MARKETING HIGHER EDUCATION A monthly electronic Newsletter to help you market your school, community college, college, or university. Vol. XIII, no. 3, March, 1999 -------------------------------------------------- TABLE OF CONTENTS Decision Making Stages and Types of International Students: The Case of Asian Students in Australia. by Nattavud "Art" Pimpa COMMUNITY COLLEGE Survey, 1999 by Robert "Bob" S. Topor -------------------------------------------------- Decision Making Stages and Types of International Students: The Case of Asian Students in Australia by Nattavud Pimpa Professor Emerita Liz Pollard and I (Bob Topor) are happy to present this Ph.D. thesis by guest author Nattavud (Art) Pimpa. Our reason for doing this is quite simple. The Asian market represents enormous opportunities for higher educational institutions, no matter what country they are located in. The author describes how he approached the study for Australia. Although academic in nature, we believe this article has very practical application for those who desire to expand their target audiences to the Asian marketplace. -Bob Topor & Liz Pollard ABSTRACT: This article is a part of my Phd thesis in marketing of higher education. It aims to display the overview of the literature in the area of decision-making of international education in Australia. The applicability of consumer decision making model (Engel, Kollatt, and Blackwell, 1995) is applied in this article to reveal the decision types of international students prior coming to study overseas, in order to understand what types of decision are crucial. Furthermore, the examination of the decision-making stage is displayed in this article, in order to define the different steps that international students make when they decide to study in a foreign country. The applicability of Engel-Kollatt-Blackwell's model (1995) is presented in this article to explain the decision making stage. INTRODUCTION One of the major characteristics of the education market in Australia is the dominance of Asia as a market for the export of education, therefore the understanding of Asian students in Australia is crucial. The influx of international students, in particular Asian students, through the export of education programs has brought and continues to bring many economic, educational and cultural benefits to the wider Australian community. Therefore, many studies attempt to understand Asian students, and provide some marketing recommendations to the educational institutions (e.g., Smart and Ang, 1992; Wilkinson, 1993; and Lawley, 1994). To improve the performance of Australian educational institutions in the global market, it is very crucial to understand consumer behaviour in the education market. Broadly, the understanding of how consumers, in other words students, decide to purchase international education services is important to further research. 1) Decision Making Stages in the Choice of International Education The purchase of an international higher education can be considered high involvement, due to its high cost, high personal relevance, variety of different alternatives available and time taken to make the decision (Gray, 1991). Many models of decision making in relation to high involvement consumer purchases such as international higher education are put forward by many scholars. By the late 1960s the various strands of the discipline were combined into comprehensive models of consumer behaviour and their decision making. Three models proved to be the most influential: Those presented by Nicosia (1966), Howard and Sheth (1969) and Engel, Blackwell and Miniard (1995). These models merely provided a framework to draw together the various disparate strands of a new and growing discipline, but were inherently flawed in their combination because they had little explanatory power and were generally untestable. It was in terms of the matter that the models became best known and most influential; as organising frameworks which allowed for the incorporation of both individual, situational and social influences upon purchase outcome (Gabbott and Hogg, 1998). Whilst recognising that there are a few differences among the three models, they describe the decision making stage of a cognitive consumer in the same major ways. That is, the models suggest that consumers make decisions after moving through various stages of the decision process and that the process, at least theoretically, applies to the full range of consumer decisions, including educational choices (Myers, 1996). The following discussion is based on the portion of the EKB's model (1995) that pertains to the three stages of the pre-purchase decision process, namely: (1) problem recognition; (2) information search; (3) alternative evaluation, followed by post-purchase stages which are (4) choice and (5) post-purchase evaluation. 1.1 Problem recognition Problem recognition is the consumer's realisation that he/she has a purchase goal stemming from a need that requires a decision. Engel et al (1995) indicate that problem recognition occurs when there is a significant difference between a desired state and an actual state in relation to a particular need. Thus, needs are the cornerstone upon which all consumer decision making is based. In the case of an international student, problem recognition occurs when the student reaches the realisation that he/she needs to study overseas. Previous research studies (Hill, Romm and Patterson, 1991) suggest that this stage is quite complex since there are four aspects that the student considers, namely: (1) the country; (2) the state/city; and (3) the university. However, the choice of courses and subjects, which are also important, was not mentioned in the past literature. It cannot be assumed that international students deal with only one problem at a time. They consider a sequence of related problems that are associated with higher education overseas. Since each problem increases uncertainty, a high level of risk exists which has a direct impact on the remaining stages of the decision process. Thus, the problem recognition stage is multi-faceted and more complicated than the EKB's model (1995) seems to suggest. 