THE INFLUENCE OF VALUE AND QUALITY ON SATISFACTION AND THEIR
IMPLICATIONS ON THE TRUST OF PRIVATE UNIVERSITY STUDENTS
Herman Soegoto
Universitas Komputer Indonesia
ABSTRACT
Some private universities in Bandung and Cimahi are highly popular among students; however, there are also universities that are less popular. The popularity of a university is identified by how many students are attracted to enroll and study there. Prospective students are likely to choose a university if they believe that the university has good value and quality that furnish them with a degree of satisfaction and trust. This research is aimed at investigating the influence of Value and Quality on students’ satisfaction, and the influence of Value, Quality and Satisfaction on students’ Trust. The units of analysis for this research were 400 student respondents from 35 private universities in Bandung and Cimahi that had been drawn by means of proportional systematic random sampling. This research used a Multiple Regression analysis peformed with the help of SPSS 17 to test the hypotheses.
The result of this research showed that the perception of Value and Quality did influence the students’ degree of Satisfaction. It also showed that Value, Quality and Satisfaction collectively and respectively independently influenced the Students’ Satisfaction.
Key words: Value, Quality, Satisfaction, Trust, Private Universities
1. INTRODUCTION
1.1 Research Background
Indonesia has a sizeable number of universities, state as well as private. According to the Higher Education Database of the Ministry of Reseach, Technology and Higher Education, in June 2017 there were 4494 higher education institutions, of which 556 were universities, 2424 colleges, 158 institutes, 1102 academies, and 254 polytechnics. Out of these numbers, 116 was
1
located in the municipality and the regency of Bandung. Some of these higher education institutions have a large number of students, whereas many others have very few.
It is a common knowledge that most prospective students choose a state university as their first choice. When they are unsuccessful in their bid to get a place in a state university, due to the much higher number of applicants compared to the available capacity, they will choose a private university as an alternative.
Hence the question, why some private higher education institutions have large number of students whereas many have very few. What makes a prospective student choose to study in a private higher education institution but not in other private higher education institution?
The Indonesian government has made the efforts to continually increase the quality of both state and private higher education institutions through the accreditation process that is conducted both at the insitutional level and the study program level. The better the quality of a higher education institution is, the more attractive it is for the prospective students to decide to study there. However, the quality factor is not the only reason that makes a student choose to study in a particular higher education institution. There are other factors that also play a role in the students’ decision of choosing or not choosing a higher education institution.
Today, with the rapid development of information technology, prospective students or their parents can easily find information about a higher education institution that they want to consider as a choice for their studies. Positive information will receive a favorable response from the prospective students and increase the probability of the university receiving more applications from prospective students wanting to study in that university, whereas negative information will result in decreasing the number of prospective students who want to apply to the university.
In order to increase the students’ interest in giving positive information about the university where they are currently studying, it is necessary to build a high level of trust among these students. Theoretically, level of trust is influenced by the Perception of Value, good Quality, and the high level of students’ satisfaction.
A university needs to continually make the efforts to improve, develop, and explore what is expected and needed by the students, and increase the value, the students’ satisfaction and trust in the university vis a vis what other universities give. If the students feel that they are getting more benefits relative to the costs that they have spent, they will increase their satisfaction and trust to the university, hence improving the positive word of mouth communication they spread to their closest relatives.
1.2 Formulation of the Problems
Relevant to the background that has been discussed, the problems of this research can be formulated as follows:
1. Does Value influence students’ Satisfaction?
2
2. Does Quality influence students’ Satisfaction?
3. Does Value influence students’ Trust?
4. Does Quality influence students’ Trust?
5. Does Satisfaction influence students’ Trust?
1.3 Reseach Objectives
Pursuant to the above problems, the objectives of this research:
