Students’ Psychological Needs and Satisfaction with Their Academic Studies: The Mediating Role of the Perceived Quality of Higher Education Institutions

Abstract

This research aimed to investigate the relationship between students’ perceptions of the quality of different aspects of higher education institutions, satisfaction of their psychological needs, and satisfaction with their studies at the higher education institution in question. This research involved 404 students of humanities, social sciences, and interdisciplinary studies. A Croatian version of the HedPERF Scale was used to examine the perceived level of quality of the higher education institution and the Basic Psychological Needs in the Academic Context Scale to check if students’ basic psychological needs were satisfied in the academic context. The obtained results suggest that satisfying students’ psychological needs at higher education institutions is important for their overall satisfaction with their academic studies but also that this relationship is mediated by the perceived quality of different aspects of the higher education institution in question, at least when it comes to the needs for autonomy and relatedness. A positive connection was also confirmed between satisfaction of students’ psychological needs and perceived level of quality, and the perceived level of quality of and satisfaction with academic studies. The research results confirm the importance of investing in the quality of higher education institutions, in different aspects, to improve students’ well-being and satisfaction with their academic experience, which in turn will positively affect their academic outcomes.

1. Introduction

Quality assurance in the higher education system is a complex concept that does not have a clear definition, and it has been analyzed from different perspectives (Bogue 1998; Gvaramadze 2008; Nicholson 2011). Lazibat (2009) states that it is a relative category that depends on numerous effects and elements, while Cheong Cheng and Ming Tam (1997) go even further, calling quality a controversial and unclear concept. Although the first systematic research of quality in higher education is attributed to Cartter in the United States in 1964 (Bogue 1998), in the European Higher Education Area, the quality system for higher education institutions has changed from its first definitions and has gained full momentum after the Salamanca Convention (2001), followed by the Graz Declaration (2003), the Glasgow Declaration (2005), and finally the Bologna Process and the introduction of European Standards and Guidelines for Quality Assurance in the European Higher Education Area (ESG 2015). The analysis of these documents at the level of European education policy shows the development of the concept of quality and its role in the development of higher education, shifting from quality control to a quality culture. Based on these conventions and documents, the development of the EHEA enabled the definition of mechanisms, procedures, and standards for external and internal (institutional) quality evaluation (ESG 2015).

Authors who research quality in higher education suggest that quality assurance in higher education depends on many factors, including its role in promoting socioeconomic development (Dill 2007; ESG 2015), its role in developing the theoretical construct on which the quality system is built (Harvey and Green 1993; Longanecker and Blanco 2003; Nicholson 2011; Vatta and Bhatara 2013), its role in developing educational policies that introduce quality standards (Nicholson 2011; ESG 2015), the development of measurements of the process used by participants and their perceptions of quality (Gvaramadze 2008), the types of instruments used in researching quality systems (Cronin and Taylor 1992; Abdullah 2006; Parasuraman et al. 1985; Teeroovengadum et al. 2016), and many others. Even at the level of education policy, it is clearly emphasized that quality assurance is a generic term that can be interpreted in different ways and includes different circumstances (ESG 2015). Although the standards and elements of the quality system are well defined, there is a justified question about their effectiveness in achieving continuous quality improvement, especially with regard to the experience of quality from the perspective of students (Gosling and D’Andrea 2001).

1.1. Perceived Service Quality and Students’ Satisfaction

Analysis of student satisfaction is essential in improving the quality of higher education institutions (Zineldin et al. 2011), as it provides necessary information on factors that contribute to quality, student achievement (Oja 2011), and their personal and academic well-being (Franzen et al. 2021). Perceived service quality is an important factor in higher education, as students’ assessment of the perceived level of quality and satisfaction with the study service can have a significant impact on institutional outcomes (Dužević et al. 2015) and at the same time contribute to improving students’ academic achievements (Dill 2007; Horsburgh 1999). In this way, benefits are highlighted at both the institutional and individual levels. Perceived service quality defined by Parasuraman et al. (1988) implies “a global judgment, or attitude, relating to the superiority of the service”. On the other hand, as stated by Spreng and Mackoy (1966), satisfaction is not so easy to define, but it can be concluded that it implies “an evaluative, affective, or emotional response”. Although it is sometimes difficult to distinguish perceived service quality from satisfaction, previous research (Richard 1990; Spreng and Mackoy 1966) has confirmed that those are two separate constructs and that perceived service quality can be positively related to satisfaction.

