DECISION MATRIX IN TERMS OF CONSUMER BEHAVIOR

QUESTION

Assessment details for ALL students
Assessment task 1—Individual report
Due date:
Friday of Week 8 by 5.00 p.m. AEST
Weighting:
50%
Length:
3,000 words maximum

Objectives
This assessment task relates to the course learning outcomes numbers 2 to 6.
Details
Postgraduate education has become increasingly popular across the world. However, choosing postgraduate
education can be a really complicated decision, subject to many competing influences. Would you study a
Master of Management at CQU or USQ? Would you go to INSEAD or LBS to study an MBA? Would you
do a PhD in Finance at MIT or Stanford? Is the postgraduate program reputable? Is the course available by
distance education? How long does it take to get the degree? How is the job prospect? Are you able to afford
the tuition fees? Do you need to relocate? Can you maintain your relationship with your partner? ……  What
is it that affects this decision and makes it different for everyone? This assignment requires you to look at the
postgraduate education choices of three (3) people – you can include yourself in this analysis if you wish.

Firstly, develop a list of 6 different postgraduate education options. Try to include some that aren’t options
YOU would like to take but that you know appeal to other people. You might want to refer to websites of
different universities or programs while developing this list.  Be specific – studying a 2-year-long part-time
Master of Management (Marketing) at CQU by distance education (rather than just saying studying a master
in general). You may wish to include indicative tuition fees or entry requirements of the postgraduate
education options you have chosen to include.

Develop a second list of at least 6 evaluative criteria (Chp 5 of your text) that people might consider when
making decisions for postgraduate education– for example, tuition fees, entry requirements, duration,
program reputation, level of interest in the study area, distance from home/work, etc. There are many
possible reasons underlying postgraduate education decisions.

Place these two lists in a decision matrix (example in textbook).

Show this decision matrix to 3 people (one can be yourself if you need).
– Ask them to rank the evaluative criteria – how important is each criterion in determining THEIR choice
of postgraduate education?  (For example you might allocate 100 points in total to the evaluative criteria
depending on the relative importance of each criterion).
– Ask them to rate each postgraduate education option on your list against each of the criteria (for
example, using a scale of 1 – 5, option one might score well on criterion one and get a 5 while it is poor
on criterion two and gets a 1. The numbering you use is up to you.)
– Using the compensatory decision rule calculate which postgraduate education option your respondent is
most likely to choose based on the matrix. Is this the one they would have actually chosen? If there is a
ASSESSMENT
1
difference, please provide a brief explanation – for example, the matrix might suggest Adam is most
likely to choose the full-time INSEAD MBA in France but in reality he can’t quit his job in Brisbane
and chooses to study the part-time MBA at QUT.

Secondly, conduct an analysis of Personal Characteristics leading to postgraduate education choices.
Analyse the choices made by your respondents. Why are their rankings of evaluative criteria different?  Why
are their choices different?
Using the theoretical areas below, analyse and explain the behaviour of your respondents. Try to explain
their choices AND the differences between them using theory from:

– Demographics (age, gender, family situation, income, ethnicity etc)
– Personality (choose a couple of traits that are apparent to you from knowing this person, you do not have
to subject them to a personality test!)

You MUST use theory to support your analysis. This section of your report requires support from a
minimum of 10 journal article references.

Note: For example, if you are suggesting that gender has a role to play in the decision, you need a journal
article reference that indicates different genders have different preferences, same for age. If personality is an
issue – suggest the personality trait at work and support that with a reference – perhaps the extrovert chooses
to study an MBA in Marketing while the introvert chooses to do a PhD in Mathematics.

Your report should follow the subsequent structure:
 title page;
 executive summary;
 table of contents;
 introduction;
 creation of decision matrix;
 application of compensatory decision rule;
 analysis of choices;
 conclusion;
 reference list.

