Modeling the Relationship between University Brand Image and Alumni Loyalty Using a Partial Least Squares-Structural Equation Model (PLS-SEM) Approach

Abstract

In today’s competitive business world, marketing is critically important to universities in positioning a product to attract the interest of its clients, which are the prospective students. As for public universities such as University Teknologi Mara (UiTM), the key to survive the increasing competition and financial difficulties is through their alumni loyalty. The purpose of this study is to determine the factors that affects the Alumni Loyalty towards UiTM. This study tests a model derived from a relationship marketing perspective to investigate the effects of components of University Brand Image which are Academic System, Reputation, Employability, Shared Values and Social Network on the Alumni Loyalty towards UiTM. Based on the literature review, a theoretical model is proposed and tested through Partial Least Square - Structural Equations Modelling (PLS-SEM) using a sample of 815 UiTM alumni. The results reveal that the significant factors that affect Alumni Loyalty are Reputation, Employability and Shared Values. In addition, the results highlight that Academic System do not affect Alumni Loyalty directly but rather indirectly through the mediation of Satisfaction. Overall, Academic System, Reputation, Employability and Shared Values are important in explaining the variance of Alumni Loyalty. University should be careful about the quality of the course offered and methods of delivery by the academicians since the implication of an Academic System is significant toward the loyalty of alumni.