1.2 Information Search Information Search is the collecting of information about a problem from either internal or external sources. Engel et al (1995) state that internal search mainly concerns the person's memory of previous experiences with a similar type of purchase. External search includes information from both personal sources, e.g., family, friends, experts, and impersonal sources. While information is deliberately retrieved from the individual's long-term memory during internal search, information from personal or impersonal sources is acquired either voluntarily or involuntarily during external search (Hill, Romm and Patterson, 1991) Patterson, Romm and Hill (1992) show that students' expectations about studying overseas can be conceptualised in terms of four different dimensions, namely: (1) economic; (2) social; (3) personal; and (4) learning. Firstly, the economic dimension related to the students' ability to obtain and pay for the goods and services necessary for survival in a foreign country. Secondly, the social dimension involves the quantity and quality of interactions with other individuals in the country of destination. Thirdly, the personal dimension pertains to the perception of self and also changes in perception that result from the sojourn overseas. Finally, the learning dimension describes the elements directly pertaining to knowledge and professional skills. The students' main personal information sources consisted of parents, relatives, friends, representatives from Australian universities, agents, and Australian Embassy officials (AIEF, 1997). Evidence also indicates that newspaper and television advertising are not as effective in initiating the purchase of services with enduring benefits, e.g. higher education, since these services are more expensive and require the consumer to be more involved (Zeithaml et al, 1985). A number of studies suggest that word-of-mouth communication is the most important information source for many services and can reduce risk for high involvement services since it gives the consumer the opportunity to receive clarification and feedback. Consequently, students may go to great length (go to university fairs in another city) to secure a first-hand personal source rather than rely on impersonal sources, e.g. mass media. The main function of impersonal sources of information for this type of service is, therefore, to direct students to personal sources of information. The information is then confirmed with close family members and friends (Hill, Romm and Patterson, 1991). 1.3 Alternative Evaluation The alternative evaluation stage is the prelude to consumer choice. It involves organising the information that has been gained from the search process, selecting appropriate criteria, and comparing the various alternatives in relation to the consumer's recognised needs (Hill, Romm, and Patterson, 1991). Engel et al (1995) describe the four major components that affect the alternative evaluation stage as (1) evaluative criteria; (2) beliefs; (3) attitudes; and (4) intentions. Evaluative criteria are the desired outcomes expressed as the preferred attributes. Beliefs are the perception of an alternative's performance on important evaluative criteria. Attitudes are the evaluation of an alternative's acceptability. Intentions are the subjective probability that a particular action will be undertaken. The alternative evaluation stage differs according to type of decision making (e.g., high, low, or routinised involvement). Since higher education for international students is an example of a high risk purchase, it is a high involvement decision in which more alternatives are considered in an extended problem solving process. Previous research studies also show that different rules can be used when evaluating alternatives. Under conditions of high involvement, consumers have been found to use a compensatory model in which an overall evaluation is made of all alternatives before the final decision is reached. Thus, an alternative is not necessarily rejected because it has a low rating on any particular attribute since a high rating of another attribute can compensate for it. Hill, Romm, and Patterson (1991) suggest that in evaluating the options, international students are willing to ignore what they perceive as the relatively low prestige of a particular university when they consider other attributes at that same university that can compensate for it. In the case of international education, it appears as if universities are the only professional service in which service providers ultimately make the final decision with regard to acceptance or rejection of every potential customer. It may seem as if the alternative evaluation stage is quite straightforward for international students, e.g., they apply to a number of universities and take their chances. In other words, most of the students not only have a limited amount of alternatives available to them but also are finally accepted or rejected on the basis of the university's evaluation of them and not vice versa. However, a closer scrutiny of the alternative evaluation stage reveals that it is a lot more complex. 1.4 Post Purchase Evaluation Once the pre-purchase stages are completed, the final stage, which is post-purchase assessment, occurs. This final phase of the decision process is only concerned with satisfaction and disposition of the product. The positive evaluation of the purchase, e.g., meeting or exceeding expectations, would lead to satisfaction or dissatisfaction. In other words, this phase of decision-making is seen as an opportunity to build and create longer term relationships with the customers (Gray, 1991). The majority of studies in the area of international education have been undertaken after a choice has been made. If the choice of higher education ranks as one of the most consequential decisions that an individual has to make, then student choice, whether it be to study abroad or the selection of a specific institution and/or course, involves extended decision-making. This being the case the selection process is likely to be a complex mix of interrelated and discrete elements which can vary in sequence, timing and content (Myers,1996). 