Abstract
The study aimed is to examine the relationship of brand image and service quality towards student loyaltyin purchasing at a university shop, namely UniShop, in the southern state of Malaysia. By understandingstudent loyalty, the university management might encourage students to shop at the UniShop and generaterevenues within the campus. The decreasing sales of UniShop are affected by a hypermarket located withinwalking distance to the university in August 2017. From the literature, the entrance of multinationalcompanies might affect the small companies surrounding them, including UniShop which is a smallenterprise. Thus, the research examined student loyalty in purchasing at UniShop by distributingquestionnaires to the students of the university. The researchers used proportionate stratified randomsampling to generalize the finding across all semester students in the university. The findings showed thatbrand image and service quality played an important role in student loyalty. Students were the maincustomers of a university shop, contributed most of the shop’s business sustainability, and generate indirectincome to the university. In order to maintain student loyalty, UniShop has to take some initiatives includingto increase the scale of products, focuses on student-centered services, improve the shop layout, and sellexclusive university merchandise to increase the student's self-belonging to the university products.
 Keywords: brand image, service quality, student loyalty, university shop
Highlights
As a developing country, small and medium enterprises (SMEs) are the engine of national economic growth
Starting from July 2013, the anchor agency for SME in Malaysia, SME Corp defined small and medium enterprises depending on the sales turnover and number of full-time employees
This study aimed to determine the relationship between brand image and service quality to student loyalty based on the UniShop case
Summary
Small and medium enterprises (SMEs) are the engine of national economic growth. Malaysian SME sector contributed to more than 40% of the country’s gross domestic product (GDP) in 2017 (The Star Online, 2017). Starting from July 2013, the anchor agency for SME in Malaysia, SME Corp defined small and medium enterprises depending on the sales turnover and number of full-time employees. The classification are: 1) for the manufacturing sector, SMEs are firms with sales turnover not exceeding RM50 million or the company with not more than 200 full-time employees; and 2) for the services and other sectors, SMEs are firms with full-time employees not exceeding 75 or sales turnover not exceeding RM20 million (SME Corp, 2016). In 2015, there were 907,065 SMEs operated in Malaysia compared to 638,790 in 2010. SMEs has generated almost RM1.0 trillion which increasing by 9.3% from RM644.7 billion in 2010 (Department of Statistics Malaysia, 2016)
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