The Influence of Service Quality, Institutional Reputation, Students’ Satisfaction on Students’ Loyalty in Higher Education Institution

Muhammad Bakrie, Bedjo Sujanto, Rugaiyah Rugaiyah


Research highlights the influence of service quality, institutional reputation, student satisfaction in building student loyalty. Quantitative approach was used with a survey method. The research respondents were 185 students from PGRI University Palembang. Analysis techniques using variance-based structural equation models (SEM) SmartPLS. The results of the study shows that service quality has a significant effect on reputation and student satisfaction, but service quality and student satisfaction have no significant effect on student loyalty. On the contrary, the reputation of an institution has a very significant direct effect on loyalty. Student service quality has a significant indirect effect on student loyalty through the reputation of the institution, this implies that the reputation of the institution carries a relative influence relationship between service quality on student loyalty. These findings can help higher education institutions to make better strategic plans to increase student loyalty.


Students’ Loyalty; Service Quality; Institutional Reputation; and Students’ Satisfaction

Full Text:



Abd-El-Salam, E.M., Shawky, A.Y., & Nahas, T. EL. (2013). The impact of corporate image and reputation on service quality, Customer satisfaction and customer loyalty: testing the mediating role. Case analysis in an international service company. The Business & Management Review, 3(2), 177-196.

Aga, Mehmet & Safakli, O.V. (2007). An empirical investigation of service quality and cutomer satisfaction in profesional accounting firm: evident from North Cyprus. Problem and perspectives in management, 5(3), 84-98.

Akhtar, N., Ahmed, I., Jafar, H. Y., Rizwan, A., & Nawaz., J. M. (2016). The impact of packaging, price and brand awareness on brand loyalty: A reseller perspective in mobile sector of Pakistan. International Review of Management and Business Research, 5(3), 790-807.

Alessandri, S. W., Yang, S., & Kinsey, D.F. (2006). An integrative approach to university visual identity and reputation. Corporate Reputation Review, 9(4), 258-270.

Alves, H. & Raposo, M. (2010). The influence of university image on student behavior. International Journal of Educational Management. 24(1), 73-85.

Anderson EW, Sullivan MW. (1993). The antecedents and consequences of customer satisfaction for firms. Marketing Science, 12(2), 125-143.

Andreassen, T.W. and Lindestad, B. (1998). The effect of corporate image in the formation of customer loyalty. Journal of Service Research, 1(1), 82-92.

Arambewela, R., & Hall, J. (2009). An empirical model of international student satisfaction. Asia Pacific Journal of Marketing & Logistics, 21(4), 55-569.

Arguelles, M., Maria J. & Busquets, J.M.B. (2016). Perceived service quality and student loyalty in an online university. International Review of Research in Open and Distributed Learning, 17(4), 264-279.

Aula, H.M., & Tienari, J. (2011). Becoming “world-class”? Reputation-building in a university merger. Critical Perspectives on International Business, Emerald Group Publishing Limited , 7(1), 7-29.

Barnes, J. G. (2003). Secret of Customer Relationship Managemet. Yogyakarta: Andi.

Baron, R.M., & Kenny, D.A. (1986). The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. Journal of Pe~nality and Social Psychology, 51(6), 1173-1182.

Bartlett, J.E., Kotrlik, J.W & Higgins, C.C. (2001). Organizational Research: Determining Appropriate Sample Size in Survey Research. Information Technology, Learning, and Performance Journal, 19 (1), 43-50.

Bigne, E., Moliner, M.A., & Sanchez, J. (2003). Perceived quality and satisfaction in multi service organizations, the case of Spanish Public Service. The Journal of Services Marketing, 17(4), 420-442.

Bloemer, J., Ruyter, K.,O & Peeters, P. (1998). Investigating drivers of bank loyalty: the complex relationship between image, service quality and satisfaction. International Journal of Bank Marketing, 16(7), 276–286.

Bolton, R. N. & Drew, J. H. (1991). A longitudinal analysis of the impact of service changes on customer attitudes. Journal of Marketing, 55, 1-9.

Caruana, A., Krenthier, K.A., & Ramasahan, B. (2004). Corporate reputation, customer satisfaction, & customer loyalty: What is the Relationship? Assessing the different roles of marketing theory and practice in the jaws of economic uncertainty: Proceedings of the 2004 Academy of Marketing Science (AMS) Annual Conference, 301-301.