2. Decision Types in the Choice of International Education The literature in the area of Asian students in Australian universities shows the three major decisions types that international students make before they decide to study abroad. Furthermore, the literature also reveals the family role in each decision stage. Stage 1: Decision to study overseas For Asian students, the decision to stay home or go overseas is not very important, compared to other decisions, e.g., decision to undertake higher education (Duan, 1997). The reason is that for many Asian students, obtaining the degree is more important than where the degree is granted (Coccari and Javalgi, 1995). However, this decision is still important to the students, and is likely to be subject to strong influence from a reference group for a number of reasons. First, there are differences between how a degree from a domestic university and an overseas university are accepted in the student's home country. While domestics qualifications are usually acceptable, students are not so confident about the credibility of various overseas qualifications (Smart, 1988). Secondly, the studying and living environment overseas is different to that at home. Therefore, students who have no experience need to consult with other before deciding to go abroad. Thirdly, this decision is an internal decision largely driven by the student's domestic situation. As the student's parents and friends are familiar with the domestic environment, they have the credibility to provide advice needed regarding whether the student should study abroad or at home (Duan, 1997) Stage 2: Decision to come to one country and university Compared to other decisions, regarding international education, the influence of reference groups, particularly familial members, may be weak in making the decision to study in Australia (Duan, 1997). Students need specialised knowledge about a particular foreign country and its universities. Moreover, Australia has a relatively short history of accepting full-fee paying students from overseas (Lawley, 1994). The friends and families of prospective students may not have the necessary knowledge about Australia and its universities. Moreover, in regard to the previous decisions, the influence of reference group is undermined by the influence from non-reference group factors, such as students' interests in studying a particular subject and their own educational qualifications (Duan, 1997). It can be seen that the primary goal of international students is to obtain overseas qualifications. The place of study, in comparison, is much less important. Under this circumstance, the advice from others also becomes less important because there is decreasing importance of the decision involved. Some previous studies include decision of country and university in the same decision types (e.g. AIEF, 1997, Lawley, 1994). Duan (1997) argued that the choice of university and country should be studied separately. Stage 3: Decision to select the course At this stage, international students are likely to be influenced by their parents and peer groups. Lawley (1994) indicated that the family members are the major funding body for international students, therefore, they may influence the choice of country, university, and course. In the case of international students from Thailand, however, there was also a consistent feeling that while family may influence the choice of country, the student was more likely to decide the particular institution and course within a country (Lawley, 1994) Conclusion According to the literature in the area of marketing for education, the understanding of International students' decision making is crucial. To comprehend the complex decision making types and stages is necessary for educational institutions because it would help improving their performances in the international market and create long term benefits to the whole country. However, it is not wise to assume that students from the same region, for instance Asia, Latin America, or Africa, would be the same segmentation. The study of particular nationality is required, if one institution plans to capture a particular nationality. It is suggested to further research one particular market to comprehend the decision making stages and types of international students. REFERENCES Australian International Education Foundation (1997), Survey of International Students Studying in Australia, Department of Employment, Education, Training and Youth Affairs, Canberra. Coccari, R. and Javalgi, R. (1995), "'Analysis of Students' Needs in Selecting a College or University in a changing Environment,'" Journal of Marketing for Higher Education, Vol.2, No.6, pp. 27-38. Duan, J. (1997), 'The Influence of Various Factors on International Students in Selecting Universities: A South Australian Study of Chinese Students From Hong Kong and Malaysia,' Doctoral thesis, School of Management, University of South Australia. Engel, J.F. , Kollatt, D.T., and Blackwell, R.D. (1995), Consumer Behaviour, 6th edition, Illinois: The Dryden Press. Gabbott, M. and Hogg G. (1998), 'Consumer and Services,' Chichester, Sussex, England. Gray, L. (1991), Marketing Education, Open University Press, Buckingham. Hill, C., Romm, T. and Patterson, P. (1991), "'The Pre-Purchase Decision Making Process; A Qualitative, Retrospective Longitudinal Study of Overseas Students In Australia,'" Working Paper, No. 3-92, University of Wollongong. Howard, J. and Sheth, J. (1969), 'The Theory of Buyer Behaviour,' New York: John Wiley. Kotler, P. and Fox K., (1985), Strategic Marketing for Educational Institutions, Prentice-Hall, Englewood Cliffs, N.J. Lawley, M., (1994), 'Factor Influencing