The analysis of the literature in the non-academic environment has shown that relationship between satisfaction with studying and perceived level of quality is not unambiguous (Li et al. 2011; Dužević et al. 2015). In the academic environment, research by Gruber et al. (2010) has shown that students’ satisfaction at the university level is based on a relatively stable person–environment relationship and that the perceived quality experience is influenced by the learning atmosphere in a positive way and the teaching environment in a dis-satisfying way. Analyzing the factors of quality in higher education, Abdullah (2006) found that student’s perception of quality is influenced by the conditions that ensure the possibility of studying and the services of non-academic staff, accessibility, availability, ease of contact, reputation of the faculty, availability of counseling and health services for students, and characteristics and quality of teachers.

Therefore, this research will examine whether there is a connection between these two constructs in the field of higher education, more specifically in institutions that offer humanities, social sciences, and interdisciplinary study programs.

1.2. Student Well-Being and Satisfaction with Educational Process

The study period is important for young adults, and the possibility of satisfying psychological needs at a higher education institution is one of the significant correlates of students’ psychological well-being (Leow et al. 2023; Müller et al. 2021; Muntean and Bochiş 2022; Sari 2012). In the context of the self-determination theory (Deci and Ryan 1985; Ryan and Deci 2000), which is the theoretical framework of the conducted research, there are three basic psychological needs—autonomy, competence, and relatedness—and satisfying them is associated with general psychological well-being.

People are directed toward psychological growth and development through the satisfaction of their psychological needs in different life contexts; therefore, the academic context is vital during the study period. Autonomy implies an individual’s independently selected behavior and voluntary action where their behavior is predominantly intrinsically motivated and not by external pressures, which refers to autonomous behavior control on the self-determination continuum (Ryan and Deci 2000). Competence relates to the need for efficiency and success that an individual realizes in their environment, while relatedness includes an individual’s need to establish close relationships with others and to feel connected and in harmony with important people (Ryan and Deci 2000). According to the self-determination theory, an individual’s personal well-being is directly related to satisfying these psychological needs. A recent survey conducted in 27 European countries on a sample of over 48,000 participants showed that basic psychological needs are strongly linked to key well-being indicators such as life satisfaction and happiness, even with the control of sociodemographic and socioeconomic characteristics (Martela et al. 2023). In the academic context, Madjar et al. (2013) confirmed the positive correlation between satisfaction of psychological needs and student engagement and achievement. In a sample of students in Croatia, Kalebić Jakupčević and Reić Ercegovac (2020) confirmed that satisfaction of the needs for relatedness and competence is a significant predictor of students’ subjective well-being in the academic environment. Muntean and Bochiş (2022) came to a similar conclusion and found that in the post-pandemic period, the need for relatedness was essential for student well-being, along with the need for competence, unlike the need for autonomy. According to the self-determination theory, an individual’s personal well-being is directly related to satisfying these psychological needs.

Both constructs (perceived quality level and basic psychological needs) measure aspects of student experience that are interrelated and that affect academic success (Daka 2020) and student satisfaction (Parasuraman et al. 1988; Tam 2001; Alves and Raposo 2007). Earlier research has found that students with a higher level of self-determination are those who have higher quality studies and who perceive their study experience as better (Chong and Ahmed 2012). Given the above, the question arises whether the connection between basic psychological needs and satisfaction would be stronger if the mediator variable of perceived quality level were included in this relationship. Therefore, the main purpose of this research is to investigate the relationship between students’ perceptions of the service quality of different aspects of higher education institutions, satisfaction of their psychological needs, and satisfaction with their studies at higher education institutions offering study programs in humanities, social sciences, and interdisciplinary studies. Since previous research has shown that meeting students’ basic psychological needs at a higher education institution significantly contributes to a higher level of satisfaction with their studies (Puklek Levpušček and Podlesek 2019), and that the mediating role of these needs between variables related to the faculty environment (support from teachers and colleagues) and academic satisfaction has been established (Schenkenfelder et al. 2020), this research raises the question of whether the perceived level of quality can act as a mediator between students’ basic psychological needs and their satisfaction. Previous research also suggests that the year of study can be a significant factor influencing perceptions of service quality among students. Consequently, this study examines the extent to which the level of study shapes perceptions of service quality, satisfaction, and the satisfaction of basic psychological needs among students. To achieve this goal, this research attempted to answer the following research hypotheses:

H1. 

