Service Quality, Institutional Image and Satisfaction : Can Drivers Student Loyalty?

Abstract

Education is dynamic and always developing to keep it up to date with today's condition. The government always puts an effort so that the education quality in Indonesia will not be left behind compared to other countries in the world. One of the aspects stimulating the changes is customer demand over the quality of the education system. This study also aimed at analyzing the influence of service quality on the satisfaction and loyalty of senior high school or SMA students. The data used in this study were primary data with a total respondent of 88 students. The technique for data analysis used in this study was path analysis assisted by Smart PLS. The research findings showed that service quality and institutional image significantly influenced satisfaction, yet they did not influence loyalty significantly. Meanwhile, satisfaction directly influenced loyalty. Further study is suggested to add several variables, such as perceived value, perceived quality, and the like that are considered giving an influence on creating student’s loyalty. Practical implications also drawn to conclude this study.

Full text

*Corresponding author Email: evelyn.wijaya@lecturer.lecturerindonesia.ac.id P-ISSN : 2252-8997
Asia-Pacific Management and Business Application, 9, 3 (2021): 285-296 E-ISSN: 2615-2010
A R TI C L E
Asia-Pacific Management
and Business Application
9 (3) 285-296
©UB 2021
University of Brawijaya
Malang, Indonesia
http://apmba.ub.ac.id
Service Quality, Institutional Image and Satisfaction :
Can Drivers Student Loyalty?
Evelyn Wijayaa*
Achmad Tavip Junaedib
Agus Hockyc
a,b,cDepartment of Management, Faculty of Business, Institut Bisnis dan Teknologi Pelita
Indonesia, Pekanbaru, Indonesia
Abstract
Education is dynamic and always developing to keep it up to date with today's condition. The
government always puts an effort so that the education quality in Indonesia will not be left
behind compared to other countries in the world. One of the aspects stimulating the changes is
customer demand over the quality of the education system. This study also aimed at analyzing
the influence of service quality on the satisfaction and loyalty of senior high school or SMA
students. The data used in this study were primary data with a total respondent of 88 students.
The technique for data analysis used in this study was path analysis assisted by Smart PLS. The
research findings showed that service quality and institutional image significantly influenced
satisfaction, yet they did not influence loyalty significantly. Meanwhile, satisfaction directly
influenced loyalty. Further study is suggested to add several variables, such as perceived value,
perceived quality, and the like that are considered giving an influence on creating student’s
loyalty. Practical implications also drawn to conclude this study.
Keywords
Service Quality; Institutional Image; Satisfaction; Loyalty
Received: 5 February 2021; Accepted: 22 February 2021; Published Online: 30 April 2021
DOI: 10.21776/ub.apmba.2021.009.03.7
Introduction
Educational institutions play an important
role in creating human personality traits and
in developing the nation’s intellectual life.
The government puts an effort so that the
education quality in Indonesia is not left
behind compared to other countries. The
education reformation is the response
against the development of global demand
to adapt the accurate education system that
can develop human resources effectively.
Based on the information from the Ministry
of Education and Culture, the total of senior
high school in Riau Province gradually
increases annually and it reached 449 units
in the academic year 2019/2020 with the
number of students reach 151.382 students
(statistik.data.kemdikbud.go.id). The
success of an educational institution can be
seen from the student satisfaction. This
condition reflects that the parameter of
success for the school can be seen from the
provided service, whether the provided
service has met the expectation, or it even
exceeds the expectation. The student
satisfaction reflects a positive behavior

