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Australasian Marketing Journal ■■ (2016) ■■–■■

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Australasian Marketing Journal


j o u r n a l h o m e p a g e : w w w. e l s e v i e r. c o m / l o c a t e / a m j

Comparing student loyalty behavioural intentions across multi entry


mode deliveries: An Australian perspective
Vanessa Quintal, Ian Phau *
Curtin University, Australia

A R T I C L E I N F O A B S T R A C T

Article history: This paper compares students’ perceptions of push/pull and risk attributes for their impacts on attitude
Received 5 May 2013 and loyalty behavioural intention towards their university that has adopted multi entry mode strategy
Revised 17 January 2016 in its home and offshore campuses. A total of 561 completed responses were collected through an online
Accepted 17 January 2016
survey from students in a large university with campuses in Australia, Malaysia and Singapore. Findings
Available online
suggested that international students residing in Australia held the most favourable perceptions, atti-
tude and loyalty behavioural intention compared with their counterparts in Malaysia and Singapore,
Keywords:
suggesting the inward exporting strategy was successful for the university. The applicability of the Uppsala
Push/pull factors
Perceived risk model in explaining the university’s respective entry mode strategies validated its use in the context of
Attitude international higher education.
Loyalty behavioural intention © 2016 Australian and New Zealand Marketing Academy. Published by Elsevier Ltd. All rights reserved.
Entry mode

1. Introduction author, this trend is most pronounced in Australia, Canada, New


Zealand, the USA and the UK. In such countries, internationalisation
As world economies become increasingly interdependent and has followed the approach of global businesses by adopting the step-
businesses internationalise, the burden is on higher education to by-step ‘Uppsala internationalisation model’ that includes exporting,
mimic the practice of global business in adopting an internation- licensing/franchising, joint ventures and sole ventures (Healey, 2008).
ally oriented approach. Higher education systems in most countries In 2013, international education activity contributed $15.0 billion
are “no longer considered an entirely national enterprise” (Elkin et al., to the Australian economy, arising from international students study-
2005, p. 319). Instead, the higher education sector plays a part in ing and residing in Australia. This reflected a 3.8 per cent increase
the wider policy objectives of governments to further economic de- from the earnings recorded in 2012 ($14.5 billion). A further $571
velopment (Kameoka, 1996). million was generated from sundry international education activi-
In the bid to internationalise, universities must make critical de- ties (Australian Bureau of Statistics, 2013).
cisions about their choice of an entry mode strategy. A university Pull or supply-related attributes such as a university’s reputa-
must take into account how students will perceive of its push/pull tion for high quality teaching, learning, student support services and
attributes (Alexander et al., 2009) and risk associated with inter- resources (Mavondo et al., 2004) are paramount to its success in
national study (Beneke, 2011) for their impacts on students’ attitude attracting international students. The onus is on universities to equip
(Quintal and Phau, 2014) and loyalty behavioural intention (Quintal students with discipline-specific knowledge, interpersonal skills and
et al., 2012) towards their university and campus. A university that credible qualifications (Chen and Zimitat, 2006) that enhance their
does not address the unique needs of its international student pop- contribution to society. Push or demand-related attributes such as
ulation in each campus runs the risk of leaving students “feeling the veracity of university degrees to open doors to employment
disappointed, unfulfilled, and even exploited” (Sherry et al., 2010, (McIlveen and Pensiero, 2008) and personal economic well-being
p. 34). Yet, no empirical study has examined differences in stu- (Duderstadt, 2000) are also crucial to students’ choice of an inter-
dents’ perceptions, attitude and loyalty behavioural intention towards national education.
their university that has utilised multi entry mode strategy. However, embracing the pathway to an international educa-
It is the area of student body internationalisation that “gives rise tion is fraught with risk (Beneke, 2011). From a student’s perspective,
to the perception that universities are beginning to mimic corpo- there is risk associated with: (1) finance; (2) performance/function;
rations in their orientation” (Healey, 2008, p. 334). According to the and (3) time loss. From a university’s perspective, there is risk in
managing: (1) different expertise of academics; (2) varying student
service levels; (3) condition of campus buildings and facilities; (4)
* Corresponding author. Tel.: +61 8 92664014; fax: +61 8 92663937. marketing efforts initiated by different faculties; and (5) behaviour
E-mail address: ian.phau@cbs.curtin.edu.au (I. Phau). of students and staff members (Beneke, 2011). Such issues are

http://dx.doi.org/10.1016/j.ausmj.2016.01.001
1441-3582/© 2016 Australian and New Zealand Marketing Academy. Published by Elsevier Ltd. All rights reserved.

