Perception of Service Quality and Students’ Satisfaction at

School of Management, Tribhuvan University

By
Aditya Karki
Benish Koirala
Nikita Ray
Shreyeshkar Singh
Sneha Regmi

A Project Report Submitted to

School of Management, Tribhuvan University
For the partial fulfillment of the requirements
for the degree of
Master of Business Administration.

At
School of Management
Tribhuvan University

Kirtipur
February, 2023
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Chapter I
Introduction
1.1 Background of the Study
In the field of services, one of the most important aspects it the quality of
service provided. Service quality is a measure of how an organization performs its
services compared to customer expectations. Customers buy services to address
particular needs. They have certain and expectations with regards to a company’s
service delivery meet their demands, either consciously or unconsciously. A company
with high service quality offers services that matches or exceeds its customer’s
expectations. The increasing level of awareness in customers regarding the services
they get has led the organizations to give more attention to the level of the service
they provide to their customers so that loyalty can be extracted from customers in
exchange for increased satisfaction (Joudeh & Dandis, 2018). This is also the case in
educational institutions where the customers are primarily the students. In today’s
aggressive competitive “education business” world, one of the most important
determinants of student’s satisfaction has become service quality. It is also key to
sustainable competitive advantage, mainly for service companies and the education
sector (Kajenthiran & Karunanithy, 2015). With the education sector becoming a
booming business in many nations of the world, the quality in the service has become
vital in attracting students from varied backgrounds. Universities are increasingly
realizing that higher education is a service industry. Universities as service companies
have to deal with a similar situation where meeting customer expectations and needs
are more important. However, in the context of university, the concept of customer is
not clearly defined (Navarro & Iglesias, 2005). Categorizing groups of people as
customers of a university can include students, employees, families and the society.
Because of the commercialization of scholarships, many higher education institutions
have considered students to be the ‘primary customers’ of a university, despite the
diversity in the customers (Crawford, 1991). Thus, the quality of service offered by
service organizations including educational institutes: where students are the primary
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customers; has been a focal point in attraction and retention of the students by
meeting and even exceeding the expectations through service delivery.
Although many nations have financially benefitted from the “educational
industry” by prioritizing business over education, it is still indubitable that quality in
education is vital in achieving national and personal growth and development making
service quality in educational industry even more essential in the present context.
Now considered as a business by many economies, all the concepts and theories of
business are applied on this sector as well. The concept of service quality is deemed
to be of great importance from all the stakeholders. Increased competition among
universities can be attributed to the application of business models in the education
sector (Khan, Ahmed, & Nawaz, 2011). Additionally, education plays an important
role in the development of any country, in the economic betterment of that country, in
upgrading the standards of living of people etc. In the academia, higher education is
even more vital because all the professionals are produced by the higher education.
Every country tries to develop such institutions which produce high quality
professionals in every field (Manzoor, 2013). Hence, just like any other sectors,
educational sector is also assessed for the quality of the service it provides be it for
business reasons or service reasons.
1.2 Context of the Study
Nepal has witnessed significant growth of management schools in recent
years. However, the quality of service is still questioned. Add that to the increasing
trend of students going abroad for better future. The growing importance of
management education was well understood and was predicted to take the top spot in
enrollment and all other important aspects. (Acharya, 2009). Indeed, Nepal holds
tremendous promise for management education that can be foreseen by the demand
for management graduates from ever growing service sectors. In today's highly
competitive administrative education environment, students have a choice of
educational institutions (local private, local public, neighborhood and/or Western
institutions, etc.), so it is important that administrative educational institutions attract
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and retain these students. The enabling aspect is very interesting (Katuwal, 2011).
The increase in the number of private schools attributes to the increased involvement
of the private sector (Kraft & Vodopoviec, 2003). However, with the large number of
management schools, the quality of management education has still not enhanced.
The consequence of low-quality management education has been resulting in more
and more students opting for abroad studies. This influences management schools in
Nepal to attract and retain students. Management schools are therefore entering the
arena of competition and are also obliged to improve their quality (Katuwal, 2011).
Students have the opportunity to switch to another management institution around the