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from the students against the service of
teaching and learning process performed by
the teacher due to the relevancy between the
expectation and the reality they get (Hassan
et al., 2019).
One of the institutions focusing on
education is PT. Pelita Pendidikan Kulim.
This company is the benefactor for 5
schools, namely playgroup, kindergarten,
elementary, junior high school, and senior
high school. The object of this study was
Senior High School Education. This school
was established on February 25th, 2013,
located on Kulim Ujung Street No. 08,
Tampan, Payung Sekaki and had B+ as the
accreditation status. The following is the
data for the total student studying in Senior
High School Education.
Source : Senior High School Education, 2020
Figure 1. Total Students in Senior High School Education
Based on Fig. 1, it is seen that the total
student of Senior High School Education
tends to increase annually. It reflects that
Senior High School Education can attract
the students to study in that institution.
However, along with the development, it is
found that the services in Senior High
School Education do not fulfill the students’
expectations. Several aspects that need to be
concerned are the teachers’ competencies,
the teachers’ discipline, the punctuality, and
the accuracy in giving services by the
teachers, learning facilities, supporting
facilities, and etc. Based on the result of an
advanced observation, several points
causing problems found, namely
insufficient sports field, and a limited
number of classrooms, insufficient parking
spaces, incomplete library resources, and
lack of response by the teachers against the
needs and the students’ complaints. These
conditions caused students’ dissatisfaction
with Senior High School Education.
The aims of this study were (1) to analyze
the influence of service quality and
institutional image on student satisfaction
and loyalty in Senior High School
Education; and (2) to analyze the influence
of student satisfaction on student loyalty in
Senior High School Education.
Literature Review
Service quality reflects the expected
excellence level and control over the
excellence level to fulfill customer
expectations (Tjiptono & Chandra, 2016).
The perception of service quality in the
educational world reflects the ability in
providing an assessment against the
excellence of certain educational services
that can result in both academic and non-
academic excellence in the students. The
better service quality that is provided to the
students is, the student satisfaction level
will be higher. It is in line with a study by
(Annamdevula & Bellamkonda, 2016;
Appuhamilage & Torii, 2019; Azam, 2018;
2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021
Students 32 26 35 52 64 88

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Bakrie et al., 2019; Chandra et al., 2018;
Dora, 2017; Hassan et al., 2019; Jabbaret
al., 2020; Jiewanto et al., 2012; Leonnard et
al., 2014; Lunarindiah, 2018; Munizu &
Hamid, 2015; Mansari et al., 2014;
Permana et al., 2020; Wulandari & Suryani,
2017). The students who are satisfied with
the services provided by the company will
stimulate the existence of student loyalty. It
is in line with a study by (Annamdevula &
Bellamkonda, 2016; Hassan et al., 2019;
Leonnard et al., 2014; Lunarindiah, 2018;
Munizu & Hamid, 2015; Permana et al.,
2020; Wulandari & Suryani, 2017).
However, it is in contrast to a study by
(Appuhamilage & Torii, 2019; Bakrie et al.,
2019; Chandra et al., 2018)
The image reflects the perception of a
certain company or institution resulted from
people’s objective assessment over the
actions, behavior, and the ethics of the
institution amid the society (Lunarindiah,
2018). The image of a good quality
educational institution becomes one of the
important things and consideration when
having a decision to choose an educational
institution. The better the image of the
educational institution is, student
satisfaction will get better. It is in line with
a study by (Appuhamilage & Torii, 2019;
Bakrie et al., 2019; Hassan et al., 2019;
Leonnard et al., 2014; Lunarindiah, 2018;
Mulyono et al., 2020; Shahsavar &
Sudzina, 2017). The good image of an
educational institution can also stimulate
student loyalty. It is in line with a study by
(Bakrie et al., 2019; Hassan et al., 2019;
Shahsavar & Sudzina, 2017; Sugianto &
Farida, 2018). However, it is in contrast to
a study by (Appuhamilage & Torii, 2019;
Leonnard et al., 2014).
Customer satisfaction reflects the customer
responses over the evaluation of the
perceived incompatibility between the
initial expectation before the usage and the
perceived actual performance of services
the usage (Hassan et al., 2019). Customer
satisfaction becomes the initial turning
point in measuring the success of a
company. If the customers are satisfied with
the services provided by the company, the
next step is how to encourage them to be
loyal against the provided services. Loyalty
reflects customer behavior to use the
company’s services repeatedly and build
customer loyalty towards the services
provided by the company (Chandra et al.,
2018). The higher the student satisfaction
against the services provided by the
company, the student loyalty would
increase more. It is in line with a study by
(Africia et al., 2017; Annamdevula &
Bellamkonda, 2014; Appuhamilage &
Torii, 2019; Chandra et al., 2018;
Dharmayanti et al., 2018; Dora, 2017;
Hassan et al., 2019; Leonnard et al., 2014;
Munizu & Hamid, 2015; Shahsavar &
Sudzina, 2017; Wulandari & Suryani,
2017). However, it is in contrast to a study
by (Bakrie et al., 2019; Ismanova, 2019;
Lunarindiah, 2018).
Hypothesis Development
H1: service quality influences student
satisfaction in Senior High School
Education
H2: institutional image influences student
satisfaction in Senior High School
Education
H3: service quality influences student
loyalty in Senior High School Education
H4: institutional image influences student
loyalty in Senior High School Education
H5: student satisfaction influences student
loyalty in Senior High School Education.

