FACTORS AFFECTING STUDENT DECISIONS TO STUDY AT ASIA-PACIFIC INTERNATIONAL UNIVERSITY By SAJAPORN SANKHAM An Independent Study Submitted in Partial Fulfillment of the Requirements For the Master of Business Administration in Management Faculty of Business Administration Asia-Pacific International University 2015
ii Independent Study Title: Factors Affecting Student Decisions to Study at Asia-Pacific International University Author: Sajaporn Sankham Independent Study Supervisor: Dr Wayne A. Hamra Program: Master of Business Administration Academic Year: 2015 ABSTRACT The main objectives of the research were to study the factors affecting student decisions to study at Asia-Pacific International University (AIU), to explore the relationships between personal factors, service marketing mix factors and decision making behavior. The samples were 178 first year undergraduate students who enrolled in one of the six Faculties of AIU in the 2013/2014 academic year. The research instrument was Data was questionnaire. Statistics used for data analysis included descriptive statistics, T-test, F-test, and multiple regression analysis. The results found that: 1. Most respondents were female, Buddhist, received high school cumulative grade point average (CGPA) of 3.00 or higher, came from families with between 15,001 to 20,000 Baht of monthly incomes, and enrolled in the Faculty of Arts and Humanities. Most of them learnt about AIU from their parents/relatives. The first three ranking reasons which most strongly affected their decisions to study at AIU were their siblings or relatives have studied at AIU, quality of curriculum, and reputation of the University. 2. The service marketing mix factors with a high level of influence were product (curriculum), people (faculty and staff), physical evidence (facilities), and process (service).
iii 3. Gender, religion, high school CGPA, and parental monthly incomes did not have a statistically significant affect on the decision to study at AIU at a level of 0.05. Field of study exhibited a statistically significant influence on decisions at a level of 0.05. When differences were analyzed using Scheffe’s method, no item was found to have a statistically significant level of 0.05. 4. No statistically significant relationship was found between gender, parental monthly incomes and the service marketing mix factors. The different in religion, high school CGPA, and field of study had a statistically significant affect the service marketing mix factors at the 0.05 level. When differences were analyzed using Scheffe’s method, the results were not statistically significant at the 0.05 level. 5. The service marketing mix factors affected decisions making behavior at a statistically significant level of 0.05. The largest affected factors were physical evidence (facilities), product (curriculum), process (service), pricing (tuition fees), and place (location). The factors explained 77.4 percent of the variability of the study. The regression equation predicting the decision is as follows: Y = 0.173+0.314X1+0.250X2+0.201X3+0.121X4+0.087X5 Zr = 0.360Z1+.0235Z2+0.230Z3+0.122Z4+0.101Z5 KEY WORDS: SERVICE MARKETING MIX, DECISION MAKING BEHAVIOR, ASIA-PACIFIC INTERNATIONAL UNIVERSITY
iv ACKNOWLEDGEMENTS This study was completed with assistance from a lot of people whom I would like to thank. Firstly, I would like to express my deep gratitude to my advisor, Dr Wayne Hamra, and my co-advisor, Damrong Sattayawaksakul, who have been patient, provided guidance, and advised. Secondly, I would like to thank my editor, Mr. Daron Loo. Thirdly, I would like to thank my friend, Assistant Professor Wanlee Putsom who has analyzed the data for me. Fourthly, three experts verified the quality of the questionnaire. Fifthly, I would like to thank all first year undergraduate students for the 2013/2014 academic year, who responded to the questionnaire. Lastly, I would like to thank my family and friends for their support during this study work.
v TABLE OF CONTENTS ABSTRACT........................................................................................................................ ii ACKNOWLEDGEMENTS............................................................................................... iv TABLE OF CONTENTS.....................................................................................................v INDEX OF TABLES....................................................................................................... viii INDEX OF FIGURES .........................................................................................................x CHAPTER 1 INTRODUCTION .......................................................................................1 1.1 The Origin and Significance of the Problem ....................................................... 1 1.2 Problem Discussion ............................................................................................. 5 1.3 Purpose................................................................................................................. 6 1.4 Scope of Study ..................................................................................................... 6 1.4.1 Content..................................................................................................... 6 1.4.2 Population and Sample ............................................................................ 7 1.4.3 Variables.................................................................................................. 7 1.5 Theoretical Framework........................................................................................ 8 1.6 Importance of Study............................................................................................. 9 CHAPTER 2 THEORETICAL AND LITERATURE REVIEW....................................10 2.1 Service Marketing Mix Theory.......................................................................... 10 2.2 Decision Making................................................................................................ 14 2.2.1 The Definition of Decision Making....................................................... 14 2.2.2 Concepts of Decision Making................................................................ 15 2.2.3 Stages of Decision Making .................................................................... 16 2.3 Consumer Buying Decision Process.................................................................. 16
vi 2.4 Asia-Pacific International University ................................................................ 19 2.5 Related Research................................................................................................ 22 2.5.1 Public Universities................................................................................. 22 2.5.2 Rajabhat Universities............................................................................. 23 2.5.3 Private Universities................................................................................ 25 CHAPTER 3 METHODOLOGY ....................................................................................29 3.1 Research Approach ............................................................................................ 29 3.2 Population and Sample ...................................................................................... 29 3.3 Methodology...................................................................................................... 31 3.3.1 Instrument .............................................................................................. 31 3.3.2 Instrument Testing ................................................................................. 33 3.4 Data Analysis..................................................................................................... 34 CHAPTER 4 RESULTS OF STUDY..............................................................................36 4.1 Results of Data Collection ................................................................................. 36 4.2 Overview of Data Results.................................................................................. 37 4.2.1 Overview of Personal Information......................................................... 37 4.2.2 Overview of Service Marketing Mix Factors Affecting Decision Making Behavior .................................................................... 42 4.2.3 Overview of Decision Making Behavior............................................... 49 4.3 Results of Data Analysis.................................................................................... 53 4.3.1 Differences between Personal Factors and Decision Making Behavior .................................................................... 53 4.3.2 Differences between Personal Factors and the Service Marketing Mix Factors........................................................ 57 CHAPTER 5 CONCLUSION AND DISCUSSION .......................................................66 5.1 Summary of Results........................................................................................... 67 5.2 Discussion of Results......................................................................................... 69
