Information technology has permeated into nearly every aspect of our life. With the advance of information technology e-learning has gradually replaced the traditional form of education. The globalized information economy and its market place are pushing educators to reshape higher education around the world. Whether they are a nation, a company, or an individual, all recognize that the real competitive advantages are likely to come from a well-educated mind in this knowledge-based economy. All these factors make higher education put efforts to redefine the measures of quality and also to better understand students’ needs while being aware of a consumer-oriented concept in market places. The goal of this study was to investigate the factors that influence student satisfaction and loyalty. In doing so, this study explored the relationships among perceived quality, perceived usefulness, satisfaction, and loyalty. One of critical findings of the study is that certain types of interaction quality in online earning course have mediation effects on student satisfaction as Hiltz (1994) suggested on the Online Interaction learning Theory.