The effects of perceived service quality and perceived price fairness on business student satisfaction: The case of international university

Abstract

To be successful in today’s competitive world, institutions must look into customers’ needs, wants and then satisfy them. In an academic sector, especially for the university system, universities have faced with a similarly growing competitive environment, so the success or failure of the university depends on its ability that makes students satisfy. Actually, student satisfaction is an important strategic objective for universities and in order to survive and attain long term growth, universities need to understand student needs, requirements in order to satisfy them. Although there are many factors that relate to student satisfaction, this study only

investigate two important factors including service quality and price fairness which are critically related to student satisfaction.

This study is aimed to achieve 2 main objectives. Firstly, this study is conducted to study the effect of perceived service quality and perceived price fairness on undergraduate business student satisfaction at Business school of International University (IU). Secondly, based on the

study’s findings, some recommendations have been brought out to improve the satisfaction level

of undergraduate business students. This study applied SERVPERF model as the framework. In this study, five dimensions of SERVPERF including tangible, reliability, responsiveness, assurance and empathy will be applied. However, in order to evaluate the overall satisfaction level of business students, beside side service quality, this study also investigate price fairness that is critical relating to business student satisfaction. The questionnaire was developed from SERVQUAL instrument, previous studies of some experts and distributed to 200 current Business students of International University through email and in person. However, only 184 questionnaires were obtained . 16 questionnaires were not used due to not answering all questions.

This study also benefits both business school of IU and business students. After the study, the

school can better understand the effect of perceived service quality and price fairness on business student satisfaction, which in turn enables the school making the adjustment in order to enhance the current satisfaction level of business students. From the initial model including five dimension of SERVPERF and price fairness to test the effects of perceived service quality and perceived price fairness on the business student satisfaction, this model include five dimensions

of SERVPERF (tangible, reliability, responsiveness, assurance, empathy) and price fairness.

After the study the new model including five factor s was developed to keep track, improve service, and enhance student satisfaction. These five factor e.g staff competence, lecturer competence, tangibility, price fairness and academic courser s that have significant impact on satisfaction of Business students. In order to improve student satisfaction , Business school should place greater attention to these five new factors. Further, Based on the study’s finding, there is significant impact of service quality and price fairness on student satisfaction.