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COPYRIGHT AND CITATION CONSIDERATIONS FOR THIS THESIS/ DISSERTATION o Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. o NonCommercial — You may not use the material for commercial purposes. o ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original. How to cite this thesis Surname, Initial(s). (2012) Title of the thesis or dissertation. PhD. (Chemistry)/ M.Sc. (Physics)/ M.A. (Philosophy)/M.Com. (Finance) etc. [Unpublished]: University of Johannesburg. Retrieved from: https://ujdigispace.uj.ac.za (Accessed: Date). Choice factors and the perceived value that influence prospective university students’ intention to enrol - a choice model Isolde Lubbe 201048840 Thesis Submitted in fulfilment of the requirements for the degree PhD in Marketing Management in the Faculty of Management at the University of Johannesburg Johannesburg Supervisor: Prof Chris Jooste Co-supervisor: Prof Danie Petzer January 2013 DECLARATION I declare that the Doctoral thesis, which I hereby submit for the degree PhD (Marketing Management) at the University of Johannesburg, is my own independent work and has not previously been submitted by me for a degree at another university. ISOLDE LUBBE January 2013 Language editing declaration: I hereby declare that I have performed the language editing of the thesis entitled: “Choice factors and the perceived value that influence prospective university students’ intention to enrol - a choice model”. E. Marnitz i | ACKNOWLEDGEMENTS A sincere thank you to all the people who contributed to the completion of this study. My special appreciation is extended to: My Heavenly Father who gave me the courage and perseverance to successfully complete this study. Through His power and grace, He gave me the ability and the special people around me to complete this task that seemed at times overwhelming. My husband, Jan, for his support and encouragement and for always believing in me. Thank you Jan, for keeping the kids busy when I had to work. Thank you for still loving me, even if I had really neglected you the last few months to finish this project. I absolutely love and adore you! My children. Although you are still very young, you really tried to be patient and your laughter and funny stories carried me through when I was tired or stuck. I had loads of comments about working on my pink laptop! My supervisors and mentors, Prof Chris Jooste and Prof Danie Petzer, who provided continuous support, advice and assistance. Thank you for your unbelievable patience and leadership. Thank you, Prof Jooste for not giving up on me, even when it took months to finalise my research proposal. Your encouragement was crucial to my success and much is appreciated. Thank you, Prof Petzer for your assistance and perseverance, thank you for believing in me and in my ability. When I doubted my ‘statistical abilities’, especially with structural equation modelling, you encouraged me. Elsabeth Marnitz for your hard work with the language editing and for being a friend. Your support, coffee and laughter were music to my soul. The University of Johannesburg’s Marketing and Recruitment team, in distributing the questionnaires and for dealing with the targeted schools. I couldn’t have done this without your guidance, support and assistance. All the Gauteng public schools that participated in the study, your cooperation is much appreciated. The Department of Education (Gauteng) for believing in my project and for providing written approval to visit the schools. Your letter of approval has provided legitimacy to the study and made school visits easier. Thank you for your ii | assistance with the top public schools list and for your patience, support and assistance and for explaining how the top schools list is compiled. Thank you for listening to my sampling requirements and for your advice in this regard. STATKON, for conducting all the statistical analysis and for explaining structural equation modelling (SEM) in particular. Thank you to Richard Devey for your support and assistance, especially with the questionnaire development and pre- testing. Thank you to Jacklyn Smith for all your patience and all your explanations. Colleagues, friends and staff of the Department of Marketing Management at the University of Johannesburg. Thanks to all of you for your encouragement and support. Thank you for all the cups of tea and coffee and moral support (Susan Schmidt and Dr Christine de Meyer), and jokes (Prof Mornay Roberts-Lombard)! Petro Beukes who assisted me with drawing tables and figures, you are so friendly and helpful and your Word and PowerPoint knowledge is extraordinary! To all my friends and family who accepted my ‘disappearing act from the social scene’ for a while. Thank you for your support, friendship and interest. iii | ABSTRACT Despite the extensive research undertaken in the subject area of prospective students’ university decision-making processes when selecting a university, much is still unknown about the interrelationships between the choice factors they consider when choosing a university, the perceived value they expect to derive from their choice, and their intention to enrol at their chosen university. This study attempted to address this gap by developing a theoretical model to test the possible interrelationships of three main constructs namely, choice factors, perceived value and intention to enrol. Higher Education Institutions (HEIs) such as universities, realise the need to embrace marketing related ideas and practices to attract the ‘right’ students in an increasingly competitive Higher Education (HE) landscape. The ‘right’ students are those prospective students with potential to succeed, and the top performing students. Competition is evident as universities need to compete with a number and variety of universities and HEIs and prospective students have choice. Prospective students are also more mobile, and better informed to make judgements about a range of potential universities at home and abroad. It is therefore important for universities to understand what students desire and expect from them, and to engage in consumer behaviour research to grasp prospective students’ decision-making processes and the choice factors that are most influential in selecting a university. Choice is further a function of prospective students’ perceived value they believe they will derive from their chosen university and understanding the concept of value is important as it drives consumer decision-making. Perceived value is furthermore an accurate indicator of the student’s intent to enrol. In order to test the theoretical model that can possibly guide universities in determining choice factors, perceived value and the intention of prospective students to enrol, an empirical investigation was conducted. A cross-sectional descriptive research design was followed where the researcher made use of the survey research technique. A drop-off self-administered questionnaire was designed and distributed. For the purpose of this study, a non-probability sampling technique was employed where the researcher used the judgement of an experienced individual to select the sample iv | units. A letter of approval was obtained from the Department of Education to approach these schools and fieldworkers were used to deliver questionnaires. Only those grade 12 scholars who were considering studying at a university/university of technology were targeted. Of the 1 733 questionnaires received, 1 476 could be included for analysis and interpretation purposes. Multivariate statistical techniques were used to analyse the data; including an exploratory factor analysis (EFA) to reduce the data, a second-order exploratory factor analysis (2nd order EFA) to verify the data, a confirmatory factor analysis (CFA) to refine the data, and structural equation modelling (SEM) to determine and measure the interrelationships between the main constructs of the study. A number of inferential statistical techniques were further employed to test hypotheses formulated for the study. The results indicate that six of the initial seven choice factors as confirmed through CFA, influence prospective students’ university choice. The seventh choice factor namely accessibility-price was removed during SEM because of multicollinearity. The six remaining choice factors include reputation, cultural acceptance, accessibility- location, physical evidence, prestige/prominence and future employability influencing prospective students’ university choice. The results furthermore reveal that there are interrelationships between the choice factors prospective university students consider when choosing a university, the perceived value they expect to derive from their chosen university, and their intention to enrol at their chosen university. The study indicate that universities should implement marketing related strategies with equal effort into understanding the choice factors influencing prospective students’ university choice, and the perceived value prospective students expect their chosen university offers, as interrelationships exist. v | TABLE OF CONTENTS CHAPTER 1: INTRODUCTION AND ORIENTATION -------------------- 1 1.1 Introduction ------------------------------------------------------------------------------ 1 1.2 Background