiwan. The test results reveal that PSR is significantly influenced by QTS, QAS, and perceived others’ retention. Accordingly, the influence of QAS on student loyalty is insignificant, while the influences of QTS and PSR on student loyalty are conversely significant. Finally, implications are also discussed.