vii 5.3 Suggestions........................................................................................................ 71 5.3.1 Suggestions for This Study .................................................................... 71 5.3.2 Suggestions for Next Study ................................................................... 74 BIBLIOGRAPHY..............................................................................................................75 APPENDICISE .................................................................................................................79 APPENDIC A ..............................................................................................................80 APPENDIC B ..............................................................................................................88 APPENDIC C ..............................................................................................................90
viii INDEX OF TABLES Table Number Page 1.1 New Enrollment Number from 2009 to 2013 ...........................................................5 2.1 Factors Affecting Student Decsions to Study at University .................................. 28 3.1 Number of Population and Sample Size for Each Faculty..................................... 31 4.1 Questionnaires Returned by Facuty ....................................................................... 36 4.2 Gender of Respondents .......................................................................................... 37 4.3 Religion of Respondents ........................................................................................ 38 4.4 High School CGPA of Respondents ...................................................................... 38 4.5 Parental Monthly Incomes of Respondents............................................................ 39 4.6 Field of Study of Respondents ............................................................................... 40 4.7 Channels by which Respondents Learn about AIU................................................ 40 4.8 Reason Most Affected Student Decisions to Study at AIU.................................... 41 4.9 Effect of Product (Curriculum) on Enrolment Decision ........................................ 42 4.10 Effect of Pricing (Tuition Fees) on Enrolment Decision ....................................... 43 4.11 Effect of Place (Location) on Enrolment Decision ................................................ 44 4.12 Effect of Promotion (Advertising) on Enrolment Decision ................................... 45 4.13 Effect of People (Faculty and Staff) on Enrolment Decision................................. 45 4.14 Effect of Process (Service) on Enrolment Decision............................................... 46 4.15 Effect of Physical Evidence (Facilities) on Enrolment Decision ........................... 47 4.16 Effect of All Factors on Enrolment Decision......................................................... 48 4.17 Search of Alternatives Step ................................................................................... 49
ix 4.18 Eveluation before Decision Making Step .............................................................. 50 4.19 Decision Making Step .......................................................................................... 51 4.20 Eveluation after Decision Making Step.................................................................. 52 4.21 All Steps of Decision Making ............................................................................... 53 4.22 Gender and Decision Making Behavior ................................................................. 54 4.23 Religion and Decision Making Behavior ............................................................... 54 4.24 High School CGPA and Decision Making Behavior............................................. 55 4.25 Parental Monthly Incomes and Decision Making Behavior .................................. 56 4.26 Field of Study and Decision Making Behavior...................................................... 56 4.27 Gender and the Service Marketing Mix Factors .................................................... 57 4.28 Religion and the Service Marketing Mix Factors .................................................. 58 4.29 High School CGPA and the Service Marketing Mix Factors ................................ 59 4.30 Parental Monthly Incomes and the Service Marketing Mix Factors...................... 60 4.31 Field of Study and the Service Marketing Mix Factors ......................................... 61 4.32 The Service Marketing Mix Factors and Decision Making Behavior.................... 62
x INDEX OF FIGURES Figures Number Page 1.1 Theoretical Framework...............................................................................................8 2.1 Service Marketing Mix .............................................................................................10 2.2 How to Use the Service Marketing Mix ...................................................................11 2.3 Five Stages of Consumer Buying Decision Process.................................................17
1 CHAPTER 1 INTRODUCTION 1.1 The Origin and Significance of the Problem Education is a vital foundation for creative progress and problem resolution in a society. Education is a process that enables people to develop themselves in various fields, as well as helping to lay the foundation necessary to further develop these fields. The development of life since birth relies on both formal and informal education. This ongoing process of being educated will help people realize their potential and capabilities, which in turn will benefit their lives at both a personal and professional level. Having a good education will also create a sustainable resource in all developed and developing countries. All in all, education aims to improve human quality, maximize human capability and potential, and develop a balanced mind and body that will encourage intellectual and social growth that will foster and strengthen economic growth and social development of the nation. Considering all these, development is certainly a key outcome for the education sector. The success of a developing country relies on several factors. One significant factor is the quality of the population. This means that population of the country must be developed in all aspects whether economic, social or health security. Successful development of each of the mentioned element depends on education, which is an
2 important underlying factor in the development. Reflecting on the Nation’s Economic and Social Development focus on the development of educational pillars, we cannot deny that education is important and necessary in developing countries. Education for students, no matter what level, refers to the development of intelligence and building of the wisdom of the students to help them to think critically, to reason, and be able to put that knowledge to good use. In the case of tertiary students, education will pave the way to lifelong learning and will be in touch with current trends in world development. Higher education is the ultimate key in the production of manpower and new knowledge. Students are the most valuable resource in developing countries because higher education is changing the boundaries between childhood and youth, to move toward adulthood and make a significant contribution to society and the nation. Higher Educationalso known as tertiary educationis a phase of learning that takes place at universities, colleges, or institutes. It possesses all the characteristics of a service business because education is “people based” (Mazzarol, 1998). Higher education institutions in Thailand are significant entities that can influence the development of the country radically. This creates a competitive education climate to meet with the expectations of society and the labor market. As a result, higher education institutions need to be developed more in order to be accepted by society, to play a role in improving the lives of people in the country, and to produce graduates who have potential in line with the needs of the labor market. In today’s modern competitive environment, the success of higher education institutions in acquiring students depends on the capability of an institution to recognize the needs of the educational market. To succeed in the higher
3 education market, institutions should consider ways to make themselves more competitive players in the global education market. Institutions as marketers have to understand consumer behavior and examine factors that a student considers when making a decision to study in a higher education institution. According to the Thailand Office of Higher Education Commission (OHEC), in 2013, there were 171 recognized universities in the country that offered a variety of disciplines in their undergraduate programs. The growing number in the higher education sector has generated competition among universities, especially in terms of student recruitment. It is crucial for universities to be able to identify factors that influence students in deciding their university choice. Previous studies have identified student perceptions regarding studying abroad, but the current literature does not focus much on why students choose one university over another. Therefore, exploring factors that affecting student decisions to choose an institution is an important research endeavor. Asia-Pacific International University (AIU) is a private university that is owned and operated by the Southeast Asia Union Mission of the Seventh-day Adventist Church (SAUM), which is a non-profit religious organization that aims to foster medical, religious and other community development. AIU emphasizes harmonious, holistic development in all the dimensions of life. Virtue must precede learning, so that knowledge, skills, and technology will be wisely, conscientiously, and responsibly used in the service of society. At present, AIU has six Faculties considering of:
