Keywords

1 Introduction

For a nation to develop and grow, education is an essential component. Quality key performance indicators for universities include student retention and on-time graduation rates. They are seen as indications of the quality of education by accreditation authorities. The success of the program influences the ranking and reputation of the institutions.

What impact does service quality have on universities’ ability to retain students? This study seeks to answer this research question. It will assess how service quality affects the ability of higher education to maintain students, ensure the Institution’s survival and provide a good university image. Information gathered from this study can be used to develop a model that can help increase student retention.

With a service-oriented framework of business growth in the modern world, every institution and business sector must develop its quality framework in the provision of services as well as products. According to this study, several factors influence students’ retention. The factors are connected to one another and help to create a framework for understanding their interconnection. Customer retention and service quality are key issues in any area of the service sector. It could have a direct positive or negative impact on institutions and organizations. According to Zhou et al. [1], an institution needs to improve the quality of its services if it wants to keep a client. Customer retention and service quality are related, according to several studies. Additionally, some research revealed that good customer service promotes lasting connections and higher levels of client retention [2].

The education sector is similar to other business sectors, and its customers are students. Therefore, student retention is important for several reasons. Kerby said the first and primary aspect of importance is that retaining students helps educational institutions fulfill their goal of educating students and assisting them to contribute to society and the nation as a whole [3]. Secondly, student retention also has a financial aspect, as increased retention rates yield higher financial benefits for educational institutions. As per Dursun, the third reason is that an institution’s retention rates contribute to a high ranking in the world ranking of universities by indicating satisfactory educational attributes and high-quality education [4].

Therefore, a high student retention rate is ideal since it represents both students and the institution’s performance. High student retention rates in higher education also contribute to the growth and development of the nation.

Considering the above, we can understand the importance of studying how service quality and customer retention are related. Critical analysis of service quality literature in the higher education sector explores the main element of success influencing student retention and on-time graduation. Utilizing the SERVQUAL model, it proposes a theoretical framework. Hence, a qualitative approach that was undertaken to add more value to the literature using semi-structured interviews has been used to collect the data and analyze the data using a summative approach [5,6,7]. This paper has been organized through a set of sections. The first section presents the topic. Section two gives brief literature about each study concept. Section three talks about the study hypotheses, methodology, and data analysis. Section four briefs the study finding, discussions, and conclusion in section five.

1.1 Student Retention and On-Time Graduation Concept (S.R.)

Many HEI (Higher Education Institutions) students’ dropout and do not complete their studies after enrolling and some years on campus [8,9,10,11,12]. Therefore, student retention is a major challenging and concerning problem for the academic community in all nations worldwide. Higher education institutions (HEI) must continue developing strategies for educating the future generation. Measures for increasing students’ retention rate will lead to higher graduation rates and the success of the program impacts the ranking and reputation of institutions. Accreditation bodies consider the retention rate as an indicator of the quality of education [13].

Students’ retention rate is defined as continuing their studies at the Institution until graduation [14]. Moreover, according to Wild [14, 15], it is defined as graduating on time, which can take anywhere between four and five years, depending on the program’s length. The percentage of first-year students who remain on to the second year of the program they enrolled in is used to calculate the student retention rate.

1.2 Service Quality (S.Q.)

The importance of service quality to business performance has been well recognized in academic literature. The extent to which a service satisfies or exceeds a customer’s expectations may be used to define service quality [16]. It is usually defined as the aspect that helps in enhancing the organizational performance in an institution based on services.

Due to the vast amount of literature that has been written regarding the relationship between service quality and customer retention, less research has been done on the relationship between service quality and organizational performance. However, much debate has been stimulated on the relationship between service qualities, retention, and loyalty being applied to organizational performance. As such, the existence of a relevant linkage between profitability and retention can be referenced from a simple equation regarding cost benefit.

Moreover, providing the desired services can prompt customers to buy more than has been planned. On top of that fact, customers will tend to buy again if they are satisfied with the quality being provided in the services. Besides, it helps save money as retaining old customers’ help is cheaper than attracting a new customer base.