Chandra, T., Martha Ng, Chandra, S. & Priyono, I. (2018). The effect of service quality on student satisfaction and student loyalty: An empirical study. Journal of Social Studies Education Research, 9(3), 109-131.

Chang, H. H., & Wang, H-W. (2011). The moderating effect of customer perceived value on online shopping behaviour. Online Information Review, 35(3), 333-359.

Chen, Z. & Dubinsky. A.J. (2003). Conceptual model of perceived customer value, in e-commerce: A Preliminary investigation. Psychology and Marketing, 20(4), 323-347.

Chou, C. C., Liu, L. J., Huang, S. F., Yih, J. M. & Han, T. C. (2011). An evaluation of airline service quality using the fuzzy weighted SERVQUAL method. Applied Soft Computing, 11(2), 2117-2128. Doi: 10.1016/j.asoc.2010.07.010

Cronin, J.J dan Taylor, S.A. (1992). Measuring service quality: A reexamination and extension. Journal of Marketing, 56, 55-68.

Daulay, P, Zaman B. Pengembangan model penelusuran diskusi tutorial online melalui aplikasi FAQ (Frequently Ask Question). Jurnal Pendidikan Terbuka dan Jarak Jauh, 13(2): 2012), 80-93.

DeBorough, G.A. (2003). Predictors of student satisfaction in distance – delivered graduate nursing courses: What matters most. Journal of Professional Nursing, 19, 149-163.

Dehghan, A., Dugger, J., Dobrzykowski, D. & Balazs, A. (2014).The antecedents of student loyalty in online programs. International Journal of Educational Management, 28 (Iss 1),15-35. Permanent link to this document:

Dharmmesta, B., Swastha (1999). Loyalitas Pelanggan: Sebuah Kajian Konseptual sebagai Panduan bagi Peneliti, (Jurnal Ekonomi dan Bisnis Indonesia, 14(3), 73-88.

Dib, H., & Mokhles, A. (2013). The impact of service quality on student satisfaction and behavioral consequences in higher education services. International Journal of Economy, Management and Social Sciences, 2(6), 285–290.

Dick, A., Basu, K. (1994). Customer loyalty: toward an integrated conceptual framework. Journal of the Academy of Marketing Marketing Science, 22, 99–113

Donaldson, B. and Runciman, R. (1995). Service quality in further education; An insight into management perceptions of service quality and those of the actual service provider, Journal of Marketing Management, 11(1-3):243-256.

Eckert, C. (2017). Corporate reputation and reputation risk: Definition and measurement from a (risk) management perspective. The Journal of Risk Finance, 18(2), 145-158.

Eskildsen, J,J., Dahlgaard, J.J., dan Norgaard, A. (1999). The impact of creativity and learning on businness excellence. Total Quality Management, 10 (4-5), 523-530.

Fares, D., Achour, M. & Kachkar. O. (2013). The Impact of Service Quality, Student Satisfaction, and University Reputation on Student Loyalty: A Case Study of International Students In IIUM, Malaysia. Information Management and Business Review, 5(12), 584-590.

Finch, D.J., Hamilton, L.K., Baldwin, R. & Zehner, M. (2013). An Exploratory Study of Factors Affecting Undergraduete Employability. Education Training, 55(7), 681-704.

Fombrun, C.J. and Shanley, M. (1990). What Is in a Name? Reputation building and corporate strategy. Academy of Management Journal, 33(2), 233-258.

Fornell, C., Johson, M.D., Anderson, E.W., Cha, J. & Bryant, B.E. (1996 ). The American Customer Satifaction Indexs: Nature, Pupose, and Findings, Jornal of Marketing, 60(4), 7-18.

Fredericksen, E., Shea, P. & Pickett, A. (2000). Factors influencing student and faculty satisfaction in the SUNY learning network. New York: State University of New York.

Gabarino, E. & Johnson, M.S. (1999). The Different roles of satisfaction, trust, and comitment in customer relationships, Journal of Marketing, 63, 70-87.

Goetsch, D.L. & Davis, S. (2013). Quality management for organizational excellence: Introduction to total quality. London: Pearson.

Greenwood, M.S. , Helen, J.G. (1994), Total Quality Management for School, Wiltshire: Chassell.