4 1. Faculty of Arts and Humanities offering only undergraduate studies Bachelor of Arts in English Language (International Program) Bachelor of Arts in English (Thai Program) 2. Faculty of Business Administration offering undergraduate and graduate studies Bachelor of Business Administration (International Program) Bachelor of Business Administration in Accounting (Thai Program) Bachelor of Business Administration in Management (Thai Program) Master of Business Administration (International Program) 3. Faculty of Education and Psychology offering undergraduate and graduate studies Bachelor of Arts in Education and Psychology (International Program) Master of Education (International Program) 4. Mission Faculty of Nursing offering only undergraduate study Bachelor of Nursing Science (Thai Program) 5. Faculty of Religious Studies offering only undergraduate studies Bachelor of Arts in Christian Studies (International Program) Bachelor of Arts in Christian Studies (Thai Program) 6. Faculty of Science offering only undergraduate study Bachelor of Science in Bio-Science (International Program)
5 The researcher observed that the annual number of new students enrolling has experienced only a small increase. From 2009 to 2013, the new enrolment number at AIU increased progressively from 279 to 319. Table 1.1 New Enrolment Number from the 2009 to 2013 2009 2010 2011 2012 2013 International Program 110 100 138 131 123 Thai Program 169 188 150 163 196 Total 279 288 288 294 319 Source: Office of Admissions and Records, AIU There are several factors that affect student decisions to choose an institution. The researcher explored factors affecting decision-making of first year undergraduate students for the 2013/2014 academic year to study a bachelor’s degree at AIU. The results of this study may be used to develop university marketing strategies, improve quality of curricula, and increase management efficiency. 1.2 Problem Discussion In order to attain a competitive advantage, higher education management needs to set up a way to highlight its strengths and give good options to students. This can be achieved by using a marketing framework which is derived from a Service Marketing Mix theory and Consumer Buying Decision Process. Service Marketing Mix theory is recommended for the service sector; product, pricing, place, promotion, people, process, and physical evidence. The decision making process focuses on identifying factors involved in the decision process itself.
6 Factors that affect student decisions to study at the university were identified from several studies. Although there were numerous factors that affect students’ decisions when selecting a university, these factors may have a different level of importance for each student at AIU. This will enable the university to formulate better policy and recruitment strategies for attracting students. 1.3 Purpose The purpose of this study was to investigate the factors affecting the decisions of undergraduate students who enrolled during the first and second semesters of the 2013/2014 academic year to study at AIU. This study was guided by the following research questions: 1) How do personal factors such as gender, religion, high school Cumulative Grade Point Average (CGPA), parental monthly incomes, field of study, and university recognition affect student decisions to study at AIU? 2) How do service marketing mix factors such as product, pricing, place, promotion, people, process, and physical evidence affect student decisions to study at AIU? 1.4 Scope of Study 1.4.1 Content This study examined personal factors, service marketing mix factors, and the consumer buying decision process. The personal factors consisted of gender, religion, high school Cumulative Grade Point Average (CGPA), parental monthly income, field of
7 study, and university recognition. The service marketing mix factors consisted of 7Ps as product (curriculum), pricing (tuition fees), place (location), promotion (advertising), people (faculty and staff), process (service), and physical evidence (facilities). The consumer buying decision process focused on student performance after enrolled at AIU. 1.4.2 Population and Sample The population was 319 first year undergraduate students for 2013/2014 academic year at AIU from six faculties for both International and Thai programs. This study was conducted at the undergraduate level only. The sample was 178 first year undergraduate students for 2013/2014 academic year at AIU from six faculties for both International and Thai Programs by using a convenience sampling method. 1.4.3 Variables This study had two types of variables; independent variables and a dependent variable. The Independent variables were divided into two factors. Personal factors consisting of gender, religion, high school Cumulative Grade Point Average (CGPA), parental monthly incomes, field of study, and university recognition. Service Marketing Mix factors including product, pricing, place, promotion, people, process, and physical evidence
8 The Dependent variable was the customer buying decision process including search alternatives, evaluation before decision making, making decision, and evaluation after decision making. 1.5 Theoretical Framework Based on personal factors consists service marketing mix theories and consumer buying decision process, conceptual frameworks to identified factors that affecting student decisions to study at Asia-Pacific International University were developed. Figure 1.1 Theoretical Frameworks Independent Variables Dependent Variable Demographic Factors Gender, Religion, High school CGPA, Parental monthly incomes, Field of study, and University Recognition Decision to Study at AIU Search of Alternatives, Evaluation before decision making, Making decision, and Evaluation after decision making Service Marketing Mix Factors Product (Curriculum), Pricing (Tuition Fees), Place (Location), Promotion (Advertising), People (Faculty and Staff), Process (Service), and Physical Evidence (Facilities)
9 1.6 Importance of Study 1. The results will show which factors affect the decision of first year undergraduate students for the 2013/2014 academic year to study at AIU. 2. The results can be used to develop university strategies and management efficiency. 3. Each faculty can use the results to develop the quality of curricula, quality of faculty members, and effective methods to support the student decisions in the next academic year. 4. The results can serve as guidelines for the Marketing Department to develop its recruitment policy. 5. The results are informative regarding student opinions about the curricula which are offered by the university. 6. The results can be used for those who are involved in the admissions process to improve admissions policy.
10 CHAPTER 2 THEORETICAL AND LITERATURE REVIEW This chapter reviews the literature, theory, and related research. 2.1 Service Marketing Mix Theory Marketing is not new in the education sector. According to Kotler, Hayes and Bloom (2011), the service marketing mix is also known as an extended marketing mix and is an integral part of a service blueprint design. The service marketing mix consists of 7Ps as compared to the 4Ps of a product marketing mix. Simply said, the service marketing mix assumes the service as a product itself. However it adds three more Ps which is required for optimum service delivery (see Figure 2.1). In addition, Hanlon (2013) has explained how to use the 7Ps service marketing mix (see Figure 2.2). Figure 2.1 Service Marketing Mix Source: Service Marketing Mix. (Kotler, Hayes and Bloom, 2011)
11 Figure 2.2 How to Use the Service Marketing Mix Source: How to Use the 7Ps of the Marketing Mix (Hanlon, 2013) 2.1.1. Product. The product is intangible in nature unlike physical products. At the same time service products are heterogeneous and perishable. Moreover, its production and consumption are inseparable though there is scope for customizing the offering as per customer requirements. However, too much customization would compromise the standard delivery of service and adversely affect its quality (Kotler, Hayes and Bloom, 2011). In this study, the product referred to curricula which help institutions to stand firm under the competitive pressure among universities. Information that can be gained from a curriculum are the quality of curriculum, opportunity to study abroad at the graduate level, ability to transfer to other universities, knowledge gained that can be adapted to work, courses which meet a personal requirement, and variety of extra curricular activities such as fieldtrips and workplace practical experience.
