Determinants for the choice of a MBA program in ho chi minh city

Determinants for the Choice af AMBA Program in Ho Chi Minh City The idea that MBA is career enhancer does not settle well with Pfeffer and Fong 2002 "there is little evidence that mast

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@OUM

OPEN UNIVERSITY MALAYSIA

RESEARCH PROJECT (BMBR5103)

DETERMINANTS FOR THE CHOICE

OF A MBA PROGRAM IN HO CHI MINH CITY

STUDENT'S FULL NAME : NGUYEN THANH PHÙ

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Determinants for the Choice of A MBA Program in Ho Chi Minh City

Advisor’s assessment

Advisor’s signature

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1.2 Research Objectives cành He 14 1.3 Research Quesfions - se nnhhné He HH Hee 14 1.4 Scope of Research nhe 14 1.5 Research Methodology ccscseeHhH HH Hhhhheerae 14

1.5.1 Decision-making Process - -Ặ cà sen 14 1.5.2 Quantitative Research eenenienree 14 1.5.3 Statistical Method eect reer eee ett eetteeeenteees 15 1.6 Research Struocfure- -.- SH HH hhhen 16 CHAPTER 2: LITERATURE REVIEW Ặ Sen HHhheHherreere 17 2.1 Theoretical FrarneWOrkK -. ng nh HH HH 17

2.2 Literature R©eVỈeW ch HH nghe ket kh 17 2.2.1 Definitions of key concepts and referenced models 21 2.2.2 Research suggested model - 33 2.3 to(uv oi 35

CHAPTER 3 DESIGN AND EVALUATION OF MEASUREMENT SCALE 3.1 Overview of the research area - cà onihHHhhrrrerrre 36

3.2 Design of the Questionnaire and Measurement Scale 36

3.3 Conclusion -.- SH nh Hư HH HH He 39 CHAPTER 4 RESULTS OF THE RESEARCH cằằ 40

4.1 Descriptive stafisticsS cài nhHhHHHHhhhhhHere 40 4.2 Assessing the reliability of the measurement scale 44 4.3 Exploratory factor analysis (EFA) -cằieeHhhhrhrrrrre 46

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5.2 Proposal of solutions to attract potential learners 59

5.3 Limitations of the research - nhe Ha ro HeHe 60 REFERENCES TH, HH HH HH TH Hy 61 APPENDIX ii 67

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ACKNOWLEDGEMENT

After taking many courses of the program, I have learnt many things Not only knowledge but also experience! They were shared by the most enthusiastic and

respectable lecturers I have ever met One of them is Associate Professor, Doctor

Phan Dinh Nguyen In his lessons, he had not only taught us the relevant knowledge but also shared us many wonderful things from his experiences Thanks to that I have prepared more carefully for my next future to have a better life

Once again, I would like to express my gratitude to Associate Professor, Doctor Phan Dinh Nguyen, who had instructed me during to complete this research I

would like to wish him for the best of health and more success in his career!

Nguyen Thanh Phu

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List of tables

Table 1: DescriptIVe s†atÏSEICS cà càng 1011111 1111 ke 42 Table 2: Result of Cronback's Alpha analysis .:cccccccceesesesesesnseseneecnsneeseeeseneneenes 45 Table 3: KMO and Bartlett'S 'T€S( - ác 2à 2H HH0 1112 tr 46 Table 4: Total Variance Explained - «se canh H122, re hàn 48 Table 5: Rotated Component MafriX cac se sSn SH hư 50 Table 6: KMO and Bartlett's Tes - cà chen H202124 8121k 51 Table 7: Component ÌMatTIX - ¿cà xé 21 H211 te ng 51 Table 8: Total Variance Explained - - «+ cs kh nnHH341441321.0 111k 32 IFE10Iã210/00ì.J00( (nh 33 C0007 )09 1 34

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Determinants for the Choice of AMBA Program in Ho Chi Minh City

Program PR efforts seem to be also an effective tool to attract learners It shows that learners in Ho Chi Minh City often get information from many resources before leading to a final decision of choosing an MBA program As the matter of fact, learners tend to choose a program which is easy to enter, has flexible schedule e.g

at weekends, and of course, must be licensed by the MoET of Vietnam

Key words: MBA program, Ho Chi Minh City

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The study of MBA or Business management programs is not confine with the developed world, rather there has been a massive mushrooming of tertiary

institutions offering related course of Business management Interestingly, both the private and public sector universities take the share in this

