STUDENTS’ PERCEPTIONS OF BRAND EQUITY: THE MODERATING ROLE OF STUDENT SATISFACTION

Abstract

Building brand equity is an important strategy for higher education as the brand provides a signal or a promise to consumers about the quality education that will be delivered. The objective of this study is to investigate the key determinants that drive to brand equity, especially in its education industry. Data were collected from three private higher learning institutions in Sarawak using quantitative survey questionnaire. A total of 268 respondents from three different private higher learning institutions voluntarily participated in this survey. The WarpPLS (version 6.0) was used to perform the Partial Least Square – Structural Equation Modeling (PLS-SEM) estimation procedure to examine the six hypotheses developed. Interestingly, the results indicated that brand association and brand performance provided statistically significant contributions to the prediction of brand equity in higher learning institutions. Unexpectedly, brand loyalty was found no significant relationship with brand equity. In term of moderating impact, student satisfaction didn’t moderate the relationship between brand performance, brand association, and brand loyalty and institution’s brand equity. Theoretical and managerial implications of findings and some potential limitations of the study were highlighted. The research findings provide a substantial body of knowledge that enables higher learning providers to have a better understand and branding decisions. Besides, the results also provide insights into how brand loyalty, brand association, and brand performance may be better designed and delivered to enhance institution brand equity. Additionally, the findings of the study could help Sarawak government to develop new education policies to attract more local students to pursue their higher education in local. This study is one of very few studies which have investigates the perception of university brand equity among the students its dimensions that could guide the development of successful branding strategies for higher learning institutions in Sarawak.