Customers Perception of Service Quality in Higher Education

ABSTRACT Intense competition in the higher education sector in New Zealand has forced a number of educational institutions to examine the need for assessments of customer-perceived service quality for differentiation purposes. Research studies in this area have mainly focused on either the administrators or the faculty's perspectives and have overlooked the other customers, namely students and employers. The instruments developed based on the Importance-Performance paradigm were administered to 280 New Zealand employers and 1,000 business graduates. The results indicate that employers and students have perceptual problems with the level of service provided by tertiary institutions. Implications and suggestions for future research are provided.