Perceived level of service quality is positively correlated with the satisfaction of students with their academic studies.

H2. 

Students’ basic psychological needs are positively correlated with the satisfaction of students with their academic studies.

H3. 

Students’ basic psychological needs are positively correlated with the perceived level of service quality.

H4. 

There is a mediating role of the perceived quality of higher education institutions between students’ psychological needs and satisfaction with their academic studies.

H5. 

There is a difference in the perception of the perceived level of service quality, satisfaction with study, and satisfaction of students’ basic psychological needs, depending on the level of study.

2. Research Method

2.1. Research Sample and Procedure

A total of N = 404 students participated in this research, including N = 346 female students, N = 54 male students, and 4 participants who chose another option. As for the study level, there were N = 177 undergraduate students (44%), N = 117 graduate students (29%), N = 47 students attending integrated study programs (11.5%), and N = 63 postgraduate students (15.5%). Undergraduate students are students in the first three years of study and acquire 180 ECTS credits. Graduate students study for two years and acquire 120 ECTS credits, and the condition for their study is the completion of an undergraduate study program. Integrated students study for five years and acquire 300 ECTS credits, while postgraduate students are doctoral students. All students studied humanities, social sciences, or interdisciplinary sciences or a combination of those study programs. This research was conducted via online survey, during the regular summer semester classes in the academic year 2023/2024 at one division of a public university. All students received an email invitation, and the response rate was 34% from the total number of students enrolled in that academic year. The invitation to participate in this research was distributed via the official e-mail addresses of students and teachers of the higher education institution. Students directly received an e-mail with information about the study, including the purpose, objectives, and importance of collecting data on their perceived quality of studies, satisfaction of psychological needs, and general satisfaction with studying. In parallel, an e-mail was also sent to teachers asking them to inform students about the study and encourage them to participate. This dual communication strategy ensured greater visibility of the study and increased the likelihood of participation, as students may be further motivated if their teacher draws their attention to the importance of the study. The questionnaire was available via a digital platform, and the e-mail also provided details about the anonymity of participation and the rights of respondents in accordance with ethical guidelines for research in the social sciences.

Data collection lasted two weeks. The research was voluntary and anonymous and in accordance with ethical requirements and procedures in higher education. Approval for conducting the research was obtained from the relevant Ethics Committee.

2.2. Instruments

A four-part questionnaire was administered to the participants, with questions covering their sociodemographic characteristics (study level, gender), followed by the Croatian version of the HedPERF Scale (Abdullah 2006), the Basic Psychological Needs in the Academic Context Scale (Deci et al. 2001; Ilardi et al. 1993; Kasser et al. 1992), and an item examining general student satisfaction with their studies (1—extremely dissatisfied; 7—extremely satisfied).

A Croatian version of the HedPERF Scale (Higher Education Performance) developed by Abdullah (2006) consists of 41 items and examines the quality of studying at a higher education institution. Previously, it was tested in a series of studies abroad (Carrillat et al. 2007; Banahene et al. 2018), but also on national samples (Lazibat et al. 2013; Dužević et al. 2015; Rajić 2019). Abdullah (2006) took 13 items from the SERVPERF Scale (Cronin and Taylor 1992) and added 28 items based on previous research. The scale consists of the following dimensions: (a) non-academic aspects (includes items related to the perceived quality of administrative staff); (b) academic aspects (includes items related to the perceived quality of teaching staff); (c) reputation (includes items related to institutional reputation); (d) access (includes items related to information accessibility, availability, etc.); (e) study programs (includes items related to the importance of offering sufficiently flexible programs); and (f) understanding (includes items related to respecting student needs such as counseling). Participants’ task is to assess how much they agree with each item using a seven-point scale (1—I completely disagree; 7—I completely agree).

