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This research had three objectives: 1) to study the inclination of diploma students living in Phuket to continue their higher education, 2) to study the factors affecting the students’ decisions to choose a tertiary institution, and 3) to suggest a management approach for higher educational institutions located in Phuket. The samples were 222 diploma students. The research tool was questionnaires. The data was analyzed using a T-test, One-Way Analysis of Variance, Pearson’s Correlation Coefficient, and Multiple Regression Analysis with the synthesis of content and summary. The results showed that 1) the students with a diploma who desire to continue their higher education are inclined to increase from the current status. This is because higher education institutions have become more interested in offering courses that meet the needs of the global economy. 2) Factors that are affecting the students’ decision in choosing a university include courses, fees, and building and location with a statistical level of significance of 0.05. The overall variation can be indicated at 49.4 per cent. 3) Suggestions: Phuket’s higher educational institutions should pay attention to courses, especially weekend courses. It should be noted that the courses offered should meet the needs of the labor market. The institutions also should develop teaching methodologies that emphasize actual Practice-Based Learning, and adjust the contents to be up-to-date and by changing situations, be it technology or social.
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