corner or choose a management school in a foreign country. Hence, although the
entry of private sector has strengthened the management-allied education in Nepal,
there is still a huge doubt among the prospective students in relation to the service
quality offered.
In the context of School of Management, Tribhuvan University (SOMTU),
there has been a decreasing trend in the number of applicants applying for the various
programs offered by it namely MBA- General, MBA- IT, MBA- GLM and MBA-
FC. Its flagship program MBA- General received only 172 applicants for the spring
intake of 2023 compared to hundreds, and even thousands in the earlier years. As
such, it is vital to study the underlying perception of service quality and the level of
students’ satisfaction at SOMTU. In this report, we will be discussing about the
students’ perception of service quality and satisfaction towards SOMTU.
1.3 Statement of the Problem
A research problem is a situation that needs a solution. It is a description of an
issue currently existing which needs to be addressed. It provides the context for the
research study and generates questions which the research aims to answer. It provides
the context for the research study and generates questions which the research aims to
answer. It indicates an issue where finding the right information might help to
improve an existing situation Research problem is the gap between the actual state
and desired state. A research gap is defined as an area for which missing or
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insufficient information limits the ability to reach a conclusion for a question. The
research problem is specified by the research questions. A research question is an
answerable inquiry into a specific concern or issue. As such, this research is directed
towards answering the following questions:
i. What is the association between the dimensions of service quality and
students’ satisfaction at SOMTU?
ii. What is the impact of the dimensions of service quality on students’
satisfaction at SOMTU?
iii. Is there any significant mean difference on the perception of service quality
and students’ satisfaction across programs at SOMTU?
1.4 Objectives of the Study
Any research is conducted to fulfill certain objectives which highlight the
purpose of doing the research work. The major objective of the study is to determine
the perception of service quality and student satisfaction in SOMTU among the
students of MBA, MBA-GLM, MBA FC and MBA IT. The specific objectives of the
research are:
i. To identify the association between the dimensions of service quality and
students’ satisfaction at SOMTU.
ii. To examine the impact of the dimensions of service quality on students’
satisfaction at SOMTU.
iii. To analyze the difference on the perception of service quality and students’
satisfaction across the programs at SOMTU.
1.5 Literature review
A literature review in a live project is an overview of the existing research and
knowledge related to the topic or problem being addressed in the project. The purpose
of a literature review is to identify gaps in the existing research and to provide context
for the project by summarizing the current state of knowledge. The literature review
is an important component of a live project as it helps to define the research question,
provides a framework for the project, and highlights the strengths and limitations of
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previous studies. It also helps to ensure that the project is well-informed and
grounded in existing knowledge, and can lead to new insights and directions for
future research.
Conducting a thorough and comprehensive literature review requires careful
reading, critical evaluation, and synthesis of the available information, and is
typically an iterative process that involves multiple drafts and revisions. The literature
review is useful in setting the objective of the study and acts as a guideline for
determining the variables under study. It states the findings from the previous
researches thus, enabling a researcher to generate the hypotheses for the new
research.
1.5.1 Review of Empirical Literature
The study by Hanaysha, Abdullah, & Warokka (2011) tried towards assessing
the satisfaction of students in higher learning institutions in Malaysia with regards to
the services provided. The research was based on a survey of 1000 students, with 360
responses received. A strong correlation between the five dimensions of service
quality (tangibility, reliability, responsiveness, assurance, and empathy) and student
satisfaction, particularly in regards to tangibility was demonstrated by the results.
Both Malaysian and international students reported a positive relationship between
tangibility and their satisfaction (R Square values of .364 and .255 respectively, with
p values less than .01). The results showed that the majority of students are satisfied
with the facilities provided by the university. The study found a strong and positive
correlation between student satisfaction and reliability among both Malaysian (R
Square = .561, n=320, p < .01) and international students (R Square = .439, n=320, p
< .01). A similar strong and positive correlation was found between student
satisfaction and responsiveness for both Malaysian (R Square = .656, n=320, p <.01)
and international students (R Square = .455, n=320, p < .01). A moderate positive
correlation was observed between Malaysian students' satisfaction and assurance (R
Square = .256, n=320, p < .01) and a strong positive relationship between
international students' satisfaction and assurance. The results also showed a moderate
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positive relationship between Malaysian students' satisfaction and empathy (R