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Source : (Appuhamilage & Torii, 2019; Bakrie et al., 2019; Chandra et al., 2018)
Figure 2. Conceptual Framework
Method
Population and Sample
The study was conducted in Senior High
School Education located on Kulim Ujung
Street No.8 Pekanbaru. This research was
conducted to support the previous studies
by (Dimyati, 2017) with the research object
at Santri Pesantren Al Ma’soem and the
studies by (Rayyani & Silfianti, 2020) with
the research object at BPS & K1 Jakarta
Senior High School Education. The
population in this study was the active
students in Senior High School Education
with a total of 88 students in the academic
year 2020/2021. The sample was the
research subjects representing all research
population. The sampling technique used
was a census method, all research
populations were the sample.
Operational Variables
This study consisted of exogenous
variables, namely service quality (X1) and
institutional image (X2), while the
endogenous variables were student
satisfaction (Y1) and student loyalty (Y2).
Table 1. Operational Variable
Variable
Indicator
Source
Service Quality (X1)
1. Tangibles
2. Reliability
3. Responsiveness
4. Assurance
5. Empathy
(Parasuraman et al., 1988)
Institutional Image (X2)
1. Institutional Accreditation
2. Institutional Life
3. Learning Atmosphere
4. Institutional Facility
5. Teacher Quality
6. Headmaster Quality
(Rangkuti, 2013)
Student Satisfaction (Y1)
1. Feel Comfortable
2. Share Positive Information
3. No Complaints
(Tjiptono & Chandra, 2016;
Chandra et al., 2018)
Student Loyalty (Y2)
1. Feeling Proud
2. Commitment
3. Attachment
4. Recommend to Other People
(Griffin, 2012;
Annamdevula &
Bellamkonda, 2016)
Servic
e
Instit
ution
Stude
nt
Stude
nt

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Data Collection Method
This study used primary data collected by
distributing questionnaires that had been
filled out by the respondents. Meanwhile,
the secondary data were collected from
library research and supporting research
journals. The data collection was conducted
for 4 months (November-February, 2021).
Data Analysis Technique
The data analysis technique used in this
study was path analysis. Before designing
the path equation, the preliminary research,
including validity test, reliability test, and
multicollinearity test was conducted to
assess the feasibility of the research model
that would be used.
Result
Respondents’ Profiles
The sample used in this study was all
students of Senior High School Education,
namely 88 respondents in total. The
respondents’ characteristics used in this
study included gender and the previous
junior high school.
Based on the recapitulation result for the
questionnaire respondents, the information
that had been collected showed that 58%
were males and 42% were females.
Regarding the information from Senior
High School Education in the student data
in the academic year 2020/2021, the total
male respondents were higher than the total
female respondents were.
Based on the recapitulation result for the
questionnaire respondents, 73% of the
students were from Junior High School
Education and they continued their study in
Senior High School Education. Meanwhile,
the remaining or 27% of the students were
from other senior high schools. This
explained that most of the students of Junior
High School Education continued their
study to the senior high level.
Source : SmartPLS 3.0
Figure 2. Bootstrapping Research Model