WARNING: Selection of literary support from Google; Wikipedia; www.NetMBA.com;
www.marketingteacher.com, www.tutor2u.com and so on will be treated very negatively. These ARE NOT
appropriate sources for your academic assignments and use of them is NOT acceptable.

Assessment Criteria – 50%
Report structure, presentation, writing style, referencing 5
Executive summary, introduction, and conclusion 5
Creation of decision matrix (postgraduate education
options and evaluative criteria)
Application of compensatory decision rule (include
completed matrix for each respondent)
Analysis of choices

SOLUTION

Introduction

The study of consumer behaviour of students opting for postgraduate management universities is crucial, seeing the dramatic shift of the trends in this domain over last few years. About four decades ago post graduate education only attracted those who sought a specialist career in academic or medical fields. Then, a very smallest minority thought about relocate to far off places to pursue post graduation. However, now the trend is compelling and extremely prominent having over two million students travelled to other countries in pursuit of degree-level qualifications in 2003 itself. Even nationwide institutions of post graduation face challenges of ever increasing competition, declining enrolments and falling governmental funding. (Zusman, 1999). Therefore comes, the implication and role consumer behaviour studies to help higher education market address these challenges. Analysis of factors influencing student choices about opting universities will also positively affect prospective institutional marketing strategies.

The rising competitive environment has forced many universities and colleges to search for means to recruit maximum students by directing their choices in their favour. The importance of consumer behaviour studies have helped higher education sector adopt strategies to compete for enrolment. The institutions are now greatly focussing on increasing their marketing provisions to attract and assist students (Kotler and Fox, 1995).

Decision Matrix

Mazzarol, T., Soutar, G., and Thein, V. (2000) study concluded that students rated future employment as the most important factor to base their decision on. Another study observed that factors like financial aid, institutional attributes, cost, student’s own ability, his or her socio-economic status and location influences his or her choice of university. Moreover, their studies also found that scholarship offers can attract student application and attendance at a substantial degree. Apart from these, other factors that may have significant influence on student’s choice are geographic location, academic reputation and availability of specific programs (Pratt, P., and Evans, D., 2002).

Based on these studies and their findings, the survey made use six evaluative criteria that student might have considered when making decisions for postgraduate education.

List of evaluation of criteria

To what extent do expectations as to admissions probabilities enter into students’ decisions as to which colleges will be included in the application set?

• Academic reputation of the Business Management institution to determine to what extent student’s expectations can be influences with which college will be included in the application list.
• Future employment prospects through the institution and with a specific course
• Cost Structure to help an institution understand that to what extent are students’ expectations as to financial aid awards are met?
• Scholarship offer and availability of special program to help institution strategise in order to lure students with attractive and effective programs and offers
• Socio-economic status of the student and if an institution has genuine concern for students without any bias.
• Geographic location of the institution to assess if maximum applicants will find it reasonable distance from their homes.

After ascertaining the evaluation criteria, six competitive Business Management programs were listed to provide the student with rational university options.

List of Best Postgraduate Management Program Options in USA

1. Doctor of Philosophy Degree in Business Administration – Finance at Michigan State University

2.     Master of Science in Accounting and Taxation (MSAT) – Taxation Track at University of Hartford – Graduate Studies

3.     MBA – Master of Business Administration Concentration in Small Business and Entrepreneurship at University of Bridgeport

4.     Ph.D. Program in Management and Organizations at University of Iowa

5.     Master of Science in Management at Texas A&M University Commerce

6.     Master of Nonprofit Management at University of Central Florida

Decision Matrix I

The study used and analyzed the data collected by conducting a survey. It made use demographic details of participants like their location, socio-economic status and family income, to understand reason for difference between preferences of each student. Selection of students was also determined type of high school from which students graduated.

Each of the three students asked rate each postgraduate education option on the list against each of the criteria on the  scale of 1 – 5 in decreasing preference order.

Student 1

Student 2

Student 3

Data Matrix –II

Students asked to rank the evaluative criteria – how important is each criterion in determining their choice of postgraduate education. Students were allocated 100 points in total to the evaluative criteria depending on the relative importance of each criterion.

