UNIVERSITY OF ECONOMICS AND LAW FACULTY OF BUSINESS AND ADMINISTRATION --- Dang Duong Nhu Y THE IMPACT OF KEY ASPECTS OF SERVICE QUALITY ON STUDENT SATISFACTION AND SUBSEQUENTLY INFLUENCE POSITIVE WORD-OF-MOUTH BEHAVIOR AMONG STUDENTS AT THE UNIVERSITY OF ECONOMICS AND LAW Major: Business Administration Major code: 7340101 GRADUATION THESIS INSTRUCTOR PhD: Phung Thanh Binh HCMC, 4/2024 UNIVERSITY OF ECONOMICS AND LAW FACULTY OF BUSINESS AND ADMINISTRATION --- Dang Duong Nhu Y THE IMPACT OF KEY ASPECTS OF SERVICE QUALITY ON STUDENT SATISFACTION AND SUBSEQUENTLY INFLUENCE POSITIVE WORD-OF-MOUTH BEHAVIOR AMONG STUDENTS AT THE UNIVERSITY OF ECONOMICS AND LAW Major: Business Administration Major code: 7340101 GRADUATION THESIS INSTRUCTOR PhD: Phung Thanh Binh i TABLE OF CONTENT CHAPTER 1: INTRODUCTION. Overview of the Research Status of the Topic. Structure of the research. 13 CHAPTER 2: LITERATURE REVIEW.
Some related concepts. Expectation - Confirmation theory. Related theoretical models. Five service quality gaps model.
The SERVQUAL model for service quality management. Previously conducted studies. The relationship between Administrative & Staff support and Student Satisfaction. The relationship between Lecturer and Student Satisfaction.
The relationship between the educational program and student satisfaction. The relationship between brand image and student satisfaction. The relationship between Tangible facilities and student satisfaction. The relationship between student satisfaction and word-of-mouth activities.
The proposed research model. 38 ii Chapter summary. 39 CHAPTER 3: RESEARCH DESIGN. Validating the scale using confirmatory factor analysis (CFA).
Model testing through Structural Equation Modeling (SEM). The Bootstrap method is used to check the reliability of the assumptions in the study model. 51 CHAPTER 4: RESULTS AND EVALUATION. Applying Cronbach's Alpha to the Observed Variables for assessing Scale Reliability.
Exploratory Factor Analysis (EFA). Confirm Factor Analysis (CFA). Testing the research model and the hypotheses .1 Testing the research model. Research result discussion.
73 CHAPTER 5: CONCLUSION AND MANAGEMENT IMPLICATIONS. Implications for Administrative & Staff Support. Implications for Lecturer. Implications for Brand Image.
Implication for Tangible Facilities. Implication of Educational Program. 89 APPENDIX 1: OFFICIAL SURVEY. 89 APPENDIX 2: RESULTS DATA ANALYSE.
95 iv LIST OF TABLES Table 2. Comprehensive synthesis table of related studies. Factor results from the Cronbach's Alpha test. KMO Test Results.
Eigenvalues and Variance Extracted. Rotated Component Matrix. KMO and Bartlett's Test. Rotated Component Matrix.
Summary of coefficients of the SEM. Bootstrap test results. Summary of results. 70 v LIST OF FIGURES Figure 2.
Five service quality gaps model. The SERVQUAL model for service quality management. The research model proposed by (Guo, 2016). The research model proposed by (Sumartias, 2017).
The research model proposed by (Giao, 2021). The research model proposed by (Hương, 2023). Proposed research model. Standardised CFA results.
SEM analysis results. 68 vi LIST OF ABBREVIATIONS UEL University of Economics and Law CFA Confirmatory Factor Analysis EFA Exploratory Factor Analysis CA Cronbach’s Alpha SPSS Statistical Package for the Social Sciences WOM Word-of-Mouth TAM Technology Acceptance Model CR Composite Reliability SEM Structural Equation Model CFI Comparative Fit Index TLI Tucker-Lewis Index RMSEA Root Mean Square Error Approximation KMO Kaiser-Meyer-Olkin AVE Average Variance Extracted MSV Maximum Shared Variance GATS General Agreement on Trade and Services WTO World Trade Organization 7 CHAPTER 1: INTRODUCTION 1. Rationale The capacity to convert one's own choices into authoritative acts without outside limitations is referred to as university autonomy (Maggetti, 2014). In Vietnam, there is a prevailing tendency to support the establishment of public service delivery units in the education and training sector, with the aim of enhancing education.
Specifically, efforts are being made to socialize self-financing units through the delegation of authority and accountability regarding their finances, personnel, and task execution (Hương, 2017). According to data from Hương (2022), there will be 109 public educational institutions switching to the financial autonomy model, reaching a rate of 23. This number exceeds 13.9% compared to the target of 10% of units having financial autonomy set out in the 6th Plenum of the 12th Central Committee.This is an indication of progress towards more efficiency and institutional autonomy in the Vietnamese education system. In other words, Vietnamese higher education has transitioned from being merely a public interest to being a public service business.
This shift aligns with Vietnam's commitment to adopting the General Agreement on Trade and Services (GATS) (Tiến, 2007). The University of Economics and Law - a member of Ho Chi Minh City National University is a center for high-quality undergraduate and postgraduate education, as well as multidisciplinary scientific and technical research. It acts as the backbone of the higher education system, meeting Vietnam's socioeconomic development needs and adapting to the global environment. Currently, the university enrolls up to 6,500 full-time students in 29 majors and programmes, including 4 university-level programmes with overseas affiliations.