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Preliminary Study
Before conducting an assessment against
the path analysis, the initial steps of the
assessment, including validity test and
reliability test, were done. These tests were
done against all research variables (service
quality, institutional image, student
satisfaction, and student loyalty).
Table 2. Loading Factor
Variable
Indicator
Loading Factor
AVE
Cronbach
Alpha
Service Quality
X1.1
0.724
0.769
0.700
X1.2
0.673
X1.3
0.781
X1.4
0.795
X1.5
0.748
X1.6
0.797
X1.7
0.673
X1.8
0.702
X1.9
0.646
X1.10
0.809
X1.11
0.719
X1.12
0.712
X1.13
0.597
X1.14
0.639
Institutional
Image
X2.1
0.892
0.720
0.872
X2.2
0.861
Student
Satisfaction
Y1.1
0.853
0.771
0.924
Y1.2
0.936
Y1.3
0.907
Y1.4
0.920
Y1.5
0.764
Student Loyalty
Y2.1
0.875
0.516
0.927
Y2.2
0.814
Y2.3
0.837
Y2.4
0.866
Source : SmartPLS 3.0
Based on Table 2, it can be inferred that all
research variables are valid since having an
AVE and loading factor of more than 0.50
and reliable since having a cronbach’s alpha
of more than 0.60.
The multicollinearity test was aimed at
assessing the correlation between the
exogenous variables. The test was done
using the Variance Inflation Factor (VIF).

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Table 3. Multicollinearity Test
Variable
Student Satisfaction
Student Loyalty
Service Quality
1.602
2.268
Institutional Image
1.602
1.958
Student Satisfaction
2.621
Source : SmartPLS 3.0
Based on table 3 , it can be inferred that the
research variables have a VIF value of less
than 10. Hence, it can be inferred that this
study was free of multicollinearity
symptoms.
Coefficient of Determination (R2)
The R2 value showed how big the influence
between exogenous variables and
endogenous variables. The higher the
R2value was, the influence would be better.
Table 4. Coefficient of Determination
Variable
R Square
Adjusted R Square
Student Satisfaction
0.618
0.606
Student Loyalty
0.438
0.410
Source : SmartPLS 3.0
Table 4 shows that the R2 value is 0.606. It
indicated that student satisfaction was
influenced by service quality and
institutional image of 60.6%, while the rest
of 39.4% was influenced by other variables
outside the study. Table 4 also shows that
the R2 value is 0.410. It indicated that
student loyalty was influenced by service
quality, institutional image, and student
satisfaction of 41.0%, while the rest of
59.0% was influenced by other variables
outside the study.
Path Analysis and Hypothesis Testing
Path analysis was used to know how big the
influence of exogenous variables against
the endogenous variables in the students of
Senior High School Education. Meanwhile,
hypothesis testing was used to know the
influence of endogenous variables and
exogenous variables partially.
Table 5. Path Analysis dan Hypothesis Testing
Variable
Original
Sample
T Statistics
P Value
Service Quality >> Student Satisfaction
0.504
5.223
0.000
Institutional Image >> Student Satisfaction
0.369
3.684
0.000
Service Quality >> Student Loyalty
0.232
1.537
0.125
Institutional Image >> Student Loyalty
-0.001
0.012
0.990
Student Satisfaction >> Student Loyalty
0.474
3.546
0.000
Source : SmartPLS 3.0

