Perceived Service Quality and Students’ Satisfaction and Recommendation Willingness in Higher Education: Justification of a Formative Measurement Approach Using PLS-SEM

The aim of this study is to present and test a holistic measure of service quality in higher education (HE), specified as a second-order formative-formative measurement model, challenging the inherent assumption of an underlying reflective measurement model. The study further analyzes the effect of perceived service quality on students’ satisfaction and students’ willingness to recommend. We empirically tested our model using secondary data collected through the National Student Enquiry (NSE). We selected data for universities in the Netherlands, containing a net sample of 45,149 undergraduate students. PLS-SEM was used to analyze, evaluate, and validate a second-order formative-formative measurement model for HE service quality and its impact on students’ satisfaction and willingness to recommend the university. The findings reveal that the antecedent structure of the second-order measurement model for service quality is theoretically and empirically supported. Our results further indicate that service quality is a key driver for both students’ satisfaction and their willingness to recommend the university. Research on service quality in HE, specified as a second-order formative-formative measurement model, is scarce. Many higher-order constructs in HE, such as service quality, are specified as reflective measures, where a formative structure might be more appropriate. By analyzing a second-order formative-formative measurement model for perceived service quality in HE, this study contributes to applied quantitative research in higher education. Although we applied our research in the Dutch HE market, our analytical approach is not limited to national borders or the HE market. In many other service contexts (e.g., healthcare, hospitality, automobile repair services, sports clubs, financial services), service quality is often measured reflectively, where a formative structure might be more suitable.