The Impact Of Image and Satisfaction on Loyalty: The Case of Indonesian Open University

Mulyana, Andy and Ayuni, Devi (2014) The Impact Of Image and Satisfaction on Loyalty: The Case of Indonesian Open University. In: UNSPECIFIED.

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Abstract

The increase in the number of both public and private higher education institutions (HEI) in Indonesia has resulted in the industry becoming very competitive. The situation calls for HEIs to focus on establishing a strong institution image and providing student satisfaction to secure their loyalty. A conceptual framework is proposed that investigates the impact of institution image and student satisfaction on student loyalty. Survey was employed, and respondents were from the students of Indonesian Open University. There were 300 usable questionnaires to analyze descriptive statistics, reliability, validity, and SEM model. The research found that institution image and student satisfaction significantly affects student loyalty and that image exerts a stronger influence on loyalty than satisfaction. Therefore, Indonesian Open University as a service firm has to focus on these factors in order to build a long-term and mutually profitability relationship with a student and create loyalty as competitive advantages.

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