Consumer decision making: choice of university degrees

Introduction

The theories of consumer behaviour are applicable in all facets of life. Every decision to be made on what products or services to consume must be done with a special consideration of the features and the personal preferences of the consumer (Mowen, 1998). This calls for an exhaustive process of information search where all the relevant factors are taken into consideration. The purchase decision making process begins with the problem recognition before advancing to information search, evaluation of choices, selection of options and the post purchase evaluation. These processes are applicable to the evaluation of education programs on offer in various universities. Some of the factors that determine the choice of university programs to pursue depend on the relevance of the courses to career choices, mode of instruction of the courses, location of the universities, reputation of the programs and the entry requirements among others (Sun, et al., 2008).

Structured decision making involves the use of decision matrixes that assign relative indexes to the elements in question. Such indexes are then compounded with the relative importance that individual consumers attach to each of the factors to yield a compound figure that sets apart the most favourite choices. The compensatory decision rule which is applicable in this case presumes that the consumer is rational and is bound to settle for the favourite options as per the matrix provided (Gollwitzer and Sheeran, 2009). However, this is often not the case and consumers will in many cases opt for the second or third best options as guided by their situational factors or personal preferences. This paper evaluates consumer decisions in relation to post graduate degree programs in different universities. It factors in the specific characteristics of such programs and seeks to advice on the best options for each of the three students under consideration. This paper goes ahead to evaluate the preferences of specific consumers with an aim to determine their most favourite options in terms of programs of study.    

Construction of the decision matrix

Decision matrixes are useful tools for guiding decision making. They increase reliability and clarity by eliminating uncertainty through the assignment of absolute indexes to the options available. The creation of matrixes assigns values in a manner that allows the ease of identifying the favourable options and this therefore helps in making the decisions made more reliable (Dhar and Nowlis, 2004). On the other hand, these matrixes may tend to be inaccurate especially where the determination of indexes is done through estimation. Where such estimations are inaccurate, the consumers may be misguided in their decisions.

When making a choice on the university programs to pursue, customers tend to evaluate universities based on a number of criteria. The main criteria that are considered in this paper include the cost of tuition, the requirements for enrolment, the duration of the programs, the nature of instructions, the location of the institutions and the reputation of the programs (Gonca, 2006). The reputation of the programs in many cases is taken to mean the reputation of the university offering the program. Employers tend to attach great value in the extent to which certain institutions emphasise on the quality of their curricula with players in the market often on the lookout for graduates of reputable universities. In the survey of universities around the world, many of the UK universities seem to be held in high repute around the world: a factor that has seen the number of international students in the country surpassing those from any other country (Blackburn, 2011). In the business sense, this calls for conscious actions in branding as well as ensuring that quality is upheld at all times. Universities tend to uphold quality by ensuring that there is discipline. This calls for measures to ensure that students are supervised accordingly and that they master whatever the universities certify them on at the end of the education programs.

Like in any other products and services, cost is a key element. Customers can only consume what they can afford and this makes it very important that the amount charged be affordable to the consumers targeted. Universities around the world tend to price their programs competitively in order to avoid losing out to competitors (Callender and Jackson, 2005). Lower income earners tend to take the issue of cost more seriously than those higher up the income ladders. The location of the universities or the venue where the classes are held is critical especially where the prospective students are already committed through work and family.

In the construction of the matrix, five degree programs were considered namely: a 9-month MSc in African Studies at Oxford University (full time); a 20-month MBA at Cambridge University (Part time); a 2-yr MBA Entrepreneurship at the Liverpool University (Online); a 1.5yr Executive MBA at the University of Sidney (full time); a 2-yr MSc education program at Victoria University and a 2 year MBA at Stanford University. The assignment of the indexes has been done in relative terms where a comparison has been done against each of the options under consideration. The indexing on the reputation of the universities is informed by the ranking of universities through various models that have consistently ranked universities such as Oxford and Cambridge as among the best universities in the world. These ranks have also taken into account the popularity of the specific programs under discussion. Statistics gathered from various reliable sources indicate that the tuition fees charged for the programs are as follows:

1. 9-month MSc in African Studies at Oxford University- £14,000 (University of Oxford, 2012)
2. 20-month MBA at Cambridge University – £ 36,000 (University of Cambridge, 2012)
3. 2-yr MBA Entrepreneurship at the Liverpool University- £20,000 (University of Liverpool, 2012)
4. 1.5yr Executive MBA at the University of Sidney – $60,000 (University of Sydney, 2012)
5. 2-yr MSc education program at Victoria University - $34,000 (Victoria University, 2012)
6. 2 year MBA at Stanford University -   $57,000 (Stanford University, 2012)

These figures have been accorded relative indexes from 1-5 with the cheapest programs having a score of 5.