Square= .370, n=320, p < .01), and a strong positive relationship between
international students' satisfaction and empathy (R Square = .576, n=320, p < .01).
The study by Khan, Ahmed, & Nawaz (2011) aimed towards the exploration
of the relationship between service quality and student satisfaction in higher learning
institutions in Pakistan. It used the five dimensions of service quality (SERVQUAL
model) which include assurance, empathy, reliability, tangibility, and responsiveness.
The results indicated that there was a significant positive relationship between the
dimensions of reliability, assurance, responsiveness, and empathy and student
satisfaction (p < .01 or .001), while tangibility had a positive but insignificant
relationship with student satisfaction. The study also found that a higher level of
student satisfaction was associated with a greater willingness to put effort into their
studies. The overall findings showed a significant relationship between service
quality and student satisfaction (p < .01).
Wei & Ramalu (2011) investigated students’ satisfaction towards the
university in relation to the service quality. The study attempted to identify the
relationship between service quality and students’ satisfaction. The study established
five dimensions of service quality (SQ) viz. tangibility, responsiveness, reliablity,
assurance and empathy. These dimensions were the independent variables and
students’ satisfaction (SS) was the dependent variable. The major objective of this
study was to identify the relationship between the five dimensions of service quality
with the students’ satisfaction. Using correlation on the data obtained from the
questionnaires based on Likert scale, the study found that the better the SQ provided
by the university, the higher the level of SS. Specifically, the findings suggested that
all five dimensions of service quality (SQ) are correlated significantly and positively
with student satisfaction (SS) (tangible r = .41, reliability r = .69, responsiveness r =
.76, empathy r =.77, assurance r =.76, all p = < .05). Students’ satisfaction and
empathy had strongest correlation (r =.77, p = < .05) followed by assurance (r =.76, p
= < .05), responsiveness (r =.76, p = < .05) and reliability (r =.69, p = < .05).
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Tangible had the weakest correlation with SS. The results from correlation test
preliminary support the proposed hypothesis that all dimensions of SQ have a
relationship with SS. The study further conducted multiple regressions on the data.
The study found that responsiveness (β = .225, p < .05), assurance (β = .242, p < .05),
and empathy (β = .356, p < .05) had positive and significant impact on students’
satisfaction. However, tangibility (β = .032, p > .05) and reliability (β = .075, p > .05)
has positive but insignificant impact on students’ satisfaction.
Baniya (2016) aimed to analyze the relationship between service quality and
students’ satisfaction. The study conducted by Baniya examined the relationship
between service quality dimensions based on SERVQUAL model with students’
satisfaction. The service quality dimensions based on SERVQUAL model were
tangibles, reliability, responsiveness, assurance and empathy. The objectives of the
study were to identify the relationships between the five dimensions of SERVQUAL
model and students’ sastisfaction of management education institution and to identify
factors in service quality that contributed most to the satisfaction in the students. The
study used self-administered online surveys amongst the graduate and undergraduate
students of a management school in Kathmandu. Using correlation, the study found
that the dimensions of service quality had positive relationship with students’
satisfaction at both graduate and undergraduate level. Empathy and responsiveness
were found to be significant predictors of service quality among the dimensions of
SERVQUAL. Specifically, satisfaction was positively related to service quality,
tangibility, assurance, empathy, reliability and responsiveness (r = .63, p < .01; r =
.47, p < .01; r =.58, p < .01, r = .57, p < .01, r = .53, p < .01, r = .58, p < .01,
respectively). The results indicated that all the relationships between different study
variables were significant and positive. Furthermore, the study found that service
quality is has an impact on students’ satisfaction with the results showed that
R2=0.39 (adjusted R2=0.39), i.e., 39.5% of the variance in students. Satisfaction was
explained by service quality. Additionally, the study showed that R2=0.41 (adjusted
R2=0.40), which suggested that 41.3% of the variance in students’ satisfaction was
 8

explained by the five dimensions of service quality. Tangibility (B = -0.04 at. T =

0.68), assurance (B = -0.21 at T= 0.06), and reliability (B = 0.10 at T= 0.21) were not
significantly related with satisfaction. The results showed that empathy and
responsiveness were more significant statistically compared to other dimensions viz.
tangibility, assurance and reliability.
1.5.2 Conceptual Framework
Figure 1
Conceptual Framework of the Study

Independent Variables
Communication
Empathy
Responsiveness Dependent Variable
Assurance Students’ Satisfaction
Tangibility

Note. Conceptual framework developed using SERVQUAL model.