1.3 Surrounding Theories and Service Quality Models

Both service quality and customer satisfaction are judged during the service delivery process, so evaluating them is exceedingly difficult [17]. The most well-known and extensively used measure model is SERVQUAL, which may be used to assess how consumers see their orders [18, 19]. As per Jemaiyo [17], The model estimates the extent of service quality while considering the five underlying dimensions: responsiveness, reliability, assurance, empathy, and tangibles. The SERVQUAL model originally included the following primary aspects: competence, credibility, security, communication, access, customer identification, reliability, responsiveness, and customer identification [20]. However, the model could not be fully appreciated as it fails to capture the in-depth richness of industrial coordination. However, the ten-aspect dimension showed complexity in comprehending and utilizing the data analysis. As such, the model was later modified to the five dimensions as mentioned below.

Responsiveness. The aspect defines the willingness to help customers while providing prompt services. It concerns the delivery style for any service sector while determining the customer relationship [20]. Regarding the scope of services, responsiveness deals with the provision of surroundings or, in other words, the physical environments granted to the customer.

Reliability. It defines how accurately and reliably the claimed service can be performed [17]. Reference [21] stated that the dimension would not be relevant to certain services where the customers do not expect to formulate a long-trusting bond, and they are satisfied by delivering service to them on time.

Assurance. The aspect is typically described as an assessment of a collection of questions that were first created to gauge expertise, credibility, respect, and security. At the same time, the organizational employee’s capacity to gain respect and trust via competence, hospitality, and assurances is highly related to customer relationship management [17].

Empathy. It indicates caring and individualized attention provided by the organization to its customer [17]. The dimension also defines the style of delivery in services alongside analyzing the relationship with customers.

Tangibles. It relates to physical abilities and personal and equipment appearance [17]. Therefore, the aspect contributes to the highest variation of service quality. For instance, elegant hotels are known for their physical beauty and staff members’ displays of service; likewise, in hospitals, patients are made to feel comfortable and conveniently transported from the parking area to the doctor’s office [17].

1.4 Students Satisfaction (S.S.)

Student satisfaction, according to Kasiri [22], is a short-term mindset that results from an evaluation of a student’s educational experiences, services, and facilities. As per Kerby [23], the aspect involves a customer’s decision to continue a relationship with an organization based on the expectation, at par standard of services. Hence as per the above definition, the context is a measure of the student’s decision to continue their education in the Institution.

The customer satisfaction model was propounded, which provides the theory that customer retention formulates a strong link with the satisfaction the customer acquitted by the company. Following that, retention might then be dependent upon how satisfied the students are with the quality of services along with the education delivered to them.

1.5 Trust (T)

Trust has many definitions in literature. When you trust someone, you know they will not take advantage of you. If you trust someone, you will believe they are honest and will not harm you [24]. Trust is one of the essential elements to retaining customers because if customers lose trust, this will affect very bad in the business, linked to its reputation. Developing a level of trust for sustaining a bond with the customer and, in turn, makes them loyal to a particular brand.

1.6 Commitment (C.O.)

The desire to keep a commitment is a crucial indicator of commitment [25]. Such dedication demonstrates the student’s desire to maintain their connection with the university, for instance by pursuing postgraduate courses there in the future. Researchers often present data demonstrating a favorable correlation between brand success in terms of service quality and loyalty [26].

2 Methodology

2.1 Research Hypotheses and the Research Model

Customer retention and service quality are affected by several factors. In this study, I have focused on the following factors: customer satisfaction, trust, and commitment. By providing the customer with good service quality, the level of satisfaction, commitment, and trust will increase. This will build a strong relationship and gain customer loyalty.

The study conceptual research model has been developed, as seen in. And the study hypotheses are as follows:

  • H1: Students’ satisfaction is positively impacted by service quality.

  • H2: Students’ Trust is positively affected by Service Quality.

  • H3: Employee Commitment is positively impacted by service quality.

  • H4: Students’ Retention is positively affected by customer satisfaction.

