Willingness to Pay for Online Courses during the Pandemic

Abstract

During the pandemic in fall 2020, we surveyed students to assess determinants of and willingness to pay for online courses. We found some changes in student perception of online courses as well as the determinants of taking online courses. That is, better grades became less important while convenience of scheduling became more important in student perception as well as in the choice of online courses. In addition to this perceptional factor, degree level, e.g., bachelor’s or associate’s, became an important determinant to the number of online courses as well as to the amount willing to pay for an online course. We also found that students were willing to pay less than the actual tuition rates for online classes. Our constructed demand analysis indicates that the revenue-maximizing tuition rate should be higher than what students are willing to pay.