1. To find out if Value influences students’ Satisfaction.
2. To find out if Quality influences students’ Satisfaction.
3. To find out if Value influences students’ Trust.
4. To find out if Quality influences students’ Trust.
5. To find out if Satisfaction influences students’ Trust.
2. REVIEW OF LITERATURE 2.1 Definition of Value
In the concept of marketing, value mainly refers to a combination of quality, service and price. The perception of Value increases with the increase in quality and benefit of a service and decreases with the increase in price (Kottler, Keller 2012:32). Holbrook (2001:5) defines customer value as a relative and interactive preferential experience. According to Zeithaml, Bitner and Gremler (2006), a customer value can be identified into four different meanings, namely (1) value is a low price, (2) value is whatever one wants from a product, (3) value is quality received by a customer for what he has paid, and (4) value is what a customer gets as a compensation for what he has given. Hence, according to Woodruff et al (1997), value can be classified as value, desired value, and judgement value. According to Rokeach (1993), values are are beliefs that are embedded in a person, whereas value is a preference that results from an exchange (e.g., between benefit and cost) and an interaction (e.g. between a customer and a product or service). Benefit is a set of advantages received by a customer from evaluating, receiving, consuming or disposing of a product or service that includes the convenience of a product/service, assistance, employee and image (Kottler, Keller 2012: 147). Manfaat (benefit), according to the the first edition of the Great Dictionary of the Indonesian Language (KBBI), is a function or utility, or to be more precise the utility for those who use or utilize a product or service. Sheth, Parvatiyar, and Shainest (2001) believe that cost components include money, time, risks, humans, and energy. A customer’s total cost is a set of costs that the customer spends to evaluate, get, use and discharge of a certain product or service (Kottler, Keller 2012: 147). The monetary cost is not the only cost that is relevant to customer service. There are non-monetary costs that also play a role in customer service (Zeithamal, Bittner, Gremler 2013: 442-447).
3
2.2 Definition of Quality
Quality is a product’s total features and characteristics that are dependent on its ability to fulfill expressed or implied needs (Kottler, Keller 2012: 153). Quality is a degree where performance meets or fulfills expectations (Chandruptala, T.R., 2009: 2). Relevant to the above definitions, it can be inferred that quality is highly relevant to customers’ evaluation on the ability of a product or service to fulfill what has explicitly or implicitly been promised by a product or service.
2.3 Definition of Satisfaction
Satisfaction reflects the judgement about a product that a person makes by comparing its performance with the expectation he has about it. If the performance is below the expectation, the custumer will be disappointed, and if the performance is above his expectation, he will be very satisfied (Kottler Keller 2012: 31). Satisfaction is a customer’s evaluation about a product or service, whether the product or service meets his needs and expectations. Failure to meet the needs and expectations will result in dissatisfaction with the product or service (Zeithamal, Bittner, Grembler 2013: 80). The high quality of a service will make a customer satisfied and make it likely for him to recommend the product or service to his friends (Dib, H., Alnazer, M., 2013).
2.4 Definition of Trust
A university should make the efforts to develop students’ trust as its customers. A customer who feels confident will be emotionally persuaded to increase its committment to his univesity. Customers’ trust can be developed if the university has practical values with perceivable benefits. As Storbacka and Lehtinen (2001: 29) stated, basic values whose benefits are perceived by the customers will raise customers’ trust in a company, hence winning their trust and committment. Morgan and Hunt in Egan (2001:100) explained that trust and committment are important indicators of a successful customer - company relation. The existence of trust and committment is considered to be a central issue in marketing strategy, particularly in relation to customer’s attachment. It is also central to the issue of how an effective relation between the custormer and the company can be established. Trust is considered to be an important factor in effectively maintaining and improving relationship and reducing the risks of perception. Trust is also considered as a foundation for an interpersonal relationship, a prerequisite for cooperation, and a basis for a stable relationship between social institutions and the market. If a company can demonstrate its trustworthiness to the customers, then the customers will have trust in the company and their pattern of relationship.
3. RESEARCH METHOD
This research is a causal research that aims at investigating the influence of Benefits, Costs and Quality on the degree of students’ Satisfaction. The data used were primary data
4
collected by means of questionnaires. Sample of the data were collected with proportional random sampling technique.
3.1 Population and Sample
The population for this research is all the students of the 116 private higher education institutions located in Bandung municipality, Bandung regency and Cimahi municipality as recorded by the higher education institution database of the Ministry of Research and Higher Education in May 2017.