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The Influence of Service Quality on
Student Satisfaction
The result of the path analysis also showed
that the beta coefficient value between
service quality and student satisfaction was
0.504. The result of the calculated t-test was
5.223 with a p-value of 0.000 (p<0.05). It
indicated that service quality positively and
significantly influenced student
satisfaction.
The Influence of Institutional Image on
Student Satisfaction
The result of the path analysis showed that
the beta coefficient value for the
relationship between institutional image
and student satisfaction was 0.369. The
result of the calculated t-test was 3.684 with
a p-value of 0.000 (p<0.05). This indicated
that institutional image positively and
significantly influenced student
satisfaction.
The Influence of Service Quality on
Student Loyalty
The result of the path analysis showed that
the beta coefficient value for the
relationship between service quality and
student loyalty was 0.232. The result of the
calculated t-test was 1.537 with a p-value of
0.125 (p>0.05). This indicated that service
quality did not significantly influence
student loyalty.
The Influence of Institutional Image on
Student Loyalty
The result of the path analysis showed that
the beta coefficient value for the
relationship between institutional image
and student loyalty was -0.001. The result
of the calculated t-test was 0.012 with a p-
value of 0.990 (p>0.05). This indicated that
institutional image did not significantly
influence student loyalty.
The Influence of Student Satisfaction on
Student Loyalty
The result of the path analysis showed that
the beta coefficient value for the
relationship between student satisfaction
and student loyalty was 0.474. The result of
the calculated t-test was 3.546 with a p-
value of 0.000 (p<0.05). This indicated that
student satisfaction positively and
significantly influenced student loyalty.
Discussion
The result of the respondents’ responses
stated that service quality was considered
important by the respondents. This was
supported by the result of the assessment
showing a positive direction. It means that
if service quality increases, student
satisfaction will also increase. It is in line
with the result of the hypothesis testing that
service quality positively and significantly
influenced student satisfaction in Senior
High School Education. The finding of this
study is in line with a study by
(Annamdevula & Bellamkonda, 2016;
Appuhamilage & Torii, 2019; Azam, 2018;
Bakrie et al., 2019; Chandra et al., 2018;
Dora, 2017; Hassan et al., 2019; Jabbaret
al., 2020; Jiewanto et al., 2012; Leonnard et
al., 2014; Lunarindiah, 2018; Munizu &
Hamid, 2015; Mansari et al., 2014;
Permana et al., 2020; Wulandari & Suryani,
2017). The service quality provided by
Senior High School Education exceeded the
students’ expectations that made the
students felt satisfied. It was proven by a
statement that the teachers in Senior High
School Education always provide updated
materials related to the applicable education
quality standard to help the students in
maximizing the learning outcome. Besides,
the teachers were able to create a conducive
learning atmosphere so that it was able to
make the students felt comfortable during
the learning process. Good service quality
could create student satisfaction during the
study in Senior High School Education.

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The result of the respondents’ responses
stated that institutional image was
considered important by the respondents
and this was supported by the result of the
assessment showing a positive direction. It
means that if institutional image increases,
student satisfaction will also increase. It
was in line with the result of the hypothesis
testing that institutional image positively
and significantly influenced student
satisfaction in Senior High School
Education. This finding was in line with a
study by (Appuhamilage & Torii, 2019;
Bakrie et al., 2019; Hassan et al., 2019;
Leonnard et al., 2014; Lunarindiah, 2018;
Mulyono et al., 2020; Shahsavar &
Sudzina, 2017). The better the image built
by Senior High School Education, it might
increase student satisfaction. It was proven
by a statement that Senior High School
Education had B as the accreditation status
indicating that education quality they offer
can build students’ characters and students’
knowledge. If the institutional image can be
continuously maintained and improved, it
may create student satisfaction.
The result of the influence of service quality
on student loyalty had a positive direction.
It means that if service quality increases,
student loyalty will also increase. However,
the result of the hypothesis testing showed
that service quality did not significantly
influence student loyalty. It explained that
service quality provided by Senior High
School Education did not directly influence
student loyalty. It was in line with a study
by (Appuhamilage & Torii, 2019; Bakrie et
al., 2019; Chandra et al., 2018).
Nevertheless, it was in contrast to a study by
(Annamdevula & Bellamkonda, 2016;
Hassan et al., 2019; Leonnard et al., 2014;
Lunarindiah, 2018; Munizu & Hamid,
2015; Permana et al., 2020; Wulandari &
Suryani, 2017). Even though, in general, the
students were satisfied with the service
quality provided by Senior High School
Education, the students still had several
complaints, such as insufficient parking
spaces, insufficient sports field, and
incomplete learning book collections in the
library. Student loyalty might be formed if
the students got positive impressions during
their study in Senior High School
Education.
The result of the influence of institutional
image on student loyalty had a negative
direction. It means that if institutional
image increases, student loyalty will
decrease. The result of the hypothesis
testing showed that institutional image did
not significantly influence student loyalty.
It explained that the institutional image built
by Senior High School Education did not
directly influence student loyalty. The
institutional image could not be a variable
having an ability to encourage or create
student loyalty. This finding was in line
with a study by (Appuhamilage & Torii,
2019; Leonnard et al., 2014). However, it
was in contrast to a study by (Bakrie et al.,
2019; Hassan et al., 2019; Shahsavar &
Sudzina, 2017; Sugianto & Farida, 2018). A
good accreditation status did not guarantee
that the students would be loyal against a
certain educational institution. It was
because many other educational institutions
also had a similar accreditation status.
The result of the respondents’ responses
stated that satisfaction was considered
important by the respondents and this was
supported by the result of the assessment
showing a positive direction. It means that
if student satisfaction increases, student
loyalty will also increase. It was in line with
the result of the hypothesis testing that
student satisfaction positively and
significantly influenced student loyalty in
Senior High School Education. This finding
was in line with a study by (Africia et al.,
2017; Annamdevula & Bellamkonda, 2014;
Appuhamilage & Torii, 2019; Chandra et
al., 2018; Dora, 2017; Hassan et al., 2019;
Leonnard et al., 2014; Munizu & Hamid,
2015; Shahsavar & Sudzina, 2017;
Wulandari & Suryani, 2017). However, it is
in contrast to a study by (Bakrie et al., 2019;
Ismanova, 2019; Lunarindiah, 2018).
Result for characteristics of respondent
states that 73% of the students were from

