• Icon to change language to english
  • Icon to change language to english

ESTIMATING WILLINGNESS-TO-PAY AND PRICE SENSITIVITY FOR EDUCATIONAL SERVICES USING ADAPTIVE CHOICED-BASED CONJOINT ANALYSIS

Authors

Keywords
willingness to pay, reservation price, price sensitiveness, adaptive choice-based conjoint analysis, educational service

Summary
In this study, we present and prove an empirical approach for measuring willingness-to-pay and price sensitivity for educational services (master's programs in economics and management) offered in substitution setting with low visibility of the actual consumer value. Our experiments are based on adaptive choice-based conjoint analysis. We estimate willingness-to-pay on an individual level, based on part-worth utility estimates derived using hierarchical Bayesian approach. At the aggregate level, we specify and derive market response functions and thresholds at which price sensitivity changes dramatically. Based on part-worth estimations we build a „market simulator”, based on optimization gradient method. Based on it we found the „optimal” product bundle that maximizes the share of consumers' preferences in two dimensions – institutional and competitive. We found that the present supply of integrated educational services is not relevant to the structure of preferences of the potential students. In terms of financial management of educational institutions, there is considerable potential for optimizing cash flows by rethinking and changing their price policies – from uniform charges for different master’s programs towards nonlinear pricing.

JEL: À23, Ñ81, Ñ93, Ì39
Pages: 31
Price: 3 Points

More titles

  • STUDY OF THE STATE-OF-THE-ART, POSSIBILITIES AND PROSPECTS OF IMPLEMENTING ELECTRONIC CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS

    Customer relationship management in financial enterprises is a key strategic factor for their success. In recent years this sector recognizes the importance of the Internet as a unified platform for doing business and as a main communication environment. Online banking, online insurance, personal customer service of various health, pension and ...

  • REGIONAL ASPECTS OF EMPLOYMENT AND UNEMPLOYMENT IN BULGARIA UNDER THE CONDITIONS OF ECONOMIC CRISIS

    The development of the national economy under the conditions of economic and financial crisis is associated with serious challenges facing the labour market. The importance of employment in ensuring economic and social well-being of society necessitates a statistical study of the regularities in its development. This study is of practical and ...

  • DEVELOPMENT OF A METHODOLOGY FOR RISK MANAGEMENT IN BUSINESS ORGANIZATIONS (ORGANIZATIONAL AND TECHNOLOGICAL ASPECTS)

    Risk management is an essential element of the structure of corporate man-agement. It is used to solve multifaceted and complex tasks that largely determine the development and success of an organization. The dynamics of the surrounding envi-ronment requires the establishment of an adequate mechanism to facilitate the process of risk management in ...