  • H5: Students’ Retention is influenced positively by Customer Trust.

  • H6: Students’ Retention is influenced positively by Employee Commitment.

  • H7: Students’ Retention is positively impacted by Service Quality.

2.2 Data Gathering Method

The current study employed a qualitative research design in order to address the research question, gather the required data, and achieve the study’s goals. Various researches on customer retention have been carried out utilizing interviews as a qualitative data gathering technique [27,28,29,30] Accordingly, we shall respond to the research question: “What impact does service quality have on universities’ ability to retain students?”. The main goals of conducting interviews with students are to examine the significant factors influencing their continued enrollment in higher education, assess the reliability of the information gathered from them, and consider their opinions on various customer retention-related issues, such as improving the service sectors in UAE universities.

Four focus groups were held, recorded, transcribed, coded, and evaluated in accordance with the following three primary steps: [31] these main steps are explained below.

First, we begin by classifying and defining the categories as shown in Table 1 [32]. Secondly, the text is transformed into the code’s declared symbols. Then, to establish the key components and their frequency, the theme or symbols are finally divided into scales of + and − words count scales. Positive coded replies represent a positive opinion or comment, whereas negative coded responses represent a negative perception of the study (Fig. 1) [32].

Table 1 Study factor and associated codes
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Fig. 1
A model diagram. The impact of service quality on satisfaction, trust, commitment, and student retention is indicated by arrows labeled H 1, H 2, H 3, and H 4, respectively. The effect of satisfaction, trust, and commitment on student retention is indicated by arrows labeled H 4, H 5, and H 7.

Conceptual research model of this study based on [33]

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As shown in Table 1, the final codes are as follows: Student satisfaction (S.S.), Trust (T.), Commitment (C.O.), Service quality (S.Q.), and Student retention (S.R.).

2.3 Instrumentation and Ethical Factors Considered

Pre-Interview. Four interviews were conducted for four focus groups of university students in different dispelling at universities in the U.A.E (United Arab Emirates). The focus of the interview was to evaluate the service quality elements (Responsiveness, Assurance, Reliability, Empathy, and Tangibles) on satisfaction, trust, and commitment and how it affects student retention at the university. Questions covered the quality of services they got while studying at their respective universities, such as admission, registration, and advising services. A list of the students’ names, I.D.s, College, Major, and contact numbers were made, and the students were called to inform them about the interview date, time, and place. The meeting room was prepared with the necessary tools such as a recorder, catering, lighting, and the atmosphere—the students were called one day before the interview date as a reminder.

Interview. The study’s objectives and all the ethical concerns surrounding data collection were briefly explained to participants at the start of each interview. Additionally, several recommendations were followed to conduct the student interviews properly, which might enhance the quality of the qualitative data. The questions and answers were written in a way that was pertinent to the main service sector that the students were well-versed in. By giving each candidate adequate time and space to offer pertinent information regarding major incidents occurring in their academic journey, the interviews served the objective of gathering reliable data. The interviews were conducted in a two-way, interactive manner. The first question was designed to get the interviewee’s attention and serve as an icebreaker by asking them to talk about themselves; what college have you joined? was another opening query meant to get their attention; why did they select this major? What do they want to become in the future? According to Alshurideh [32], the “introduction and small talk” phase acts as the starting phase and is intended to develop a direct interaction with the participants and tell them about the relevance and goal of the research as well as the applications of the interview data.

A lot of focus was placed during an interview on paying close attention to the participants’ justifications and observations and taking notes since none of them agreed to have their voices recorded. The sequence of the questions was occasionally adjusted during interviews using a less formal approach, depending on the subjects that were emerging from the talks.

In some situations, the phrasing of the questions was also changed to clarify certain concepts and the motivation behind the question. The interview’s questions were well-structured and followed a logical progression from provisionally crafted inquiries to queries that got right to the interview’s goals. Most of the questions were in the style of “open answers”, allowing the students to freely discuss their thoughts on each topic [32]. For each student, the interview lasted 25–30 min.

