Analysis of price and non-price factors influencing consumer behaviour on educational services market

Abstract

Subject. The subject of the study is the influence of price and nonprice factors on consumers’ behavior at the educational services market.The aim of the study is to investigate the price, non-price reduced to price, non-price not reduced to price factors of the applicants’ choice of University examined during the experiment conducted in the State University “Dubna”. The objectives of the present study are the following: to analyze the experimental data, to establish the impact of three sets of factors on the applicants’ choice of University.Methods. Such methods as questioning method, index method, financial and factor analysis methods were used during the study.Results and discussion. Factors that have a significant influence on the choice of the applicants were identified: a state-recognized degree – 77,6%, teachers’ qualifications – 57,1%, financial capacity of parents – 45,2%, high remuneration after graduation – 47,6%, and all factors related to the high income in the future: acquisition of professional skills – 63,9%, advancement opportunity – 52,4%, facilities and resources of university – 40,8%. It was found that the following factors have a low level of impact: the amount of a tuition fee – 25,9%, dormitory availability – 26,5%, availability of performance contracts32,7%, the presence of several forms of education – 27,9%, fl exible system of payment, discounts – 27,9%, the presence of competitions – 26%, family continuity – 41,8%. Compounding and calculating of the net present value (NPV) were conducted to estimate price and non-price to price reduced factors. 77% has NPV value greater than zero, 23% has it less than or equal to zero.Conclusions. Two thirds of respondents consider making of choice as a rational act, other respondents’ choice was affected by price reduced to cost factors. A factor analysis was held in order to estimate the price reduced to cost factors and revealed two factors that influence the choice: expanding of social circle, social, creative and sports life in the university.Key words: price, non-price to price reduced, price reduced to cost factors, demand, applicant, net present value, factor analysis.