Table 1 – Criteria for Research Sample
Criteria for Research Sample Number of Private Higher Education Institutions (PHEI)
Number of PHEI in Bandung municipality, Bandung / 116regency, and Cimahi Municipality
Total number of students / 147844
Number of sample based on Slovin formula for student / 400
population of 147844 with 95% level of trust
Number of higher education institutions surveyed (30% / 35
of PHEI population)
The research samples were selected from the population of higher education institutions that have the lagest number of students as shown in Table 2. Samples were drawn randomly from 30% of the selected higher education institutions, i.e. those that have the largest number of students, using proportional ramdom sampling technique. The selection of 30% of the total population of existing higher education institutions is in accordance with Gray’s point of view (Husein Umar, 1998: 108) which stated that the fraction zise of the sample for research using correlational method should be at least 20% of the population. The survey with the distribution of questionnaires to the universities was conducted between April 2017 – June 2017.
Table 2 – Reseach Sample
NumberNumber / Name of the Higher Education Institutions / Number of / of
Students / Samples
1 / Universitas Pasundan (UNPAS) / 16236 / 50
2 / Telkom University (Tel-U) / 14082 / 44
3 / Universitas Islam Bandung (UNISBA) / 11311 / 35
4 / Universitas Komputer Indonesia (UNIKOM) / 11261 / 35
5 / Universitas Kristen Maranatha (MARANATHA) / 9362 / 29
6 / Universitas Jenderal Achmad Yani (UNJANI) / 8269 / 26
7 / Institut Teknologi Nasional / 8009 / 25
8 / Politeknik Piksi Ganesha / 6324 / 20
5
9 / Universitas Langlangbuana (UNLA) / 4518 / 1410 / Universitas Islam Nusantara (UNINUS) / 4155 / 13
11 / STKIP Pasundan / 3389 / 11
12 / Universitas Nurtanio (UNNUR) / 2842 / 9
13 / Universitas Nasional Pasim (UNAS PASIM) / 2578 / 8
14 / Politeknik LP3I Bandung / 2282 / 7
15 / Sekolah Tinggi Ilmu Ekonomi Ekuitas / 2066 / 6
16 / Universitas Bandung Raya (UNBAR) / 1823 / 6
17 / Universitas Bandung (UNBAN) / 1823 / 6
18 / Sekolah Tinggi Ilmu Kesehatan Achmad Yani / 1736 / 5
19 / Politeknik Telkom / 1689 / 5
20 / Politeknik TEDC Bandung / 1383 / 4
21 / Universitas Widyatama (UTAMA) / 1277 / 4
22 / Sekolah Tinggi Ilmu Kesehatan Dharma Husada / 1155 / 4
23 / Politeknik Komputer Niaga LPKIA / 1130 / 4
24 / Sekolah Tinggi Ilmu Kesehatan Bhakti Kencana / 1081 / 3
25 / Universitas Al-Ghifari (AL-GHIFARI) / 1074 / 3
26 / Universitas Informatika dan Bisnis (UNIBI) / 932 / 3
27 / Institut Teknologi Harapan Bangsa / 869 / 3
28 / Akademi Pariwisata NHI Bandung / 837 / 3
29 / STMIK Likmi / 824 / 3
30 / STMIK Bandung / 815 / 3
31 / Sekolah Tinggi Bahasa Asing Yapari / 812 / 3
32 / Sekolah Tinggi Ilmu Kesehatan Immanuel Bandung / 805 / 2
33 / Politeknik Kesehatan TNI AU / 761 / 2
34 / Universitas Kebangsaan (UNKE) / 712 / 2
35 / STMIK Mardira Indonesia / 704 / 2
128926 / 400
3.2. METHOD OF DATA ANALYSIS
The method of multiple regression data analysis is formulated as follows:
Y1 = α1 + β1 X1+ β2 X2+ ε,
Y2 / = α2 + β3 X1+ β4 X2+ β5 Y1+ ε, where:
Y1 / = Degree of Students’ Satisfaction / Y1 / = Degree of Students’ Trust
X1 / = Value / X2 / = Quality
α1 = constants 1; α2 = constants 2 / β1,2,3,4,5 = regression coefficient
Variable Operationalization
The operationalization of the variables refers to the variables to be tested, namely:
a. Independent variable 1, i.e. value and quality
b. Dependent variable 1, i.e. students’ satisfaction
6
c. Independent variable 2, i.e. value, quality, satisfaction
d. Dependent variable 2, i.e. trust
Value