Dužević et al. (2015) obtained a seven-factor structure in a sample of Croatian students, but, considering the eigenvalues, parallel analysis, and guidelines of the original authors (Abdullah 2006), the five-factor solution proved to be optimal and explained a total of 61.38% of the variance. The factors include access (counseling, information reliability and availability), non-academic aspects (administrative services), academic staff, space and study programs, and institutional reputation.

The Basic Psychological Needs in the Academic Context Scale (Deci et al. 2001; Ilardi et al. 1993; Kasser et al. 1992) consists of 21 statements and examines the satisfaction of the three fundamental psychological needs in the academic context. The participants’ task is to assess how much each item applies to them, using a seven-point scale where 1 means does not apply at all, and 7 means completely applies.

2.3. Data Analysis

Considering that the skewness and kurtosis parameters of almost all measures ranged from −2 to +2 (

Table 1. Descriptive parameters of the measures used.

	N *	Cronbach α	M (SD)	Range	Skewness	Kurtosis
Teaching staff	8	0.93	46.42 (7.88)	8–56	−1.36	2.79
Administrative staff	8	0.95	42.20 (10.87)	8–56	−0.84	0.24
Reputation and programs	11	0.91	58.05 (11.97)	11–77	−0.85	1.07
Access and understanding	11	0.94	61.76 (11.99)	11–77	−1.08	1.58
Autonomy	6	0.73	31.58 (5.52)	16–42	0.02	−0.44
Competence	6	0.76	33.15 (5.25)	19–42	−0.11	−0.83
Relatedness	8	0.83	44.47 (6.93)	26–56	−0.23	−0.66
Satisfaction	1	-	5.46 (1.32)	1–7	−1.06	1.22

* N—number of items.

), parametric procedures were used in the analysis, including Cronbach Alpha, exploratory factor analysis, correlation analyses, one-way analyses of variance, and standard and hierarchical regression analyses. All data were analyzed using Statistica 14, Tibco software.

3. Results

The first factor analysis identified seven factors that explained 46.3%, 6.07%, 4.42%, 3.54%, 2.95%, 2.55%, and 2.50% of the variance. Considering the obtained values and that only one item with significant saturation was found for the last three factors, after omitting these three items (Teachers have knowledge about the course content, Student inquiries/requests/remarks are resolved promptly, and Administrative staff shows a positive attitude towards students), repeated exploratory factor analysis identified four factors that explained a total of 64.58% of the variance. The factors include teaching staff (items as in previous scale applications except for the omitted item, Teachers have knowledge about the course content; for example, Teaching staff gives feedback to students on the possibilities of their progress), administrative staff (most items correspond to the non-academic dimension from the original with two items omitted from the analysis—Student inquiries/requests/remarks are resolved promptly and Administrative staff shows a positive attitude towards students—and two items assigned to the last factor; for example, Administrative staff has a good knowledge of the faculty system and procedures), reputation and programs (most items as in the original with items related to flexible programs and the location of the institution, for example, The faculty offers different study programs and opportunities for student training), and access and understanding (items related to the dimensions of access and understanding taken from the original, for example, The faculty supports the work of student associations). The overall results were formed for four factors (subscales) by summing participants’ responses on the items in each subscale. All four subscales had high reliability, and all descriptive parameters of the formed results are shown in Table 1.

The verification of the subscale reliability showed that the autonomy subscale has a slightly lower reliability; therefore, further verification found that reliability can be increased to an acceptable 0.73 by omitting one item of the subscale (I have to do what I am told at the faculty). This also increased the average inter-item correlation from 0.22 to 0.30. Considering all reliability indicators, three total results were formed by summing participants’ responses on the items in each subscale, and the descriptive indicators of subscales are shown in Table 1.

Table 2. Research correlation matrix.

