An Exploratory Study Of The Determinants Of Tuition For Online MBA Programs

PurposeThe purpose of this article is to conduct a formal study of how the prices for online MBA programs in the USA are determined. The paper examines the effects of perceptual (e.g. rankings and accreditation) and structural characteristics (e.g. program length, program format) of online MBA programs on tuition levels charged.Design/methodology/approachPublicly available secondary data from a sample of 115 online MBA programs in the USA, including program characteristic information and prices, is used. Regression analysis is used to uncover the underlying pricing model.FindingsPerceptual variables are found to have significantly greater effect on prices charged than structural variables, at times enabling institutions to nearly double their revenue stream on a per‐student basis.Research limitations/implicationsThe research approach can be extended to uncover the pricing models used in distance learning programs in fields other than business, and to examine such relationships outside the scope of American institutions.Originality/valueThe use of distance learning methods for delivering course instruction in degree‐granting institutions has witnessed significant growth over the last decade. This trend has enhanced the ability of business schools to serve students that are geographically dispersed, and today nearly 400 such programs are offered in the USA alone. Despite the growth, no formal study has examined how prices (tuition levels) for such programs are determined.

Online degree programs were probably pioneered by for-profit universities such as University of Phoenix. Many online degree programs were initially considered low quality academic programs compared to traditional programs. Therefore, many public and private universities were slow to adopt the online programs. However, gradually more and more "non-traditional" students began to enter schools. Employees already holding jobs began to seek to better their qualifications by coming back to school while still working. For both these groups, online degree programs offered an opportunity to go to school while still employed. Consequently, many schools offering traditional MBA programs are forced to offer online MBA programs to meet the demand and to beat the competing schools. In keeping up with the trend, Arkansas State University launched a high quality online MBA program that parallels the best of the ongoing online MBA programs. This MBA program has been ranked number 1 in faculty credentials and training and in the top 15 in all categories among all online MBA programs by U. S. News and World Report for three consecutive years. This paper presents how the Graduate Faculty of Arkansas State's College of Business developed its high quality online MBA and how the program operates with revenue sharing for the College of Business.

This paper examines whether a university's geographical location contributes to demand for its online MBA program. The convenience provided by online education suggests that the location of an institution is unimportant in determining demand for online MBAs. Location, however, may still play a role in establishing students’ familiarity with institutions and with creating competition among neighboring institutions for students. To assess whether the location of an institution influences its demand for online MBAs, we use local population and the number of online MBA competitors within 150 miles as proxies for location. We find that schools in larger populations see more applications and more entrants to their online MBA programs, while more local competition suppresses demand for a school’s online MBA program unless the school is highly ranked. These results serve as caution to administrators who view online education as a solution to constraints they face attracting students locally.

Online MBA students' perceptions of online learning: Benefits, challenges, and suggestions

Online MBA programs and the threat of disruptive innovation

Colleges and universities continue to add online programs. One method a higher education institution may launch an online program is through a partnership with an online program management (OPM) provider, a third-party company that provides services such as market/lead generation, enrollment management, student services, and course development. This qualitative case study explored how a private university in the Western United States partnered with an OPM provider to launch an online MBA program. Data was collected through interviews with eight individuals from the university who had direct experience of the partnership with the OPM provider. Additional data was collected from documents pertaining to the online MBA program and to the OPM provider. The data revealed four themes pertaining to the partnership: (a) Decision Making, (b) Aligning Expectations (between the university and the OPM provider), (c), Collaboration (among university faculty and instructional designers from the OPM provider), and (d) Accountability. This research is significant because it sheds light on the nature of OPM provider/university partnerships in the development and administration of online programs. The knowledge gained from this study is expected to inform college and university administrators who plan to launch one or more online programs at their respective institutions. Several recommendations for practice are provided.

We examine whether geography is related to online MBA program demand. Although online education seemingly mitigates geographical location as a barrier to attracting students, the location may still play a role in establishing students’ familiarity with schools and with creating competition among neighboring institutions. Using archival data, we find that schools in larger populations see more applications and more entrants to their online MBA programs, while more local competition suppresses demand for a school’s online MBA program unless the school is highly ranked. These results serve as a caution to administrators who view online education as a solution to constraints they face in attracting students locally.

Online MBA programs have undergone significant growth in recent years. However, quality assurance measures have not kept pace with this growth. The purpose of this study was to identify and prioritize aspects of quality assurance specific to AACSB-accredited online MBA programs. The Delphi methodology was used to facilitate a group conversation between expert administrators, faculty, and instructional designers around the topic of quality assurance for online MBA programs over the next 3-5 years. This paper reports the results of this study and how they will help to direct the efforts of those involved in the delivery of a quality online MBA program.