the Choice of Destination in International Education: the Case of Hong Kong,' Masters Thesis, Faculty of Business, University of Southern Queensland. Myers, S.K. (1996), Information Search in Higher Education Choice, Master of Marketing thesis, Faculty of Business, Curtin University of Technology, WA. Nicosia, F. (1966), 'Consumer Decision Processes: Marketing and Advertising Implications,' Prentice Hall, New Jersey. Patterson, P., Romm, T., and Hill, C. (1992), 'Customer Satisfaction as a Process: A Qualitative Retrospective Longitudinal Study of a Professional Service,' Owen Graduate School of Management, Vanderbilt University, Nashville, TN. Smart, D. (1988), "Recruitment and Financing of Candidates to Study Overseas: the case of Malaysia and its implications for Australia," Australian Universities' Review, Vol. 32, No.2, pp. 26-31. _______ and Ang, G. (1992), Medium Term Market Opportunities for Australian Higher Education: a Pilot Survey of Singapore, Asia Research Centre, Murdoch Wilkinson, J. (1993), "'Marketing Australian Universities to Overseas Students,'" Asia-Australia Marketing Journal, Vol. 1, No.1, pp. 71-78. ***** -- Nattavud "Art" Pimpa ***** NOTICE: As a subscriber to this electronic newsletter, you have permission to reproduce and use this article on your campus. All others please note ©1999, Topor Consulting Group International. Comments about, or requests to reprint should be directed to Bob Topor at topor@marketinged.com. ********** SPECIAL OFFER For Marketing Higher Education newsletter subscribers ONLY. 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This book is easy to download from Bob's web site: http://www.marketinged.com -------------------------------------------------- COMMUNITY COLLEGE Survey, 1999 by Robert "Bob" S. Topor As a part of my keynote address to the Association of Community Colleges in Olympia, Washington for a conference titled "Telling Our Story -- Connecting Colleges and Communities" I prepared a national survey to determine what professional community college public relations staff felt were the most important problems they faced and what ideas they had to rectify the problem. Following are some of their comments and related suggestions: *** Problem: In my opinion, the single, most important problem we face at (XYZ* Community College is changing from a product-driven institution to a market-driven institution. We've taken some primary steps in this change -- our president, board of trustees and many employees are learning and embracing the difference between what they traditionally thought marketing was -- advertising and public relations -- and what true marketing involves -- determining products based on research of needs and desires, setting an appropriate price and place and, then, determining and carrying out appropriate promotion. *name has been removed to ensure confidentiality- Bob Topor Solution: We need to ask the right questions, do the right research and make decisions based on this. We need to keep working to make the entire college family understand that this is a priority and that it is not simply a "PR problem." *** Problem: Management style -- we have become a non-collegial, top-down bureaucracy with a view that staff are to be ordered about. The result is low morale, lack of communications, limited cooperation and strife. Solution: New management -- other than that, some more open discussion of the problem and a willingness to change. *** Problem: Continuing enrollment growth in the face of a declining population base in this community. Solution: (tongue in cheek) Upstate NY becomes a high-tech mecca, the weather improves for 9 months of the year, and NY state lowers business taxes. Or else perhaps: Skin cancer rates soar in the sun belt and everyone moves to northern cloudy climes. *** Problem: Funding for staffing and needed equipment (common among Minnesota's two-year colleges) Problem: Developing a common data base on our computer network for our combined academic and student services administration and support staff). Solution: Our budget is controlled and funded through the state and so it is political. Our new governor--Jesse "The Body" (he has yet to prove to many of us that it is now Jesse "The Mind!")--has proposed half of the budget increase our state system requested. That will cover inflation. We have some funding from grants and from donations, and that is the major potential source of income beyond increased enrollment. *** Problem: Orienting staff--particularly faculty--toward the more comprehensive CC role as educator/trainer/retrainer/continuous improvement agency. Too many still see our school as a junior college. I hate the hackneyed "paradigm" terminology, but maybe it applies. Solution: New blood and visionary leadership. *** Problem: Bad morale. Solution: Better communication across all levels of the institution. *** Problem: A time of diminishing enrollment, with conflicting directions of management and involvement of staff without planning (staff members trying to do their own thing). Solution: To resolve this, more frequent communication with management and creation/distribution of an Image Manual which notes Board policy: Manual also includes rules/guidelines for publication items. *** Problem: From a marketing perspective it is that the people we serve don't think of us as a college or as a place to continue their education after high school. Solution: More aggressive marketing and promotion *** Problem: How to meet the increased demands on the office as we continue to offer more and more programs to more and more audiences in more and more locations. Solution: More staff, of course. *** Problem: Lack of innovation and progress. Solution: The president could retire. *** Problem: Declining enrollment is the easy answer. Developing new programs is probably the best answer. Solution: Crisis attitude---which does not exist---could motivate people to brainstorm. Incentives might help. Mostly need a top down commitment to get moving. *** Problem: budget restrictions. Solution: