Unpacking Service Quality and Student Satisfaction in Nepal's Private Higher Education: A PLS-SEM Analysis of the SERVQUAL Dimensions in Pokhara University Affiliated Colleges

Abstract

Background: Student satisfaction is an important indicator of educational service quality and can influence students’ perceptions of institutional performance, engagement, and continued affiliation with an institution. In an increasingly competitive higher education environment, private colleges must understand which dimensions of service quality most strongly shape students’ experiences. Although the SERVQUAL framework provides a widely used approach for assessing service quality, evidence on the relative importance of its dimensions in private higher education institutions in Nepal remains limited.

Purpose: This study examines the impact of service quality on student satisfaction among undergraduate students in private colleges affiliated with Pokhara University in Kathmandu Valley. It further seeks to identify the challenges students face in these institutions and to propose potential solutions for addressing them.

Design/methodology/approach: The study adopted an explanatory research design, guided by Expectation Confirmation Theory (ECT), given that the SERVQUAL model is grounded in the expectancy-disconfirmation paradigm. Primary data were collected from 401 respondents using a non-probability convenience sampling technique, with structured questionnaires administered through the KOBO Toolbox. The collected data were analyzed using descriptive and inferential statistical methods, employing Microsoft Excel and SmartPLS 4.0.

Findings: The results indicate that tangibility (β = 0.247, p < 0.001) and empathy (β = 0.310, p < 0.001) have a positive and statistically significant influence on student satisfaction in private colleges affiliated with Pokhara University, with empathy emerging as the strongest predictor. In contrast, reliability (β = 0.068, p = 0.238), responsiveness (β = 0.085, p = 0.154), and assurance (β = -0.024, p = 0.617) did not show a statistically significant relationship with student satisfaction.

Conclusion: The study concludes that students place greater value on the physical appearance of their institution and on individualized, empathetic support than on reliability, responsiveness, or assurance. This suggests that the latter dimensions may already be adequately addressed within these institutions and are therefore not primary drivers of differentiation in student satisfaction, whereas tangibility and empathy warrant continued institutional attention and investment.