	1.	2.	3.	4.	5.	6.	7.	8.	9.	10.	11.	12.
1. Gender
2. Education—mother	0.05
3. Education—father	−0.01	0.32 *
4. Study level	−0.07	−0.03	0.06
5. Overall satisfaction	−0.10 *	−0.06	−0.03	0.07
6. Teaching staff	−0.13 *	−0.08	−0.02	−0.02	0.66 **
7. Administrative staff	−0.15 **	−0.06	0.00	0.07	0.49 **	0.63 **
8. Reputation and programs	−0.05	−0.03	0.03	0.04	0.63 **	0.72 **	0.66 **
9. Access and understanding	−0.10 *	−0.06	0.03	−0.00	0.61 **	0.79 **	0.70 **	0.78 **
10. Autonomy	−0.08	−0.08	0.02	0.02	0.53 **	0.53 **	0.45 **	0.50 **	0.56 **
11. Competence	−0.07	−0.01	0.01	0.09	0.47 **	0.37 **	0.36 **	0.35 **	0.39 **	0.69 **
12. Relatedness	−0.05	0.04	0.06	−0.02	0.46 **	0.42 **	0.34 **	0.42 **	0.46 **	0.66 **	0.61 **	1.00

* p < 0.05; ** p < 0.01.

shows the correlation matrix between different aspects of service quality (e.g., teaching staff, administrative staff, reputation and programs, access and understanding) and student satisfaction (overall satisfaction). The results indicated that all these variables have significant positive correlations with satisfaction (r = 0.66 **, r = 0.49 **, r = 0.63 **, r = 0.61 **), which supports H1. Furthermore, all three variables of psychological needs (which are represented by autonomy, competence, and relatedness) have significant positive correlations with student satisfaction. autonomy → r = 0.53 **, competence → r = 0.47 **, and relatedness → r = 0.46 **. These results indicate that students who feel greater autonomy, competence, and connectedness are more likely to be satisfied with their studies, which supports H2. Correlations between autonomy, competence, and relatedness and different aspects of service quality show positive and significant values. For example, autonomy is significantly related to all aspects of service quality (r = 0.53 ** to r = 0.56 **), competence is significantly related to aspects of service quality (r = 0.35 ** to r = 0.69 **), and relatedness is also positively related to service quality (r = 0.34 ** to r = 0.46 **). This means that students who experience greater psychological support simultaneously perceive higher service quality, which confirms H3. Participants’ gender was correlated with student satisfaction with their studies and three of the four quality aspects, whereby male students expressed a higher level of satisfaction and perceived higher quality levels compared to female students. It should be noted that the sample included significantly fewer male students than female students (13%). The study level (undergraduate, graduate, and postgraduate) was not correlated with any variable of satisfaction or perceived quality.

A comparison of the results of the perceived level of quality aspects showed that teaching staff received the highest average grade, followed by access and understanding, administrative staff, and reputation (Figure 1).

Although the correlation analysis did not indicate a significant correlation, four one-way analyses of variance were conducted, for each quality aspect, to check whether there is a difference in the perceived level of study quality with regard to the study level (undergraduate, graduate, integrated, and postgraduate). The results showed that the study level does not significantly affect only the perception of access and understanding, while in other quality aspects, a significant difference was found with regard to the study level. When it comes to teaching staff (F3400 = 3.17; p = 0.024), subsequent analysis (Fisher’s test) showed that students attending the integrated study program assessed this quality aspect significantly higher (M = 6.16) than students at other study levels, among which there was no significant difference (M undergraduate = 5.84; M graduate = 5.69; M postgraduate = 5.64). Similar findings were made for administrative staff (F3400 = 7.78; p < 0.001). Again, students attending the integrated study program assessed this quality aspect with the highest grade (M = 6.00), while undergraduate students (M = 5.30) and postgraduate students (M = 5.35) gave it a significantly lower grade, with no difference among these two groups, and finally, graduate students gave it a significantly lower grade (M = 4.91) than all other students. Fisher’s test was used to test the significance of the identified differences. A minimal but significant difference was found in the perceived quality of reputation and programs (F3400 = 2.84; p = 0.038), with a subsequent analysis showing a difference between students attending the integrated study program (M = 5.64) and graduate students, who gave this quality aspect the lowest grade (M = 5.09).

The relationship between the study level and satisfaction of psychological needs followed a similar trend as shown before when analyzing the relationship between the study level and the perceived quality of the higher education institution (Figure 2). However, one-way analyses of variance have shown that the study level has a significant effect only on satisfaction of the need for competence (F3400 = 3.408; p = 0.02), with students attending the integrated study program achieving slightly higher results compared to those at undergraduate levels. No significant difference was found for autonomy and relatedness.