2.4 Data Analysis Procedure

The primary goal of the analysis of student interviews is to assess the university’s service quality, identify the elements that influence students’ satisfaction, trust, and commitment, and shape their behavior to continue attending the institution. This will assist in explaining how the interaction between students and the service provider (University) affects students’ retention or switching behavior [34]. Moreover, it has been identified that verbal behavior positively and negatively supports the main study concepts in the qualitative analysis. Therefore, it was classified based on the behavioral model [35, 37].

Analysis was carried out using the analysis method based on the conversion of interview discussions into texts. To improve the accuracy and validity of translating spoken behavior into written materials, one of my colleagues examined the interview transcribing procedure. The written papers had been reviewed, and the texts were now ready for coding and analysis. Several methods were used in the interview’s analysis procedure. First, a list of codes was created, which included the key elements from the prior (systematic review) that influenced customer retention [33] described in the methodology section, the coding list was divided into five categories: Student satisfaction (SS), trust (T), commitment (CO), service quality (SQ), and Student retention (SR). These were given a place in the primary behavior of drivers. Second, each sentence was examined and compared to one of the research codes as part of a text fragmentation procedure. The coding procedure has been converted into one of the research codes by theme. Thirdly, a data reduction process was carried out by identifying the main incidents to provide a clear meaning regarding the connected study topics that are highly frequent. Text division is a stage that is included in this process since it tends to gather data to support specific claims. The data were all organized and categorized, which brings us to our fourth point. This stage requires a significant deal of thought to consider how the data themes are developing into the body of the theoretical framework; thus, it was challenging to complete.

The process of evaluating the qualitative data then began. This stage involved compiling all supporting information for each category to provide conclusions and perceptions based on numerical data [32]. To quantify qualitative data, repetitive activities must be counted to determine their importance, whether they should be avoided, and how frequently they occur [6]. Additionally, I’ve included some quotes from participants of the studied process to give it some context and important additions [36]. Following up on the coding procedure, a contingency Table 2 shows notable differences in the frequency counts of positive and negative acts toward the key factors affecting college students [5]. The independent variables are listed and coded by Table 1, then the data were categorized and grouped, and the frequency of the data was counted as words were either positively or negatively spoken during focus groups’ interviews as per shown below in contingency Table 1.

Table 2 The study frequencies tables
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To summarize, this section has concentrated on giving a clear image of the methodology employed in this study, which is developing, conducting, and evaluating qualitative interview data collected by students studying at UAE universities. This study was dependent on the clarity of the interview text and its division into brief statements through the recording, transcription, coding, summarizing, identification, classification, and numbering of study topics.

2.5 Validity and Trustworthiness

Numerous considerations have been made to improve the qualitative data collection, including the selection of students from a variety of majors and academic levels to guarantee that the correct data will be gathered, and the entire region will be covered. This approach makes use of a hard research strategy to get data from students that is valid and trustworthy, with a minimal amount of bias that may occur throughout the process of interviewing selected individuals. To assess their performance while providing these services, the students were carefully chosen, with a focus on those who applied for the most university services.

3 Findings and Discussion

To further explain the effects of the service quality elements (Responsiveness, Assurance, Reliability, Empathy, and Tangibles), the study illustrates the key behavior-setting elements influencing consumer retention behavior, which are influenced by satisfaction, commitment, and trust as dependent factors. It also identifies which elements are more significant to consumers. The behavior of students is also significantly influenced by university employees. This is because most students are unaware of the regulations and processes when applying for certain services, which means that face-to-face interactions between staff and consumers can directly alter their behaviors and attitudes.

