Reference groups as external influence in choosing a private higher education institution

Abstract

Private Higher Education Institutions (PHEIs) play a crucial role in South Africa as there is a growing need for higher education. However, these institutions face numerous challenges in the current tough economic climate. This qualitative research aimed to investigate the influence of reference groups on consumer’s decision-making process when choosing a PHEI. The literature review revealed very little research has been conducted on how reference groups influence consumer’s decision-making when choosing a PHEI. This addresses a significant gap that the research aimed to analyse. This study used a qualitative research design in the form of 23 semi-structured interviews. The target population of this study included students enrolled in three PHEIs and a non-probability snowball sampling technique was used to draw the sample or until data saturation had been reached per institution. A thematic analysis was conducted to identify broad themes and patterns, after which categories and codes were created. ATLAS.ti 22 supported the qualitative data analysis process. The findings indicated that reference groups, especially family members, played crucial decision-making roles. The findings can inform and lead to more effective marketing strategies and policies.