12 2.1.2 Pricing. Pricing of services is tougher than pricing of products, and the final price for the service is arrived at by including a markup for an adequate profit margin (Tracy, 2004). In this study, the pricing referred to tuition fees, which includes details about whether AIU’s tuition fees are more expensive or cheaper than other universities, variety and convenience of payment methods, financial information, cost of living while studying at AIU, government loans or other scholarship subsidy, and extra programs to help during study. 2.1.3. Place. Place in the case of services means where the service is located. Service providers should give special consideration to where the service would be provided (Hanlon, 2013). In this study, the place referred to the university location. Location includes the question of whether or not AIU is near students’ hometowns and how convenient it is to travel 2.1.4. Promotion. Promotions have become a critical factor in the service marketing mix. Promotion includes all the ways you tell your customers about your products or services, and how you then market and sell to them (Tracy, 2004). In this study, the promotion referred to advertising, which means AIU’s brochures, website, and banners provide clear information, and the different forms of advertising that AIU used.
13 2.1.5. People. According to Hanlon (2013), a person is a factor in a service delivery process and customer service training has become a top priority for many organizations today. Thus, many companies nowadays are involved in getting their staff specially trained in interpersonal skills and customer service with a focus towards customer satisfaction (Tracy, 2004). In this study, the people referred to faculty and staff of AIU, who have skills and abilities to do the job. AIU Faculty and staff have a good reputation, come from a variety of nations, have recognized research, have teaching experience, and understand student problems and are willing to give advice. 2.1.6. Process. Service process is the way in which a service is delivered to the end customer. It ensures that the standard of service is the same for all customers (Kar, 2011). The delivery of service is usually done with the customer present, so how the service is delivered is once again part of what the consumer is paying for. In this study, the process referred to university processes by which higher education institutions should maintain an excellent service process for their students. The data of the interest are the admissions process, quality of entrance exam, quality of service, and counseling program. 2.1.7. Physical Evidence. The service sector is intangible in nature, and most service providers strive to incorporate certain tangible elements into their offer to enhance customer experience (Kotler, Hayes and Bloom, 2011).
14 In this study, the physical evidence referred to university facilities. This section will give information about buildings, classrooms, laboratories, cafeteria, dormitories, and library in terms of quality and number of facilities which AIU provided for students. 2.2 Decision Making 2.2.1 The Definition of Decision Making Decision-making can be regarded as the cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities. Every decision-making process produces a final choice that may or may not prompt action. Decision-making is the study of identifying and choosing alternatives based on the values and preferences of the decision maker. According to Business Dictionary, decision making is the thought process of selecting a logical choice from the available options. When trying to make a good decision, a person must weigh the positives and negatives of each option, and consider all the alternatives. For effective decision making, a person must be able to forecast the outcome of each option as well, and based on all these items, determine which option is the best for that particular situation. Decision making is the process of choosing between alternate courses of action. Decision making may take place at an individual or organizational level. The process may involve establishing objectives, gathering relevant information, identifying
15 alternatives, setting criteria for the decision, and selecting the best option. The nature of the decision-making process within an organization is influenced by its culture and structure, and a number of theoretical models have been developed (QFINANCE, 2009). 2.2.2 Concepts of Decision Making According to Harris (2012), there are eight concepts of decision making. First, information is knowledge about the decision, the effects of its alternatives, the probability of each alternative, and so forth. Second, alternatives are the possibilities one has to choose from, and alternatives can be identified or even developed. Third, criteria are the characteristics or requirements that each alternative must possess to a greater or lesser extent. Fourth, goals mean what is it you want to accomplish. A component of goal identification should be included in every instance of decision analysis. Fifth, value refers to how desirable a particular outcome is, the value of the alternative, whether in dollars, satisfaction, or other benefit. Sixth, preferences reflect the philosophy and moral hierarchy of the decision maker. Some people prefer excitement to calmness, certainty to risk, efficiency to aesthetics, quality to quantity, and so on. Seventh, decision quality is a rating of whether a decision is good or bad. A good decision is a logical one based on the available information and reflecting the preferences of the decision maker. And eighth, acceptance is a critical factor because it occasionally conflicts with one of the quality criteria. In such cases, the best thing to do may be to choose a lesser quality solution that has greater acceptance.
