EFFECT OF 8Ps OF SERVICES MARKETING ON STUDENT SELECTION OF SELF-

FINANCING SUB-DEGREE PROGRAMMES IN HONG KONG

Introduction

In order for Hong Kong to have sufficient skilled workforces, their government, the Hong
Kong Government of Special Administration Region (HKSAR) has decided to provide more
places for youth to pursue their full-time degree. Many self-financed higher education providers
have been offering associate degrees programs to those who are interested. Some of them, received
help from the government in providing more places for graduates from secondary school’s
graduates. This is to make sure, they got to pursue their studies to a higher level. Lately, the number
of secondary school graduates who are available for the self-financing sub-degree programs have
been declining. This may be because the HKSAR has added more higher education places for the
secondary school graduates. This result in a fierce competition between the self-financing higher
educations existed in Hong Kong.

Based on the research, students can be regarded as customers as they are the one who went
through all the processes of the service provided by an education institution. The research
framework used in this research follows the Lovelock and Wirtz’s model which includes “Product
Elements”, “Price and Other User Outlays”, “Place and Time”, “Promotion and Education”,
“People”, “Process”, “Physical Environment” and “Productivity and Quality”.

“Product Elements” can be related with the programs offered by institutions including the
choice of major and election. Next, the “Price and Other User Outlays” can be referring to the
program’s tuition fees. Other than that, “Place and Time” is referring to where, when and how the
programs are advantageous for students. “Promotion and Education” on the other hand refers to
ways the institution advertise their institution. For example, through word-of-mouth, public
relations, advertising, career and education exhibitions, and also holding an open day. Next,
“People” is somewhat referring to the lecturers, teachers, administrative staff, the top management
and customers. “Process” in a higher education institution can be referring to the process involved
in delivering the services to the customers. Other than that, “Physical Environment” is related to
the facilities existed in order to help performing the service. Lastly, “Productivity and Quality”
refers to the relationships between output and input. This can be measured through how the
institution meet with student’s expectations and also the job placement that a student received after
they graduated from the institution.

Research Hypotheses

H1: “Product Elements” is important for students in the Community College at Lingnan University
to select a community college in Hong Kong.

H2: “Price and Other User Outlays” is important for student in the Community College at Lingnan
University to select a community college in Hong Kong.

H3: “Place and Time” is important for student in the Community College at Lingnan
University to select a community college in Hong Kong.

H4: “Promotion and Education” is important for student in the Community College at Lingnan
University to select a community college in Hong Kong.

H5: “People” is important for student in the Community College at Lingnan University to select a
community college in Hong Kong.

H6: “Process” is important for student in the Community College at Lingnan University to select
a community college in Hong Kong.

H7: “Physical Environment” is important for student in the Community College at Lingnan
University to select a community college in Hong Kong.

H8: “Productivity and Quality” is important for student in the Community College at Lingnan
University to select a community college in Hong Kong.

Research Method

As stated in the research, this research aimed to study how 8Ps of services marketing affects
the students’ college choices. The researcher used multiple regression method to calculate the
relationship between both independent and dependent variable stated in hypothesis. Other than
that, researcher used convenience and judgment sampling method. In order to collect the data,
questionnaire was developed. The questionnaire used a Likert-scale method. 890 questionnaires
were used for analysis despite a total of 1400 that were distributed.
Results and Discussions

Result shows that product elements (M=5.2286) means that students are more concerned
about the practical skills available in the course they took. This is because they will have to apply
those skills they studied when they enter the working world. Self-financing institutions can
develop courses with the practical skills in order to meet the student’s demand.

Next, price and other user outlays (M=5.5158) is important for students to select a
community college in Hong Kong. The existence of scholarships and any other financial aid by
the institutions can influence students to apply for the institution. The institutions in the other hand
can advise the HKSAR Government to provide more financial assistance.

Place and time (M=5.5287) is also important to students applying for certain institutions.
Due to that, self-financing institutions should provide a conducive and efficient facilities for the
usage of the students.

Promotion and education (M=4.7433) is not that important as students usually listen to the
advices from their parents and school’s counselor. Because of that, self-financing institutions
should promote by targeting the parents and also the existing students. This is because word-of-
mouth method is far more effective than any other promotion method.

People (M=5.2767) does play an important role in attracting new students to enroll in an
institution. Self-financing institution should promote friendly environment to their staffs starting
from the administrative staff to the teaching staff.

Process (M=5.3447) is quite important for students. In order to attract students, the self-
financing institutions should provide clear information regarding the assessment criteria, re-
assessment and also grading system to the students, this is to make sure students understand how
the process is being done in the institutions.

Physical environment (M=6928) is very important to the students. Self-financing

institutions should use the advanced technology in the classrooms. In order to use the advanced
technology, self-financing institutions should provide training to their lecturers and staffs to make
sure they know how to use the equipment.
 Last but not least, productivity and quality (M=5.7304) is the most important thing to
students. Self-financing institutions should make sure that the course they offered can be
recognized overseas. This is to make sure their students would be able to pursue their study to a
higher level in other overseas institutions.

Based on the research, the most important element picked by the student of Community
College at Lingnan University is the Productivity and Quality. This means that the top management
have to improve their institution’s quality in order to attract new student to enroll to their
university. On the other hand, Promotion and Education is the least important factor picked by the
students. This shows that promotional items does not attract students to enroll to the institutions.
However, institutions can still use promotion in order to deliver important information to the
students.

Conclusion

This research can help the self-financing institutions to know the factors that affects one
students in choosing their universities. The research can also help the institutions to evaluate their
institutions and compare it with the student’s demand. They can then improve their institutions to
the same level as what the students wanted.

The research found out that productivity and quality is the most important element while
promotion and education is the least important element among all 8Ps. Through this result, self-
financing institutions can upgrade the quality of their institutions and also focus on other marketing
strategies that are more efficient in attracting new students.
ARGUMENTS

This research should be done in any other universities also. This is because, this research
was only done in one institution which is Community College at Lingnan University. So, it cannot
be generalized that all students want what students in CCLU wanted. Other than that, the research
can also be done at other countries. This is because, maybe students in any other regions wants
something different than what students CCLU wanted.

Other than that, parents can also be one of the respondents in the research. This is to know
what the parents expect their children to gain from the institutions that they sent them. Parents
were also the one who will be paying their tuition fees, so parents will have their own criteria of
what a self-financing institution should provide their children with.