MEDIATING EFFECT OF CORPORATE IMAGE AND STUDENT SATISFACTION ON THE RELATIONSHIP BETWEEN SERVICE QUALITY AND STUDENT LOYALTY IN HIGHER TVET UNIVERSITIES

Abstract

11th Malaysia Plan (2016-2020) and Malaysia Education Blueprint (MEB) emphasized on the importance of TVET institutions to improve quality and quantity of graduate. Recent literatures highlighted that TVET faces challenges of service quality and image. These constructs will affect satisfaction and loyalty of the student. Recent trend in higher education shows a stiff competition in enrolment and retaining the student. Thus, ensuring service quality, improving corporate image and satisfaction are crucial. Therefore, the main purpose of this study is to investigate the mediation effect of Corporate Image (CI) and Student’s Satisfaction (SS) on relationship between Service Quality (SQ) and Student Loyalty (SL). The scope of this study is final year student from Higher TVET universities in Malaysia. Prior to the full data collection the survey instrument has been verified by the Expert Opinion Assessment (EOA) panels. Pilot test also has been conducted with Cronbach’s Alpha value more than 0.7. Using stratified random sampling method, 431 questionnaires have been distributed to nine higher TVET universities. 398 good questionnaires were used for data analysis using SPSS version 22 and Smart PLS 3.0. The measurement and structural model for the four constructs showed acceptable result. Two mediators were tested in this research which is service quality and corporate image. Bootstrapping procedure indicated that there is a direct and significant effects between latent constructs. The mediating test statistically shows that there is a partial mediation of student satisfaction and corporate image on the relationship between service quality and student loyalty. It is recommended that, TVET provider to improve the level of service quality, corporate image and satisfaction as to ensure student satisfaction and loyalty. Future research can be considered by comparing the result from privates and public universities.