To test the fourth hypothesis and check whether the perceived level of quality of the higher education institution mediated the correlation between satisfaction of students’ psychological needs and satisfaction with their studies, regression analyses were conducted (

Table 3. Regression analyses used to examine the mediating effect of the perceived level of quality of a higher education institution on the relationship between satisfaction of psychological needs and student satisfaction.

1st regression analysis (psychological needs → perceived level of quality)
	teaching staff	administrative staff	reputation and programs	access and understanding
autonomy	0.45 **	0.36 **	0.41 **	0.48 **
competence	−0.03	0.08	−0.04	−0.05
relatedness	14 *	0.06	0.17 **	0.18 **
R (R2)	0.53 (0.28)	0.46 (0.21)	0.51 (0.26)	0.57 (0.33)
F (3.400)	52.26 **	35.09 **	47.19 **	65.28 **
2nd regression analysis (psychological needs → student satisfaction)
autonomy	0.34 **
competence	0.14 *
relatedness	0.16 **
R (R2)	0.57 (0.32)
F (3400)	62.92 **
3rd regression analysis (hierarchical)
Step 1		Step 2
autonomy	0.33 **	autonomy	0.06
competence	0.14 *	competence	0.16 *
relatedness	0.16 **	relatedness	0.07
R (R2)	0.56 (0.32)	teaching staff	0.35 **
F (3400)	61.29 **	administrative staff	−0.03
		reputation and programs	0.28 **
		access and understanding	0.02
		R (R2)	0.74 (0.54)
		ΔR2	0.22 **
		F (7396)	66.01 **

* p < 0.05; ** p < 0.01.

) following the procedure proposed by Baron and Kenny (1986). Since the correlation analysis showed that there is a significant correlation between satisfaction with academic studies, satisfaction of the three psychological needs, and the perceived level of all quality aspects, we checked the mediating effect of all quality aspects on the correlation between satisfaction of the needs for autonomy, competence, and relatedness and satisfaction with academic studies. In the first standard regression analysis, psychological needs were a predictor, and the perceived level of various aspects of the quality of higher education institutions was a criterion variable. The results showed that satisfaction of the needs for autonomy and relatedness significantly contributes to the perceived level of quality of the higher education institution, while the same has not been determined for the need for competence (Table 3). In the second standard regression analysis, with the same predictors, the criterion variable was satisfaction with academic studies, and the results showed that satisfaction of psychological needs at the higher education institution significantly contributes to overall student satisfaction, with psychological needs explaining 32% of the criterion variance. Finally, in the last hierarchical regression analysis, the variables of satisfaction of psychological needs which significantly contribute to student satisfaction were introduced in the first step, but after introducing the variables of the perceived level of quality of higher education institutions, the needs for autonomy and relatedness no longer had a significant predictor coefficient. From the above results, it can be concluded that satisfaction of the psychological needs of students at the higher education institution is important for their overall satisfaction with their studies but also that this relationship is mediated by the perceived quality level of different aspects of the higher education institution, at least when it comes to the needs for autonomy and relatedness.

4. Discussion

Continuous monitoring of the perceived level of quality of higher education institutions in different aspects is an important driver of the development of a higher education institution and a predictor of student satisfaction and success, which is one of the main goals of each higher education institution. This research was conducted to better understand the mutual relationship between quality, as perceived by students, student satisfaction, and satisfaction of their basic psychological needs.

The results showed that research participants generally expressed a moderate-to-high level of satisfaction with their studies (M = 5.46, on a scale from 1 to 7), which suggests that most participants perceive their academic experience as positive. The same is with the high perceived level of quality of the higher education institution (from M = 5.28 for administrative staff and reputation and programs to M = 5.80 for teaching staff, on a scale from 1 to 7). The results indicate that students recognize and appreciate the quality of teaching staff but potentially perceive certain challenges in administrative processes and the reputation of the program. Furthermore, satisfaction of psychological needs at the higher education institution was assessed as relatively high (from M = 5.26 for autonomy to M = 5.56 for relatedness). These findings suggest that students in higher education feel connected to their peers and teachers and are allowed some decision-making and autonomy in their learning, although there may be a place for improvement in this area. Since perceptions of institutional quality and student satisfaction are key indicators of higher education success, ongoing monitoring of these dimensions can provide valuable insights for improving academic environments. Furthermore, as self-determination theory suggests that the fulfillment of psychological needs contributes to motivation and well-being, these results confirm the importance of institutional strategies aimed at strengthening student autonomy, competence, and connectedness.

