Perceived value of the university: background and consequences

Valor percebido da universidade: antecedentes e consequências

Valor percibido de la universidad: antecedentes y consecuencias

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Since the concept of perceived value emerged in the 1990s (Sánchez & Iniesta, 2007), it has been a subject of great interest, proven that consumer perception is a determining factor in the behavior and choice of products (Hong et al., 2017) and services (Prebensen & Xie, 2017). This definition has been found to play as an important role in the strategic planning, survival, and market success for-profit and nonprofit organizations (Goh et al., 2017; Sánchez et al., 2010). Other studies indicate that the value perceived by clients has a greater effect on the service quality of consumer behavior and repurchase intention, which also affects the clients' evaluation of the organization and their satisfaction with it (Chongsanguan et al., 2017). Perceived value has been shown to act as a mediator between service quality and customer satisfaction (Mohan, 2014); which, in turn, is a predecessor of loyalty to the organization (Goh et al., 2017). With regard to educational services, it is extremely important that universities as service providers work to create value for students, contributing to their satisfaction and loyalty; this means that students will continue their studies at the same institution or express themselves in a favorable manner; this guarantees their permanence within the institution by improving the competitive advantage of the university (Encinas & Cavazos, 2017).

In relation to the perception of university students, it has been found among the determining factors taken into account to evaluate the quality of the educational institution, library services and university facilities (Uysal, 2015). In addition, studies have been carried out proving the influence that exists between the value perceived by students, satisfaction with the institution and reputation (Doña-Toledo et al., 2017), reference to their loyalty (Kashif and Cheewakrakokbit, 2018). However, there is still a lack of research validating the effect of perceived quality by users of university services, according to perceived value and loyalty to the institution (Annamdevula & Shekhar, 2016; Dlačić et al., 2014).

Based on this, the present research contributes, from an empirical study at universities in Mexico, the validation of a model that measures the impact of university facilities and the quality of the library to the perceived value of the institution and to the impact of it on the satisfaction, reputation and loyalty of the university by undergraduate students. This research contributes to the generation of knowledge on this subject, in order to help universities in the development of their educational marketing strategies, oriented to meet the needs and expectations of students and improve their relationship with them.

Quantitative, explanatory and cross-sectional research was conducted (Hair et al., 2010) at four private universities in Mexico. The research subjects were undergraduate students enrolled in the universities participating in the research, which were selected under a non- probability sampling for convenience and costs according to each university (Malhotra, 2008). The data collection was done through a personal survey in the periods of fall 2016 and spring 2017, the data collection instrument was a questionnaire designed based on different scales, whose operation is shown in Table 1. From a population of 16300 students, a sample of 701 students was obtained, with an accuracy error of 4% and a confidence level of 97%. For data analysis, the partial least squares method was used, using the statistical package SmartPLS 3.0.

Table 1
Operation of the definitions

Note: Own contribution

Table 1. Cont.
Operation of the definitions

Note: Own contribution

Table 1. cont.
Operation of the definitions

Note: Own contribution

In this investigation the proposed model of loyalty with the university has been verified, the results showed that all the effects between the definitions are positive and significant, verifying in its totality all the hypotheses raised. In this way, the relationships of the model have been tested, which present the impact of university institutions and the quality of the library towards the perceived value of the educational institution; likewise, the effect of the perceived value on the reputation of the university and satisfaction with it, which in turn impact on the loyalty of undergraduate students to their universities.

Both the facilities and the quality of the library service have a positive effect on the perceived value, however, the perception of the facilities seems to be a more determining factor to the perceived value, i.e., for students, the facilities offer more usefulness in the processes of exchange and value interactions during the formative years at the university. The three dimensions that assess the quality of the library service were significant, however; the physical space continues to be important for the individual or work group of the students, as well as the affective dimension associated with the service provided by staff and their skills to provide assistance (LibQUAL+, 2016). Students value the global infrastructure of the institution to a greater extent, becomes an experiential requirement for teaching- learning processes (West, 2018; Zhai et al., 2017).

Similarly, the results indicate that the perceived value of the university has an effect on satisfaction with it; this has strategic implications, as both reputation and satisfaction influence buyer decision making (Ponzi et al., 2011). Building a good reputation means building organizational image with audiences (Van Vught, 2008), and achieving student satisfaction is equivalent to meeting expectations and gaining rewarding experiences during their time at university (DeShields et al., 2005; Grant 2018).

On the other hand, it is important to mention, for the students participating in this research, the university's reputation has a greater effect on loyalty to the university, as opposed to satisfaction with the educational institution, which weakly impacts loyalty. This aspect enhances the importance of building a good institutional image to ensure that students are loyal to their institution. As Reznik and Yudina (2018) argue, the university's reputation is a strategy that is built over the long term and allows for differentiation from other institutions of higher education. In the face of increased competition among universities, reputation management as a precedent of loyalty takes an important role in student retention and participation (Aritonang, 2014).

This research has corroborated the proposed model of loyalty to the university, the results showed that all the effects between the definitions are positive and significant, fully verifying all the hypotheses raised. The relationships of the model have been tested, representing the impact of the university facilities and the quality of the library towards the perceived value of the educational institution; likewise, the effect of the perceived value on the reputation of the university and satisfaction with it, impacting on the loyalty of undergraduate students to their universities.

The results of this research allow private universities in Mexico to develop strategies to strengthen the loyalty of students enrolled in the institution. According to the results, the strategies should focus on creating a positive perception in the students, through adequate facilities and spaces that adapt to their needs and, equally, implementing strategies aimed at satisfying their expectations, as well as creating a good institutional image, which would help to form a good university reputation.

Given that loyalty is more affected by the reputation of the university, most importance that higher education institutions consider reputation as a relevant factor to achieve positioning and competitive advantage within the educational system (Yudina, 2018). Likewise, reputation as an intangible good is difficult to imitate among organizations, since it is built over time on the basis of students' experiences in receiving quality services (Dharmayant et al., 2018). If universities are to develop a strategy for building strong, long-term relationships with students, they must build a good reputation and student satisfaction (Heffernan et al., 2018). In doing so, universities can achieve greater loyalty on the part of university students, which has an impact on university recommendation and student retention.

This study has several limitations. First, a convenience sample obtained from four universities in the Mexican context was used, which made it impossible to randomly select participants and generalize the results. Secondly, a transversal design was applied, limiting the understanding of the variables studied over time.

On the other hand, it should be noted that future research may be aimed at validating structural models with other definitions that support the development of educational marketing strategies and allow universities to position themselves as quality institutions, in addition to providing services that know the needs of the entire university community. It is easy to say, not only to focus on the students, but also on the collaborators, to offer an adequate working environment, with complementary services that allow them to prepare and grow professionally at the same way, to develop a personal manner. In order to obtain results that are representative of the entire population, it is suggested that this research be done with a probability sample, including more universities, this research covered only four institutions of higher education.

How to cite the article:: Aparicio-Ley, E., Cavazos-Arroyo, J., & Pizzinatto, N. K. (2019). Perceived value of the university: background and consequences. Revista Brasileira de Marketing, 18(3), 199-221.