The same approach has been taken in awarding indexes based on the duration of the programs with the shortest program having the highest value. The factors taken under consideration in determining indexes for location related to the proximity of such universities to Australia where the respondents reside. Those within close proximity scored higher than the universities in the UK and US. In terms or entry requirements, many of the universities tend to have similar entry requirements. However, universities such as Victoria University and Cambridge were found to require some level of professional experience for students to be administered into their masters programs and this makes it easier for those with experience to access the programs even where some non critical academic thresholds are yet to be met. The program characteristics matrix is as shown below:

	program reputation	tuition fees	duration	location	requirements
9-month full time MSc in African Studies at Oxford	2	5	5	2	4
20-month part time MBA at Cambridge	5	4	4	2	5
2-yr Online MBA-Entrepreneurship at Liverpool	4	5	3	5	4
1.5-yr full time Executive MBA at University of Sidney	4	2	4	5	3
2-yr MSc education at Victoria university- Full time	3	3	3	4	4
2 yr MBA at Stanford University- Full time	5	2	3	2	4

While this matrix shows the relative characteristics of the university programs, it is important to note that different aspects have varying levels of importance to individual consumers. Three respondents have been considered for this exercise and their profiles are as follows:

Michael is aged 25 and is a full time undergraduate student in senior year at the University of Queensland. He plans to proceed with his masters’ degree upon completion of his bachelor’s degree.

Jake is a 35 year old bank manager. He has a first degree and professional accounting qualifications. He has plans to pursue a masters’ degree as soon as opportunity arises.

Christine on the other hand is a part time employee. She works less to create time to nurse her young children and take care of her family. She is a holder of a bachelor’s degree and has a passion in social sciences and hospitality. She is 27.

Upon presentation of the options available for evaluation, the three respondents accorded importance indexes as shown in the matrix below:

	program reputation	tuition fees	duration	location	requirements
Michael	5	5	3	2	4
Jake	3	4	5	5	4
Christine	4	5	2	5	5

Application of the compensatory rule

The compensatory rule advocates for the compounding of the values contained in the matrices in order to provide definite values that leave no doubt as to which options are more preferable (Kuusela, Spence and Kanto, 1998). Evaluation at this point is done per individual and this is done by assigning the preference indexes as weights in the original matrix and using the totals as the value for consideration. The matrices are as follows:

Michael’s total scores

	program reputation	tuition fees	duration	location	requirements	Totals
9-month full time MSc in African Studies at Oxford	10	25	15	4	16	70
20-month part time MBA at Cambridge	25	20	12	4	20	81
2-yr Online MBA-Entrepreneurship at Liverpool	20	25	9	10	16	80
1.5-yr full time Executive MBA at University of Sidney	20	10	12	10	12	64
2-yr MSc education at Victoria university- Full time	15	15	9	8	16	63
2 yr MBA at Stanford University- Full time	25	10	9	4	16	64

As can be seen, Michael’s best option would be the 20 month part time at the Cambridge.

Jake’s total scores

	program reputation	tuition fees	duration	location	requirements	Totals
9-month full time MSc in African Studies at Oxford	6	20	25	10	16	77
20-month part time MBA at Cambridge	15	16	20	10	20	81
2-yr Online MBA-Entrepreneurship at Liverpool	12	20	15	25	16	88
1.5-yr full time Executive MBA at University of Sidney	12	8	20	25	12	77
2-yr MSc education at Victoria university- Full time	9	12	15	20	16	72
2 yr MBA at Stanford University- Full time	15	6	15	10	16	62

According to the outcome of the assessment, Jake would best be suited taking on the Online Program with the University of Liverpool.

