Evaluation of Service Quality of Private Higher Education Using Service Improvement Matrix

In the quest for academic excellence, the government of Malaysia is very concerned about the quality of higher education institutions. Higher education is increasingly recognized as a service industry, and this puts a greater emphasis on meeting the expectations and needs of its participating customers who are the students. Due to intense competition, many universities and colleges face declining student enrolment and there is a need to address the problem of the quality of programmes and services offered. This study evaluates the service quality of a Malaysian private higher education institution with the objective of determining what constitutes the service variables in the education industry. Using gap analysis, it examines whether there are any service gaps in the individual service quality attributes. Five specified dimensions, namely tangibles, empathy, assurance, reliability and responsiveness at the educational institution, were examined. Data was collected from respondents using a well-structured questionnaire designed and adapted for the provision of educational services in line with SERVQUAL dimension scale. To achieve this, students as respondents were surveyed on their expected and perceived service quality rendered to them and their opinions garnered on whether service quality has had any effect on their satisfaction. A total of 150 questionnaires were distributed to students who had enrolled at the educational institution. Using service gap analysis, the findings indicated negative gaps for empathy and assurance dimensions. With the aid of service improvement matrix (SIM), satisfaction based on service perception and importance based on service expectation were plotted on a two-dimensional grid. This allowed for service improvement decisions to be made such as service improvements that are both necessary (low satisfaction ratings) and important for students (high importance ratings). Service strategies are recommended to managers to improve service quality and promote student satisfaction.