Application of Compensatory Decision Rule

Descriptive statistics, five values and percentage scale that students used were calculated making use of the application of the compensatory decision rule to find out trends in their preferences. Compensatory decision rule was used to measure preferences and factors which influence students’ choice for any high education option and institution. It put forward the following results:

Student 1: He gave highest preference to employment prospects and seemed least concerned about any scholarship offer and location. Yet giving 80 percent to cost structure, he was seeking a course with affordable cost structure.

Hey found University of Hartford to be serving to most of his needs which and showed maximum preference for pursuing Master of Science in Accounting and Taxation (MSAT).

Student 2: He assigned 90 percent to cost structure and 100 percent to location, which means he does not want to relocate to pursue higher education, but wishes for an option in his home town itself.

Therefore, he gave highest preference to University of Bridgeport and its course of MBA – Master of Business Administration Concentration in Small Business and Entrepreneurship.

Student 3: He showed pretty relaxed and balanced attitude while selecting a university and course. He assigned best ranks to Master of Nonprofit Management at University of Central Florida, against evaluative criteria.

Analysis of Choice

Analysis of choice was done by analyzing the factors involved. About ten factors emerged out of the entire survey and analysis process. Two most prominent factors which surfaced during the analysis were type of courses, which enjoyed high preferences by all three respondents. Besides that, other factors, which emerged were that all three respondent gave most importance to employability, academic reputation and financial aspects out of the six evaluative criteria points. Students relied more on internet sources and university websites to find information about the institutions and courses.

Data matrix was used to clearly classify each preferred criterion and university course. The procedure made use numeric scale and percentage range in the data set to assess the preferences.

Following is the result of analysis of choice of each respondent:

1. Employment prospects: Respondents who ranked high , the employability criterion considered long-term implication of the course. They based their choice on the approach that whether the institution will help them earn an employment. It clearly shows their long-term expectations with any institution or course they might enter and want to be assured of its effective implication in defining their career.
2. Type of course: Students who gave most of their preference rating against one particular course, regard the content of education highly and believed in its future prospects. They preferred to relocate to a distant place and even did not give any significant importance to the availability of scholarship or special program. They raked high the academic reputation to the course they preferred the most.
3. Institution’s genuine concern for student: Those respondents who rated this evaluative criterion highly were concerned more about their own personal security, lifestyle and about day-to-day routine in the institution. They cared more about their comfort and over-all equal growth during the course. Such respondents were highly concerned about factors like whether they will find an accommodation at the institution or will they be comfortable with the distance and transportation available. Students, who consider student life as an important factor are concerned about logistics of attending an institutions, besides just its education and employable benefits.
4. Money: It is again one of the most important criterion for choosing a course or university. In this survey all three respondents gave significant rating ranking to  cost factor. The cost factor or the financial aspect of attending an institution includes tuition cost, availability of financial aid and scholarship offers.( Cosser and Du Toit, 2002; Davies and Guppy, 1997; Goff et al., 2004).

This analysis puts forwards the following sub categories of students who because of their particular consumer behaviour pattern are influenced by different evaluative factors while making choice of their higher education course and institution.

Students with wealthy background: These students prefer to attend the most advantaged and advanced institution and universities. (Cosser and Du Toit, 2002; Davies and Guppy, 1997; Goff et al., 2004). They rate highly the factors like employability and student concern as compared to affordability.

Ambitious students: As Baksh, A., & Hoyt, J. E. (2001) study finds that effect of scholarship offers on university attendance and application is significant. It is also a major criterion for students who knowing their ability and humble financial background seek scholarships for their desired courses. The students with this type of preference are seen applying for jobs along with applying to an institution. They rate the factors of affordability, student life and employability highly. These students may belong to families and parents who have made notable sacrifice for their good education, and now they want make the returns and share responsibility.