16 2.2.3 Stages of Decision Making Harris (2012) has explained the six stages of decision making. First, identify the decision to be made together with the goals it should achieve, which determine the scope and limitations of the decision. When thinking about the decision, be sure to include a clarification of goals. Second, get as many facts as possible about a decision within the limits of time imposed on ability to process them, but remember that virtually every decision must be made in partial ignorance. A decision based on partial knowledge is usually better than not making the decision when a decision is really needed. Third, develop alternatives by making a list of all the possible choices. Not choosing one of the options is in itself a decision. Fourth, rate each alternative, or evaluate of the value of each alternative. Remember that the best alternative may be an obvious choice. Fifth, rate the risk of each alternative; they can be rated as percentages, ratios, rankings, grades, or in any other form that allows them to be compared. Sixth, make the decision by choosing the path to follow, whether it includes one of the alternatives, is a multiple decision, or is the decision to choose none. One important item often overlooked in implementation is that when explaining the decision to those involved in carrying it out, or to those who will be affected by it, don't just list the projected benefits. 2.3 Consumer Buying Decision Process According to Reighley (2010): “The marketing is responsible for selling the goods in the marketing. The way that consumers make their buying decision we need to know. The consumer buying decision process helps to understand how effectively marketing and
17 how should manage the checkout and post purchase relationship to engage online customer at each point in the buying process”. Ravikumar (2011) explained about Consumer Buying Decision Process that people decide whether to buy a product or not (see Figure 2.3). Figure 2.3 Five Stages of Consumer Buying Decision Process Source: Consumer Buying Decision Process. (Ravikumar, 2011) 2.3.1. Need recognition. According to Ravikumar (2011), need recognition is the first and most important step in the buying process. This recognition happens when there is a lag between the consumer’s actual situation and the ideal and desired one. However, not all the needs end up as a buying behavior. It requires that the lag between the two situations is quite important. In addition to a need resulting from a new element, the gap between the actual situation and the ideal situation may be due to three cases. The current situation has not changed, but the ideal situation has because a neighbor told you
18 about a new possibility, or the ideal situation is still the same, but the actual situation has changed. The recognition of a need by a consumer can be caused in different ways. 2.3.2. Information Search. Consumers search for information about products either from family, friends, neighbors, advertisements, wholesalers, retailers, dealers, or by examining or using a product. Perreau (2010) said that information may be found from two sources; internal information, which is already present in the consumer’s memory and comes from previous experiences with products or services, and external information, which is information received from and obtained by friends or family, by reviews from other consumers or from the press. In this study, the information search hopes to get information about how students find out information about AIU, and recommendations from parents or friends. 2.3.3. Evaluation of Alternatives. Once the information is collected, the consumer will be able to evaluate the different alternatives that offer, evaluate the most suitable to their needs and choose the one that they think it’s best for them (Ravikumar, 2011). The consumers evaluate the purchase options based on the technical specifications, product attributes, and personal factors like brand preference, personal experience, testing/sampling (Perreau, 2010). This step in this study needs to get information about which factors students consider such as university reputation, building, facilities, teaching quality, curriculum quality, and advantages and disadvantages of AIU. 2.3.4. Purchase Decision. After evaluating the alternatives, buyers buy suitable products, but there are also the chances to postpone the purchase decision due to
19 some reasons. The decision will depend on the information and the selection made in the previous step based on the perceived value, product features, and capabilities that are important to them (Perreau, 2010). This step in this study needs to get information about how students make decision. 2.3.5. Post Purchase Behavior. Depending on Ravikumar (2011), after buying the product, consumers will either be satisfied or dissatisfied. If consumers are not satisfied, they will be otherwise disappointed. If consumers are satisfied, they may also be delighted. This step in this study needs to get information about satisfaction of students after studying at AIU about topics such as teaching quality, curriculum quality, facilities, and activities that AIU provided. 2.4 Asia-Pacific International University According to the Asia-Pacific International University 2013/2015 Academic Bulletin (2014), the history of the AIU is as follows: “Asia-Pacific International University represents a union of three Institutions: Southeast Asia Union College, Singapore (roots to 1905), Bangkok Sanirarium and Hospital School of Nursing (roots to 1941), and Mission College, Muak Lek, Saraburi (established 1990). Southeast Asia Union College (SAUC) commenced as a small school in 1905 which quickly became a training school. It adopted the name Singapore Training School (1915). In 1958, college status had been achieved and the college began offering fully accredited American degree programs through an affiliation with Walla Walla College, Washington, USA in 1984. By the mid 1990s, the College’s offerings had grown to include Business Administration, Computer Information Systems, Office Administration, Religion, and the Teaching of English as a Second Language. In 1996, further development of the Serangoon
20 Road campus was suspended when the Singapore Government announced its intention to expropriate the College property for a major urban transport development project. By July 1998, all college activities ceased in Singapore and moveable assets were either sold or transferred to Muak Lek, Thailand. The first attempts to initiate a School of Nursing in Bangkok occurred in 1941 in connection with establishment of the Bangkok Mission Clinic. The outbreak of hostilities in the Southeast Asia region during World War II, however, led to the evacuation of overseas medical personnel after a few months and the project was suspended. In 1947 the School of Nursing was reopened on the Bangkok Sanitarium and Hospital compound on Pitsanulok Road. The School grew and by 1986, a four-year tertiary level baccalaureate degree was offered in Nursing Science. College status was achieved in the same year. By 2008, the School had graduated over 1,000 nurses. In 1990 a branch campus of Mission College in Bangkok was opened in Muak Lek, Saraburi in order to train Thai Adventist youth. The institution incorporated the Thailand Adventist Seminary, which for some years had been providing a non-accredited ministerial training program. Academically sound four-year degree curricula in Accounting, Management and English language were approved by the Ministry of University Affairs in 1993. The campus celebrated its first graduation in 1994. A new international institution based at Muak Lek was constructed after it was certain the College in Singapore would close. The new institution combined the quality of the international programs of Southeast Asia Union College, while retaining and developing the Thai programs operated by Mission College, Muak Lek, and became responsible for continuing the nursing program in Bangkok. In January 1997, the development of the new facilities and academic programs commenced with much urgency. The first new degree following an international type curriculum received government approval in early 1999, and by early 2001 the college was able to offer eight additional international majors officially approved by the Ministry of University Affairs. By July 2002, the last of the building developments and the extensive campus landscaping work had been completed. The new institution gradually attracted more and more foreign students. This success was recognized in 2005 on receipt of the Prime Minister’s Export Award. University status was achieved on June 30, 2009 and the name of Mission College was changed to Asia-Pacific International University.
21 The vision statement of Asia-Pacific International University is to be a leading, international academic community dedicated to learning, teaching, and research that affirms human potential, cultivate moral sensitivity, and nurtures character development. Students are prepared for lives of joyful and selfless service to others and equipped with essential knowledge, skills, and an attitude of hopeful optimism. The educational philosophy is to embrace harmonious holistic development in all the dimensions of life. Virtue must precede learning, so that knowledge, skills, and technology will be wisely, conscientiously, and responsibly used in the service of science. All programs of study offered at Asia-Pacific International University and the courses that comprise them are nationally approved and accredited by the Ministry of Education of the government of Thailand. The courses are also thus approved and recognized by the Civil Service Commission of the government of Thailand. This means that graduates are approved for employment by the Thai government. Professional recognition is granted by the Thailand Nursing Council for the Bachelor of Nursing Science program and by the Association of Certified Practicing Accountants for the accounting major in the Bachelor of Business program (Thai medium). The quality assurance program at the University involves personnel and processes, both internal and external to the institution. The University is implementing two qualities assurance systems as required by the Ministry of Education in Thailand. The Internal Quality Assurance (IQA) system was introduced by the Office of the Higher Education Commission (OHEC) to focus on self-assessment and continuous improvement processes. The IQA focuses on education inputs and processes and is comprised of three elements: quality control, quality audit and quality assessment. The External Quality Assurance (EQA) is a system established by the Office of National Educational Standards and Quality Assessment (ONESQA) focusing on education achievements, outcomes and outputs. Asia-Pacific International University offers both International and Thai Programs. Asia-Pacific also has a specialized program in English as a Second Language offered as a pre-admission English Studies program. This program is offered in five levels and prepares students for the University English Proficiency Examination or for the equivalent International Examination for English Language Testing System (IELTS)”.
