Research Outputs
Explaining loyalty in higher education: A model and comparative analysis from the policy of gratuity, a case applied to Chile
Since the 1980s, numerous transformations in higher education were experienced in Latin America, and especially in Chile, a country that allowed private entities to enter the education systems and develop a market. The opportunity triggered an increase of coverage and competition to capture and retain students, followed by marketing strategies delivering student satisfaction and pursuing student loyalty. Moreover, since 2012, higher education institutions in Chile have been allowed to adopt a policy of gratuity, giving families the co-responsibility of dealing with the cost of education. So, some institutions adopted gratuity and continued receiving funds from the state, but others did not, relying instead on family income. The split in the financial responsibility of higher education seems to have generated varied reactions from the students and their families, including their satisfaction with and loyalty to the institution. Despite the abundant literature on higher education, however, a few studies attempt to explain and compare student satisfaction and loyalty across types of institutions, such as those that opted for gratuity versus those that did not. This study examines a set of relevant attributes for understanding that phenomenon; attributes such as quality of service, satisfaction, trust, commitment, and loyalty. The results reveal a prevalence of trust and familiarity among the students attending an institution with gratuity. In contrast, the results demonstrate a preponderance of commitment and satisfaction among the students attending a non-gratuity institution that relies on family, private, and personal funds to support their education.
Explaining university student loyalty: Theory, method, and empirical research in Chile
Purpose – The purpose of this paper is to explain student loyalty beyond its customary relationship with student satisfaction by including two relational variables, trust and commitment, two cognitive traits (service familiarity and communication) and one affective trait (opportunism) as moderators of the impact of trust and commitment on loyalty. Design/methodology/approach – Two relational constructs (trust and commitment) are employed to improve the loyalty model and key comparisons are performed to know if career, cohort and sourcing school generate differences in the explanation of student loyalty. Findings – Results show that the explanation chain that starts with student satisfaction but continues with the development of student trust and the reaching of student commitment culminates with student loyalty. The moderators (student opportunism, service familiarity, communication, age and available income for education) significantly contribute to the explanatory power of the model. Career is a meaningful differentiator in reaching student loyalty as are student cohort and the type of high school from which the student came. Research limitations/implications – This is one of first empirical studies on university student loyalty. Future research could test the same or new hypotheses using different samples and contexts. Practical implications – University policies may benefit from the inclusion of norms regarding relational processes and outcomes such as the value of trust in the interactions and systematic recognition and awards assigned to student commitment achievements. Originality/value – The explanation chain of customer loyalty was successfully applied to student loyalty, and strengthened with the addition of meaningful moderating variables.