Christine’s total scores

	program reputation	tuition fees	duration	location	requirements	Totals
9-month full time MSc in African Studies at Oxford	8	25	10	10	20	73
20-month part time MBA at Cambridge	20	20	8	10	25	83
2-yr Online MBA-Entrepreneurship at Liverpool	16	25	6	25	20	92
1.5-yr full time Executive MBA at University of Sidney	16	10	8	25	15	74
2-yr MSc education at Victoria university- Full time	12	15	6	20	20	73
2 yr MBA at Stanford University-	20	10	6	10	20	66

Christine seems to be well suited by the online masters program offered by the University of Liverpool.

Whereas the assumptions made above may present the consumers with a basis for making rational decisions, the decision matrixes almost always tend to yield different results. For instance, who is a full time student defied the decision matrix to settle on the MSc Education program at the Victoria University. This decision was made in relation to his career interests: a factor that was not captured in the decision matrix. The same case applied to Jake who has little interest in entrepreneurship. He intends to advance his career by mastering the art of management and leadership in order to complement his finance qualifications and advance to higher levels of management. Moreover, the university is situated in close proximity to his office in Sydney and that is expected to make work easier for him. The fact that the program is much more expensive than other options does not worry him because he is entitled to funding from his employer. Christine, a family lady is keen on ensuring that her schedule is not tied down through formal employment and this makes her desire to know more about entrepreneurship and start her own business where she’ll be able to control her schedules. Her choice therefore is in line with the estimation of the decision matrix.

Assessment of choices made by respondents

Degree choices are matters of personal interest. They reflect not only on the personality of the individuals but also on their choice of careers. The manner in which decisions are made is similar to the regular decision making models where various factors lead to the decisions being made. One important factor in the choice of degree programs is the fit between the degree offered and the choice career of the prospective student (Pimpa, 2003). Various academic disciplines are suited for certain careers and it is imperative that an alignment of the two be done before other considerations come into play (Pimpa, 2003). For instance, a person seeking to pursue engineering as a career would be ill advised to settle on a degree in social sciences. This is an example of an internal influence where the motive guides the decision being made.

External influences tend to come from outside and tend to shape opinion and eventually influence the final decisions made. Activities such as advertising shape opinions on how universities are perceived hence forming a critical component of the external influences. Universities around the world are adopting the internet as a medium for advertisement with many universities even opting to introduce online portfolios for their degree programs (Blackburn, 2011). These advertisement efforts are in many cases accompanied by strategic initiatives in public relations where dons with high reputations play major roles in shaping of opinions in the society or in scientific discoveries and this presents the universities in question as superior institutions of learning (Bratti, 2002). As has been seen from the importance indexes of the three respondents, the reputation of the programs and the universities is taken quite seriously. In most cases, this reputation tends to be that perceived by friends and the society in general (Caspi and Gorksy, 2005). The opinion of employers is critical when evaluating the importance of reputation- especially for persons wishing to use their degree certificates to capture jobs in the market.

Perhaps more visible are the situational factors when it comes to understanding the choices made in relation to degree programs. Persons make decisions that suit their situations. For instance, a person working full time may find it extremely difficult to get time off to go and attend classes in a full time program. Such a program would conflict with their jobs and would in most cases have to be sacrificed. In the case of Jake, a Bank manager, the influence of his situation was clear when he opted to take a part time program. The situational factors can also be applied to the requirements of the job albeit at the risk of touching on internal factors or motivation. This can be illustrated in the case of Jake who recognises the fact that entrepreneurial skills are not a requirement in his job and he therefore opts to go for an executive MBA. Another factor that is always considered is the proximity of the university to the prospective student. Where the distance to the institutions is very long, taking the programs on offer becomes strenuous.   

Universities around the world recognise the dilemmas faced by many of their target customers and take pre-emptive measures solve such dilemmas. The provision of part time classes and the introduction of flexible modules where students can determine their own timetables are among the initiatives taken to this end (Blackburn, 2011). The growing need of people to study from the comfort of their homes has also seen many universities introduce distance learning modules that either minimise physical contact hours or get rid of such contact completely. Changing market preferences have seen universities adapt dynamic approaches to operations and service provision and this forms the key towards attracting students to the institutions (Blackburn, 2011). Of great importance is the manner in which such new approaches impact the customer decision making process and how it results in increased revenues for such universities.  

