Customer satisfaction as a mediator of service facility and word of mouth in higher learning institutions

Abstract

Purpose – Higher learning institutions (HLIs) need to have quality service facilities to achieve customer satisfaction and positive word of mouth (WoM). The purpose of this study is to assess customer satisfaction as a mediator of service facility and WoM in the context of Tanzania’s HLIs. Design/methodology/approach – A mixed-methods approach was used to achieve the study objectives. Stratified and simple random sampling techniques were adopted to obtain the names of 201 students in HLIs in Tanzania. Confirmatory factor analysis (CFA) and structural equation modelling (SEM) were used to test the hypotheses. Findings – The findings show that service facility is significantly associated with both WoM and customer satisfaction, while the relationship between customer satisfaction and WoM is significant. The study also found that customer satisfaction mediates the relationship between service facility and WoM. Practical implications – The practitioners of HLIs can invest in improving service facility. Service quality is an important component that impacts WoM in HLIs. This is the most important element that impacts students’ satisfaction and WoM in HLIs more than any other element of service quality. Originality/value – This paper adds to the body of knowledge on the role of customer satisfaction in mediating the relationship between service facility and WoM in the context of Tanzania’s HLIs. This study also presents a methodological contribution for a better understanding of the predictors of customer satisfaction in HLIs from the students’ point of view.