Overall, the study in Table 1 above demonstrates that service quality (SQ) is the primary factor influencing students’ retention (CR) behavior. The count of 235 positive instances was about twice as high as anticipated. According to the student, there were 235 and 24 repetitions, respectively, of both the positive and negative service quality. Additionally, statistical data indicate that service quality positively affects student retention, which supports hypothesis number (7). This is because customer retention naturally affects the level of service provided. Any type of service business must retain customers to succeed. Responsiveness, Assurance, Reliability, Empathy, and Tangibles are the primary behavior-setting factors affecting student retention. The frequencies Table 1 of these factors is shown in Appendix 1, explains the impact of the service quality elements, and identifies which factors are more significant to students; the results show that reliability had the highest positive counts (150). Next, responsiveness with (135) positive counts, then assurance (110) positive counts, tangibility (95) positive counts, and finally empathy with (75) positive counts. In addition, the values that have negative effects are shown, and further information about each is provided.

Additionally, it is becoming increasingly obvious that service quality has a considerable influence on everything related to customer retention. However, it’s not apparent if service quality has a significant impact on consumer satisfaction.

The other elements that favorably affect students’ retention in higher education, as shown by the frequencies in Table 1, are student satisfaction (SS), trust (T), and commitment (CO), all of which are impacted by staff conduct and university rules and services. In contrast to expectations, there were (74) favorable counts for (SS), (71) favorable counts for (T), and (85) favorable counts for (CO). Also, components contributing to negative behavior count development got (25), (15), and (18) repetitions, respectively. This demonstrates that behavior-setting components have a statistically significant favorable impact on students’ retention behavior, supporting hypotheses (1), (2), and (3). This is because consumers tend to take full advantage of the direct benefits gained from service quality provided by the same university. Many academics agree with this idea, saying that the basis of consumer behavior is tied to their decision; typically, consumers make choices to maximize their value or reduce expenses [37].

Moreover, as noticed from the interviews, the students focused on two primary aspects of service quality: how quickly they responded to their requests and how consistently they provided their services. In contrast, this had a favorable impact on their degree of satisfaction, trust, and commitment. One student stated in their interview that they would be prepared to pursue their postgraduate studies at the same university if they were happy with their educational experience. And when it comes to customer loyalty, it is often defined as the quantity or quality of recurring business that consumers provide to the same service provider. In other words, the terms refer to the customer shown frequent purchases and positive provider attitudes [38] Going back to the frequency table, the overall number of favorable references is (465) counts, and the negative counts were (82), which supports the hypothesis numbers (4), (5), and (6).

Customers who show confidence in one service provider when needed are considered loyalty to a brand. The element may also be rephrased to say that it is the result of continually displaying good and emotional experiences according to [39]. The term can therefore be connected to exerting a positive emotional experience, a base of satisfaction in relation to the attributes, as well as a perceived value of experience. In general, the topic mostly consists of products and services. According to Nigel Hill [40], there is a strong link between excellent customer service and customer satisfaction.

Service quality activities point to characteristics that are believed to meet or exceed customer expectations. Depending on the circumstance, both transcend beyond the experiences had during service delivery.

4 Conclusion

This study examines the factors affecting customer retention in higher education institutions by examining the effect of service quality on customer retention behavior. It uses the elements of service quality to give a clear explanation of the circumstances, causes, and effects of retention behavior, as well as the impact of satisfaction, trust, and commitment.

Using qualitative research, seven hypotheses on retention behavior were examined; more precisely, four focus groups with university students were interviewed for this study. The primary findings demonstrated that aspects of service quality influence consumer repeat behavior favorably. In addition, repetition behavior is positively impacted by satisfaction, trust, and commitments.

The importance of this study lies in the fact that it expands the field of knowledge on multiple theoretical, institutional retention policy instruments [41] for practitioners in the higher education sector who wish to make well-informed decisions regarding the selection and implementation of student retention interventions at their institutions. Institutional policy is a different topic that must be looked at for future research. Student-centered institutions looking to include student voices in institutional choices will also find this study to be useful as they begin the shift to decision-making frameworks based on qualitative data. Further research may be done on variables like student cynicism and flexibility and how this affects student satisfaction and their retention. Additionally, employing the service profit chain model to examine staff satisfaction and its effects on customer service quality and customer satisfaction would add additional value to the study. It will help universities concentrate more on the factors that influence retention. The study’s limitation was four focus group interviews, as our intention was not to generalize but to seek rich data for understanding the issue under exploration.