4.1. Reflection on the Hypotheses and Mediating Role of Perceived Quality of Higher Education Institutions Between Students’ Psychological Needs and Satisfaction with Their Academic Studies

The results of the research support the hypotheses H1, H2, and H3, as they show positive correlations between the key variables. Higher perceived service quality is associated with higher student satisfaction (H1). The professional literature and previous research confirmed that the possibility of satisfying the basic psychological needs of students at a higher education institution is important for their higher level of satisfaction with their studies (Puklek Levpušček and Podlesek 2019), which has many positive effects on academic outcomes. The study also showed that students who feel more autonomy, competence, and connectedness are more likely to be satisfied with their studies, which supports H2. Students who experience more psychological support also perceive higher service quality, which confirms hypothesis H3. Psychological needs (especially autonomy and connectedness) positively influence the perception of service quality, and psychological needs are positively associated with student satisfaction.

Since previous research has shown that satisfying the basic psychological needs of students at a higher education institution is important for their higher level of satisfaction with their studies (Puklek Levpušček and Podlesek 2019), and the mediating role of students’ basic psychological needs between college environmental variables (faculty and peer support) and academic major satisfaction has also been demonstrated (Schenkenfelder et al. 2020), the question that was raised in this research was whether the perceived level of quality can act as a mediator between the basic psychological needs of students and student satisfaction (H4). This research showed that perceived service quality in higher education mediates the relationship between students’ psychological needs and their satisfaction with their studies. In particular, autonomy and connectedness are fully mediated, while competence still has a direct effect.

The fifth hypothesis (H5) can be partially accepted. Although correlation analysis did not show significant associations, one-way analysis of variance revealed significant differences in the perception of study quality among students of different levels, except in the aspect of access and understanding. Regarding satisfaction with basic psychological needs, the difference was confirmed only in terms of competence.

Correlation analyses indicated a significant correlation between satisfaction with academic studies, all aspects of perceived quality, and satisfaction of psychological needs. In addition, the correlation analysis led to the conclusion that male students, compared to female students, consider the quality of teaching staff, administrative staff, and access and understanding to be higher. These results are partly in line with the results of Dužević et al. (2015) who found that male students, compared to female students, perceive a higher quality in aspects of administration, access, and reputation. Although the correlations did not indicate a link between gender and satisfaction of psychological needs, a significant, although very low correlation, was found between gender and overall student satisfaction, with male students being slightly more satisfied than female students. Some other studies (Jadrić 2021; Sojkin et al. 2012) have found female students to be more critical and less satisfied compared to male students. But, because of the small number of male students in the sample (13%) these results should be interpreted with caution, as the gender distribution in this study is highly skewed (346 female, 54 male), which may limit generalizability.

Regression analyses were conducted to check whether satisfaction of the basic psychological needs at the higher education institution contributed to the perceived quality of different aspects of the higher education institution, and it was found that satisfying the needs for autonomy and relatedness significantly contributed to the perception of the quality of almost all aspects of the higher education institution. Students whose needs were satisfied to a greater extent also perceive a higher quality of the higher education institution. This result has practical importance for the higher education institution because it indicates the need to organize its services (program, administrative, spatial, counseling) in a way that will enable students to satisfy these psychological needs. Satisfaction of psychological needs at higher education institutions has also proved important in previous research for many academic outcomes, primarily academic achievements (Niemiec and Ryan 2009; Chen and Zhang 2022; Puklek Levpušček and Podlesek 2019). Surveying a sample of undergraduate students, Ariani (2019) confirmed that the needs for autonomy and competence directly affect students’ academic engagement and that satisfaction of all three psychological needs contributes to positive academic outcomes and reduces the likelihood of academic burnout. These results can be seen in the context of the self-determination theory, according to which the well-being of an individual is the result of primarily autonomous motivation and behavior regulation. Considering that the self-regulation theory starts from the idea that the motivation of an individual is also influenced by environmental factors—in this case, aspects of quality in higher education—it can be concluded that a high perception of the quality of a higher education institution contributes to student learning motivation, self-regulation, and ultimately greater satisfaction. This confirms the importance of investing in the institutional quality system and supports the initial assumption regarding the correlation between environmental factors, i.e., the quality culture in the higher education institution and student satisfaction with their studies.

