Uncovering Students Higher Education Institutions Selection: An Investigation Using Factor Analysis and Cluster Analysis

Several factors influence student selection of Higher Education Institutions (HEIs). In recent years, students’ decision-making criteria have evolved beyond traditional factors. This study explored the factors influencing students’ choices of HEI. Exploratory factor analysis revealed eight significant factors that influenced HEI choices. The factors are ‘Enrolment Value Optimization’ (EVO), ‘External Psychic Influence’ (EPI), ‘Internal Psychic Influence’ (IPI), ‘Academic Infrastructure Influence’ (AII), ‘Internal Financial Influence’ (IFI), ‘Pedagogical Aspects’ (PEA), ‘Objective Based Educational’ (OBE) and ‘Choice-Based Credit System’(CBCS). Further, based on the importance given to various factors, students are classified into five significant clusters: ‘Comprehensive Benefit Seekers’, ‘Scholars’, ‘Balanced Learners’, ‘Holistic Students’, and ‘Undecided Learners’. These findings provide insights for HEIs to align their offerings with student priorities and to develop targeted marketing strategies. Understanding student decision criteria enables HEIs to address the concerns that influence student satisfaction and performance. The study’s findings could benefit institutions worldwide, provided they are appropriately adapted to the cultural context.