Figure 1 depicts the conceptual framework of the study. The conceptual
framework is the foundation on which the entire thesis is based. It is a logically
developed, described and elaborated network of associations among the variables that
have been identified. From the conceptual framework, the study was aimed at
determining the association and effect of the independent variables namely
communication, empathy, responsiveness, assurance, and tangibility on the dependent
variable namely students’ satisfaction. This conceptual framework is based on the
extension of SERVQUAL model through addition of one more variable namely
communication.
One of the earliest studies on service quality was conducted by Parasuraman,
Zeithaml, & Berry (1988) who proposed a "SERVQUAL" model outlining five
dimensions of service quality, namely: tangibles, reliability, responsiveness,
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assurance, and empathy. The model has since been widely used in research
investigating the relationship between service quality and student satisfaction in
universities.
Tangible concerns the appearance of equipment, physical facilities,
communication materials and personnel. This dimension is carried over to the
organization’s interior and appearance. It signals quality and conveys the image of a
firm (Zeithaml, Bitner, & Gremler, Services marketing: Integrating customer focus
across the firm, 2006).
Responsiveness refers to the willingness to provide prompt service and help
customers. She responds attentively and promptly to customer requests, complaints
and questions. Responsive companies are often how long it takes to get in touch with
them to resolve issues or answer questions (Zeithaml, Bitner, & Gremler, Services
marketing: Integrating customer focus across the firm, 2006).
Assurance refers to the courtesy and knowledge of employees and their ability
to instill trust and confidence in customers. Finally, empathy refers to the
compassion and individual attention that affirmations give to clients. . Empathy can
be offered in several ways: knowing customers’ name, their needs and preferences
(Zeithaml, Bitner, & Gremler, Services marketing: Integrating customer focus across
the firm, 2006).
Additionally, one more variables viz. communication has been added because
of its perceived relationship and impact upon students’ satisfaction. Communication
concerns with if the teachers are able to communicate their knowledge to the students
in a comprehensive manner and if they are able to provide relevant feedback to the
students. All these variables are studied in relation to SOMTU. So, the customers are
the students and the employees are the teachers.
1.6 Hypotheses of the Study
The study is based on certain hypotheses. A hypothesis is a tentative theory or
supposition provisionally adopted to explain certain facts and to guide in the
investigation of others. It is a logically formed statement identified through the
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conceptual framework based on the relationship among the variables under study. The
hypotheses of the study are presented below:
H1: All dimensions of SERVQUAL significantly and positively associate with
students’ satisfaction.
H2: All dimensions of SERVQUAL significantly impact students’ satisfaction.
H3: There exists a significant mean difference on the perception of all the
dimensions of SERVQUAL and level of students’ satisfaction across the programs.
1.7 Research Methods
The research method used in carrying out the research describes the actions
that are taken by the researcher to analyze the problem and the specific tools and
techniques used to identify, select, process, analyze and interpret the collected data.
The research method includes how the data was collected and how it was analyzed.
The research method includes research design, population and sample of the study,
nature and sources of data,and the tools and techniques of data analysis.
1.7.1 Research Design
A research design is an overall plan of a research. It is a blueprint of the
research that provides guidelines for data collection, analysis, and interpretation. It
helps provide answers to research problems. As such, quantitative approach is used in
this study. The study was undertaken to examine and analyze the perception of
service quality and satisfaction among the students at SOMTU. With the
consideration of the objective, this research has used descriptive, exploratory, causal-
comparative, and co-relational research design. Descriptive research consists of
surveys and finding out facts about a particular topic. It describes the situations as
they occur. The major purpose of descriptive research is to describe, explain and
validate the findings. This research design helps to describe the variables being
studied. Furthermore, exploratory research is a study undertaken to orient the
researcher by helping to find out what is happening, to see new insights, to ask
questions, and to assess the phenomena. It is particularly useful to clarify the
understanding of a problem. As such, this study first tried to explore why recent event
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of decreasing applicants at SOMTU was occurring. Similarly, co-relational research