Eddy’s research (1996) underpins certain imperatives upon which the choice of MBA program revolves around The result of the findings depicted a mixed

reaction of respondents towards the choice of MBA in developing a career

Substantial number of students enrolled in MBA program identifies tuition,

fellowship, distance from home, and quality of the school as strong determinants Numerous researches have attempted to grapple the extent to which the marketing strategy of universities contribute to decision making for the choice of MBA program (Nicholls 1995; Mark 2002; Mayte 2003; Schoenfeld and Bruce, 2005) Setting aside the role of educational institutions to impart knowledge, there is growing sentiments that institutions are increasingly market-oriented, thus the necessity for a standard marketing strategy focused on certain target customer (Conway et al, 1994; Nichols et al, 1995) and target market which crave to having MBA degree to either consolidate organizational profile or enhance job opportunity (Mark 2002)

Personal prestige, career exploration opportunities, goals for developing and improving interpersonal skills, entrepreneurial aspirations, and increasing career

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mobility are the respondent responses from (Simmering and Wilcox, 1995)

research (Bruce, 2010) looks at the affordability and conduciveness of a full-time, part-time, or Executive MBA The level of competition among educational

institutions underlines the argument of how competition drives in innovation in a capitalist environment Prospective MBA students now place their choice of MBA on the level of innovation, ability of institution to shift from the traditional general to specialized MBA areas (Gupta, 2007) Not everyone would like to rush into undertaking MBA program without a pre-MBA work experience, which sometimes make classes of MBA more fruitful, though other make swift decision following an undergraduate degree (Yeaple, 2010) A study of associate degree (AD) and bachelor degree (BS) nurses found that the individual and social

returns on investment in higher education could result in reported differences in job satisfaction and career retention (Rambur McIntosh, Palumbo, Reinier, 2005) Reports such as these may motivate undergraduate students to explore opportunities to expand their career options by continuing their education beyond the Bachelor's degree

Among the internal and external factors cited in studies aimed at identifying the primary determinants for career decisions are salary, influence by parents and family, perceived ability/personality fit, high job demand, image/prestige, and interest in an area (Duffy & Dik, 2009) Duffy and Dik found that the common assumption of "free choice” in making career decisions can be limited

significantly by “life experiences and circumstances." One would expect the

recent recession, for example, to be a prominent factor in decisions related to job

searches and enrollment in education programs (Bruce, Edgington, and Olkin,

2003)

Successful career management ideally results in a fulfilling and satisfying work life that contributes to a well-rounded life experience Reported satisfaction with career choice varies, however One poll indicates that only 50% of Americans

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would choose the same career again if given the choice ("Half Would Pick,"

1992) Although reports vary from one profession/career to another, Sariento

(1996) reports that a number of people do indeed dislike their current jobs and related career paths but feel "stuck." A more recent study seemed to confirm this bleak prognosis of job satisfaction as approximately 50% of the staff in a state child welfare agency stated they would indeed prefer to leave their current jobs, but stayed because of salary and benefits (Strand, Spath, Bosco-Ruggiero, 2010) Empirical research on students taking distance MBA program in Hong Kong did not break from the assertion that MBA degree is not just a career enhancer but offers the holder employment security (Chiu, 1999) Giving the marketability of MBA program and the prospect attached with it, certain degree of research

suggest that the choice of MBA is never uncharacterized by positive prospect holding MBA degree can bring to the holder (Zhao et al., 2000)

Most universities offering MBA program are into competition and their relevance

in the competitive market is obviously measure by the standard, quality and

innovative ideas added to their programs This indeed enchants prospective MBA candidate and conjures an imagination of better, improved and innovative

managerial responsibility, opportunities and performance (Lewis, 1992; Mihail and Elefterie, 2006; Wellman, et al) MBA does not just offer better job prospect but it often times improves the analytical propensity of the holder of the degree, augment skills and job dexterity (Thompson & Gui, 2000; Simpson et al, 2005) The choice of MBA program carries monetary intention and better job standing as with many professional programs But the fact remains, earning such degree from

a top-notch institution increases excellent chances (Arcidiacono et al, 2008)

However, less substantial benefits were associated with a degree program with lower rankings and lax admission standards

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Determinants for the Choice af AMBA Program in Ho Chi Minh City

The idea that MBA is career enhancer does not settle well with Pfeffer and Fong (2002) "there is little evidence that mastery of the knowledge acquired in business schools enhances people's careers, or that even attaining the MBA

credential itself has much effect on graduates’ salaries or career enhancement." Bolstering the position of Pfeffer and Fong, Mintzberg's (2004) opines "MBA programs are specialized training in the functions of business, not general

education in the practice of management," while Bennis and O'Toole's (2005) holds that "to impart useful skills failing to prepare leaders, failing to instill

norms of ethical behavior, and even failing to lead graduates to good corporate

jobs."

