• 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

  • DEVELOPMENT OF THE SYSTEM OF SCIENTIFIC RESEARCH AT D. A. TSENOV ACADEMY OF ECONOMICS (A modest anniversary – a modest view of what has been done)

    The study is dedicated to the fifteenth anniversary of the Institute of Scientific Research at D. A. Tsenov Academy of Economics and the decision to publish the Scientific Research Almanac. It makes a historical review and outlines the main points of the development of the institute and the almanac. It systematizes the issues and publications of ...

  • LEGAL AND ACCOUNTING PROBLEMS RELATED TO CORPORATE TAXATION OF LEGAL ENTITIES

    Studying the effects of some complex financial and economic categories as well as the terms and tools applied in the fiscal theory and practice is of crucial importance for both the business activities of the enterprises and the fiscal policy of the state. The scope of the research is defined by the fact that the current legislation related to the ...

  • STAFF TRAINING – GENERATOR OF CORPORATE KNOWLEDGE

    The present study is a natural continuation of the authors’ longstanding interest in corporate knowledge and the approaches for its management, finding expression in the development of three research projects and numerous publications in this field of science. In view of the fact that knowledge becomes increasingly crucial for the existence, ...