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satisfaction International Journal of Business and Social Science

Vol. 3 No. 19; October 2012

Effects of Service Quality and Price Fairness on Student Satisfaction
Dr. Nguyen Minh Tuan School of Business, International University Vietnam National University of Ho Chi Minh City, Vietnam.

Abstract
Higher education institutions in Vietnam have put much effort to attract students to enroll in programs using English as a means of teaching because these programs have newly been introduced in Vietnam and tuition fees are usually about five/six times higher than those in Vietnamese. Hence, student satisfaction plays a very important role in these institutions. This research aims to examine the effect of students’ perceived service quality and the students’ perceived price fairness on student satisfaction. The results show that various dimensions in perceived service quality and perceived price fairness have positive impacts on student satisfaction. It also shows that when perceived price fairness is taken into account, the variation in student satisfaction is better explained by comparison with the original Parasuraman’s SERVQUAL model. This research can be useful not only for existing higher education institutions in Vietnam but also for foreign universities planning to enter Vietnam’s education sector.

Key words: Perceived Service Quality; Perceived Price Fairness; Student Satisfaction; Higher Education
Institution.

Introduction
Customer satisfaction is very important for any industry especially service organization. Customer satisfaction can influence customers’ future intention and lead to profitability, market share and return on investment (Anderson, Fornell, and Lehmann, 1994). The world has been shifting from a manufacturing-based to a servicebased economy (Gronroos, 1990), and the studies of service quality and customer satisfaction have dominated

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