A 2005 survey calculated the return on investment in an MBA degree over the past decade to be 17.6 percent, about three times the return on Treasury Bills and four percent greater than the Dow Jones Industrial Average (Davis & Cline, 2005) Alternately, a survey by Pepperdine University's Graziadio School of Business of 1000 senior executives reported the MBA degree to be perceived as

"useful" but not "extraordinary" with executives indicating preference for

experiential learning coupled with a strong ethical grounding (Livingstone, 2007)

A series of articles published in Business Week refer to the job outlook for

MBAs as being "murky," "savage," and "dim" (Cornuke, 2008; VanderMey, 2009; MBA, 2009)

Interestingly, a recent report published by the Bureau of Labor Statistics projected the fastest growing occupations between the years of 2006 and 2016 None of these fastest growing occupations listed the MBA as the "most significant source

of postsecondary education or training" (Dohm & Shniper, 2007) Among the occupations with the largest job growth during this same time frame,

"management analysts" is the only job title listed as possibly requiring a degree

higher than a Bachelor's with the exception of mental health counselors, social

workers, therapists, and physician assistants These projections may not bode well

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for the perceived value and choice of an MBA degree Total job openings due to growth and net replacement needs were predicted to increase during the 2006-2016 time frame by 6,706 (13.2%) for persons with Bachelor's degrees and by 819 (1.6%) for persons with Master's degrees Additionally, the median annual

wages in 2006 for a Bachelor's degree employee were reported at $53,330 and

$51,380 for a Master's degree employee

Despite these harsh criticisms, using three years of data collected from the annual Global MBA Graduate Survey of graduating MBA students conducted by the GMAC, Bruce (2010) found that the majority of students surveyed rated the overall value of the MBA degree as "outstanding" or "excellent" Satisfaction with the faculty, fellow students and the curriculum were rated highest among the determinants of satisfaction Differences in satisfaction levels of students enrolled

in Executive vs traditional MBA programs did not appear to be significant, but satisfaction levels among full-time and part-time students did vary significantly, with full-time students reporting higher levels of overall satisfaction and clearer career prospect

Ho Chi Minh City, the most crowded city of Vietnam, has significant number of universities offering MBA programs The programs now are no longer for full time students only On the contrary, more and more programs are now focusing their part-time programs, or full time programs but students can choose either studying some days of a week or at weekends or in the evenings It is so clear that this kind

of offer satisfy most of employees who have to work during the day and want to ear a postgraduate degree to climb higher position, to get professional skills or just simply to make them more valuable

Although the demand is so huge, the number of affordable managers or future managers seems to be limited In the meanwhile, number of MBA programs keeps increasing How to differentiate the program and make it attractive is a challenge to the MBA program’s managers And that is the reason why this research has been

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implemented It will provide experimental evidences of factors that affect the

decision to choose an MBA program in Ho Chi Minh City

1.2 Research Objectives

The objectives of this research are:

(1) To identify factors affect the choice of a MBA program in HCM city

(2) To measure the effect of each factor to decision of learners

(3) To provide recommendation to MBA program managers to attract potential

learners

1.3 Research Questions

(1) What factors affect the choice of a MBA program in HCMC city?

(2) How much does each factor affect decision of students?

(3) What solutions could be suggested to program managers to attract potential

theoretical basis for the research

1.5.2 Quantitative Research

The empirical part of the study is conducted using a quantitative research method The chosen method is purposive sampling as it best fits the needs of this research

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The data is collected via a survey that is carried out by using a questionnaire for the MBA students who are studying their master degree in 2014

In the survey respondents are asked to rate multiple attributes based on their

importance in the decision-making process for higher education by using a five point Likert —scale (from scale of 1-5) Respondents are given two weeks to answer the questionnaires and after the first week the recipients who have not yet responded are sent a reminder The survey is pretested with 30 students of MBA program of

Ho Chi Minh City University of Technology (HUTECH) in order to get feedback

on the structure and the phrasing of the questions

The attributes for the survey are based on previous studies on the choice criteria in international program students’ decision-making process The findings from the empirical research are reflected on the existing researches in order to find out if the findings are consistent with previous studies which would implicitly add to the credibility of the findings

1.5.3 Statistical Method

After collecting data from the survey, statistic methods are adapted to process data

as the basis for testing the scale and research model

(1) Data analysis process

(2) Exploratory factor analysis (EFA) is conducted to reduce and summarize data for multi-variable analysis process