Griffin, J.(2005). Customer Loyalty, Menumbuhkan dan Mempertahankan Kesetiaan Pelanggan, Alih Bahasa : Dwi Kartini Yahya dan dkk., Jakarta: Erlangga.

Griffin, J., (1995), Customer Loyalty, How To Earn It How To Keef It, USA: A Devision Of Simon and Schukers.

Gronross, C., dan A. Ravald. (2010). Service as Business Logic: Implication for Value Creation and Marketing. Journal of Service Management, 22 (1), 5-22.

Gul’s, R. (2014). The Relationship between reputation, customer satisfaction, trust, and loyalty. Journal of Public Administration and Governance, 4, 368.

Guolla, M. (1999). Assessing the teaching quality ti student satisfaction relationship: applied customer satisfaction research in the classroom. Journal of marketing theory and practice, 7(3), 87-97.

Ham, C. L., Johson, W., Artweinstein, Plank, R., & Johson, P.L. (2003). Gaining competitive advantages in Higher Education: Analyzing the gap between expectations and perceptions of service quality. International Journal of Value-Based Management, 16, 197–203.

Haryono, S. (2017). Metode SEM untuk penelitian manajemen, Jakarta, Luxima Metro Media.

Hayan, D. &Alnazer, M. (2013). Conceptual model of student satisfaction in Syrian University. European Journal of Economics. Fiannce and Admnistrative Sciences, 56, 285-290.

Helgesen, Ø. & Nesset, E. (2007). Why Accounts for Students’ Loyalty? Some field study evidence. International Journal of Educational Management, 21(2), 126-143.

Hoffmann, C.P., Bronn, P. S. & Fieseler, C. (2016). A good reputation: Protection against shareholder activism. Corporate Reputation Review, 19(1), 35–46.

Hsu, G.J.Y., Lin, Y.H. & Wei, Z.Y. (2008). Competition policy for Technological Innovation in an Era of Knowledge-based Economy. Knowlage-Based Sistems, 21(8), 826–832.

Iniesta, M., Cervera, A., Schlesinger, M & Sánchez, R. ( 2009). University image student satisfaction and loyalty an analysis of the relationships among these construct, Ministry of Eduction and Science Spain, 3202-3212. http://library. (diakses 20 Juni 2017).

IWA 2.(2007). Quality management systems -- Guidelines for the application of ISO 9001:2000 in education, ICS > 03 > 03.120 > 03.120.10 • ICS : Quality management and quality assurance

Jøsang A, Islam R, & Boyd C. 2007. A survey of trust and reputation systems for online service provision. Decision Support Systems, 43(2): 618-644.

Kaura, V., Durga Prasad, C. & Sharma, S. (2015). Service quality, service convenience, price and fairness, customer loyalty, and the mediating role of customer satisfaction. International Journal of Bank Marketing, 33(4), 404-422.

Kim, J. (2010).The link between service quality, corporate reputation and customer responses, A thesis submitted to the University of Manchester for the degree of Doctor of Philosophy in the Faculty of Humanities, Manchester Business School. Retrieved Dec.10 2017. from

Kotler, P. & Amstrong, G. (2008). Prinsip-prinsip Pemasaran Edisi Keduabelas. Jakarta: Erlangga.

Kotler, P. & Fox, K.F.A. (1995). Strategic Marketing for Educational Institutions, Second Edition: Ney Jersey : Prentice-Hall, Inc.

Kotler, P. (2002). Manajemen Pemasaran Edisi Millenium, Jilid I. Jakarta: Prehallindo.

Kotler, P. (2005). Manajemen Pemasaran, Jilid I dan II. PT. Indeks, Jakarta.

Kumar, A. (2017). Effect of service quality on customer loyalty and the mediating role of customer satisfaction: an empirical investigation for the telecom service industry. Journal of Management Research and Analysis, 4(4), 59-166.

Lassar, W.M., Manolis, C., dan Winsor, R.D. (2000). Service quality perspectives and satisfaction in private Banking. Journal of Services Marketing, 14 (Iss 3), 244-271.

Lee-Kelley, L., Davies S. & Kangis, P. (2002). Service quality for customer retention in the UK Stell Industry: Old dogs and New tricks? European Business Review, 4(4), 276 – 286.

