Abstract:
The landscape of higher learning institutions in Kenya has become very competitive as a result of entry by new private and public universities. These universities offer similar curriculum with small differentiations resulting in very stiff competition. In the face of this competition, universities whose services are perceived as being of better quality positively affect customer satisfaction, making them relatively more competitive in the industry. Despite competitiveness in absolute pricing, universities with better perceived prices are increasingly satisfying. This research determined the effect of perceived value on customers satisfaction in institution of higher learning. The study compared the variables that define customer’s perception of value to a great extent in public and private universities. The specific research objectives examined the effect of perceived service quality on customer satisfaction, to determine the effect of perceived price on customer satisfaction and to compare the effect of perceived value on customer satisfaction between public and private universities. The target population was 4,503 students. Using stratified sampling approach, sample size of 368 respondents was drawn. The study adopted descriptive research design. The study is expected to be significant to management of universities, by providing information on what value students look for. It is expected that these information can be helpful in building competitive strategies in the increasingly competitive higher education industry in Kenya.The study established that perceived service quality and perceived price go hand in hand in enrolment of students in universities and students will enroll in institutions that they have knowledge that provides their needs and value is received from the fee they are made to pay for the services. It also found out that students from private universities are more satisfied with the services provided in the institutions more than their counterparts in public. The study recommends that perceived value should be highly considered in both public and private universities as this plays a great role in earning the institution a competitive edge in the fast developing competitive market, institutions are therefore supposed to get involved in research to enable them know what the market demand in order to satisfy the students’ needs . Public universities and therefore advised to re look at the service provision in the institutions or else enrolment will go down.
