The increasing number of undifferentiated universities and faculties offering similar programs, alternative forms of academic systems, life-long learning, and process of internalization created the new paradigm of teaching and learning in the higher education environment. In order to face the highly competitive environment, higher education institutions began to adopt market-based practices by placing a greater emphasis on the quality. Perhaps, the most important pillar in quality assurance in higher education is the accreditation of education institutions through specialized accreditation agencies. However, these agencies are viewing quality as "fitness for purpose" (i.e. meeting or conforming the standards defined by accreditation body/agency) not necessarily meeting the student's expectations. Thus, the purpose of this study is to identify an appropriate factor structure that may be effectively utilized to measure service quality of accredited higher educational institution from its students' viewpoint. Of 1,000 distributed questionnaires, a total of 697 valid surveys were returned, representing a response rate of 69%. Respondents were recruited from the prominent public sector university in Bosnia and Herzegovina using non-probability convenience sampling method. The findings revealed that students evaluate the quality of accredited higher education institution along the four dimensions: (1) quality of teaching process, interaction and communication (QTIC), (2) quality of program and business link (QPBL), (3) quality of academic facilities (QAF), and (4) quality of academic environment (QAE). Furthermore, research found that being recognized higher education institution by national or international accreditation body is fifth most important factor influencing students' choice. The overall findings of this study facilitate the comprehension of different attributes based on which students derive their expectations about accredited higher education institution. Thus, this study provides valuable information for higher education administrators (e.g. deans, department heads) that are committed to continuous improvement in the area of designing and delivering educational services.