(3) Reliability of the measurement scale is evaluated by Cronback's Alpha

coefficient

(4) Descriptive statistics

(5) Anova analysis of variance is conducted to identify the deviations among groups in evaluating the significance of factors on the decisions

(6) Regression analysis and fitness testing with respect to the model are

conducted to measure and evaluate the effect of the factors on a student's

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questions The methodology is also discussed

The second chapter states the literature review examines the existing literature on marketing of higher education in an international context and the definition of key concepts are provided to define how they are used in this research as various

definitions exist in the literature

The third and fourth chapters of the research cover the design and evaluation of measurement scale and the empirical part of the study The survey and the chosen questions are discussed as well as the design of the survey and how the results are

coded and measured

The last chapter of the research consists of the conclusions and recommendation

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CHAPTER 2: LITERATURE REVIEW

2.1 Theoretical Framework

The theoretical framework of this study concludes the main process and concepts of this research as well as their relationships The framework is based on the six stages decision-making process by Kotler and Fox (1995, 251) and on the steps between

an evaluation of alternatives and a purchase decision that was also introduced by Kotler and Fox (1995, 262) The six stages model describes the decision- making process in highly complex situations such as selecting a higher education institution

in an international context The focus of the research is especially on the evaluation

of alternatives but the purchase decision is also examined to an extent as it is linked

to the evaluation stage through attitudes of others and unanticipated situational

factors

Attributes play a key role in the international student’s decision-making process and

as mentioned before this is the main focus of the research The attributes are also presented in the theoretical framework as they are the center of the evaluation of alternatives stage The attributes are classified into two groups of factors that

influence the decision of choosing an MBA The groups are personal characteristics

and external factors

2.2 Literature Review

Hemsley-Brown and Oplatka (2006) conducted a comprehensive literature review

of studies concerning the marketing of higher education in an international context that were published between 1992 and 2004 Based on their findings they concluded that the research field of higher education marketing is still at a relatively pioneer stage Cubillo et al (2006, 102) also agree that the literature analyzing the decision- making process of prospective international students is scarce Hemsley-Brown and

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Chapman’s general conceptual model of student college choice is based on the

interaction between the students’ characteristics of socioeconomic status, aptitude,

educational aspiration and achievement and a series of external influences

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Student Characteristics

students

Fixed college characteristics

Cost (Financial Aid)

Location

Availability of programe Ỳ

General expectation Student's college life me choice of

college (s)

figure 1: C hapmaa Moder Galapted from Chapman D., 1982)

The external influences fall into three categories: 1) significant other — friends, parents, high schoo! teachers and counselors; 2) fixed characteristics of the

institution — cost (financial aid), location, program availability; and 3)

communication efforts of the college — campus visits, written information,

admissions and recruiting activities

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expectation of college life According to Chapman (1981: 499), many high seniors

“share a highly stereotyped, idealized image of college life, an image not

representative of any actual institution.”

Chapman (1981: 499) was careful to note that his model “does not exhaust the possibilities of influence.” As such, the model highlights the major factors that influence the college choice process but does not contain the full range of

possibilities This model could best be characterized as a conceptual model

which describes the interactions and influences on the college selection process; the model does not have defined phases or stages This model has served as a catalyst for later models of student college choice

Students’ decision-making process was also researched by Moogan (2003) who focused on the first three stages of the commonly used five stage model of the in the theoretical framework Moogan conducted a large-scale survey of 674 British

students who were planning on entering higher education consumer buying process

An extended version of the model forms the basis of this research and was already

introduced within the next 12 months

Cubillo-Pinilla at al (2009) conducted a study to analyze the factors that influence the decision-making process of international students, by focusing particularly on the influence of the country and institution image on the evaluation of the academic program Their study shows a positive relationship between the prospective

students’ perception of country and institution image on how they evaluate

academic programs

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The most important attributes that influence the international students’ decision- making process were examined by Cubillo et al (2006) Their research proposed a theoretical model of integrating the different groups of factors which determine the

students’ choice

Carter and Maringe (2007) have also researched the push and pull factors in

international students’ higher education decision-making They developed a madel

of six elements that influence the decision-making and within this model a range of push and pull factors The study was conducted to research the decision-making and experience of African students in UK higher education

If Hemsley-Brown and Oplatka (2006, 318) claim that the literature on higher education marketing in general is incoherent and even inchoate what can be said about the research of international students’ decision-making in Finland Some progress has been made in the recent years but the research is still at a pioneer stage Kinnunen (2003) conducted a research that was supported by both CIMO and

OTUS on the international degree students” integration into Finnish society In this research Kinnunen also examines the factors that motivate students to apply to Finland and the reasons for selecting a certain tertiary education institution Tuition fees are also discussed as a part of the research