helps to identify the relationship between the variables under study. It is used to
determine if there is significant relationship between the dependent and independent
variables. Causal-comparative research, also known as explanatory research was also
conducted in order to identify the extent and nature of cause-and-effect relationship
among the variables under study. It was conducted to assess the impact of
independent variables on dependent variable.
1.7.2 Population and Sample of the Study
Population or universe refers to the totality or aggregate of cases under
investigation. Population is the entire group of items or members or individuals of
interest in a study. As such, the population of this research is the totality of the
students enrolled at SOMTU. On the other hand, a sample is the selection of some
units or parts of an aggregate of totality in such a way that some of these parts or unit
can represent the totality under study. As such, the sample of the study includes the
students selected to fill out the questionnaire. The research has followed simple
random sampling where every student had equal chance of being selected.
Additionally, structured interviews with 10 randomly selected students were
conducted to explore their areas of satisfaction and dissatisfaction.
1.7.3 Nature and Sources of Data
This study has used one source of data: primary source.
1.7.3.1 Primary Data. This study has used survey questionnaire to generate
the primary data. A total of 50 responses were collected through the questionnaire and
10 responses through structured interview. Statistically, this sample size is acceptable
as it confirms to the general rule of thumb that the sample size should not be less than
30. The questionnaire contained questions on interval scale such as Likert-scale well
as nominal scale such as multiple-choice questions.
1.7.4 Tools and Techniques of Data Analysis
Three major statistical tools are used in this study. The analysis is done in
IBM SPSS version 26. The major statistical tools used for data analysis are Karl
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Pearson’s correlation, regression and Analysis of Variance (ANOVA). Correlation is

a statistical tool used to measure the strength i.e. magnitude and direction of
relationship between two variables. Correlation helps to identify the degree and type
of relationship that exist between the variables. Its value falls between -1 to +1. A
value close to -1 indicates perfectly negative correlation. On the other hand, a value
close to +1 indicates perfectly positive correlation. Values closer to 0 indicate
insignificant relationship between the variables under study i.e. No correlation at all.
The correlation is calculated for the responses of the respondents in the Likert scale in
this study. The correlation is calculated with the objective to find the relationship
between dependent and independent variables. The correlation between the variables
was calculated using Statistical Package for Social Sciences (SPSS) version 26. Karl
Pearson’s correlation coefficient is used in this study.
Regression is a statistical measure that attempts to determine the strength of
the impact of independent variable on dependent variable. It includes many
techniques for modeling and analyzing several variables to understand the strength of
relationships between variables. In this study, multiple linear-regressions is calculated
for the responses provided in Likert scale to find out the direction of relationship as
well as the impact of independent variables on dependent variables. The theoretical
model for the relationship is given below:
Multiple Regression Model 1:
SAT = a+ b1 (COM) + b2 (EMP) + b3 (RESP) + b4 (ASR) + b5 (TANG)
Where:
SAT = Student satisfaction
a= Intercept
bi = Beta coefficient
COM = Communication
EMP= Empathy
RESP = Responsiveness
ASR = Assurance
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TANG = Tangibility
The regression analysis showed the impact of some variables to be
insignificant. Hence, step-wise multiple linear regression model was adopted. The
step-wise multiple regressions is based on the following model:
Multiple Regression model 2:
SAT = a+ b1 (COM) + b2(TANG)
Analysis of variance (ANOVA) is a collection of statistical models used to
analyze the differences among group means in a sample. It is a technique that
assesses potential differences in a scale-level dependent variable by a nominal-level
variable having two or more categories. In its simplest form, ANOVA provides a
statistical test of whether the population means of several groups are equal and
generalizes the t-test to more than two groups. ANOVA is useful for comparing three
or more group means for statistical significance. It is conceptually similar to multiple
two-sample t-tests. This test is also called the Fisher analysis of variance.
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Chapter II
Findings and Discussions
The study aims to analyze the perception of service quality and satisfaction of
students at SOMTU. This chapter presents and analyses the collected data. The data
collected from the responses of the respondents to the questionnaire is analyzed using
the various statistical tools and techniques.
2.1 Profile of the Organization

2.2 Analysis of Primary Data

In the study, the primary data was collected for the derivation of empirical
findings. The primary data analysis includes the analysis of empirical data collected
through the questionnaire sent to respondents. A total of 50 responses were collected
and all 50 responses were valid. Hence, the response rate was 100%. The collected
data were analyzed through IBM SPSS version 26.
Table 1
Program and Gender of Respondents
Program
MBA - MBA- Total
Gender General MBA- FC MBA- IT GLM
24
Male 9 5 7 3
48%
26
Female 8 7 7 4
52%
Total 17 12 14 7 50
Percentage 34% 24% 28% 14% 100%
Note. The table presents gender and program of respondents at SOMTU.

