Uncovering unobserved heterogeneity in the ECSI model: An application in higher education in tourism

Abstract

This research explores the European Consumer Satisfaction Index model applied to higher education in tourism by accounting for unobserved heterogeneity. In particular, it intends to identify segments of High Education Institutions (HEI)’ consumers based on the structural model estimates of the European Consumer Satisfaction Index (ECSI), enlarged with the employability construct. A model-based segmentation approach using FIMIX in PLS path modelling is used. The ECSI was properly adjusted to the educational framework and has shown its effectiveness when assessing students’ satisfaction regarding the attended HEI. Two distinctive graduates’ segments were identified using a sample of 166 HEIs’ consumers. Results confirm the assumption of heterogeneity as the relationships differ across segments and the need for HEIs to differently target those segments in such a competitive context.