2.2.1 Definitions of key concepts and referenced models

The concepts that are relevant for this study are defined in various ways in the existing literature The next chapter offers some insights into these concepts and provides the point of view from which each concept is used in this research

Attitude is the overall multi-attribute assessment of a brand that is formed by

combining evaluations of different brands across attributes and taking into account the relative importance of each attribute Attitudes derive from a consumer’s

evaluation that a given brand provides the necessary benefits that can help to satisfy

a particular need (Mullins et al 2005, 114, 121.) Individual’s attitude is contingent

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upon the strength of his or her beliefs about the object and the evaluative aspect of

those beliefs (Fishbein 1965, 117 as cited in Cohen et al 1972, 457)

Attributes are the limited number of characteristics or dimensions that consumers use when evaluating alternative products and services (Mullins et al 2005, pp 114) Decision- making element is used as a synonym for evaluation attribute in this

study

Choice criteria are the set of attributes and their relative importance in the decision- making process of a particular consumer (Mullins et al., 2005, pp 114)

2.2.1.1 Decision-Making Process

The five stage model of consumer decision-making is often cited in marketing

literature The steps that consumers go through are problem recognition,

information search, evaluation of alternatives, purchase decision, and post purchase behavior (Kotler 2003, 204) As selecting a higher education institution is consumer behavior this five stage model can be applied to the international students’ decision- making process Other researchers such as Carter and Maringe (2007) and Moogan (2003) have also applied this model to higher education

Problem Information RUN Purchase _ recognition search alternatives decision behavior

Iigure 2° Êñxe-stage model of thế Consgmier RUsing Proccss (Based a hotles 2003, 204 and Vullins of al, 2008, F1Q)

As can be seen from figure, the buying process starts by recognizing a problem or a need that motivates the consumer to search for information about how to best satisfy this need After enough information about solving the problem has been gathered the alternatives are evaluated based on the consumer’s choice criteria The

evaluation step is followed by purchase decision There are however, two factors that may intervene with purchase intention and purchase decision: attitudes of

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others and unanticipated situational factors The last stage of the model is post purchase behavior This refers to the customer’s evaluation of the level of

satisfaction that is dependent on relation between the customer’s expectations and perceived quality (Kotler 2003, 204-208.) This study focuses mostly on the

evaluation of alternatives but the decision step is also examined to an extent while the other stages in the consumer decision-making process are not under special

interest

Maringe and Carter (2007, 460) characterize the five stages in selecting a higher education institution as follows: pre-search behavior involves early and sometime passive thought on the matter, in active search behavior choices are prioritized, applications are developed and submitted to the chosen institution in the application stage, next the decision of acceptance or decline is made and finally in the post acceptance behavior stage the students reflect on whether the decision was the right

Unanticipated srtuational factors

Figure 3: Steps Between Evaluation of Utemiatives and a Murchase Decsion (Based on Kotler 2003, 207),

As was mentioned before, there are two factors that may intervene between the purchase intention and purchase decision Figure 3 illustrates the factors that may interrupt the decision-making process Other people’s attitudes affect the purchase decision to an extent that is determined by the intensity of the other person’s

attitude and the consumer’s motivation to comply with the other person’s wishes (Kotler 2003, 207)

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2.2.1.2 The nature of Educational Services

The growing importance of services has lead to a higher level of interest in services marketing and numerous articles have been published to research this topic (Fisk et al., 1993) Services are often characterized as intangible, heterogeneous, perishable, and requiring simultaneous production and consumption (Zeithaml et al., 1985, 33) All of these characteristics apply to educational services and as in services

marketing in general these characteristics require a particular marketing strategy application (Kotler and Fox 1995, 279-280) Some of the usual determinants of profitability such as life cycle, experience, and market share are not easily applied

to service firms and therefore the strategic planning of services marketing needs careful consideration (Carmen at al 1980, 7)

Intangibility also hinders the communication of services to the customer (Rathmell, 1966) and according to Carmen et al (1980) the risks involved in international marketing are greater for services than for products Another aspect of intangibility

is that it makes pricing more challenging (Rathmell, 1966, 35) The cost of

education is one of the attributes that is further examined later in this chapter

The inseparability of consumption and productions adds to the difficulty of services marketing The simultaneous consumption and production of services results in the need to involve the customer in the production of the service and Carmen et al (1980, 8) note that it also forces the buyer into intimate contact with the production process According Shuell and Lee (1976, pp 4-9 cited in Mazzarol, 1998) this is particularly true with education because student participation is a critical factor in determining the success of learning process Another outcome of the inseparability

of consumption and production is that in most cases direct sales are the only

possible distribution channel as services are first sold and then produced and

consumed simultaneously (Rathmell, 1966) this also causes the marketing and production to be highly interactive (Grénroos 1978) This aspect of services also means that there is likelihood that many consumers are involved in the production