Please cite this article in press as: Vanessa Quintal, Ian Phau, Comparing student loyalty behavioural intentions across multi entry mode deliveries: An Australian perspective, Aus-
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intensified in universities that have adopted varied export modes ing, licensing production, joint venture and sole venture (Fletcher
(Healey, 2008). Poor management of the international student body and Crawford, 2014). According to Healey (2008), generally, this se-
can severely impact on students’ perceptions, attitude and loyalty quencing coincides with the four stages of the Uppsala
behavioural intention towards their university (Quintal et al., 2012). internationalisation model. Consequently, in internationalising, one
While there is growing interest in research that explores the of the most critical decisions a university must make is its choice
student body internationalisation (e.g. Elkin et al., 2005; Healey, of entry mode strategy. This process is gradual, with universities
2008), there are gaps in the literature. First, there appears to be no moving from one stage to the next in accordance with the Uppsala
general consensus on what constitutes an international universi- internationalisation model as seen in Table 1. This paper exam-
ty. In fact, Elkin et al. (2005, p. 319) have observed that “there has ines the model’s applicability in evaluating entry mode strategy in
been no means of identifying or measuring what might be key vari- the context of international higher education.
ables in developing an “international” university.” Second, to the First, universities acquire market knowledge when they export
best of the authors’ knowledge, no empirical study exists which ex- higher education by enrolling international students in their home
amines differences in students’ perceptions that impact on their campuses. In services marketing literature, this is referred to as
attitude and loyalty behavioural intention across a university that “inward exporting” or importing customers as it brings interna-
has utilised multi entry mode strategy in its respective campuses. tional students to the universities’ home countries (Bianchi and
Third, whether the Uppsala model can be utilised to evaluate a un- Drennan, 2012). Currently, with over 60% of the world’s popula-
iversity’s respective entry mode strategies also remains unexplored. tion, Asia is the most important source of students for Australia, New
Although universities have committed policy and infrastructure Zealand and the United States (Healey, 2008).
towards internationalisation, how students view and respond to their Second, universities exhibit market commitment when they
university and respective campus has not been empirically estab- license/franchise higher education by sub-contracting a local pro-
lished. To address the research gaps, this paper examines one specific vider in another country to deliver a module or all of a university
Australian university that has adopted multi entry mode strategy degree programme (Healey, 2008). In the 1980s, Australian univer-
in its home and offshore campuses in Malaysia and Singapore. Thus, sities initiated arrangements with private colleges in Singapore and
this paper asks: Malaysia. Some of these arrangements included ‘1 + 2’ deals, during
which the first year of a three-year bachelor degree is delivered at
RQ1: Do students’ perceptions of their university’s push/pull and risk the college’s own premises, with students completing the rest of
attributes, attitude and loyalty behavioural intentions differ across their degrees at the university’s home campus. Subsequently, ar-
the university’s multi entry mode campuses? rangements included ‘2 + 1’ and ‘3 + 0’ models, the latter resulting
RQ2: Will students’ perceptions of their university’s push/pull and in a franchise of the entire degree at the college’s own premises.
risk attributes impact on their attitude and in turn, their loyalty The poor quality of private colleges, mostly established by profit-
behavioural intention towards the university across its multi entry making local companies, has roused critics to label the franchise
mode campuses? model as ‘McDonaldisation’ (Hayes and Wynyard, 2002).
RQ3: Can the Uppsala model be utilised to explain a university’s entry Third, universities demonstrate commitment decisions when they
mode strategies? establish joint ventures by setting up offshore facilities, referred to
as the ‘third wave’ of the Uppsala internationalisation process
2. Relevant literature (Mazzarol et al., 2003). Since national legislation on licensing of edu-
cational providers usually requires the involvement of a local partner,
2.1. Market entry modes joint ventures are the standard organisational form of the third wave
(Healey, 2008). Singapore and Malaysia have been recipients of the
The Uppsala internationalisation process model was intro- third wave between 1997 and 1998 respectively, with their gov-
duced by Jan Johanson and Vahlne (1977) and explains the ernments encouraging leading western universities to establish
characteristics of the internationalisation process encountered by branch campuses in both countries. In 2003, China followed suit with
a firm (Jan Johanson and Vahlne, 2009). The authors identify four its first joint-venture. The establishment of Australian campuses in
key tenets, namely, market knowledge, market commitment, com- Singapore, Malaysia and China (Norris, 2011) has enabled Austra-
mitment decisions and current activities. Firms handle the risks lian universities to tap into the “growing middle class, rapid
associated with internationalisation through an incremental decision- industrialisation and shortage of domestic tertiary places in these
making process, where information acquired through foreign countries” (Lebihan, 2012, p. 27).
investment in one stage is used in the next stage to take further steps. Finally, universities implement current activities when they un-
Through this incremental process, the firm is able to exert control dertake sole ventures by setting up wholly-owned campuses. In the
over its foreign venture and accumulate knowledge of conducting OECD, wholly-owned branch campuses exist in London and Paris.
business in foreign markets (Forsgren, 2002). However, these function as international study centres for visiting
As a firm begins to exert its control in a foreign market, it can students from the foreign (often the USA) university’s home campus
incrementally undergo four stages of market entry, namely, export- and are not part of any third wave of internationalisation by es-

Table 1
Uppsala internationalisation process in higher education entry mode context.

Authors Internationalisation process and entry mode

1st wave 2nd wave 3rd wave 4th wave

Jan Johanson and Vahlne (1977, 2009) Market knowledge Market commitment Commitment decisions Current activities
Fletcher and Crawford (2014) Exporting Licensing production Joint venture Sole venture
Bianchi and Drennan (2012), Healey Inward exporting Licensing programmes Joint venture Sole venture
(2008), Mazzarol et al. (2003)
Present study Inward exporting of international Licensing delivery of courses/ Joint venture with partners to Not applicable
students in home campus programmes in offshore campuses deliver courses/programmes in
offshore campuses