This research has shown that significant predictors of overall student satisfaction are the perceived quality of teaching staff, the program quality, and the reputation of the higher education institution, while among the psychological needs, competency proved to be significant in this sense. These results are in line with the results of earlier research on the perception of quality as an important predictor of student satisfaction (Clemes et al. 2008; Miljković Krečar and Odak Krasić 2023; Vranešević et al. 2007; Pedro et al. 2018). Specifically, some research has shown that the perception of teacher quality is the most important predictor of satisfaction with academic studies (Miljković Krečar and Odak Krasić 2023; Vranešević et al. 2007), which corresponds to the results of this research (Table 3). The teaching process largely depends on teachers, their professional and scientific competencies, and competencies related to the quality of communication with students, class design that meets student expectations, etc. At other levels of the educational system, outside of higher education, it is known that the quality of the teaching environment and the quality of communication in the teaching process are crucial to improving the quality of modern teaching and achieving the goals of the educational process (Koludrović and Reić Ercegovac 2014).

4.2. Limitations and Future Directions

Before concluding, it is necessary to look at the limitations of the conducted research. The first limitation refers to the sample of students attending only one higher public institution in Croatia, which prevents the generalization of results to the entire higher education system. Moreover, the results should be verified in further research at other higher education institutions, especially those that offer education in other scientific fields. Another limitation is the sample’s uneven gender distribution. It must also be emphasized that the gender distribution in this study is highly skewed (346 female, 54 male), and such gender differences may affect the generalizability of the findings. Since this research was primarily based on the assumption that psychological need satisfaction directly influences perceived quality, we propose the possibility of alternative explanations in future research. Although the measures used had satisfactory or high internal consistency reliability, the conducted factor analyses pointed to structures differing from the original structures, i.e., those used in foreign research. Despite the common European Higher Education Area, higher education systems in different cultures and countries have their specificities; therefore, the instruments used need to be adapted to our system. In the future, this study could be extended to include a confirmatory factor analysis (CFA) to test whether the revised scale maintains construct validity. Future research could also test the mediational role with a model such as the PROCESS macro. Based on the results, indirect effects and confidence intervals to support mediation claims can be reported.

4.3. Implications for Practice

The results of this research have shown that the perceived quality of the higher education institution, i.e., a better perception of the quality of teachers, administrative support, institutional reputation, study programs, and the quality of relations, mediates the correlation between satisfaction of students’ psychological needs and student satisfaction, which suggests that the quality of services, such as teaching, administration, and support, plays a key role in how students perceive their academic experience. When a higher education institution successfully satisfies students’ basic psychological needs, students are more inclined to perceive the quality of services as higher, which directly affects their overall satisfaction with their studies. These research results emphasize the importance of focusing on a holistic approach in the organization of services at the higher education institution, to create an environment that satisfies all key aspects of student well-being.

5. Conclusions

Measuring quality in higher education institutions is an indispensable driver of the development of higher education institutions. Quality brings significant changes, and thus researchers want to measure and analyze everything that can affect quality, what quality can affect, and what quality can be associated with. On the other hand, it is important to understand the basic psychological needs that students have to satisfy in the academic context, i.e., the forces that motivate students to achieve better educational results. A better understanding of both components leads to positive student reactions, which can lead to student satisfaction, which is essentially the goal of every higher education institution.

The results of the conducted research showed that satisfaction of the needs for autonomy and relatedness significantly contributes to the perception of a higher level of different aspects of the quality of a higher education institution and that the overall assessment of student satisfaction is significantly related to both satisfaction of psychological needs in the academic context and the perceived level of different quality aspects. Moreover, the results point to the conclusion that the relationship between satisfaction of psychological needs and satisfaction with academic studies is mediated by the perception of the quality of the higher education institution. Investing in the quality improvement system at higher education institutions through continuous work on raising the quality of the teaching process, administrative services, study programs, and all aspects of the higher education institution contributes to greater student satisfaction, which in turn plays a significant role in their academic achievements but also overall student well-being, which is a vital and often neglected aspect of higher education.