Lemay, G., Larsen, P. & Johnson, D. (2009). Service quality in higher education. Total Quality Management and Business Excellence, 20(2), 139–152.

Lin, S. P., Chan, Y. H. & Tsai, M. C. (2009). A transformation function corresponding to IPA and gap analysis. Total Quality Management & Business Excellence, 20(8), 829–846.

Loureiro, S.M.C., Sarmento, E.M. & Bellego, G.L. (2017). The effect of corporate brand reputation on brand attachment and brand loyalty: Automobile sector. Cogent Business & Management, 4(1), 1-10.

Lupiyoadi, R. (2016). Manajemen Pemasaran Jasa Berbasis Kompetensi. Jakarta: Salemba Empat.

Luthans, F. (2011). Organizational Behavior, Twelfth Edition. New York: McGraw-Hill.

Malik, M.E., Danish, R.Q. & Usman, A. (2011). The Impact of Service Quality on Students' Satisfaction in Higher Education Institutes of Punjab. Journal of Management Research, 2(2: E10).

Mokhtar, S.S.M., Maiyaki, A.A. & Noor, N.M. (2011). The Relationship between service quality and satisfaction on costumer loyalty in malaysian mobile communication industry. School of Doctor Studies (European Union) Journal, 32-38.

Nguyen, N., LeBlanc, G. (2013). Image and reputation of higher education institutions in students’ retentions decisions. International Journal of Education Management, 15(6), 303-311.

Oliva, T.A., Oliver, R.L and MacMillan, L.C. (1992). A Catastrophe Model for Developing Service Satisfaction Strategies.” Journal of Marketing, 56(3), 83-95. doi:10.2307/1252298.

Oliver, R.L. (1993). Cognitive, Affective, and attribute bases of the satisfaction response. Journal of Consumer Research, 20(Issue 3), 418–430.

Oliver, R.L. (1997). Satisfaction: A Behavioural Perspective on the Consumer . Irwin/McGraw Hill, New York, NY.

Parasuraman A, Zeithaml VA, Berry L., A. (1985). Conceptual model of service quality and its implications for future research. Journal of Marketing, 49(4), 41-50.

Parasuraman, A., Zeithaml, V. & Berry, L. (1986). SERVQUAL: A multiple-item scale for measuring customer profitability at the individual level, Journal of Marketing Management, Vol. 22, 245 – 266.

Park, J. W., Robertson, R. & Wu, C. L. (2006). Modelling the Impact of Airline Service Quality and Marketing Variables on Passengers’ Future Behavioural Intentions. Transportation Planning and Technology, 29(5), 359-381. doi: 10.1080/03081060600917686 pp. 391-418.

Pect, Mark A. (1997). Integrated Account Management: How Bussiness-to-bussiness Marketers Maximize Customer Loyalty and Profitability. New York: Amacon.

Peppers, D. & Rogers, M. (2005) Return on Customer: Creating Maximum Value from Your Scarcest Resource (Random House, 2005), Retrieved Dec 10, 2018 from

Petruzzelli, A.M. (2011). The impact of technological relatedness, priorties, and geographical distance on university-industry collaborations: A joint-patent analysis. Technovation, 31, 309-319

Petruzzellis, L.& Romanazzi, S. (2010). Educational value: how students choose university", International Journal of Educational Management, 24(2), 139-158.

Poole, M., Harman, E., Snell, W., Deden, A. & Murray, S. (2000). ECU Service 2000: A client-centred transformation of corporate services, 00/16. Canberra: Evaluations and Investigations Programme. Higher Education Division, Department of Education, Training and Youth Affairs.

Ravald,A.& Grönroos,C. (1996). The value concept andrelational marketing. European Journal of Marketing, 30(20, 19-30.

Reichheld, F.F. (1996). Loyalty Rules!: How Today’s Leaders Built Lasting Relationships. Boston: Bain & Company, Inc.

Reichheld, F.F.,Sasser, W.E. (1990). Zero Defections: Quality Comes to Service. Harvard Business Review, 68(5), 105-111.

Ristekdikti. (2016). Pangkalan Data Pendidikan Tinggi. Ristekdikti Online; Retrieved Oktober 8, 2016.