Please cite this article in press as: Vanessa Quintal, Ian Phau, Comparing student loyalty behavioural intentions across multi entry mode deliveries: An Australian perspective, Aus-
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tablished western universities (Healey, 2008). The author has pointed and health services (Douglas et al., 2006) are contributing influ-
out that legislation usually precludes sole ventures by foreign uni- ences in students’ university choice (Padlee et al., 2010). Technology
versities, citing the owned and operated University of New South also functions as a support to the core services of teaching and learn-
Wales’ campus in Singapore, which opened in 2007 (now closed), ing (Sinkovics et al., 2009), indirectly contributing to students’ overall
as a notable exception. impressions of a university. However, Quintal and Phau’s (2014) study
of offshore campuses in Malaysia and Singapore have observed that
funds and commitment towards developing facilities in these cam-
2.2. Push/pull factors puses often are limited, resulting in crowding and over-extended
resources. This has the potential of generating unfavourable atti-
Pull factors operate within a host institution to make that in- tude and loyalty behavioural intention towards the university and
stitution relatively attractive to international students (Mazzarol and its campus.
Soutar, 2002). The authors have identified key pull factors to include Push factors operate within a source country and initiate a st-
image, teaching, learning, student support services and resources. udent’s decision to undertake international study (Mazzarol and
A university’s image is the sum of opinions, ideas, and impres- Soutar, 2002). The authors have identified key push factors to include
sions that prospective students have of the institution (Kotler and opportunities for personal and professional development. Person-
Fox, 1995). It represents the overall impression that students have al development relates to the improvement of a student as a person
of a university (Alves and Raposo, 2010) and is an aggregate process (Clemes et al., 2007). Involvement in extra-curricular activities assists
by which the public compares the attributes of the university students in developing interpersonal and cognitive skills (Huang and
(Nguyen and LeBlanc, 2001). Mazzarol and Soutar (2002) have ob- Chang, 2004). Socialisation helps students to network and find part-
served that image is rated highly in determining international time jobs (Padlee et al., 2010). However, Odigbo’s (2013, p. 98) study
students’ university choice. More specifically, image acts as a pre- of international students in Malaysia has observed that they may
cursor of the internationalised learning environment in Malaysia not show interest in external curriculum as they may perceive that
(Fares et al., 2013) and Singapore (Quintal and Phau, 2014) for in- this does not in “anyway help to advance knowledge.” For these stu-
ternational students who have no initial direct experience with their dents, the main focus remains on acquiring discipline knowledge
university prior to commencing study. to secure employment.
Teaching is a core service of a university (Athiyaman, 2001) and Career development refers to a continuance of lifelong learn-
is central to a student’s university experience (Hill et al., 2003). Learn- ing (McIlveen and Pensiero, 2008) and pathways for progressing
ing, a teaching outcome, results in an enduring change in a student careers (Clemes et al., 2007). Students expect to develop work-
and consequently, how that student perceives the world and re- place competencies while studying at university and to receive
sponds to it (Alexander et al., 2009). Maringe and Carter (2007) have information about career opportunities upon their graduation (Joseph
noted that excellent teaching and learning environments are ranked and Joseph, 1997). Employment opportunities while studying
as the top three factors for African students’ choice of university (Abubakar et al., 2010) and international recognition of qualifica-
in the United Kingdom. Wei’s (2013, p. 110) empirical study of in- tions to secure jobs (Maringe and Carter, 2007) are key criteria in
ternational student mobility has observed that a “lower ‘student- driving students’ choice of an international education. Wei’s (2013)
teacher ratio’ is a positive factor as it indicates the abundance of study of international student mobility has proposed that stron-
faculty resource, and higher quality of education, which guaran- ger demand for labour (talent) and more favourable employment
tees more attention to the international students.” However, although policies in a host country attract a larger number of international
student participation in learning environments is popular in Western students. Conversely, the author has noted that a “larger amount
societies, it is not freely adopted in countries such as Malaysia where of domestic students represents a larger number of domestic gradu-
students are reticent about putting themselves forward (Odigbo, ates, thus affecting the job market for international talents” (Wei,
2013). Consequently, the author has called for “coordination and 2013, p. 110).
creation of reciprocal and positive association between students and
staff” (Odigbo, 2013, p. 98).
Student support services refer to academic and non-academic 2.3. Perceived risk
assistance provided to students (Gamage et al., 2008). In his study
of Japanese students, Hirano (2000) has identified four main areas Bauer (1960, p. 21) has observed that “consumer behaviour in-
of student support services: (1) economic (tuition fees, loans and volves risk in the sense that any action of a consumer will produce
scholarships); (2) physical (participation in sports and recreation consequences which he cannot anticipate with anything approxi-
to maintain health); (3) mental health (psychological and voca- mating certainty, and some of which at least are likely to be
tional aptitude support to raise consciousness towards employment); unpleasant.” Consequently, perceived risk is conceptualised as a sub-
and (4) habitual (access to information for job opportunities, fa- jectively determined expectation of a potential loss, in which some
cilities and student life). According to Sherry et al. (2010), measure of probability can be attached to each possible outcome
international students are frequently lonely in their new overseas (Stone and Gronhaug, 1993). An institution’s image is especially rel-
environment due to their lack of cultural/linguistic familiarity and evant for professional services (Hill and Neeley, 1988) such as in
social networks. The authors have highlighted the need for both higher education where the perceived risk of making an incorrect
social support and social connectedness in ensuring that interna- purchase decision is high. Since a university’s established reputa-
tional students succeed in their new environment. Consequently, tion can reduce perceived risk, a positive image can influence the
a receptive university and community environment is “one of the decision to choose the university (Bourke, 2000; Gutman and
key factors in the mental health of international students” (Sherry Miaoulis, 2003). Conversely, the risks associated with acquiring an
et al., 2010, p. 34). Further, Wei (2013, p. 110) has expressed concern education can inhibit university choice (Beneke, 2011). The author
for the attention paid to international students when there are spikes has identified three types of risk in terms of students’ subjective
in the enrolment rates of domestic students since these may impact expectations of probable loss. Financial risk refers to costs in-
on “possible negligence to international students.” curred to secure the higher education. Functional risk deals with
Facilities are physical evidence that add value to the student ex- whether the acquired education will fulfil personal and economic
perience (Paswan and Ganesh, 2009). The library, self-study areas, aspirations. Time risk involves opportunity costs in expending time
classrooms, car parks, layout, food outlets, recreational amenities while studying at the university.

