An Assessment of the Use of Student Price Response Models to Predict Changes in Undergraduate Enrollment at a Metropolitan University

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Description:

Most colleges and universities invest substantial resources in an effort to strategically plan for a sound financial base. The revenue for the financial base is dependent on student enrollment that must be effectively managed. Increases in the price of tuition and fees can lead to decreased enrollment and negatively impact the revenue of an institution. The increases can also impact the enrollment of certain student populations such as minority students and high school graduates enrolling in college for the first time. Many studies have analyzed the price elasticity and student price response models that have been developed over time by reviewing historical price increases and enrollment across institutions. Few studies have used the models to predict changes in the enrollment of students for one college or university after the increases in the cost of attendance are imposed on students. This study sought to analyze the effectiveness of the most commonly reviewed student price response and price elasticity models in predicting changes in undergraduate enrollment at one metropolitan academic university. The three models introduced by Leslie and Brinkman, St. John and Heller were used to analyze the tuition and fee increases and to identify the likely percentage of increase or decrease in student enrollment at the University of North Texas for the fall 2004 semester. The study predicted the change in undergraduate enrollment among Caucasian, Hispanic, African American and Asian student populations. The price elasticity among full-time students, part-time students, undergraduate transfer students and new from high school students entering the University of North Texas were also analyzed in the research study. The results of the study found the student price response developed by Heller accurately predicted decreases in enrollment among first-time undergraduate students, continuing undergraduate students and undergraduate Caucasian students. The model introduced by Heller accurately predicted increases in enrollment among first-time Asian undergraduate students, first-time African American undergraduate students, continuing Asian undergraduate students and continuing African American undergraduate students. The study found an inelastic demand to price elasticity among full-time and part-time students and undergraduate transfer students. New from high school students were found to have an elastic demand to price elasticity.

Creator(s): Saxon, Randall J.
Creation Date: December 2004
Partner(s):
UNT Libraries
Collection(s):
UNT Theses and Dissertations
Usage:
Total Uses: 90
Past 30 days: 5
Yesterday: 0
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Publisher Info:
Publisher Name: University of North Texas
Place of Publication: Denton, Texas
Date(s):
  • Creation: December 2004
  • Digitized: December 6, 2007
Description:

Most colleges and universities invest substantial resources in an effort to strategically plan for a sound financial base. The revenue for the financial base is dependent on student enrollment that must be effectively managed. Increases in the price of tuition and fees can lead to decreased enrollment and negatively impact the revenue of an institution. The increases can also impact the enrollment of certain student populations such as minority students and high school graduates enrolling in college for the first time. Many studies have analyzed the price elasticity and student price response models that have been developed over time by reviewing historical price increases and enrollment across institutions. Few studies have used the models to predict changes in the enrollment of students for one college or university after the increases in the cost of attendance are imposed on students. This study sought to analyze the effectiveness of the most commonly reviewed student price response and price elasticity models in predicting changes in undergraduate enrollment at one metropolitan academic university. The three models introduced by Leslie and Brinkman, St. John and Heller were used to analyze the tuition and fee increases and to identify the likely percentage of increase or decrease in student enrollment at the University of North Texas for the fall 2004 semester. The study predicted the change in undergraduate enrollment among Caucasian, Hispanic, African American and Asian student populations. The price elasticity among full-time students, part-time students, undergraduate transfer students and new from high school students entering the University of North Texas were also analyzed in the research study. The results of the study found the student price response developed by Heller accurately predicted decreases in enrollment among first-time undergraduate students, continuing undergraduate students and undergraduate Caucasian students. The model introduced by Heller accurately predicted increases in enrollment among first-time Asian undergraduate students, first-time African American undergraduate students, continuing Asian undergraduate students and continuing African American undergraduate students. The study found an inelastic demand to price elasticity among full-time and part-time students and undergraduate transfer students. New from high school students were found to have an elastic demand to price elasticity.

Degree:
Level: Doctoral
Discipline: Higher Education
Language(s):
Subject(s):
Keyword(s): tuition | price | elasticity | model | enrollment
Contributor(s):
Partner:
UNT Libraries
Collection:
UNT Theses and Dissertations
Identifier:
  • OCLC: 58594326 |
  • ARK: ark:/67531/metadc4653
Resource Type: Thesis or Dissertation
Format: Text
Rights:
Access: Use restricted to UNT Community
License: Copyright
Holder: Saxon, Randall J.
Statement: Copyright is held by the author, unless otherwise noted. All rights reserved.