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Performance measurement is so critical for all organizations, and educational institutions are no exception. With the
sky-rocketing costs of education across the globe, there are increasing levels of scrutiny by students, parents and
prospective employers of the value delivered by the educational institutes.
Universities are increasingly recognizing that higher education is a service industry, and are placing greater emphasis
on meeting the expectations and needs of their participating customers, that is, the students. Furthermore, intense
competition in today's competitive educational market forces institutions to adopt a market orientation strategy to
differentiate their offerings from those of their competitors by delivering superior quality services.
Student loyalty is one of the major goals of educational institutions. A loyal student population is a source of
competitive advantage with outcomes such as positive word of mouth (WOM) communication, retention and repeat.
The creation and the delivery of superior customer value become important in creating a sustainable advantage in
the highly competitive international education market (Kotler and Fox, 2002). Service quality, in this context, is
acknowledged as a key performance measure for excellence in education and is a major strategic variable for
universities as service providers (Donaldson and Runciman, 1995), with enduring effects on the institution and the
students it serves.
The purpose of this paper is to analyze how student loyalty is affected by student satisfaction, and reputation of the
university. The specific objective of this research is to identify and validate a structural model linking student
loyalty to student satisfaction and student perception of the reputation of the university. The variants of the proposed
model are checked through Structural equation modeling approach.
The study was conducted among post graduate students studying in the main campus of leading universities in South
India.The paper is organized as follows. In the next part presents the literature review and research model. This is
followed by a discussion on the research methodology. Finally, the results are presented and implications are
discussed.
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