It is noticeable in table 1 that the majority of the respondents are female as

they represent 52% of total respondents. It can be observed that out of 50 respondents
17 are from MBA General, 12 are from MBA –FC, 14 from MBA-IT and 7 are from
MBA GLM programs. From 17 General MBA respondents, 9 are male and 8 are
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female representing 52.9% and 47.05%respectively .Similarly, out of 12 MBA-FC

respondents 5 are male and 7 are female representing 41.6% and 58.3% respectively.
In case of MBA-IT students, out of 14 respondents 7 are male and 7 are female
representing 50% and 50% of total MBA-IT respondents. Additionally, out of 7
MBA-GLM students 3 are male and 4 are female that represents 42.8% and 57.1% of
the total MBA-GLM students respectively.
Table 2
Summary Statistics
Descriptive Statistics
Avg. Cronbach's
N Minimum Maximum Std. Deviation
Variables rating Alpha
Communication 50 6 14 3.66 2.06 0.61
Empathy 50 4 14 3.33 2.02 0.60
Responsiveness 50 3 15 3.66 2.59 0.88
Assurance 50 3 15 3.55 2.57 0.87
Tangibility 50 5 25 2.99 3.95 0.72
Satisfaction 50 5 25 3.34 5.11 0.95
Note. The table depicts the descriptive statistics of the collected responses.
Table 2 presents the scale summary of the instrument used in the study. The
summary was prepared after the reliability test. The study measured five independent
variables and one dependent variable. Likert items with five scales ranging from
strongly disagree = 1 to strongly agree= 5, were used. The variables communication,
empathy, responsiveness, and assurance contained 3 components each; while the
variables tangibility and students’ satisfaction contained 5 components each. The
table depicts the minimum and maximum values assigned to each variable by the
respondents along with average rating. The variable, communication has an average
rating of 3.66 which denotes neutrality to agreement. This means the students
perceive the teachers to have effective communication skills. Similarly, the variable,
empathy has average rating of 3.33. This depicts that the students are indecisive in
relation to their perception of the empathy of the teachers. Furthermore, the variable
responsiveness has average rating of 3.66, which denotes that the students are neutral
 16

to agreement in their perception of the teachers being responsible. Additionally, the

variable assurance has average rating of 3.55 which also denotes neutrality to
agreement. It shows that the students are indecisive in their perception of the teachers
being assuring to them. Furthermore, the variable tangibility has the least average
rating with 2.99. This denotes neutrality on part of the students on their perception of
the overall campus infrastructure being accommodative and comfortable. This means
the students are indecisive in their perception the overall campus infrastructure.
Finally, the variable student satisfaction has average rating of 3.34. This depicts that
the students are not fully-satisfied by their learning and overall campus experience
and are in neutrality in their perception of the school being satisfactory. To conclude,
the summary statistics can be interpreted to mean that the students of SOMTU
perceive the service quality to not be fully-satisfactory and hence, the students are
seen to be neutral with their learning and overall campus experience.
Additionally, it can be seen that the reliability test revealed the Cronbach’s
alpha for each of the variable is greater than 0.60. The reliability of the questions
asked to the respondents through Likert-scale is revealed by it. A universally accepted
pattern is that the Alpha value between 0.6 and 0.7 shows an acceptable degree of
reliability (Ursachi, Horodnic, & Zait, 2015).
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Table 3
Correlation matrix of response and predictor variables. N= 50
Variables COM EMP RESP ASR TANG SATS
COM 1

EMP .491** 1
(0.000)

RESP .544** .554** 1

(0.000) (0.000)

ASR .463** .574** .656** 1

(0.001) (0.000) (0.000)

TANG 0.249 .474** 0.178 0.179 1

(0.081) (0.001) (0.217) (0.213)

SAT .510** .522** .479** .397** .460** 1

(0.000) (0.000) (0.000) (0.004) (0.001)
Note. The table shows the correlation among the variables under study.
** Correlation is significant at the 0.01 level (2-tailed)
Table 3 presents the correlation matrix of response and predictor variables.
The results suggest a significant and positive correlation at a 1% between the
dependent variable Student Satisfaction (SAT) and all the predictor variables;
Communication (COM), Empathy (EMP), Responsiveness (RESP), Assurance
(ASR), and Tangibility (TANG). Moreover, the correlation coefficients between
student satisfaction and communication and empathy lie between 0.50 and 1
indicating a high degree of positive relationship. The correlation coefficients between
student satisfaction and responsiveness, assurance, and tangibility lie between 0.3 and
0.49 indicating moderate degree of positive relationship. The correlation of ± 1
denotes perfect correlation; ± 0.50 and ± 1, high degree; ± 0.30 and ± 0.49, moderate
degree; below .29, low degree; and 0 denotes no correlation (Statistics Solution, n.d.).
Furthermore, the correlation coefficients between all the predictor variables are less
 18

