Building Corporate Image and Securing Student Loyalty in the Malaysian Higher Learning Industry

The increase in the numbers of both public and private higher learning institutions (HLI) in Malaysia has resulted in the industry becoming relatively very competitive. The situation calls for HLIs to focus on establishing a strong corporate image and providing student satisfaction to secure their loyalty. Delivering quality services would lead to student satisfaction and loyalty. This study reports on a research finding that undertakes to examine the effect of service quality and corporate image on students’ satisfaction and loyalty among outgoing Business and Management undergraduates of a public HLI in Malaysia. Structural Equation Modelling (SEM) was used to test the proposed hypothesised model in the study. The findings of the study illustrate, that although service quality has direct influence on students’ satisfaction, it has no significant effect on student loyalty. However, students’ satisfaction has a significant influence on student loyalty. The study also suggests that corporate image has direct influence on students’ satisfactions and loyalty. Hence, securing students’ satisfaction through delivering high-quality services and investing in building strong and positive corporate image are important factors in gaining students loyalty.