In recent years the growth of online internet-based education has exploded, changing the way higher education is delivered to a large segment of the global population of MBA students. Sensing an opportunity to compete for online student tuition revenue, many for-profit educational organisations were founded to capitalise on this trend. In fact, for-profit institutions have been able to attract such a high number of online MBA students that traditional (non-profit) schools’ online MBA programs could be in danger of being squeezed out of the market. This study examines the marketplace for the online MBA and addresses the challenges of competing for MBA students in the dynamic online arena.

Book notes

The purpose of this study was to explore learning in an online MBA program and the structures necessary to support and enhance that learning from the perspective of the learners. This qualitative study was multi-method in nature, and included in-depth interviews (the focus of this report) with ten of the 32 learners who participated in the study, as well as a document review of course transcripts. Findings indicated that the collaborative nature of the teamwork required in this web-based MBA program provided major benefits as well as challenges for the learners in this program. Benefits included decreased feelings of isolation, the development of support systems, authentic "real world" learning, and an improved ability to communicate clearly online. Challenges included learning how to deal with the different learning styles, academic goals, and varying time commitments to the program of various team members. Learners recognized the pace of the online work, the requirements for technical competence, and the need for alternative communication links as other factors in their learning experience. Learners also identified a strong perception of academic efficacy, and an affirmation of their own individual growth and development through their work in the online MBA program.

The importance of online learning has been highlighted by higher education, and online program administrators have looked for management strategies to establish competitive advantages through student satisfaction and loyalty. This research investigated the roles of various learning motivations (i.e., autonomous motivation, external motivation, need achievement, goal setting, social comparison, and reinforcement), perceived value, and satisfaction to predict students’ loyalty toward an online program in the MBA context. Data were collected from online panel members of Qualtrics who were currently enrolled in online MBA programs in the United States. The empirical findings identify that perceived value was significantly influenced by external motivation, need achievement, goal setting, and reinforcement. MBA program satisfaction was positively affected by need achievement and reinforcement, and loyalty toward an MBA program was significantly influenced by perceived value and MBA program satisfaction. Overall, these results indicate the relative importance of each learning motivation for predicting online students’ loyalty.

Research regarding student cohorts entering the Georgia WebMBA$$ program (an online MBA program in the University System of Georgia) shows consistent demographic characteristics as well as students' reasons for joining the program, experience with online learning, and perceptions of teamwork. The program has a high retention rate, and in this article the authors focus on retaining online learners. They discuss the profile of program students and the teaching approaches that have been successful in addressing potential attrition issues with these learners. To retain virtual learners, the program provides a cohort- and team-based learning experience with extensive faculty feedback and interaction to address isolation concerns, provide application-based content and activities, and help students meet expectations for personal and professional growth. The authors also stress the need to offer a well-managed program and faculty members who are both interested and competent in teaching in the online learning environment.

Reflecting similar global business patterns, employees are continuously pursuing means to set themselves apart fromtheir colleagues, including through education. With the advances in technology, availability of online businessprograms, marketing of university degrees, and the convenience offered through online education, there has been anexplosive growth recently in online education, particularly for business degrees, both at the undergraduate and MBAlevels. Overall enrollment in U.S. MBA programs has actually decreased in the past five years but enrollment in theonline degrees continues to increase.Given the growth and emphasis in online MBA programs, there has to be measures of quality assurances andensuring student success through learning outcomes and ability of students to develop the requisite competenciesnecessary to excel in organizations. Furthermore, Universities have to be using the relevant technologies, studentshave to demonstrate behaviors that would enable them to succeed in online programs, and faculties have to adaptteaching strategies. So, what actually fosters success and student satisfaction about MBA programs? This paperexamines how online class interactions and quality of instructor online feedback can lead to successfully completingan online MBA course and subsequently the MBA program.

The present study aims to get an insight into the learning perspectives of students who obtain 3+ GPA at the Business department of a Public Sector University in Pakistan. This study includes 4 undergraduate business students from 8th semester (2 males and 2 females) who maintained 3+ GPA till 7th semester. A qualitative case study approach was selected. The data was collected through semi-structured interviews i.e. one-to-one and focused group interviews. Open-coding strategy was used to analyze data and data was reported thematically. Findings of this study reveal that students perceive learning as practicality approach. Students perceive that learning is whatever they perform in perspective of physical condition and their learning occurs when they are provided with any situation in real context. Finding also shows the harmful factors which hinder students' learning and also suggestions to address those factors. This study has a number of implications for students, teachers and university policy makers. The study provides some recommendations that could be taken into account by university management, policy makers and teachers and in order to set up and deliver effective learning opportunities for students by recognizing different ways of learning, which would bring benefits to students. This study is a first attempt to explore the learning perspectives of students in a business department of a public sector university in Pakistan and it will contribute to low achievers to get higher GPA by applying the results.