Abstract
M.Com. (Business Management)
Educational systems have experienced a paradigm shift in the 21st century worldwide, and Africa has not been left out. Let alone South Africa which is currently amongst Africa’s top technologically developed countries in Africa. Like in many other countries, the higher education sector in South Africa is a unique and super- complex system, because in addition to the universal change driving forces affecting it, a different impetus for change exists (Mapesela & Hay, 2006:77). Higher education institution models for delivering education are changing to meet new realities from a focus on providers and inputs to students and results. Reformation is no longer confined to the classroom, but has extended to South African public systems and their role in supporting change, advancing efficiency and effectiveness and in building networks capable of meeting students’ needs and supporting institutions at large. The retention of students can have a big financial advantage for the private higher educational institutions in South Africa, hence it has become important for educational institutions to build relationships with their students. The question of which factors influence customer retention and customer loyalty, presents itself. This study identified the antecedents to customer loyalty through the literature review which could possibly influence customer loyalty. This study focuses on the student experiences and satisfaction at the Milpark Business School in Johannesburg by analysing a number of factors that are assumed to impact these areas namely product experiences, moments of truth, peace of mind and outcome focus. The entry of ‘private’ providers of higher education coupled with declining government funding to public institutions is a response to the increasing demand for higher education that has caused a decline in the quality of graduates (Bunoti, 2011:1-2). Such concerns of student outcomes in private higher learning institutions have generated an interest of study to determine their experiences and consequently, their satisfaction. Milpark Business School is one of the private Higher Education Institutions in South Africa providing a Bachelor of Business Administration degree programme through distance learning and its entry requirements, processes, duration and study environments contribute immensely to student outcome. This study follows a descriptive research design. Literature concerning customer loyalty and the antecedents identified will be provided. The study makes use of a sample, which consists of students who are currently registered at Milpark Business School on the BBA Programme. A self-administered questionnaire was designed based on the theoretical literature provided within the study. The questionnaire measured several constructs which were identified through the literature review. The questionnaire made use of a set of statements relating to the theory, and a 5-point Likert scale that allowed respondents to select from five options ranging between strongly agree to strongly disagree. Various statistical analysis procedures were used to accomplish the objectives of the study, including factor analysis, and multiple and sideways regression techniques. The conclusion and findings of the study were found to support the objectives of the study and the results of the statistical analysis were found to accept the hypotheses of the study. The main conclusion and findings are that, although students are satisfied with regard to their interaction with and service provided by Milpark, improvements need to be made in terms of personal attention given to the students, especially by support staff. In particular, the handling of queries by support staff and lecturers needs to be improved in order to give speedy responses to the student in order to retain the student for the future. It is also clear that student satisfaction at Milpark Business School is influenced by the four antecedents namely product experience, outcome focus, moment of truth and peace of mind. Various recommendations for improving customer satisfaction were given, based on the findings of the statistical analysis. The empirical results indicate that all four independent variables significantly influence customer satisfaction, hence, all four variables are equally important to Milpark Business School, and the business needs to ensure that all these variables are correctly managed in order to improve customer satisfaction. Through this study it has become evident that there are various measures that could be implemented by Milpark Business School to improve customer satisfaction and ensure high levels of student retention. The study only investigated customer satisfaction at Milpark Business School, and therefore could not be generalised to other business schools. A study may need to be conducted on a number of such schools in future in order to get more information.