Building Purchase Decision towards Private Higher Education through Perceived Value and Institution Image

Abstract

The objective of this research is to formulate a conceptual model for study program selection at private universities (purchase decision),which shall be based on consumer confidence (consumer trust) observed on the basis of consumer perceptions of perceived value (customer perceived value) and the image of the institution (institution mage) in Kopertis area III Jakarta.This research intends to prove the findings of the study previously conducted by Litten (1980); Yost and Tucker (1995); Petruzellis and Romanazzi (2010) that "Purchase" Decision made in accordance with Consumer confidence is determined by the image of service provider. This hypothesis is made based on the model developed by Anderson and Norus (1990) and also from Cubillo et al (2006: 102) who states that trust is built based on the perceived value received by the consumer and the image of the service provider. This study applies causality-explanatory approach. The method of data collection will be in the form of survey. This study uses primary data in the form of perceptions, opinions, and attitudes of parents, students, and other stakeholders as individual research subject. Regarding time dimension, this is a one shot study. The researchers analyze the data by using path analysis to produce a model which is able to represent the theory. The results of this study indicate that the decision to choose a course in Private Higher Education Institution in Jabodetabek must be based on direct and indirect Image and Perceived Value. Whereas customers’ confidence towards education providers plays a role as a mediation to make course selection decision in private higher education institution, particularly for parents who are considering the best course and university for their children. The implications of this research, resulting from findings and outcomes, are as follows: first, the formation of new conceptual model of selection decision that could affect the course (Purchase Decision) Second, how trust is built through customers’ perceived value and image, Private Universities reputation as a provider of educational service in this regards.

Keywords: Private Higher Education, Institution Image, Purchase Decision, Perceived Value, Trust.