Abstract

Monitoring and managing customers’ satisfaction are key features to benefit from today’s competitive environment. In higher education context, only a few studies are available on satisfaction and loyalty of the main customers who are the students, which signifies the need to investigate the field more thoroughly. The aim of this research is to measure the strength of determinants of students’ satisfaction and the importance of antecedents in students’ satisfaction and loyalty in Denmark. Our research model is the modification of European Performance Satisfaction Index (EPSI), which takes the university’s image direct effects on students’ expectations into account from students’ perspective. The structural equation model of student satisfaction and loyalty has been evaluated using partial least square path modelling. Our findings confirm that the EPSI framework is applicable on student satisfaction and loyalty among Danish universities. We show that all the relationships among variables of the research model are significant except the relationship between quality of software and students’ loyalty. Results further verify the significance of antecedents in students’ satisfaction and loyalty at Danish universities; the university image and student satisfaction are the antecedents of student loyalty with a significant direct effect, while perceived value, quality of hardware, quality of software, expectations, and university image are antecedents of student satisfaction. Eventually, our findings may be of an inspiration to maintain and improve students’ experiences during their study at the university. Dedicating resources to identified important factors from students’ perception enable universities to attract more students, make them highly satisfied and loyal.

Highlights

  • There is a wide range of products and services that satisfy a certain need

  • The objective of our research is to test the modified European Customer Satisfaction Index model, which aims to describe the extent to which students intend to remain at university, which is influenced by their satisfaction of university, university’s image, quality of software and hardware, perceived value and expectations

  • Cronbach’s Alphas for expectation is 0.63, but since Cronbach Alpha is not a good measure of internal consistency when a scale consists of only a few items [84], the value of 0.63 should be rather compared to 0.50, the threshold suggested by Coulston (2008) for scales consisting of three or four items [85]

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Summary

Introduction

There is a wide range of products and services that satisfy a certain need. Customers choose and buy based on their expectations of the value of products and services that are presented by different markets and the level of satisfaction they get from it. Positive word of mouth and repurchase are acts of satisfied customers with good experience. Marketers should consider the right level of expectation; too low level of expectation fails to attract enough customers and if they set it too high, customers will be disappointed. The key elements to develop and manage customer relationships are customer value and customer satisfaction. “a good customer relationship management creates customer satisfaction”.

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