Consumer-oriented method of pricing in higher education

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Authors:

N.Yu. Podolchak,  Dr. Sci. (Econ.), Professor, National university “Lviv polytechnic”, Head of Administration and Financial Management Department, Lviv, Ukraine.

V.Ya. Gavrylyuk, Cabinet of Ministers of Ukraine, Head of the Department of Education and Science, Youth and Sports, Kyiv, Ukraine.

Abstract:

Purpose. To develop pricing method with regard to the solvency of the domestic consumer and the quality of educational services using the method of Van Westendorp’s conjoint analysis.

Methodology. We have applied the methods of systematization, theoretical generalization and system analysis to develop and support the hypothesis, and the conjoint analysis to process the results of the expert survey. The results of the survey of university students, and scientific papers of domestic and foreign scholars served us as sources of information.

Findings. The paper presents the pricing method for educational services, using tools of conjoint analysis, namely the modified version of the Van Westendorp’s approach. With the help of the three-point assay we have obtained the growth curve (logarithmic curve), and suggested strategic alternatives of pricing. The authors have developed the sequence of university selection strategy taking into account the distribution of education cost curves obtained.

Originality. We have substantiated theoretically the necessity of the consumers’ solvency consideration to establish following levels of prices for educational services: optimum, minimum and maximum allowable. We have suggested the models for finding the relation between the rates for educational services and students drain.

Practical value. The results of the research are implemented in the National University “Lviv Polytechnic” to justify the adequate prices for educational services to enhance the competitiveness of the higher educational institution.

 

References:

 

1. Воловець Я. Обґрунтування вартості навчання у ВНЗ / Я. Воловець // Економіка України. – № 3. – 2003. – С. 68–71.

 

Volovets, J. (2003), “Rationale of cost of attendance of Higher educational institutions, Ekonomika Ukrainy, no.3 pp. 6871.

 

2. Постанова Кабінету Міністрів України від 27.08.2010 № 796 “Про затвердження переліку платних послуг, які можуть надаватися навчальними закладами, іншими установами та закладами системи освіти, що належать до державної і комунальної форми власності” [Електронний ресурс] – Режим доступу:  www.gov.ua/

 

Resolution of the Cabinet of Ministers of Ukraine dated August 27, 2010, No.796 “On approval of the list of paid services that can be provided by schools, and other state and municipal educational institutions”, available at: www.gov.ua (accessed January 12, 2013).

 

3. Постанова Кабінету Міністрів України від 1.06.2011 № 575 „Про внесення зміни до переліку платних послуг, які можуть надаватися навчальними закладами, іншими установами та закладами системи освіти, що належать до державної та комунальної форми власності“ [Електронний ресурс] – Режим доступу: www.gov.ua/

 

Resolution of the Cabinet of Ministers of Ukraine dated June 1, 2011, No.575On approval of the list of paid services that can be provided by schools, and other state and municipal educational institutions”, available at: www.gov.ua

 

4. Шпотенко В.Д. Методика визначення розміру плати за навчання студентів вищих навчальних закладів / В.Д. Шпотенко // Фінанси України. – 2003. – № 7. –С. 43–50.

 

Shpotenko, V.D. (2003), “Method of determination of cost of attendance of universities for students” Finansy Ukrainy, no.7. pp. 4350.

 

5. Черенков А. Обзор методов исследования цены (Pricingresearch) / А. Черенков, Т. Левина // Практический маркетинг. – 1999. – № 1. – С. 12–18.

 

Cherenkov, A. and Levina T. (1999), “Review of pricing research methods” Practicheskiy marketing, no.1. pp. 12–18.

 

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ISSN (print) 2071-2227,
ISSN (online) 2223-2362.
Journal was registered by Ministry of Justice of Ukraine.
Registration number КВ No.17742-6592PR dated April 27, 2011.

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