Perceived Service Quality and Students’ Satisfaction in a Higher Education Institution: A Structural Equation Modeling Approach

Abstract

Student satisfaction is an important indicator of the quality of higher education services. Perceived service quality, including the quality of facilities, reliability, responsiveness, assurance, and empathy, may influence students’ overall academic experience. This study examined the association between perceived service quality and students’ satisfaction in a higher education setting in Nepal.

An analytical cross-sectional study was conducted among 392 Bachelor's and Master's level students at Birendra Multiple Campus, Bharatpur-10, Chitwan, Nepal, from January to April 2024. Data were collected using a self-administered structured questionnaire. Perceived service quality was assessed across five dimensions: Tangibility, Reliability, Responsiveness, Assurance, and Empathy, using a five-point Likert scale. Descriptive statistics, Chi-square tests, and Structural Equation Modeling (SEM) were used for data analysis. Statistical significance was considered at p < 0.05.

More than half of the students were satisfied with the various aspects of the academic environment. Age, stream of education, and level of education were significantly associated with students’ satisfaction. The measurement model demonstrated satisfactory reliability and validity, while the SEM showed good overall model fit. All five dimensions of perceived service quality were positively associated with students’ satisfaction. Empathy showed the strongest association, followed by Responsiveness, Tangibility, Reliability, and Assurance. Overall, perceived service quality explained a substantial proportion of the variation in students’ satisfaction.

Students’ satisfaction was positively associated with perceived service quality and varied according to selected sociodemographic and educational characteristics. Strengthening institutional facilities, reliable and responsive services, professional support, and empathetic interactions may contribute to improving students’ academic experience. Regular assessment of service quality and student satisfaction can help higher education institutions identify areas for improvement and develop more student-centered services.