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2.4. Loyalty behavioural intention 1978; Jacoby and Kyner, 1973). Adopting the perspective of
behavioural psychology and the hierarchy of effects model, it can
In consumer behaviour, loyalty is conceptualised in three ways be argued that students’ perceptions of pull factors will influence
(Jacoby and Chestnut, 1978). First, attitudinal loyalty refers to psy- their perceptions of push and risk factors associated with their uni-
chological commitment such as showing preference for a brand. versity. Such perceptions are formulated into beliefs about their
Second, behavioural loyalty refers to behaviour that exhibits com- university. These beliefs then have the potential to affect students’
mitment such as repeat purchasing or re-patronage of the brand. attitude and in turn, loyalty behavioural intention towards their uni-
The third perspective, which the majority of marketing research- versity. Each hypothesis in the research model seen in Fig. 1, and
ers subscribe to, is that loyalty is a composite of both an attitudinal relevant theory associated with it, is introduced and justified.
component (brand judgement, price consciousness and impulsive- Following behavioural psychology (Eagly and Chaiken, 1993) and
ness) and a behavioural component (repurchase intention) (Jacoby the hierarchy of effects model (Lavidge and Steiner, 1961), stu-
and Kyner, 1973). In consumer decision-making contexts, loyalty dents’ perceptions of a university’s reputable image, teaching,
behavioural intention is commonly viewed in terms of the learning, student support services and resources are likely to have
behavioural component, namely, re patronage and willingness to positive effects on their perceptions of personal development (Quintal
recommend (e.g. Ryu and Juang, 2009). This paper adopts this per- et al., 2012). Lizzio et al. (2002) have observed a positive impact of
spective by operationalising loyalty behavioural intention as students’ good teaching on personal development. Further, students who are
repurchase intention (desire to stay longer at their university) and more involved in academic study and who interact often with staff
willingness to recommend their university to others. achieve higher and more positive study outcomes (Astin, 1984). Ac-
In summary, this paper has three key objectives: (1) introduce cording to Hirano (2000), student support services that promote
a decision-making framework that can explain how perceptions of recreation and healthy lifestyles are also positive influencers of per-
the push/pull and risk attributes impact on students’ attitude and sonal development. Thus:
loyalty behaviour; (2) establish that scale items have measure-
ment invariance across a university’s multi entry mode campuses H1. Students’ favourable pull factor perceptions of: (a) image; (b) teach-
so as to compare student behaviour across these campuses; and (3) ing; (c) learning; (d) student support services; and (e) resources will
validate the use of the Uppsala model in evaluating a university’s have a positive effect on their personal development.
respective entry mode strategies. To achieve this, the relation-
ships between these constructs are examined across an Australian Similarly, a university’s image, teaching, learning, student support
university’s home and offshore campuses in Malaysia and Singapore. services and resources are likely to have positive effects on stu-
dents’ perceptions of career development (Quintal et al., 2012). In
3. Proposed model and hypotheses development a review of universities in the UK, Knight (2002) has observed that
universities are required to set teaching curriculum with learning
The research model in this study is underpinned by behavioural goals directly related to student employability. Additionally,
psychology (Eagly and Chaiken, 1993) and the hierarchy of effects Vermeulen and Schmidt (2008) has acknowledged the link between
model (Lavidge and Steiner, 1961) which theorise that belief → at- learning generic skills of competency at university and their ap-
titude → behaviour. These over-arching theories are further supported plication to work environments. Student support services that
by risk theory (Stone and Gronhaug, 1993), attitude theory (Fishbein provide employment information are also positive influencers of
and Ajzen, 1975) and loyalty behaviour theory (Jacoby and Chestnut, career development (Hirano, 2000). Thus:

Fig. 1. Research model and hypotheses.

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H2. Students’ favourable pull factor perceptions of: (a) image; (b) teach- H7. Students’ favourable expectations of career development at a uni-
ing; (c) learning; (d) student support services; and (e) resources will versity will have a positive effect on their attitude towards their
have a positive effect on their career development. university.

In consumer decision-making contexts, risk perception is viewed At the same time, students’ perceptions of risk associated with
in terms of subjective negative outcomes (Dholakia et al., 2004) and a university are likely to have an unfavourable effect on their atti-
probable loss (Stone and Gronhaug, 1993). Students’ perceptions of tude towards their university (Chen and Zimitat, 2006). Thus:
a university’s reputable image, teaching, learning, student support
services and resources are likely to have inverse relationships with H8. Students’ perceptions of: (a) financial risk; (b) functional risk; and
the financial, functional and time risks they associate with an in- (c) time risk will have a negative effect on their attitude towards their
stitution (Hill and Neeley, 1988). According to Beneke (2011, p. 35), university.
financial risk refers to “whether the student, accommodation and/
The hierarchy of effects model suggests that if an individual holds
or social activity fees are deemed to be worth the price tag.” Likewise,
a stronger belief about conducting a behaviour, a positive attitude
other researchers have reported that cost is an important factor in
towards the behaviour will develop, which results in higher
university selection (e.g., Chapman, 1993; Freeman, 1984; Shank
behavioural intention (Lavidge and Steiner, 1961). Students’ atti-
and Beasley, 1998) and parents of prospective students seek reas-
tude is linked to their loyalty behaviour (Chen and Zimitat, 2006).
surances to reduce this high financial risk (Krukowski, 1985). This
Mao and Oppewal (2010) and Quintal et al. (2012) have reported
has prompted Wei (2013) to conclude that generally, higher tuition
a positive relationship between students’ attitude and willingness
and living expenses will reduce the number of international stu-
to recommend their university. Similarly, Gruber et al. (2010) have
dents to a host country. Thus:
examined university students in Germany and reported that sat-
H3. Students’ favourable pull factor perceptions of: (a) image; (b) teach- isfied students are more willing to recommend their university.
ing; (c) learning; (d) student support services; and (e) resources will Finally, favourable attitude is likely to influence the willingness of
have a negative effect on their perceived financial risk. international students to engage in future participation at their uni-
versity (Brown and Mazzarol, 2009). Thus:
Beneke (2011, p. 35) has identified functional risk as “whether
the quality of the services of the institution meets the expectation H9. Students’ favourable attitude towards their university will have
of the student.” Universities are likely to utilise brand image to a positive effect on their willingness to recommend their university.
provide reassurance and reduce functional risk for potential stu-
dents (Beneke, 2011). In fact, Warwick and Mansfield’s (2003) study H10. Students’ favourable attitude towards their university will have
of perceived risk in college selection has identified college reputa- a positive effect on their willingness to engage in further study at their
tion and quality of staff to be important risk-reducing factors when university.
prospective students and their parents assess functional risk. Thus:
4. Methodology
H4. Students’ favourable pull factor perceptions of: (a) image; (b) teach-
ing; (c) learning; (d) student support services; and (e) resources will For the purpose of this study, a large university in Australia which
have a negative effect on their perceived functional risk. adopts a multi entry mode strategy was selected. The university’s
Beneke (2011, p. 36) has suggested that time risk refers to the 2011 enrolment comprised 21,000 local students and 13,000 in-
student’s inability to “easily transfer between institutions if the ternational onshore and offshore students. Its multi entry mode
chosen option is found to be undesirable.” Moreover, Cheng (2010) strategy of inward exporting, licensing/franchising and joint ven-
has observed that for adult students who participate at university, tures complements the first three stages of the Uppsala model. The
time risk is expressed as a probability as to whether it is worth- first stage, acquiring market knowledge via inward exporting, takes
while to expend time in this participation. Thus: place at the university’s home campus in Australia. The second stage,
exhibiting market commitment via licensing/franchising, exists in
H5. Students’ favourable pull factor perceptions of: (a) image; (b) teach- Malaysia where the university has had long-standing arrange-
ing; (c) learning; (d) student support services; and (e) resources will ments with private colleges. The third stage, demonstrating
have a negative effect on their perceived time risk. commitment decisions via joint ventures, occurs in Singapore where
the university, in partnership with a private company, provides
Attitude theory asserts that if an individual holds a strong belief degrees under the university’s own banner. Given legislation issues
about an object, a positive attitude towards the object will develop in offshore markets, the fourth stage, engaging in current activi-
(Fishbein and Ajzen, 1975). Students’ beliefs that a university’s in- ties via sole venture, was not explored.
ternational credentials will help shape their personal development A 10-minute online survey was self-administered to a conve-
are likely to have positive effects on their attitude towards their uni- nience sample of students who were undertaking a second-year
versity (Bianchi and Drennan, 2012; Gruber et al., 2010). Chen and international marketing unit at one of the university’s three cam-
Zimitat (2006) who have examined Taiwanese students’ choice of puses. These students were targeted since they already had adequate
Australian universities have identified personal development as a experience with their university. Students were requested to com-
key factor in influencing their attitude towards their university. Thus: plete the survey prior to attending a tutorial that examined Australia’s
H6. Students’ favourable expectations of personal development at a international marketing of higher education and market entry mode
university will have a positive effect on their attitude towards their theory. Students who participated in the survey and tutorial dis-
university. cussion received credit for their input which contributed to their
final grade.
Likewise, students’ expectations that a university’s internation- A total of 561 completed surveys were collected from the un-
al credentials will help in their career development are likely to have iversity’s campuses in Australia, Malaysia and Singapore between
positive effects on their attitude towards their university. Chen and September 2011 and April 2012. The sample comprised: (1) 199 in-
Zimitat (2006) have cited an improvement of job prospects and ternational students (36 per cent) at the university’s home campus
Gruber et al. (2010) the relevance of teaching to practice as criti- in Australia; (2) 51 students (9 per cent) at the university’s campus
cal in influencing students’ attitude towards their university. Thus: in Malaysia; and (3) 136 students (24 per cent) at the university’s