than 0.7 at a 1% significance showing non-presence of multi-co linearity problem

among predictor variables. Therefore, the correlation coefficients show sufficient
evidence to support alternative hypothesis. Hence, the alternative hypotheses relating
to the significant and positive relationship among the variables is accepted which
indicates that all the predictor variables are significantly related to the satisfaction of
students at SOMTU.
Table 4
Multiple Regression Model: 1
Unstandardized
Beta
Variables Coefficients t-statistics p-value VIF
Intercept(a) -3.931 -1.075 0.288
COM(b1) 0.631 1.81 0.077 1.54
EMP(b2) 0.383 0.932 0.356 2.07
RESP(b3) 0.457 1.251 0.217 2.69
ASR(b4) -0.069 -0.193 0.848 2.55
TANG(b5) 0.375 2.233 0.031 1.32
2
F- statistics 2.667 R 0.439
p-value 0.000
Note. The table presents multiple regression equation of SAT on all predictor
variables.
Table 5
Multiple Regression Model: 2
Unstandardized
Beta
Variables Coefficients t-statistics p-value VIF
Intercept(a) -1.667 -0.473 0.638
COM(b1) 1.05 3.555 0.001 1.066
TANG(b2) 0.459 2.985 0.004 1.066
2
F-statistics 6.883 R 0.378
p-value 0.000
Note. The table presents step-wise multiple regression equation of SAT on the
selected predictor variables. The model with COM and TANG as predictor variables
is the best fit for the study.
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Table 4 depicts the multiple regression model 1 whereby the Student

Satisfaction (SAT) is the dependent variable and all the predictor variables are taken.
It can be seen that not all the predictor variables have significant impact on the
response variable i.e., SAT. It can be observed that the p- values of COM, EMP,
RESP, and ASR are greater than the level of significance i.e., 0.05. The F-statistic for
this model is 2.667. Hence, this model does not truly reflect the impact of predictor
variables on the response variable.
Table 5 shows the results of step-wise multiple regression analysis. The model
with COM and TANG as the predictor variables is taken as the best fit model for this
study. The multiple regression model: 2 reveals that SAT is significantly and
positively affected by COM and TANG. The F-statistic for this model is 6.883 which
is higher than the previous model denoting that it is closer to a significant model.
Finally, the p-value of the model is less than the level of significance i.e., 0.05
denoting a significant model.
Also, the Variance Inflation Factor (VIF) of all the variables is less than 2.5.
Hence, multi-co linearity does not exist. VIF ≥ 2.5 indicates considerable co linearity
(Johnston , Jones, & Manley , 2018).
The regression coefficients results show there is sufficient evidence to support
the alternative hypothesis relating to the impact of COM and TANG on SATS.
However, there is no sufficient evidence to support the alternative hypothesis relating
to the impact of EMP, RESP, and ASR on SAT. Therefore, it is concluded that the
regressors; COM and TANG significantly affect the regressand; SAT.
 20

Table 6
ANOVA test for equality of means across programs
Variables df F-statistics p-value
Communication 3 4.33 0.009
Empathy 3 0.76 0.525
Responsiveness 3 1.50 0.228
Assurance 3 1.11 0.354
Tangibility 3 3.81 0.016
Satisfaction 3 12.81 0.000
Note. The table shows the one way ANOVA test for equality of means across
programs at a 0.05 level of significance.
Table 6 reveals that there is no significant mean difference on the perception
of Empathy (EMP), Responsiveness (RESP), and Assurance (ASR) across the
students of four programs at SOMTU namely; MBA- General, MBA- FC, MBA- IT
and MBA- GLM as the p-value is greater than the level of significance i.e. 0.05. The
ANOVA test revealed that the alternative hypothesis relating to the significant
difference on the perception of EMP, RESP and ASR across programs is rejected.
However, there is a significant mean difference on the perception of Communication
(COM), Tangibility (TANG) and Student Satisfaction (SAT) across programs. The p-
value for these variables is less than the level of significance i.e. 0.05. Hence, there is
sufficient evidence to accept alternative hypothesis relating to the significant
difference on the perception of COM, TANG and SAT across programs.
 21

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