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of the same service thus influencing each other’s service experience This also applies particularly well to higher education considering the interaction and

influence among students (Owlia and Spindwall, 1996)

The heterogeneity of services poses significant problems as it causes potential for high variability in the performance of services The quality of service may vary from producer to producer, from customer to customer, and from day to day

(Zeithaml, 1985.) In the case of education this means that the quality varies

significantly in different circumstances such as from year to year, class to class,

student to student, lecturer to lecturer (Owlia and Spindwall, 1996)

According to Zeithaml (1985) each unique characteristic of services leads to

specific problems for service marketers and necessitates special strategies for

dealing with them

Services can also be described as comprising of core and peripheral services The core service offering provides the intangible benefits that customers are looking for and according to Cubillo et al (2006) the peripheral or auxiliary services are added

to the basic service to satisfy customers’ expectations Some of the peripheral

services are indispensable for the execution of the core service while others are provided only to improve the overall quality of the service bundle The core

services are not easily modified and thus the peripheral services are often used to differentiate among competitors (Carmen et al 1980.)

2.2.1.3 High-Involvement Purchase Decisions

From the consumers point of view some purchase decisions are more important than others and thus require more psychological involvement The decision-making process is quite different between low- and high-involvement products and services The previously discussed five stages decision-making process best describes high- involvement decisions as for routine or habitual purchases the evaluation of

alternatives step might be left out (Mullins et al 2005, 109.) The decision to study

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Kotler and Fox (1995) developed a modification of the commonly used five stages consumer decision-making process by dividing the purchase decision step into decision and decision implementation stages The model is meant for highly-

complex situations such as selecting a higher education institution in an

international context and it takes into account the influence of others and situational factors that might influence the prospective students’ choice

2.2.1.4 Personal Reasons

When considering core benefits, students are not buying degrees but the benefits that a degree can provide in the terms of employment, status, lifestyle etc (Binsardi and Ekwulugo 2003) Thus the personal reasons and aspirations play a key role in the selection of tertiary education Enhancing future career prospects has been identified by many authors as one of the factors that affect the international

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students’ decision-making process (Cubillo et al., 2006; Soutar and Turner, 2002;

Bourke, 2000; Qureshi, 1995)

2.2.1.5 Origin (Country image)

The intangible nature of educational services makes it difficult for prospective students to evaluate When intrinsic cues are unknown or unavailable, consumers must evaluate the product or service on extrinsic cues such as country of origin or brand name (Harvey and Busher 1996, Gnoth and Srikatanyoo 2002) According to research, prospective students tend to choose first the country and then the

institution (Srikatanyoo and Gnoth, 2002; Bourke 2000) Maringe and Carter (2007) found in their research that for many students the choice of institution was not as important as the decision to apply to England Country image seems to play an important role in students’ university selection in international education and

globalization has made it even more important (Srikatanyoo and Gnoth, 2002) Cubillo et al (2006) note that the students’ perception of the destination city will also influence the decision process as well as the country image

2.21.6 Institution lmage

According to research, a positive image can have a strong influence on the student's

decision to attend an educational institution (Qureshi, 1995; Mazzarol 1998; Bourke

2000) The institution image is the sum of beliefs, ideas, and impressions that the prospective students have of the institution and it tends to be based on very limited and even inaccurate information The present image is often based on past record and therefore it cannot be changed through quick change in public relations

strategy (Kotler and Fox, 1995, 231.) The evaluation of institution image contains attributes such as academic reputation, facilities, and teacher and researcher

reputation

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2.2.1.7 Program Evaluation

Program evaluation is conceptualized as the attitudes that the prospective students

hold toward their targeted programs (Peng et al 2000) Previous studies show that

the program suitability is of overwhelming importance in university selection

(Hooley and Lynch 1981, Soutar and Turner 2002) Other aspects of the program evaluation include, for instance, international recognition, cost of education, and availability of financial aid (Bourke 2000, Maringe 2006, Cubillo et al 2006)

According to Peng et al (2000) the brand image of a study program is more

important than the country or institution image in product evaluation and purchase intention and therefore marketing efforts should be focused on building a strong brand image for the program