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campus in Singapore. Further, 175 local students (31 per cent) at Then, the 12 constructs were summed into composites and the
the university’s home campus in Australia acted as the control group four data sets examined with ANOVA using SPSS 22. As seen in
for the study. There is some support in the literature that local stu- Table 3, local students in Australia (control group) held the highest
dents demonstrate higher perceptions and attitude towards their image of their university (5.86), which was significantly different
university due to familiarity with their university, its campus and from the rest. This may be attributed to their local and sustained
surrounds (e.g. Quintal and Phau, 2014; Quintal et al., 2012). For knowledge of the university. All four groups had similar percep-
this reason, this sample acted as the control group for the mea- tions of teaching, suggesting consistency in the unit’s delivery. Similar
surement of the higher possible scores on each construct. Thus, and high average learning scores were recorded for international
scores from the control group served as a benchmark against which students in Australia, Malaysia and Singapore (5.46–5.67). Student
scores from the other samples could be compared. support services was ranked the highest by international students
The survey’s 73 items were adapted from existing scales that in Australia (5.48), which was significantly different from Malay-
demonstrated reliability (≥0.70) and contextual relevance. For in- sia and Singapore. Further, international students in Australia had
stance, scale items relating to image, teaching, learning, student significantly higher perceptions of resources (5.15) than Malaysia
support services and resources were adapted from Paswan and and Singapore. In both these countries, the smaller campuses, limited
Ganesh (2009) and Russell (2005); personal and career develop- student support services and fewer facilities may have contrib-
ment from Clemes et al. (2007); perceived financial, functional and uted to this result.
time risk from Laroche et al. (2004) and Mieres et al. (2006); as well All four groups had similar perceptions of personal and career
as attitude, willingness to recommend and willingness to engage development, suggesting consistency in the way students per-
in further study from Bagozzi et al. (2003). All survey items, with ceived the intrinsic and extrinsic values of their higher education.
the exception of the bipolar attitude scale, utilised a seven-point Similarly, all four groups held similar financial/functional risk per-
Likert-style scale anchored by strongly disagree (1) to strongly agree ceptions. Probably, this shared view of risk is attributed to the higher
(7). HECS for local students in Australia and the significant cost of an
international education in Malaysia and Singapore. Interestingly, local
students in Australia and international students in Malaysia cited
5. Analysis and results higher time risks (4.12 and 3.72 respectively), demonstrating an
urgency to finish studying, compared with international students
The total sample of 561 responses was randomly split into in Australia and Singapore.
two. First, exploratory factor analysis using a VARIMAX rotation Both local and international students in Australia demon-
with SPSS 22 examined the 73 scale items in the first split sample. strated more favourable attitude towards their university (5.72
This was conducted to reduce the number of items in the instru- and 5.59 respectively) than Malaysia and Singapore. Given Mala-
ment. As seen in Table 1, the final 12-factor solution, with 66 ysia’s lower scores for the majority of the push/pull factors, this
items, explained 71% of the variance with a KMO of 0.94 and a would account for their least favourable attitude towards the
Bartlett’s Test of Sphericity of 0.001. The 12 factors were identi- university (4.82). International students in Australia and Singa-
fied as: (1) personal development; (2) resources; (3) financial/ pore shared similar responses in their willingness to recommend
functional risk; (4) attitude; (5) student support services; (6) (5.41 and 5.17 respectively). Willingness to further their study
willingness to engage in further study; (7) teaching; (8) career was ranked the highest by local students in Australia (5.32),
development; (9) willingness to recommend; (10) time risk; (11) which was significantly different from the others since continued
image; and (12) learning. Financial and functional risk appeared residence in the country made the prospect of further study more
to demonstrate multi collinearity as they grouped under one feasible.
factor and consequently, were treated as one factor. Cronbach’s Finally, path analysis using AMOS 22 tested the hypothesised
alpha for the factors ranged from 0.82 to 0.94 and reliabilities did effects in the research model. Again, multi group analysis of the three
not increase if any scale item was deleted. This also suggested the samples that included local students in Australia (control group) as
factors had acceptable reliability and convergent validity. Then, well as international students in Australia and Singapore was con-
the 12 constructs were refined with confirmatory factor analysis ducted. As seen in Table 4, the goodness-of-fit indices were
using AMOS 22 with the second split sample. Through this process, acceptable across the three campuses (χ 2 /df ≤ 1.8; p ≤ 0.001;
the 66 items were refined and reduced to 42 items as seen by the RMSEA ≤ 0.04; CFI ≥ 0.93 and NFII ≥ 0.91).
bold items in Table 2. The university’s image and student support services had no
Next, the 12 constructs were tested for measurement invari- effects on students’ perception of personal development, which
ance using AMOS 22. This was achieved with multi group analysis did not support H1a and H1d. However, teaching and resources
of the three samples that included local students in Australia (control had significant positive effects on personal development for both
group) as well as international students in Australia and Singa- local (ß = 0.36; p = 0.01 and ß = 0.13; p = 0.05) and international
pore. Due to its small size (n = 51), the sample comprising (ß = 0.41; p = 0.001 and ß = 0.58; p = 0.001) students in Australia
international students in Malaysia was excluded. All 12 constructs respectively, supporting H1b and H1e. Further, learning had a
met the goodness-of-fit criteria (χ2/df ≤ 3.0; RMSEA ≤ 0.08; CFI ≥ 0.90 significant positive effect on local students in Australia (ß = 0.39;
and NFI ≥ 0.90), demonstrating configural invariance across the three p = 0.01) and international students in Singapore (ß = 0.71; p = 0.001),
samples. This suggested that the basic meaning and structure of each supporting H1c. The university’s image and learning had no effects
construct had equivalence cross-nationally. Moreover, there was good on students’ perception of career development, which did not
model fit for the two risk attributes (χ2/df ≤ 1.41; RMSEA ≤ 0.03; support H2a and H2c. However, teaching and resources had signif-
CFI ≥ 0.99 and NFI ≥ 0.98) as well as attitude, willingness to recom- icant positive effects on career development for local (ß = 0.32;
mend and willingness to engage in further study (χ2/df ≤ 1.82; p = 0.01 and ß = 0.17; p = 0.05) and international (ß = 0.14; p = 0.05
RMSEA ≤ 0.04; CFI ≥ 0.99 and NFI ≥ 0.97), suggesting metric invari- and ß = 0.56; p = 0.001) students in Australia and international
ance across the three samples. Also, the push-pull factors met the students in Singapore (ß = 0.33; p = 0.001 and ß = 0.38; p = 0.001)
goodness-of-fit criteria (χ2/df ≤ 1/91; RMSEA ≤ 0.04; CFI ≥ 0.94 and respectively, supporting H2b and H2e. Further, student support
NFI ≥ 0.89), demonstrating partial metric invariance across the three services had a significant positive effect on career development
samples. This suggested that it was possible to compare construct for local students in Australia (ß = 0.24; p = 0.01), supporting
means cross-nationally. H2d.

