Abstract
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.
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