2.2.1.8 Student characteristics

2.2.1.8.1 Aspiration

Carpenter and Fleishman (1987), Gilmour, et al (1981) and Jackson (1978) found that student educational aspirations are positively associated with post-secondary participation In short, the prospective student’s personal aspirations have an important impact on the decision to attend college Aspirations and career plans

of potential students are key indicators of college attendance

2.2.1.8.2 Aptitude

According to Hossler (1984), students who are aware of their ability to achieve academic success in college tend to attempt post secondary education Manski & Wise (1983) stated that individual self-selection plays a critical role in the

predisposition to attend college

2.2.1.8.3 High school performance

Borus (1993) found in a study of prospective college students that high school activities were a positive predictor of a student's predisposition to attend college

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Successful participation in high school activities are related to the predisposition and achievement in college (Hossler & Gallagher, 1987; Manski & Wise, 1993) 2.2.1.9 External Influences

2.2.1.9.1 Friends attending colleges

Kohn, Manski & Mundel (1976) and Manski & Wise (1983) stated that there is a peer effect that effects a student’s predisposition to attend a post-secondary

institution They state that the larger the proportion of a student’s classmates plan

to enroll in college, the more likely that he or she will also make this choice

2.2.1.9.2 Influence of parents

A study conducted by Baharun (2006) stated that advice and recommendation from family was the most important factor, with advice from peers ranking second that impact on student’s choice of tertiary education

2.2.1.9.3 Influence of friends

Hossler (1984) reports that friends can be almost as important as parents in the decision to attend college Weiler (1994) is blunt in his research study by stating peer pressure is a variable or factor that influences a student’s predisposition to attend college

2.2.1.9.4 Influence of other individuals

Family members, teachers, guidance counselors, and admissions counselors can influence the students to attending college Ceja (2006) studied the role of older siblings and concluded that although the parents tended to pay for the

applications fees and handled the other economic concerns, the older brothers and sisters provided advice that was sought after and often heeded by the younger students Ceja said that this was more common in families where the older

siblings were first generation college attendees Also, according to the study by Hossler, Schmit and Vesper (1999), ninth-grade students with siblings who had

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attended or who were currently attending college, were more likely to have

college aspirations than those without siblings

2.2.1.10 College Attributes

2.2.1.10.1 Location

Servier (1996) stated that research has consistently shown that college or

university location can be a major factor for potential student’s decision to apply and enroll Some students may be looking for a school close to their hometown

or place of work for convenience and accessibility (Absher & Crawford, 1996; Sevier, 1994)

A study by Kohn, Manski & Mundel (1976) discusses that an important factor

in student predisposition to attend college is the close proximity of a higher education institution to home It was found that a low-cost, nearby college was an important stimulator of a student’s decision to further his or her education Hossler

& Gallagher (1987) also concluded that the proximity to a college campus does affect college attendance rates Students who live close to a campus are more likely to attend college though they may not attend the campus located near home 2.2.1.10.2 Academic programs

A study conducted in Kuala Lumpur and Selangor, Malaysia by Yusof, Ahmad, Tajudin & Ravindran (2008) also found that availability of the required programme

as “the very importance attributes” for first year university students to choose a particular higher education institution

Ford, Joseph & Joseph (1999) also found that program issues such as range of programs of study, flexibility of degree program, major change flexibility and range of degree options are the most important factors for students to choose higher education institutions

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Nurlida (2009) indicated that students are satisfied with college choice based on their information satisfaction with respect to academic recognition (external

influence)

2.2.1.10.3 College reputation

Institutional image and reputation has a tremendous effect on college choice It is a

powerful influence on potential student and college reputation is extremely

persuasive in the college search and selection process Students value the

reputation of a college and it rates as an influential factor by students in the college choice process (Lay & Maguire, 1981; Murphy, 1981; Servier, 1986;

Keling, 2006)

Keling, Krishnan & Nurtjahja (2007) stated that the most influential factor that

students will evaluate in selecting their choice of institution was reputation of the

institution The study was conducted in Malaysia with an average mean score of

3.730

2.2.1.10.4 Educational facilities

Absher & Crawford, 1996; Hassan, Azmi & Mohamad (2008) stated that

educational facilities such as classrooms, laboratories and libraries are important in

a student’s selection of a college or university

2.2.1.10.5 Cost

It was reviewed by Joseph & Joseph (2000) that cost-related issues seem to have more importance as years go by For instance, Houston (1979) found they were at the bottom of the scale, while in Webb (1993) and Joseph et al (1998) they are one of the most important elements Jackson (1986) concluded that price

is a negative influence on college choice while financial aid to reduce costs is a positive influence

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2.2.1.10.6 Availability of financial aid

A study conducted by Yusof et al (2008) found that financial assistance offered by university as one of the four very important attributes expected from a

particular higher education institution of choice Thus, students who receive

financial aid awards are more likely to enter college (Jackson, 1988; Litten, 1982;

