Student Satisfaction and University Enrollments: Does the Urban or Regional Status of Australian Higher Education Institutions Matter?

In the aftermath of World War II, Western nations witnessed unprecedented growth in university enrollments, particularly in business schools, driven by the expansion of the publicly funded higher education system. This growth has prompted higher education providers to re-evaluate the critical role of student satisfaction in shaping learning, engagement, and overall institutional success. While the impact of student satisfaction on engagement and academic outcomes is well documented, its influence on broader university enrollments remains underexplored. Using longitudinal data from the Australian Government-funded Quality Indicators for Learning and Teaching (QILT) surveys and universities’ annual reports (2012-2017), we find that universities with higher student satisfaction show significantly higher enrollment rates. Moreover, the positive impact of student satisfaction on enrollment is more pronounced in metropolitan universities. Beyond contributing to social justice theory, this study provides actionable insights for government and higher education management to improve equitable access to higher education and reduce social disparities through strategically allocating resources, capabilities, and support services.