The turbulent business environment today is challenging both to the corporations and also to the higher education in general and business management education in particular demanding focus on strategies to face them. Therefore, this study was conducted to investigate the effects of such strategy namely, market orientation on the student satisfaction of Business Schools in Hyderabad and Rangareddy district of Telangana State. The effects of perceived market orientation are visualized on different dimensions of student satisfaction which were developed for Business School specifically. Data was collected 360 students of 30 randomly selected from AICTE approved B-Schools. The correlation and regression analysis was performed to test the hypothesis.The findings confirm the relationship of market orientation and student satisfaction. It was also found that market orientation has positive and significant influence on student satisfaction. This study points out the importance of market orientation in Business Management Institute. The Business educational institute with high level of market orientation will have higher level of student satisfaction and that will lead to growth in admission enrolment, increase student retention and create positive word of mouth.

Keywords: Business School; Market Orientation; Student Retention; Word of Mouth.