Manski & Wise, 1983)

Nurlida (2009) studied on mediating effect of information on college choice

indicated that students are satisfied with college choice based on their information

satisfaction with respect financial factors (external influences) which include

financial aids and affordable fees

2.2.1.10.7 Employment opportunities

Students are often attracted to post-secondary education because of the career opportunities it may provide (Sevier, 1998) Paulsen (1990) states that students often make college choices based on existing job opportunities for college

graduates Students are interested in outcomes They are influenced by what graduates are doing, what graduate schools they attend and contributions that they are making to society (Sevier, 1997)

2.2.1.10.8 Advertising

College marketing through the media has grown tremendously in the last ten years Television and radio advertising have been shown to be particularly effective in building institutional image and visibility, especially in specific

geographical areas (Hossler, Bean & Associates, 1990)

2.2.1.10.9 Campus visit

The campus visit is often a college or university’s best recruiting tools lt is a major factor in the decision-making process (Sevier, 1992) Hossler, Bean & Associates (1990) found that the campus visit was the most important factor influencing a

student’s enrollment decision

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2.2111 Information Satisfaction

A study conducted by Nurlida (2009) revealed that information satisfaction plays

a significant role in mediating the relationship between external influences and student’s choice of MBA program Nurlida (2009) mentioned that student’s choice

of MBA program among the students is due their satisfaction of the information they have acquired regarding the attributes of that particular colleges on which their evaluation was based upon Thus, it can be implied that the further the

information meets the prerequisite of the students’ choice criteria (based on the college attributes as per figure 2 above), the more will the students have on their

choice of MBA program

2.2.2 Research suggested model

(Ongin Accreditation, Ranking)

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(3) Prestige of MBA program variable include origin of MBA program and its accreditation as well as ranking

(4) Program variable includes admission policy, level of difficulty of entrance, tuition, schedule, license and curriculum of the program

(5) PR effort variable includes the effort of the program manager to make the public know about the program and attract their learners Some means of PR could be words of mouth, mass media, consultation and promotion

H2: The Career factor positively affects decision of joining a MBA program

Employee with management function has a demand to join a MBA program

H3: The Program factor negatively affects decision of joining a MBA program Difficult entrance examination, strict schedule and high tuition made the programs

less attractive

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H4: The Prestige of MBA program factor positively affects decision of joining a MBA program Program with good Prestige of MBA program is always a advantage

for student recruitment

HS: The Recommendation factor positively affects decision of joining a MBA program Program with high recommendation is always considered at first

H6: The PR effort factor positively affects decision of joining a MBA program The program can not survive without PR effort

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CHAPTER 3 DESIGN AND EVALUATION OF MEASUREMENT SCALE

3.1 Overview of the research area

Ho Chi Minh City is the largest city in Vietnam According to Wikipedia, the

population of Ho Chi Minh City, as of the 1 October 2004 Census, was 6,117,251

(of which 19 inner districts had 5,140,412 residents and 5 suburban districts had

976,839 inhabitants) In mid-2007, the city's population was 6,650,942 — with the

19 inner districts home to 5,564,975 residents and the five suburban districts

containing 1,085,967 inhabitants The result of the 2009 Census shows that the

city's population was 7,162,864 people, about 8.34% of the total population of Vietnam, making it the highest population-concentrated city in the country As of the end of 2012, the total population of the city was 7,750,900 people, an increase

of 3.1% from 2011 As an administrative unit, its population is also the largest at the provincial level

There are over 50 universities and colleges (for a full list of colleges in Ho Chi Minh City, see List of colleges in Ho Chi Minh City) with over 300,000 students There are over 100 vocational schools in Ho Chi Minh City, Vietnam

3.2 Design of the Questionnaire and Measurement Scale

After considering theoretical background and developing the research model, the research is conducted in two steps:

Step 1: Preliminary study is conducted by interviewing method using available materials to explore matters regarding the research topic Results of this study process will complete the questionnaire on factors influencing a student's MBA program choice Outcomes of a trial interview are acknowledged and summarized

as the basis for modifying, supplementing as well as removing irrelevant variables And then, the questionnaire will be designed and a preliminary survey is carried out

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ona sample of 30 students, results of which are used to finally revise the

questionnaire for official study

Step 2: This is the official step using questionnaire technique to collect data

Base on Literature Review, the author choose scales that have been used in other

researches These scales are used for the qualitative research Later used for

(1) A single person should choose to attend an MBA program

(2) A person living in an urban area should choose to attend an MBA

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