22 2.5 Related Research The related research has been divided into three groups according to the type of institution; Public Universities, Rajabhat Universities, and Private Universities. The Public Universities mean universities that are predominantly funded by the government. The Rajabhat Universities, which originally consisted of the teachers colleges, were collectively elevated to university status in 2004. The Private Universities are universities not operated by the government. 2.5.1 Public Universities Jittraporn Changthong (2009) studied how enrolment decision making related to personal factors, marking mix factors, and decision characteristics to study in the undergraduate level at Rajamangala University of Technology Thanyaburi. The results found that the faculty of study, residential region, and parent average monthly income affected the decision. Educational level and faculty of study affected the marketing mix factors that were correlated with the decision. Cholada Sittigonsommanat (2005) studied and compared the motivation and behavior in choosing further study at the undergraduate level at Chulalongkorn University. Individual factors were examined such as gender, field of study, academic status, parental income and occupation. Motivational factors were consisted of physiological needs, safety and security needs, love and belonging needs, self-esteem needs, and self-actualization needs. The results revealed that the most important motivational factors were self-esteem needs, which were linked to university reputation
23 and quality of faculty members, and safety and security needs, which referred to how easy it was to get a job after graduation and have an opportunity to work with a reputable organization. The correlation between individual factors and motivational factors found self-esteem needs and self-actualization needs affected female decisions in choosing further study more than those of males. Physiological needs, safety and security needs, and self-esteem needs affected decisions in choosing further study of different fields of study. 2.5.2 Rajabhat Universities Suntaree Songmueang (2011) compared service marketing factors with the personal data in choosing to study at Faculty of Business Administration of Ratchaphruek College. The results found that the highly important factors were price and people. The price factor included payment plans for registration fees, appropriate level of tuition and fees, and inexpensive personal expenses such as accommodation and travel. The people factor included highly qualified and reputable teachers, good attention to students, and office staff with good relationship skills who are polite and provide good service as well. The relationship between service marketing mix factors with personal data found that product and process factors affected students who graduated from private high schools more than students who graduated from public high schools. Somchai Lahnamwong (2009) investigated the factors affecting application decisions to the five-year B.Ed program at the Faculty of Education, Chiangrai Rajabhat University. The personal factors included parental occupations, educational backgrounds,
24 and monthly incomes. The study found that the factor most affecting enrolment decision was career expectations because professional teachers can easily find work. Kittipon Kitayanurak (2008) investigated factors affecting student decisions to study public administration at Uttaradit Rajabhat University, and compared the opinions of regular students and weekend students regarding factors affecting the decision. The studied factors included the university image, curricula, lecturers, instructional aids and materials, welfare and service public relations, and educational values of students and parent. The results found that all factors affected student decisions at a high level except welfare and service factors, which had a moderate effect. Atcharee Pimpibun (2007) studied the components of motivation of first year undergraduate students at Ubonratchathani Rajabhat University enrolling in the 2008 academic year. Motivational factors were personal development reasons, university reputation, university environment, persons of influence, and public relations respectively. The results found that the most significant factor was personal development reasons because knowledge was considered important to human development, helping students to live in society, and have a variety of careers after graduation. Janjira Boonlue (2007) studied factors affecting decision-making of students at Phetchaburi Rajabhat University and compared the decision factors in selecting each major. The results showed factors affecting decision-making of students were stability and progress in the career, institution reputation, aptitude, and interest in the field of
25 study. Comparing opinions on factors affecting decision-making found that students in all field of study had no difference in their opinions. Phatchariya Srisod (2005) studied factors affecting motivation of first year undergraduate students for the 2005 academic year in choosing to study at Phetchabun Rajabhat University, and compared the variables that affected motivation in choosing to study at university. The results showed that the most significant factors were personal reasons such as student desires to study near their hometowns, interesting programs of study, and tuition fees cheaper than other universities. The study found that gender, location, field of study, achievement in high school, and parent occupation and income had no significant affect on motivation. Kingkaew Jingrak (2004) studied the motivation of first year undergraduate students in choosing to study at Chankasame Rajabhat University. The results showed that the most significant factors affecting motivation were personal reasons because knowledge was considered important to human development, as was offering a variety of careers after graduation. Institutional issues mentioned included case of travel to and from classes, societal recognition, qualified teachers, modern facilities, and tuition fees cheaper than other universities. 2.5.3 Private Universities Narain Kaewyai (2012) investigated motivational factors and the variables governing each factor with respect to undergraduates at Southeast Bangkok College. Findings were four factors motivated the undergraduates to engage in further study. The
26 most significant factor was the value of education because education fosters a higher level of self-confidence that is necessary for a stable occupation in the future. Chettana Suk-anake (2009) studied the level of importance of marketing mix factors that first year students use in choosing to study in private universities, and the relationship between the marketing mix factors. The hypothesis testing found that the most important factor used by first year students is the diversity and modernization of the curriculum. Other factors were a convenient location (easy to apply), the overall reputation of the university, and caring teachers. The hypothesis testing about the relationship between the personal factors and the marketing mix factors found that female students focused on provision of advanced learning equipment more than male students. Loren Agrey and Nalton Lampadan (2014) were interested in discovering what factors are important when choosing a university. All respondents were high school students who had just enrolled for the first time at a private university. The results found that five factors emerged as being those that significantly influenced decision making regarding which institution of higher learning to attend. These included support systemsboth physical and non-physical, learning environment and job prospects, good sporting facilities, a strong student life program and activities, and a safe and friendly environment. Learning environment and job prospects ranked at the top, reflecting the importance of elements such as a modern campus, up-to-date computer laboratories, well-stocked libraries, and degree programs which lead to good job prospects upon completion. The second highest factors were student life and activities, as students seek
27 appropriate accommodation and a variety of extra-curricular activities. The third strongest factor was support systemsboth physical and non-physicalwhich meant a book store, guidance, counseling office, scholarships, and transferability of credits. The fourth and fifth factors were a safe and friendly environment, along with sporting facilities. Phitsamai Thongthaing (2006) examined the factors affecting decisions of students at Bangkok University to study at the Bachelor Degree level. The results found that the factor most influencing decision was field of study. In addition, the analysis found that gender influenced the decisions because the fields of study at present are subjects that are more attractive to female students more than to males. According to the related research, the factors affecting student decisions to study at university are shown in Table 2.1. The most significant factor for all types of universities was curricular programs of study. This study will focus on the results of Private Universities because AIU is a private university in Thailand. Factors affecting student decisions to study at Private University were job prospects, learning environment, university location, public relations, recognition by society, reputation of the university, safe and friendly environment, strong student life program and activities, support systemsboth physical and non physicaland value of education.