Conclusion

The use of decision matrix has in many cases been hailed as critical in ensuring that the decisions made are objective and in line with the needs assessed. The process of constructing such matrixes also involves an in-depth scrutiny that ensures that several angles of the solutions under consideration are highlighted. However, it must be appreciated that it is difficult to come up with decision matrixes that cover all the preferences of the individual customers. It is such inadequacies that often see customers make decisions that appear to defy the recommendations drawn from the decision matrixes.

In the choice of university degrees, factors such as cost, personal preferences and the reputation of the universities and the programs come into play. Reputation is especially important where the prospective students intend to secure employment using the certificates acquired. Similarly, cost considerations are taken seriously with questions of affordability being most dominant in the process of determining whether or not a given course is suitable. Personal preferences and the fit between the courses being pursued and the career objectives of the students are considered to be critical. This is why universities tend to go out of their way to provide advice on the career choices available with the courses being offered. The need for convenience, especially for those who are employed also drives the desire of many students to prefer to study part time and even online. This growing preference has seen many leading universities introducing distant learning modules that allow the students to study from the comfort of their homes and offices.

In conclusion, it must be appreciated that understanding the consumer decision process is critical in the determination of likely choices and this understanding could be used to shape the marketing agenda that would see the universities meet their growth objectives.  

References

Blackburn, G., 2011. Which master of business administration MBA? Factors influencing prospective students’ choice of MBA programme- An empirical study. Journal of Higher Education and Management, 33(5), pp. 473-483

Bratti, M., 2002. Does the choice of University matter? A study of the differences across UK universities in life sciences students’ degree performance. Economics of Education Review, pp. 431-443

Callender, C., Jackson, J., 2005. Does the fear of debt deter students from higher education? Journal of Social Policy, 34(4), pp. 509-540

Caspi, A., Gorsky, P., 2005. Insructional media choice: factors affecting the preferences of Distance Education Coordinators. Journal of Educational Multimedia and Hypermedia, 142(2), pp. 169-198

Dhar, R., Nowlis, S., 2004. To buy or not to buy: response mode effects on consumer choice. Journal of Marketing Research, 41(4), pp. 423-432

Gollwitzer, P.M., Sheeran, P., 2009. Self regulation of consumer decision making and behaviour: the role of implementation decisions. Journal of Consumer Psychology, 19, pp. 593-607

Gonca, T.Y., 2006. University evaluation selection: a Turkish case. International Journal of Education Management, 20(7), pp. 559-569

Hauser, J., 2011. A marketing science perspective on recognition based heuristics. Judgment and Decision Making, 6(5), pp. 396-408

Kuusela, H., Spence, M.T., Kanto, A.J., 1998. Expertise effects on prochoice decision processes and final outcomes: a protocol analysis. European Journal of Marketing, 32(5), pp. 556-576

Mowen, J.C., 1998. Beyond Consumer Decision Making. Journal of Consumer Marketing, 5(1), pp. 15-25

Pimpa, N., 2003. The influence of Peers and student recruitment agencies on Thai’s students’ choices of international education. Journal of International Studies in International Education, 7(2), pp. 178-192

Stanford University, 2012. Graduate school of Business. (Online) Available at: http://www.gsb.stanford.edu/ (Accessed 19 April 2012)

Sun, L., et al., 2008. The analysis on the influential factors of the choice of the mode of university’s technology transfer. Journal of Hebei University of Technology, 37(1), pp. 77-81

University of Cambridge, 2012. Graduate courses. (Online) Available at: http://www.admin.cam.ac.uk/students/gradadmissions/prospec/ (Accessed 19 April 2012)

University of Liverpool, 2012. Online Degrees. (Online) Available at: http://www.liv.ac.uk/study/online/ (Accessed 19 April 2012)

University of Oxford, 2012. Admissions. (Online) Available at: http://www.ox.ac.uk/ (Accessed 19 April 2012)

University of Sydney, 2012. Future students. (Online) Available at: http://sydney.edu.au/future_students/index.shtml (Accessed 19 April 2012)

Victoria University, 2012. Masters Degrees. (Online) Available at: http://www.vu.edu.au/courses/browse/masters-degrees (Accessed 19 April 2012)