A Study on the Effects of Business Service Quality on Satisfaction, Commitment, Performance, and Loyalty at a Private University

The purpose of this study is to investigate the impacts of business service quality on satisfaction, commitment, performance, and loyalty in higher education. A survey was given to undergraduates involved in business through employment and start-up companies at a private university in Korea. With 252 respondents, this study used exploratory factor analysis and reliability analysis to verify the reliability and validity of measured variables. Multiple regression was employed as a statistical method for the hypotheses of the study. The research questions were: 1) How do education SERVQUAL factors (tangibles, responsiveness, reliability, assurance, and empathy) affect customer satisfaction? 2) How do education SERVQUAL factors affect customer commitment? 3) How does customer satisfaction or commitment affect education performance? 4) How does customer satisfaction, commitment or performance affect their loyalty in higher education? The findings show that most dimensions of business service quality have effects on satisfaction and commitment, and satisfaction and commitment have a positive effect on performance. Additionally, satisfaction, commitment and performance all have an effect on loyalty. This study confirmed the need for the improvement of business service quality in a private university. Additionally, it highlighted the importance of user satisfaction, commitment and performance in order to increase the loyalty level of undergraduate students.