28 Table 2.1 Factors Affecting Student Decisions to Study at University Universities Personal Factors Service Marketing Mix Factors Gender Religion High School CGPA Parental monthly incomes Field of study Product (Curriculum) Pricing (Tuition fees) Place (Location) Promotion (Advertising) People (Faculty and Staff) Process (Service) Physical evidence (Facilities) Public - Jittraporn (2009) - Cholada (2004) Rajabhat - Suntaree (2004) - Somchai (2005) - Kittipon (2008) - Atcharee (2007) - Janjira (2007) - Phatchariya (2005) - Kingkaew (2004) Private - Narain (2012) - Chettana (2009) - Loren and Nalton (2014) - Phitsamai (2006) The results of this study may be the same or different from the results of related research as outlined in Table 2.2. However, the factors affecting student decisions to study at AIU are not well understood yet, so this study is classified as new information for the University. The results can be used to improve and develop the University in the future.
29 CHAPTER 3 METHODOLOGY The study of ‘Factors Affecting Student decisions to Study at Asia-Pacific International University’ is a quantitative research study. This chapter outlines the research approaches and methods of analysis. 3.1 Research Approach Due to the nature of the research questions, a quantitative approach was chosen. This method helped to have a deeper understanding of the research area through a systematic experimental investigation via statistical techniques. To support the research, Consumer Buying Decision Process was selected along with the Service Marketing Mix Theory. This study has been completed in accordance with the descriptive analytical approach, in order to give the ranking of the factors affecting student decisions to study at Asia-Pacific International University according to the importance of each factor. 3.2 Population and Sample The sample of this study was first year undergraduate students for the 2013/2014 academic year, while the study population consisted of 319 students from six faculties.
30 The sample was first year undergraduate students for the 2013/2014 academic year. The calculation of the sample size to represent the population used the formula of Taro Yamane, whereas the 95 percent confidence level and P = 0.05 were assumed. (Cholada Sittigonsommanat, 2005). A simplified formula to calculate sample size is: Where n is the sample size, N is the population size, and e is the level of precision. The calculation result is as follows: The samples used in this study were 178 people, distributed among six faculties by means of convenience sampling. The researcher attended the freshmen class meeting and collected data with the questionnaire. It was not specified whether or not the questionnaire was kept away from anyone, or distributed to students by accident. The number of the population and sample size for each faculty were shown as Table 3.1.
31 Table 3.1 Number of Population and Sample Size for Each Faculty Faculty Number Sample size Percentage Arts and Humanities 139 78 44 Business Administration 43 23 13 Education and Psychology 32 18 10 Nursing 90 50 28 Religious Studies 5 4 2 Science 10 5 3 TOTAL 319 178 100 3.3 Methodology 3.3.1 Instrument The research instrument used was a questionnaire to test factors affecting student decisions to study at Asia-Pacific International University. This questionnaire is composed of three parts: Part I: Personal Information. This part gave information about personal factors such as gender, religion, high school Cumulative Grade Point Average (CGPA), parental monthly incomes, field of study, and university recognition. Part II: Factors affecting the decision to study at AIU. This part was divided into seven aspects followed the service marketing mix factors with 55 questions.
32 - Product (Curriculum) 9 questions - Pricing (Tuition Fees) 8 questions - Place (Location) 5 questions - Promotion (Advertising) 4 questions - People (Faculty and Staff) 5 questions - Process (Service) 10 questions - Physical Evidence (Facilities) 14 questions TOTAL 55 questions Questions in this part used a 5-level Likert rating scale, which were divided into the following ranges: - 5 means the effect on decision was ‘Very high’ - 4 means the effect on decision was ‘High’ - 3 means the effect on decision was ‘Medium’ - 2 means the effect on decision was ‘Low’ - 1 means the effect on decision was ‘Very low’ Part III: Decision Making Behavior. This part was divided into the four steps of the consumer buying decision with 20 questions. - Search Alternative 5 questions - Evaluation before making decision 5 questions - Decision making 5 questions - Evaluation after making decision 5 questions TOTAL 20 questions
33 Questions in this part used a 5-level Likert rating scale, which were divided into five levels of the significance to the decision. - 5 means the significance was ‘Very high’ - 4 means the significance was ‘High’ - 3 means the significance was ‘Medium’ - 2 means the significance was ‘Low’ - 1 means the significance was ‘Very low’ 3.3.2 Instrument Testing 1) The researcher studied the theories and related research on factors affecting the decision to choose the university to create a questionnaire. 2) The questionnaire was reviewed by the researcher’s advisor and co-advisor who checked the content validity such as cover contents of the study, accuracy of measurement, and appropriateness of the language. After being checked, the researcher made appropriate modifications and corrections to the questionnaire. 3) The revised questionnaire was given to three experts to check the consistency with an Index of Item Objective Congruence (IOC). If the IOC score was 0.50 or above, it means the question was used for collecting data. The three experts for this study were: - Dr Loren G Agrey, University President of AIU - Mr. Nalton Lampadan, Education Lecturer of AIU - Assistant Professor Wanlee Putsom, Marketing Lecturer of AIU
34 The results of the IOC found that all questions had scores more than 0.50, which meant that the question was considered suitable for collecting data (see Appendix A). 4) A pilot test of the questionnaire was conducted with 30 AIU students who were enrolled in the second year of 2013/2014 academic year. The question’s reliability was analyzed by Cronbach’s Alpha Coefficient Test, which showed that the confidence value was equal to 0.98, which was considered suitable for collecting data (see Appendix B). 5) The mean and standard deviation of each question was tested with a t-test analysis with a significance level of 0.05. 3.4 Data Analysis This study utilized a computer software package to conduct the data analysis. The following statistics were used to analyze the data: 1) The relevant of the personal factors and the service marketing mix factors were analyzed by descriptive statistics such as raw frequencies and percentages. 2) The difference between each of the personal factors and the service marketing mix factors and the difference between each of the personal factors and the decision making behavior were analyzed by T-test and F-test analysis. If factors remained different, it was analyzed by the way of Scheffe’s method. 3) A multiple regressions analysis was used to analyze the relationship between the service marketing mix and the decision making behavior.