Student Life: The students or respondents who fall to this category are most concerned about life in the university. They mark institution’s concern for student as a highly preferred criterion. Campus safety and logistics play important role in framing college and university choices of students. .Hesel, R. A. (1997).  However, studies show that respondents or students with such preferences are usually lesser in percentage compared with those fall in above two categories.

Lacking direction: It is the second largest group and include student who lack any specific direction in their preferences, they mark almost the criteria at almost equal degree.

Conclusion And Implication of the analysis

The paper provides a conceptual framework that suggests that universities should take significant interest in marketing their institution. Consumer behaviour analysis that defines factors, which might influence student’s higher education choices, help institutions to highlight their strengths and unique attributes making marketing strategies.  Plank and Chiagouris (1997) study states that understanding the choice pattern and process of a university is a greatly effective instrument for developing university marketing strategies to address the stiff completion and shrinking government funding. Kotler, P. and Fox, K. F. A. 1995, also asserts that higher education institutions must understand behaviour, preferences and expectations that guide or drive students to select a university. The second phase of consumer behaviour analysis with higher education choices, include categorizing factors as marketing variables and non-marketing variables. It is important that variables or factors thus determined will work to frame marketing provision in the context of that particular university, location, country and culture. Therefore, although many studies have established the golden rule, factors and responses followed by student in making university choices, all the past and present researches have been subjected to certain limitations as well. Thus, each unique setting needs to conduct a unique research on consumer behaviour towards higher education, in order to derive more precise and effective conclusions to base the university marketing strategy upon. However, this paper can certainly serve as a basis for detailed research, for the selected universities to assess choice pattern of their potentials applicants and students. The data and findings should be used to enhance their strengths, appeal and improve weaknesses. The analysis could help the university administration to stand the current competition with a more proficient approach. The selected universities may utilize the analysis results to not only plan marketing strategies, but to also apply correct marketing instruments to attract increased number and applicants. Universities can better plan their structure with the analysis results to accommodate the demands of its current and potential students.

References

Andriani, K., Yanamandram, V. K. & Perera, N., 2010. University marketing and consumer behaviour concerns: the shifting preference of university selection criteria in Indonesia. 2010 Asian Studies Association of Australia 18th Biennial Conference (pp.1-16). Adelaide, South Australia

Baksh, A., & Hoyt, J. E., 2001. The effect of academic scholarships on college attendance. College & University, 76(4), 3-8.

Cosser, M., Du Toit, J., 2002.From High School to Higher Education? Factors Affecting the Choices of Grade 12 Learners. Human Sciences Research Council Publishers. Cape Town.Available at: www.hsrcpublishers.co.za.

Christensen, S,, John M., and Burton A. W, 1975. “Factors Affecting College Attendance,” Journal of Human Resources, X (Spring), 174-88.

Hossler, D., & Gallagher, K. S.,1987. Studying Student College Choice: A three-phase model and the implications for policy makers. College & University, 62(3), 207-221

Hesel, R. A. (1997). Campus safety is now a significant factor in college choice; students and Parents are equally concerned about safety at college. Studentpoll, 2(2), 1-11.

Kotler, P. & Fox, K. F. A. 1995, Strategic Marketing for Educational Institutions, Second, Englewood Cliffs, New Jersey, Prentice-Hall.

Mazzarol, T., Soutar, G. N., & Thein, V. ,2000. Critical success factors in the marketing of an educational institution: A comparison of institutional and student perspectives. Journal of Marketing for Higher Education, 10(2), 39-57.

Plank, R.; Chiagouris, L. (1997) .Perceptions of quality of higher education: An exploratory study of high school guidance counsellors. Journal of Marketing for higher Education, Vol. 8, Nº 1, pp. 55-67.

Pratt, P., & Evans, D., 2002. Assessment of the utility of parents as sources of information about the college decisions of their children. College & University, 77(4), 9-12.

Zusman, A. ,1999. Issues facing higher education in the twenty-first century. American higher education in the twenty-first century. Baltimore, MD: Johns Hopkins University Press

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