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Table 2
Rotated component matrix for the 66 items.

1 2 3 4 5 6 7 8 9 10 11 12

Factor 1: Personal development


Interact and relate better to people 0.80
Function as a member of the team 0.74
Acquire general education in different fields 0.73
Gain confidence and self-esteem 0.73
Understand people of other ethnic backgrounds 0.70
Develop a personal code of values and ethics 0.66
Handle difficult situations 0.64
Develop analytical and logical thinking 0.53
Create innovative solutions in my field of study 0.53
Achieve my own expected grades 0.51
Factor 2: Resources
Good range of retail outlets 0.76
Modern recreation centre 0.74
24-hour access to computer labs 0.71
Adequate computer terminals 0.71
Excellent physical layout 0.70
Diverse range of food outlets 0.69
Conducive natural surrounding 0.68
State-of-the-art computer labs 0.66
Factor 3: Financial risk
High expenses may not justify the investment 0.80
Worry if degree will provide expected benefits 0.80
Anxious if my university provides good education 0.80
Degree may not provide the anticipated rewards 0.77
Not sure whether I will get my money’s worth 0.77
Costs mean significant financial losses 0.74
My experience may not live up to expectation 0.71
Other ways of spending money than getting a degree 0.58
Factor 4: Attitude towards university
Dislike:Like 0.77
Unenjoyable:Enjoyable 0.76
Unfavourable:Favourable 0.76
Dissatisfied:Satisfied 0.75
Bad:Good 0.73
Bored:Excited 0.73
Factor 5: Student support services
Accessible support staff 0.82
Sympathetic and reassuring administration staff 0.80
Administration staff solve my problems promptly 0.78
Good contact hours of support staff 0.73
Support staff who are willing to help 0.72
Student advisors who provide in-depth information 0.67
Factor 6: Willingness to further study at university
Improbable:Probable 0.88
Unlikely:Likely 0.87
Impossible:Possible 0.84
Uncertain:Certain 0.80
Factor 7: Teaching
Lecturers/tutors with good sense of humour 0.73
Lecturers/tutors who are willing to help students 0.71
Lecturers/tutors who are easy to talk to 0.69
Lecturers/tutors with ability to impart knowledge 0.69
Knowledgeable lecturers/tutors 0.64
Factor 8: Career development
Undertake work experience while studying 0.79
Establish connections with industry members 0.78
Develop my own career opportunities 0.74
Write resumes and prepare for interviews 0.73
Factor 9: Willingness to recommend university
Encourage others to study at my university 0.74
Provide positive information to anyone 0.73
Recommend to anyone who seeks my advice 0.72
Positive things to other people 0.72
Factor 10: Time risk
Studying puts time pressures on my schedule 0.82
Insufficient time to enjoy all university experiences 0.80
Getting my degree may incur significant time loss 0.79
Study process may be inefficient use of my time 0.75
Factor 11: Image
Well ranked against other universities 0.74
Reputation for higher learning 0.71
Excellent overall image to the community 0.65
Distinction for fulfilling promises made to students 0.63
Factor 12: Learning
Adequate workload that stimulates learning 0.73
Relevant learning materials 0.68
Opportunity to participate in class discussions 0.59
Variance 9.55 8.20 8.05 7.07 6.73 5.51 5.10 4.69 4.42 4.36 4.07 3.17
Eigen values 20.91 5.72 3.91 3.16 2.20 2.16 1.89 1.66 1.50 1.33 1.23 1.15
Cronbach alpha 0.92 0.91 0.91 0.94 0.93 0.94 0.88 0.90 0.94 0.89 0.86 0.82

Note: Final 42 items after confirmatory factor analysis are shown in bold.

