The Impact of Quality on Satisfaction, Revenue, and Cost as Perceived by Providers of Higher Education

Abstract

Researchers have found a strong relationship between improvements in quality and satisfaction, revenue, and cost. However, no study to date investigates the same for higher education. This study investigates whether institutions of higher education have implemented quality improvement programs, and if so, if the results are similar to what has been observed with firms in the private sector. The study proposes and tests five hypotheses, and findings support four of the five hypotheses, with partial support for the fifth hypothesis. The study finds that implementing quality programs leads to an increase in satisfaction among constituent groups, increase in revenue, and a reduction in costs. The findings also show that increased satisfaction (due to improved quality) also leads to increase in revenue and reduction in costs.

KEYWORDS:

• quality
• satisfaction
• revenue
• cost
• higher education