In the period 2020 - 2024, the school's enrollment reached 2100 - 2600 students, exceeding the target by 10% - 30% each year (Phúc, 2024) It can be seen that the school's enrollment results in recent times have been very positive, however, in the context of fierce competition among economic training schools throughout the country, ensuring quantity and quality becomes increasingly important. This is a prerequisite for the school to continue to improve training quality and implement the University Autonomy as approved by the Ministry of Education and Training from 2021. To do that, a marketing strategy to attract learners needs to be deployed, in which 8 exploiting the positive referral intention of students studying at the school becomes even more meaningful. This is a valuable, pervasive and convincing enrollment promotion information channel for those who are interested.
The University of Economics and Law, as a financially independent entity beginning January 1, 2021, has adopted multiple measures to strengthen operations in line with a service industry within the market mechanism, aligning with service industry standards and state legislation. As a result, educational administrators at universities must understand that they perform inside the service sector and are accountable for meeting the expectations and requirements of students (Elliott, & Shin, 2002). Van et al. (2021) found that in order to improve the satisfaction of students, educational service quality should be measured along four dimensions: accessibility to education services, educational settings, facilities and institutional equipment, and the delivery of education.
By learning the expectations and perspectives of students regarding the elements that influence the quality of service, educational institutions can better meet the demands of their students. In addition, (Mark, 2013) asserts that students, being the primary beneficiaries of university’s services and goals, should be considered the core of its customers. Therefore, as "customers" are an invaluable resource for the university, Grönroos (1989) contends that marketing policies should be focused on establishing an enduring relationship with them. The University of Economics and Law students are now seen as customers with the power to select a university that corresponds to their requirements.
Private universities in Vietnam have expanded in number and improved in quality within the context of international integration. This growth aims to fulfill the need for education and produce skilled individuals for development objectives, resulting in intense competition in the education sector (Vân, 2023). Controlling the quality of educational services is crucial for establishing the competitive advantage of an Economics - Law institution in such a scenario. While universities may compete with one another in research and academic innovation, the significance of service quality and educational standards cannot be overlooked.
When universities are categorized as service industries, it would compel them to establish objectives focused on delivering top-notch educational services and ensuring student satisfaction to gain a competitive edge. As stated by Elliott, & Shin, 9 (2002) universities can enhance their standing and reputation by adjusting their practices to better meet the requirements of their students through the consideration of student satisfaction. Moreover, several studies indicate that student satisfaction positively influences students' behavioral intentions, including good word-of-mouth behavior. An instance of this can be seen in the research conducted by Giantari (2021), which demonstrated how student satisfaction acted as an intermediary between perceived value and word of mouth (WOM) throughout the COVID-19 pandemic in Indonesia.
Mulyana (2015) also further propose that in order to achieve favorable word-of-mouth from students, higher education institutions should concentrate on building a strong institutional image and ensuring the contentment of students. As can be seen from the above, colleges must prioritize providing high-quality services to increase student satisfaction for continuous development. Data on student satisfaction will enable the institution to make prompt modifications to enhance training quality and cultivate students into university advocates, promoting the positive reputation of the university. This research aimed to explore The impact of key aspects of service quality on student satisfaction and subsequently influence positive word-of-mouth behavior among students at the University of Economics and Law.
Overview of the Research Status of the Topic Many studies have explored the connection between word-of-mouth (WOM) and consumer satisfaction, however, with most indicating that WOM is a consequence of contentment. In a study conducted by (Shi, 2016), it was discovered that customers who receive services exceeding their expectations tend to experience satisfaction and are more likely to spread positive word of mouth about the service provider. Conversely, when customers are less satisfied, there is a higher likelihood of them expressing negative WOM. Cheng and Tam’s study, conduct in 1997 (Kwek, 2010), service quality in educational activities refers to the inputs, procedures, and outcomes of the education system that aim 10 to fulfill the expectations of both students externally and internally.
Simultaneously, within the context of higher education, there is broad agreement that related entities can be categorized into two groups: providers, which are schools and higher education institutions, and consumers, who are students, who directly utilize the products and services. Therefore, creating value for students throughout their academic journey is a fundamental responsibility of educational service providers (Ledden, 2010). Consequently, service quality is a critical factor in determining student satisfaction at your institution and a significant competitive advantage in the effort to garner contributions. This phenomenon can be attributed to the fact that learners will be most satisfied with the university and be more likely to recommend it to others, provided that the university offers superior products and services.
This will constitute the most dependable and persuasive evidence for individuals contemplating pursuing higher education at universities. Measuring the intention of students to recommend higher education institutions by examining the factors that contribute to their satisfaction has garnered significant scholarly interest both domestically and internationally (Emanuela, 2016). Another model, SERVQUAL establishes that the customer's service evaluation is determined by the difference between perceived and expected service quality. Nevertheless, numerous researchers have implemented the SERVQUAL model across various service sectors and markets, including entertainment services (Trang, 2003) and banking services (Mehta, 2020).
According to the findings of these tests, service quality varies across service industries and markets. Numerous researchers have conducted comparisons of service quality measurement models; however, alternative flexible approaches may vary among schools. Similar to the findings of (Haves's, 1992) research, administrative services, libraries, practical apparatus, training programs, and lecturer teaching methods have been identified as determinants of educational service quality. Institutions must acquire knowledge regarding students' perceptions and expectations regarding the determinants of service quality in order to meet their requirements effectively.
Research Objective The thesis pursues the subsequent objectives: 11 - Determine which factors contribute to educational service quality. - Determine what elements of service quality affect student satisfaction and, by extension, how likely students are to recommend their organization to others. - In addition to suggesting areas for future study, use the analysis to suggest policy changes that the University of Economics and Law's administration may make to increase the effectiveness of the school's operations. Research question - What factors contribute significantly to the quality of educational services at the University of Economics and Law?