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Mediating Influence of Satisfaction on Reputation, Relationship Benefits and Student Loyalty in Private Higher Education Institutions in Malaysia

Malaysian private higher education institutions are currently operating in a competitive education market. Their profitability and viability are being compromised by uncertain levels of student loyalty. Therefore, it is imperative for managers of private higher education institutions to be aware of the drivers of their students’ loyalty. This study aims to investigate the significant effects of reputation (university management, academic and media reputation) and relationship benefits on student loyalty in private higher education institutions in Malaysia and to determine the mediating effects of satisfaction on the aforementioned relationships. The methodology utilises primary data obtained from questionnaire administered to a sample of 400 students from several private higher education institutions using stratified random probability sampling. Multiple regression technique and mediation analyses were employed to analyse the data via SPSS statistical package. The results revealed that reputation and relationship benefits had significant effects on student loyalty. Empirical evidence concludes that university management and relationship benefits have significant effects on students’ loyalty, whilst academic and media reputation did not. Satisfaction was found to mediate the relationship between the independent variables and student loyalty. The study concludes with the discussion and implications, as well as limitations and suggestions for future research.