Tuition Pricing and Aid Strategies: A Practical Approach. AIR 1994 Annual Forum Paper.
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| Title: | Tuition Pricing and Aid Strategies: A Practical Approach. AIR 1994 Annual Forum Paper. |
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| Language: | English |
| Authors: | Fine, Paul L. |
| Peer Reviewed: | N |
| Page Count: | 22 |
| Publication Date: | 1994 |
| Intended Audience: | Administrators; Researchers; Practitioners |
| Document Type: | Speeches/Meeting Papers Opinion Papers |
| Descriptors: | College Programs, Fees, Higher Education, Income, Institutional Research, Models, Predictive Measurement, Private Colleges, Program Design, Selective Colleges, Statistical Analysis, Student Costs, Student Financial Aid, Tuition |
| Abstract: | This paper examines the applicability of net tuition revenue models for a highly selective, elite priced, private research university in the southern U.S. Pricing and aid strategies for this university seem to be driven by intuitive assumptions about the economy, market forces, needs-blind admissions, student satisfaction, net price responsiveness, and quality elasticity. The system seems to have strong predictive ability in terms of budgeting gross and net tuition revenues, but does not function well in predicting the impacts of new or changing pricing strategies. Given the decision making process of the school and the number and power of key players, change in the system will have to take place incrementally. Statistical models should be applied to some of the smaller, less entrenched aid programs first to build evidence to support improvements in their design. For example, the net revenue gained from providing talented freshmen with 100 percent tuition scholarships versus 75 percent tuition scholarships could be modeled, taking into account students' choice of college and the persistence rate. There is a need for empirical modeling that can quantify the impact of long-standing assumptions on net tuition revenues. (Contains 22 references.) (JDD) |
| Entry Date: | 1995 |
| Accession Number: | ED373658 |
| Database: | ERIC |
| Abstract: | This paper examines the applicability of net tuition revenue models for a highly selective, elite priced, private research university in the southern U.S. Pricing and aid strategies for this university seem to be driven by intuitive assumptions about the economy, market forces, needs-blind admissions, student satisfaction, net price responsiveness, and quality elasticity. The system seems to have strong predictive ability in terms of budgeting gross and net tuition revenues, but does not function well in predicting the impacts of new or changing pricing strategies. Given the decision making process of the school and the number and power of key players, change in the system will have to take place incrementally. Statistical models should be applied to some of the smaller, less entrenched aid programs first to build evidence to support improvements in their design. For example, the net revenue gained from providing talented freshmen with 100 percent tuition scholarships versus 75 percent tuition scholarships could be modeled, taking into account students' choice of college and the persistence rate. There is a need for empirical modeling that can quantify the impact of long-standing assumptions on net tuition revenues. (Contains 22 references.) (JDD) |
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