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The Impact of Quality on Satisfaction, Revenue, and Cost as Perceived by Providers of Higher Education

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  • Abhay Shah

Abstract

Researchers have found a strong relationship between improvements in quality and satisfaction, revenue, and cost. However, no study to date investigates the same for higher education. This study investigates whether institutions of higher education have implemented quality improvement programs, and if so, if the results are similar to what has been observed with firms in the private sector. The study proposes and tests five hypotheses, and findings support four of the five hypotheses, with partial support for the fifth hypothesis. The study finds that implementing quality programs leads to an increase in satisfaction among constituent groups, increase in revenue, and a reduction in costs. The findings also show that increased satisfaction (due to improved quality) also leads to increase in revenue and reduction in costs.

Suggested Citation

  • Abhay Shah, 2009. "The Impact of Quality on Satisfaction, Revenue, and Cost as Perceived by Providers of Higher Education," Journal of Marketing for Higher Education, Taylor & Francis Journals, vol. 19(2), pages 125-141, December.
    • Handle: RePEc:taf:jmkthe:v:19:y:2009:i:2:p:125-141
    DOI: 10.1080/08841240903451324
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    Cited by:

    1. Anes Hrnjic, 2016. "The transformation of higher education: evaluation of CRM concept application and its impact on student satisfaction," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(1), pages 53-77, April.
    2. AVRAM, Emanuela Maria & AVRAM, Remus Marian, 2011. "Quality Management In Higher Education Institutions," Holistic Marketing Management Journal, Holistic Marketing Management, vol. 1(2), pages 41-47, June.
    3. Amy Rummel, Ph.D. & Maeghen L. MacDonald, 2016. "Identifying the Drivers of Student Retention: A Service Marketing Approach," Journal of Business, LAR Center Press, vol. 1(2), pages 1-7, May.

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