The Prediction of Parental Loyalty with a Private School in Indonesia

In the educational market place, private schools in Indonesia are currently having to compete for students. Therefore, private schools have to build competitive strategies to face this competition. Customers satisfaction, reputation, trust and loyalty are a few important roles for obtaining competitive benefits in a competitive educational market place. The purpose of this research aims to identify the effects of parental satisfaction, reputation and trust on parental loyalty. Also, the purpose is to examine and describe the links and relationships between those variables in private schools in Indonesia. A questionnaire was distributed to parents of students ranging from Grade 1 to Grade 12, which resulted in 127 valid questionnaires. The model was tested using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results of this paper show positive influence with significant relationship between tangible, reliability, responsiveness, assurance, and empathy with customers satisfaction. Specifically, parents highly considered the reliability and responsiveness dimension. The result also showed significant positive influence between satisfaction and reputation, significant positive influence between satisfaction and trust, significant positive influence between satisfaction and parental loyalty, and significant positive influence between reputation and parents loyalty. The result between trust and loyalty were not significant.