35 For this study, a 5-level Likert rating scale was incorporated into the instrument to explore the factors impact on the decisions and significance to decision behavior: - Average score of 4.51 to 5.00 means the effect on the decision and significance to decision behavior was ‘Very High’ - Average score of 3.51 to 4.50 means the effect on the decision and significance to decision behavior was ‘High’ - Average score of 2.51 to 3.50 means the effect on the decision and significance to decision behavior was ‘Medium - Average score of 1.51 to 2.50 means the effect on the decision and significance to decision behavior was ‘Low’ - Average score of 1.00 to 1.50 means the effect on the decision and significance to decision behavior was ‘Very Low’
36 CHAPTER 4 RESULTS OF STUDY This chapter has reviews and analyzes the results of the study. The researcher analyzed data and the presented the tabular form. 4.1 Results of Data Collection Questionnaires were collected from firstyear undergraduate students enrolling in the 2013/2014 academic year, as shown in Table 4.1. Table 4.1 Questionnaires Returned by Faculty Faculty Sample Size Returned Percentage Arts and Humanities 78 76 45.2 Business Administration 23 21 12.5 Education and Psychology 18 16 9.5 Nursing 50 48 28.6 Religious Studies 4 3 1.8 Science 5 4 2.4 TOTAL 178 168 100.0 According to Table 4.1, data were collected from 178 firstyear undergraduate students enrolling in the 2013/2014 academic year. Of the 168 returned questionnaires, 76 were Arts and Humanities representing 45 percent of the total, 21 were
37 Business Administration representing 13 percent of the total, 16 were Education and Psychology representing 10 percent of the total, 48 were Nursing representing 28 percent of the total, 3 were Religious Studies representing 2 percent of the total, and 4 Science representing 2 percent of the total. When checking the validity of the questionnaires, 156 were completes; 8 respondents did not answer all the questions, and 4 respondents chose more than two answers to the same question. 4.2 Overview of Data Results 4.2.1 Overview of Personal Information The personal information of the first year undergraduate students for the 2013/2014 academic year regarding gender, religion, high school CGPA, parental monthly incomes, field of study, and university recognition is shown in tables below. Table 4.2 Gender of Respondents Gender Number Percentage Male 36 23.1 Female 120 76.9 TOTAL 156 100.0 Table 4.2 shows the number and percentage of respondents by gender. Most respondents were female with 120 students (76.9 percent), while there were 36 male respondents (23.1 percent).
38 Table 4.3 Religion of Respondents Religion Number Percentage Buddhist 77 49.4 Christian 24 15.4 Muslim 0 - SDA 55 35.2 Other 0 - TOTAL 156 100.0 Table 4.3 shows the number and percentage of respondents by religion. Most respondents were Buddhists students 77 with (45.5 percent). Second were 55 SDA students with (35.2 percent). Last were 24 Christian students (15.4 percent). No respondent was Muslim or an others religion. Table 4.4 High School CGPA of Respondents High School CGPA Number Percentage Less than 1.50 0 - 1.51 – 1.99 0 - 2.00 – 2.49 20 12.8 2.50 – 2.99 49 31.4 3.00 and above 87 55.8 TOTAL 156 100.0
39 Table 4.4 shows the number and percentage of respondents by high school CGPA. Most of respondents were 87 students (55.8 percent) who received 3.00 and above of high school CGPA. Second were 49 students (31.4 percent) who received 2.50 to 2.99 of high school CGPA, and the least were 20 students (12.8 percent) who received 2.00 to 2.29 of high school CGPA. No respondent received high school CGPA less than 2.00. Table 4.5 Parental Monthly Incomes of Respondents Parental Monthly Incomes Number Percentage Less than 5,000 25 16.0 5,001 – 10,000 38 24.4 10,001 – 15,000 37 23.7 15,001 – 20,000 47 30.1 20,001 and above 9 5.8 TOTAL 156 100.0 Table 4.5 shows the number and percentage of respondents by parental monthly incomes. The most of respondents were 47 students (30.1 percent) who parents’ received 15,001 to 20,000 baht. Second were 38 students (24.4 percent) who parents’ received 5,001 to 10,000 baht. Third were 37 students (23.7 percent) who parents’ received 10,001 to 15,000 baht. Forth were 25 students (16.0 percent) who parents’ received less than 5,000 baht, and the least were 9 students (5.8 percent) who parents’ received 20,001 baht and above.
40 Table 4.6 Field of Study of Respondents Field of Study Number Percentage Arts and Humanities 70 44.9 Business Administration 18 11.5 Education and Psychology 16 10.3 Nursing 45 28.8 Religious Studies 3 1.9 Science 4 2.6 TOTAL 156 100.0 Table 4.6 shows the number and percentage of respondents by field of study. Most of respondents were 70 Arts and Humanities students (44.9 percent), 45 Nursing students (28.8 percent), 18 Business Administration students (11.5 percent), 16 Education and Psychology students (10.3 percent), 4 Science students (2.6 percent), and 3 Religious Studies students (1.9 percent). Table 4.7 Channels Learn about AIU by which Respondents How to learn about AIU Number Percentage Parents/Relatives 87 55.8 AIU Alumni 63 40.4 AIU Current Students 40 25.6 Friend 38 24.4 AIU Website 38 24.4 Church Pastor 33 21.2 AIU Faculty and Staff 30 19.2 Brochure 19 12.2 Visiting 8 5.1 Exhibition 9 5.8