Brand Equity of Higher Education: A Case of MBA Academic Program in Nepal

Abstract

The aim of this study is to address the gap in literature on brand management of higher education market by identifying the factors determining brand equity. In this study the brand equity refers to behavioral intention of customers (applicants, students, and parents and relatives) to study and recommend others to study MBA academic programs in a focal institution over competing institutions. This study was started with in-depth interviews and focused group discussions with MBA students and applicants which were followed by a pilot survey on students for initial item generation. The main study was based on quantitative analysis of data collected from questionnaire surveys on about 700 respondents of different sample groups such as students, applicants, influencers (parents, relatives, friends) and opinion leaders (policy makers, planners, administrators, faculty members of higher education institutions). Exploratory factor analyses, Cronbach’s alfas, correlation and structural equation model (SEM) were the main data analysis tools used in this study. This study concluded that brand drivers comprise of quality of faculty, quality of infrastructure, graduate employability, advertisement and word of mouth which are explained by altogether 18 statements (items) that the customers used as criteria for evaluating the programs of the institutions. Similarly this study figured out brand dimensions which measure level of awareness, perception of quality and image of the institutions namely, perceived quality, perceived value, organizational association and brand awareness which are explained by 13 statements (items). Finally, the brand equity measured through four statements was developed for evaluating the level of preference and commitment of customers to a particular institution over competing institutions for the program. This study found that the perceived quality is the main brand dimension with four antecedent brand drivers namely quality of faculties, ii infrastructure, employability and word of mouth. Perceived quality contributes positively to brand equity. Therefore, this study draws management implications for promotion of quality of faculties, graduate employability, infrastructure and word of mouth in order to enhance perceived quality for improving brand equity in higher education institutions. The brand equity construct explored by this study can be used in future research in marketing and branding of higher education institutions. This study also drew implications for future research such as study on the strengths of brand equity of the institutions, brand equity from employers’ perspectives and replication of this study on other educational programs.