Effect of Service Quality Toward Student Satisfaction and Loyalty in Higher Education

Abstract

This study analyzes the effect of quality of services provided to the students’ in relation to their satisfaction and loyalty. Respondents in this study were seventh semester students of Universitas Muslim Nusantara Al-Washliyah, the total number of students was 312. Data analysis techniques in this study used was SEM (Structural Equation Modeling) using the SmartPLS program. The results showed that students’ satisfaction significantly mediated the correlation between academics and students’ loyalty, between non-academic and students’ loyalty, between reputation and students’ loyalty, and between campus access and students’ loyalty; on the other hand, students’ satisfaction was not significant in mediating the correlation between program issues and students’ loyalty. The findings suggest that it is necessary to improve the quality of lecturers to improve students’ academic abilities and communication skills. As far as non-academic aspects are concerned, conducting training and development efforts and increasing awareness programs for administrative staff is important. For the reputation aspect, to carry out several marketing campaigns which predict to have an effect upon students in building positive perceptions of campus has to be executed as well. Meanwhile for access aspect, it should be made certain that every student can have direct access to staff employees, and it is necessary to improve dimensions which can increase students’ satisfaction so that students are convinced of their choice of campus and then they are likely to recommend their chosen university and spread positive things about their institutions.