Rodie, A.R. & Kleine, S.S. (2000). Customer participation in services production and delivery in T.A. Swartz and D. Iacobucci (eds.), Handbook of Service Marketing and Management, Sage, Thousand Oaks, CA. 111–125.Dana, S.

Sakthivel, P. B., Rajendran, G. Raju, R. (2005). TQM implementation and students' satisfaction of academic performance. The TQM Magazine 17(6), 573-589•

Salazar, A., Costa, J., & Rita, P. (2004). Relationship between service quality, customer satisfaction andbehavioural intentions: a study on the hospitality sector. Paper presented at the 33rd (EMACEuropean Marketing Academy Conference), Murcia, Spain.

Sallis, E. (2010), Total Quality Management in Education, Alih bahasa Ahmad Ali Riyad, Joyakarta: IRCSod.

Selnes, F. (1993). An examination of the effect of product performance on brand reputation, satisfaction and loyalty. European Journal Marketing, 27(9), 19-35.

Spreng, R.A. and Mackoy, R.D. (1996). An empirical examination of a model of perceived service quality and satisfaction. Journal of Retailing, 72 (2), 201-214.

Stanton, W.J., Etzel, M.J., dan Walker, B.J. (2007). Fundamentos de Marketing (14th edition), McGraw-Hill Companies, Inc. Mexico.

Stokes, S. P. (2003). Temperament, learning styles, and demographic predictors of college student satisfaction in a digital learning environment. Biloxi, MS: Mid-South Educational Research Association. (ERIC Document Reproduction Service No. ED482454).

Sumaedi S. & Bakti, IGMY (2013). An analysis of library customer loyalty – The role of service quality and customer satisfaction, a case study in Indonesia. Library Management, 34 (6/7), 397-414.

Sumaedi, S., Yuda, I.G.M. & Metasari, N. (2011). The effect of students’ perceived service quality and perceived price on student satisfaction. Management Science and Engineering, 5(1), 88-97.

Tarus, D.K., Rabach, N. (2013). Determinants of customer loyalty in Kenya: does corporate image play a moderating role? The TQM Journal, 25(5), 473-491.

Teeroovengadum, V., Kamalanabhan, T.J., & Seebaluck, A.K. (2016). Measuring service quality in higher education Development of a hierarchical model (HESQUAL). Quality Assurance in Education, 24(2), 244-258.

Tenner, A.R., & Detoro, I.J. (2011). Total Quality Management, Three Steps To Continuous Improvement. Canada: Addison Wesly Publishing Company.

Thomas, S. (2011). What drives student loyalty in universities: an empirical model from India. International Business Research, 4(2), 183-102.

Weerasinghe, S., Lalitha, R., and Fernando, S. (2017). Students’ satisfaction in higher education literature review. American Journal of Educational Research, 5(5), 533-539.

ibowo, A. J.L. (2009), Pengaruh Kualitas Layanan, Reputasi, Dan Nilai Layanan Perguruan Tinggi Terhadap Kepuasan Mahasiswa. Bina Ekonomi Majalah llmiah Fakultas Ekonomi Unpar, 13(2).59-74.

Wibowo, A.J.I. (2014). Kinerja Riset Universitas, Reputasi Universitas, Dan Pilihan Universitas: Sebuah Telaah Sistematis. Jurnal Manajemen, 13(2), 91-115.

Yap, B.W., Ramayah, T., Nushazelin, W., Shahidan, W. (2012). Satisfaction and trust on customer loyalty: a PLS approach. Business Strategy Series, 13(4),154-167.

Zabala, I., Panadero, G., Gallardo, L.M., Amate, C.M., Sa´ nchez-Galindo,M., Tena, I., Villalba, I. (2005). Corporate reputation in professional services fi rms: reputation management based on intellectual capital management. Corporate Reputation Review, 8(1), 59-71. Retrived Jan 15, 2017 from

Zeithaml, V.A., Bitner, M.J. & Gremler, D,D. (2018). Service Marketing, Integrating Customer Focus Across the Firm. New York: The McGraw-Hill Education.


Article Metrics

 Abstract Views : 1690 times
 PDF Downloaded : 565 times


  • There are currently no refbacks.

Copyright (c) 2019 Muhammad Bakrie, Bedjo Sujanto, Rugaiyah Rugaiyah

International Journal for Educational and Vocational Studies (IJEVS)

E-ISSN : 2684-6950