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Junior High School Education and they
continued their study in Senior High School
Education. Furthermore, the students
considered that the teachers’ quality in
Senior High School Education could keep it
up to date with the current development of
education quality so that the students would
feel comfortable and satisfied during their
study in Senior High School Education.
This condition was able to create student
loyalty.
Conclusion
Based on the result of the assessment, it is
known that service quality and institutional
image significantly influence student
satisfaction but did not influence student
loyalty. In addition, the study shows that
student satisfaction significantly influences
student loyalty. It means that Senior High
School Education has put a maximum effort
in increasing student satisfaction and
loyalty. To minimize the possibility of
student dissatisfaction in Senior High
School Education, the educational
institution needs to understand the students’
wishes and expectations, especially in the
provision of learning facilities. Senior High
School Education should provide library
resources that are relevant to the current
development of curriculum and education
quality so that the students’ learning process
can be more optimal. This is because the
statement gets a low mean score, indicating
that the library resources provided by
Senior High School Education do not
support the ongoing learning process yet.
Limitation and Future Research
The current study is limited only to the use
of service quality and institutional image as
the variables that can stimulate student
satisfaction and loyalty. Hence, the result is
not perfect yet. For further research, it is
expected to involve other variables to detect
the factors that can influence student
satisfaction and loyalty.
Notes on Contributors
Evelyn Wijaya is a lecturer in Departement
of Management Institut Bisnis dan
Teknologi Pelita Indonesia. She graduated
for Master Degree from Tarumanagara
University. She has written article topic of
building consumer satisfaction to improve
consumer trust through service quality and
consumer experience in JNE Pekanbaru
(2020) and consumer’s impulse buying
behavior : do visual merchandising, store
atmosphere, availability of money and
promotional activity affect it? (2020). Her
research interest are Financial Management
and Marketing Management.
Achmad Tavip Junaedi is a senior lecturer
in Departement of Management Institut
Bisnis dan Teknologi Pelita Indonesia. He
graduated for Doctoral Degree from
Brawijaya University. He has written article
topic of the co-determinant of capital
structure and profitability based on the
supply chain strategy : evidence from
manufacturing sector in indonesia (2019)
and building consumer satisfaction to
improve consumer trust through service
quality and consumer experience in JNE
Pekanbaru (2020). His research interest are
Financial Management and Marketing
Management.
Agus Hocky is a lecturer in Departement of
Management Institut Bisnis dan Teknologi
Pelita Indonesia. He graduated for Master
Degree from Singapore Management
University. He has written article topic of
the role of service quality and trust on
consumer loyalty at PT Henson Alfa Gros
Pekanbaru (2020). His research interest are
Financial Management and Marketing
Management.
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