Most institutions have not conducted a scientific analysis of the price sensitivity of their prospective student markets. Stevens Strategy’s Pricing Analysis service includes two complementary components: Price Elasticity and Competitor Pricing Analysis.
We conduct a sophisticated statistical analysis to test the effect of price (and a variety of other factors) on enrollment. The first test focuses on book price, the second on the amount of discount offered, the third on the net price, and the fourth on the book price combined with the amount of discount offered. Because many factors other than price can affect enrollment, we consider with you additional variables (if the data are available from your institution) that may be tested as well, including factors such as type of degree sought, parents’ levels of education, student SAT/ACT scores, student age and household income. The result is a predictive model that indicates which price (and other characteristics) will deliver optimum enrollment for your institution.
Our Competitor Pricing Analysis is conducted with current and prospective students. The survey tests your institution against competitor schools at a variety of price points. Competitor schools are typically your institution’s major overlap institutions. The prices tested are book and net prices. Depending on your institution’s particular needs, we may add other relevant questions to the survey to meet those needs. The result is a determination of the optimum price to win the battle for matriculants with your key competitors.