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Table 3 Image had a significant negative effect on financial/functional risk


ANOVA tests of student perception, attitude and behaviour across the university’s for local (ß = −0.25; p = 0.01) and international (ß = −0.37; p = 0.001)
campuses.
students in Australia and international students in Singapore
Attributes Local Exporting Licensing/ Joint (ß = −0.34; p = 0.001) respectively, supporting H3a. However, teach-
Australia International Franchising Venture
ing, learning, student support services and resources had no effects
N = 175 Australia Malaysia Singapore
N = 199 N = 51 N = 136 on financial/functional risk, which did not support H3b–e. Since the
functional risk construct shared high correlations with the finan-
Image 5.86 5.45a 5.38a 5.29a
(0.78) (0.89) (0.88) (1.01)
cial risk construct and was treated as one factor, H4a–e and H8b
Teaching 5.77a 5.69a 5.46a 5.74a were not tested. Image, learning student support services and re-
(0.71) (0.80) (0.82) (0.89) sources had no effects on time risk, which did not support H5a, H5c,
Learning 5.84a 5.67ab 5.46b 5.58ab H5d and H5e. However, teaching had a significant negative effect
(0.74) (0.80) (0.77) (0.87)
on time risk for international students in Australia (ß = −0.36;
Student support 5.18a 5.48a 4.64b 4.64b
services (1.00) (0.90) (1.35) (1.40) p = 0.001) and Singapore (ß = −0.23; p = 0.01), supporting H5b.
Resources 5.21a 5.15a 3.47 4.16 Both personal and career development had significant positive
(1.09) (1.06) (1.52) (1.35) effects on attitude for local (ß = 0.47; p = 0.001 and ß = 0.20; p = 0.01)
Personal 5.53a 5.53a 5.19a 5.51a and international (ß = 0.49; p = 0.001 and ß = 0.14; p = 0.05) stu-
development (0.86) (0.86) (1.00) (0.86)
Career 5.04a 5.11a 4.64a 4.79a
dents in Australia and international students in Singapore (ß = 0.40;
development (1.23) (1.08) (1.24) (1.39) p = 0.001 and ß = 0.33; p = 0.001) respectively, supporting H6 and
Financial/ 4.06a 4.33a 4.29a 4.44a H7. Financial/functional risk had a significant negative effect on at-
functional risk (1.37) (1.33) (1.22) (1.20) titude for both local (ß = −0.14; p = 0.05) and international (ß = −0.24;
Time risk 4.12a 3.64b 3.72ab 3.46b
p = 0.01) students in Australia, supporting H8a, whereas time risk
(1.59) (1.43) (1.35) (1.44)
Attitude 5.72a 5.59a 4.82b 5.22b had a significant negative effect on attitude for only international
(1.07) (1.00) (1.41) (1.06) students in Australia (ß = −0.19; p = 0.05), supporting H8c. Finally,
Willingness to 5.73a 5.41ab 4.67c 5.17bc attitude had a positive effect on willingness to recommend and will-
recommend (1.02) (1.04) (1.24) (1.22) ingness to engage in further study for local (ß = 0.70; p = 0.001 and
Willingness to 5.32 4.69a 4.21a 4.48a
further study (1.39) (1.42) (1.82) (1.53)
ß = 0.64; p = 0.001) and international (ß = 0.64; p = 0.001 and ß = 0.39;
p = 0.001) students in Australia and international students in Sin-
Note: Standard deviations are shown in parentheses. Means that share the same su-
gapore (ß = 0.71; p = 0.001 and ß = 0.59; p = 0.001) respectively,
perscript letter are not significantly different from one another (p < 0.05) using
independent groups t-tests. supporting H9 and H10.

Table 4
Path analysis to test hypothesised relationships across the university’s campuses.

Regressed relationship Local Australia Exporting International Australia Joint Venture Singapore
Beta Value (β) Beta Value (β) Beta Value (β)

H1a Image → personal development ns ns ns


H1b Teaching → personal development 0.36** 0.41*** ns
H1c Learning → personal development 0.39** ns 0.71***
H1d Services → personal development ns ns ns
H1e Resources→ personal development 0.13* 0.58*** ns
H2a Image → career development ns ns ns
H2b Teaching → career development 0.32** 0.14* 0.33***
H2c Learning → career development ns ns ns
H2d Services → career development 0.24** ns ns
H2e Resources→ career development 0.17* 0.56*** 0.38***
H3a Image → financial risk −0.25** −0.37*** −0.34***
H3b Teaching → financial risk ns ns ns
H3c Learning → financial risk ns ns ns
H3d Services → financial risk ns ns ns
H3e Resources → financial risk ns ns ns
H4 Pull factors → functional risk na na na
H5a Image → time risk ns ns ns
H5b Teaching → time risk ns −0.36*** −0.23**
H5c Learning → time risk ns ns ns
H5d Services → time risk ns ns ns
H5e Resources → time risk ns ns ns
H6 Personal development → attitude 0.47*** 0.49*** 0.40***
H7 Career development → attitude 0.20** 0.14* 0.33***
H8a Financial risk → attitude −0.14* −0.24** ns
H8b Functional risk → attitude na na na
H8c Time risk → attitude ns −0.19* ns
H9 Attitude → willingness to recommend 0.70*** 0.64*** 0.71***
H10 Attitude → willingness to further study 0.64*** 0.39*** 0.59***
Chi square 1765.84
df 981.00
p-value 0.001
RMSEA 0.04
CFI 0.93
NFI 0.91

Note: ns = not significant; na = not applicable; RMSEA = root mean square error of approximation; CFI = comparative fit index; TLI = Tucker–Lewis Index; IFI = incremental fit
index.
* p < 0.05, **p < 0.01, ***p < 0.001.

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6. Discussion and concluding comments membership at the Audiological Society of Australia and employ-
ment prospects for audiologists are high in Australia and overseas
This paper introduced an empirical decision-making frame- (http://www.studyat.uwa.edu.au/courses/master-of-clinical-audiology).
work that examined students’ perceptions of the push/pull and risk Across all three groups, favourable attitude produced signifi-
attributes for their impacts on attitude and loyalty behaviour across cant positive impacts on willingness to recommend and willingness
their university’s multi entry mode campuses. Scale items for the to engage in further study. Further, the average scores for willing-
12 constructs demonstrated configural and partial metric invari- ness to recommend remained high (5.17–5.73) and willingness to
ance, enabling comparisons of students’ behaviour at the Australian further study were moderate to high (4.48–5.32), with no signifi-
university’s home and offshore campuses in Malaysia and Singa- cant differences between international students in Australia and
pore. Findings validated the Uppsala model’s use in explaining the Singapore. This suggests that Australian universities in the first stage
university’s respective entry mode strategies. of the Uppsala model should capitalise on their inward exporting
Across all three groups, image had a significant negative impact strategy. However, this time, instead of acquiring market knowl-
on financial/functional risk. Further, the average scores for image edge, universities should attempt to disseminate knowledge to
remained high (5.29–5.86), with the control group being signifi- offshore markets via their international alumni. Clearly, these stu-
cantly higher. Additionally, the average scores for financial/functional dents are in the unique position of experiencing the main campus
risk were moderate (4.06–4.44), with no significant differences first hand and returning as ambassadors to convey their experi-
between all three groups. This suggests that the university’s ence to others in their home country.
favourable image provides some justification for the financial/ The study has several limitations. First, the sample size for data
functional costs incurred in securing the higher education. Clearly, collected in Malaysia was small due to the expiring contractual ar-
this validates the first and second stages of the Uppsala model which rangements there. This made it difficult to test the hypothesised
suggest that universities must first learn, before they can commit effects in multi group analysis and limited the conclusions drawn
to implementing risk-reducing initiatives in offshore markets. Such for international students in Malaysia. Second, to give the study focus,
initiatives include positioning themselves as providers of a quality only three risk factors were considered. However, Beneke (2011)
and value-for-money education that alleviate risk. identifies a further three factors associated with tertiary students,
For international students in Australia and Singapore, teaching namely, psychological, social and physical risk that may potential-
had a significant negative impact on time risk. Further, the average ly impact on student behaviour and these require consideration.
scores for teaching remained high (5.69–5.74), with no significant Third, only one unit offered by the university was examined across
differences between the two groups. Universities in the second and the data sets. While this ensures some consistency in the research
third stages of the Uppsala model that are engaged in demonstrat- focus, students’ responses to other units could help to generalise
ing their commitment and decisiveness in offshore markets should the findings.
take note. Since a degree is an investment in time and money, in- Several challenges lie ahead for Australian universities. First is
ternational students expect good teaching standards to get through the delivery of programmes at their home and offshore campuses.
this process within a stipulated time. In 2014, The Times Higher Education Reputation Rankings listed only
Across all three groups, teaching and resources had a signifi- five Australian universities in the top 100 compared to six in 2013
cant positive impact on career development. Further, both local and (The Commonwealth of Australia, 2014). This decline although small,
international students in Australia cited teaching and resources as signals the need for the industry to refocus on its quality so that it
a significant positive influence on personal development. Addition- can compete effectively in the marketplace. Australia’s higher ed-
ally, the average scores for resources were moderate to high (4.16– ucation system is underpinned by the Tertiary Education Quality
5.21), with Singapore being significantly lower. Similarly, there were and Standards Agency (TEQSA). In line with the industry’s need to
markedly lower average scores of student support services in Sin- refocus, TEQSA has been tasked to step up on its quality assurance
gapore (4.64) where students did not perceive such services to be activities of accreditation from now to 2018 (The Commonwealth
helpful towards their personal and career development. Evidently, of Australia, 2014).
this validates the third stage of the Uppsala model which suggests Second, the next generation learners are profiled as being mobile,
that universities must show decisiveness in offshore markets. Where placing less emphasis on physical attendance and face-to-face com-
a joint venture partnership is in place, it is critical for universities munication and instead, accessing learning resources at their own
to conduct regular audits and initiate dialogue with their partners place and time (Daniel et al., 2009). Issues of equity and quality in
to address budgets for upgrading learning platforms and student delivery require careful consideration. Universities must make de-
support services. cisions now that will impact on their investments in teaching and
Personal and career development had significant positive impacts learning platforms for the next generation learners. Identifying new
on attitude towards the university in all three groups. Further, the technologies that enable universities to interface with existing and
average scores for personal development remained high (5.51– prospective students could provide the competitive edge for uni-
5.53) and career development were moderate to high (4.79–5.11), versities aiming to stay ahead.
with no significant differences between the three groups. Addition- Third, has the strong Australian dollar made the USA and the UK
ally, the average scores for attitude remained high (5.22–5.72), with more attractive to international students? The swing away from Aus-
the Singapore group being significantly lower. Interestingly, both tralian universities is reflected in its 12.4 per cent decrease in
financial/functional and time risks had significant negative impacts education export earnings in 2011 (Australian Bureau of Statistics,
on attitude for international students in Australia, possibly, exac- 2012). If universities intend to maintain their export entry mode
erbated by the strong Australian dollar at the time the data were strategy, they will need to add value to what they offer to interna-
collected. Some evidence of this may be gleaned from the continu- tional students at their home campuses. A good start would be to
ing decline in Australia’s international education sector between 2010 give students opportunity for work and defray the high cost of their
and 2012 (Australian Bureau of Statistics, 2013). Given the current education. Recent legislation has granted unlimited work rights to
climate, Australian universities in the first stage of the Uppsala model student visa holders who have commenced their postgraduate re-
should consider value-adding by increasing industry engagement search in Australia (Australia Department of Immigration and
in their curriculum. For instance, the University of Western Austr- Citizenship, 2012). While this is a good start, other opportunities
alia’s Master of Clinical Audiology course is one of only five university to add value to the international education require further
audiology programmes in Australia. Graduates are eligible for full consideration.

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