increased enrollment. *** Problem: Our most important challenge right now is decreasing enrollment, and directly related to that, a decrease in the population of our College district. Solution: We are trying to increase our enrollment through the older adult population through updating job skills, learning new skills, keeping themselves marketable, etc. *** Problem: Our small, rural institution is not keeping up with the changing needs of our students and our communities. As a result, our enrollments are declining, which has sent us into a spiral of tightening budgets and declining morale. We are physically surrounded by the largest and most successful community college districts and state universities in (state*). It feels like the little fish in the pond is being eyed as dinner for a larger species. *state has been removed to ensure confidentiality- Bob Topor Solution: Our leadership needs to zap some energy and enthusiasm into this place. That could be accomplished by developing a new vision, rallying the troops/ encouraging participation, taking some calculated risks, and celebrating every once in awhile. ******* The problems are many; the solutions complex. The prevailing theme seems to center around budget (funding) and ideas of balance between what consumers (students) want and need and what the college can provide. The surprising underlying theme of poor leadership surprised me. ******* Demographics of respondents I asked in my survey how long each person had been employed by his or her school. The average length of employment was 13.27 years, with some as short as 3.5 years and others as long as 25 years. ******* Commitment to the college One of the respondents described his personal commitment to his institution. I found this very interesting because it demonstrated his devotion to the school: I did not graduate from here but have taken numerous non credit courses. However, my wife (after 20+ years in retail management) came in as a returning adult, graduated from our RN nursing program, and is now a head nurse at a 250 bed nursing home); My oldest daughter (age 29) jobbed out of our marketing program 9 years ago after taking a 1st place in a state contest and became an advertising designer for a daily newspaper. My son (age 26) became a Computer Numerical Control operator via us and after working 5 years joined the US Marine Corps, where he is now the only computer repair specialist in his Japan based battalion; Another daughter (age 22) has taken a variety of courses here and is now an undercover agent for a security company (she goes into contracting workplaces as a 'temporary employee' to watch for theft .. employee variety .. ) and my 15-year-old daughter is about to take "YOUTH OPTIONS" in our Interior Design. OPTIONS is a new program in (state*) where age 16+ high school students can take Technical College credits which then will apply BOTH to high school graduation and Technical College graduation. Four college credits equal 1 high school credit. *state has been removed to ensure confidentiality- Bob Topor In the "it ain't over" department, I have a just- turned 2 year old and a soon to be 4 year old at home. Day care workers in (state*) need certification courses taught through local Technical Colleges such as us. *state has been removed to ensure confidentiality- Bob Topor ****** Technology The advent of the Internet and Web sites is very important to community colleges. For that reason, I include a WEBMASTER JOB DESCRIPTION for your use. -Bob BASIC FUNCTION The basic function of this position is to coordinate the development, maintenance, and operational support of (xxx) College's external and internal Web sites. This position will also provide leadership in the development and integration of web technology into (xxx's) instructional offerings. CHARACTERISTIC DUTIES AND RESPONSIBILITIES Create and maintain web pages and related databases on (xxx's) public Web site and internal intranet. Provide technical leadership and guidance to instructional staff regarding the development of on-line instructional applications; e.g., Lotus Notes Learning Space courses. Develop and maintain a file management process to update electronic web page files and related databases. Provide guidance for future web applications and other on-line technology development through research, dialogue with experts, and other means. Provide leadership to the College's On-line Communication Group. Work with Organizational Development, Information Technology, and Primary Learning System personnel to provide appropriate staff training as it relates to (xxx's) various on-line needs. Coordinate appropriate internal marketing and promotion of the College's intranet. Assist in marketing the College's public Web site and on-line instruction. Create and update hypertext links to search engines and related off-campus URLs for the public Web site, intranet, and on-line instructional applications. Other duties as assigned. QUALIFICATIONS Working knowledge of personal computers, Windows operating systems, MicroSoft Office Suite applications, and Lotus Notes required. Working knowledge of Lotus Notes Learning Space preferred. Demonstrated competence in Web site development, including a working knowledge of .html coding, PC-based authoring tools (i.e., PageMill, Hot Metal, FrontPage), and interactive web publishing applications (i.e., Java, CGI, scripting). Working knowledge of electronic publishing applications such as PageMaker, PhotoShop, and/or Illustrator. Strong communications and human relations skills. Strong organizational skills. TRAINING AND EXPERIENCE Minimum of two years of work experience as a webmaster. Associate Degree in Graphic Design or Computer Technology required; bachelor's degree in either area preferred. Any equivalent combination of education and experience which provides the required knowledge, skills and abilities. This description is intended to indicate the kinds of tasks and levels of work difficulty that will be required of positions that will be given this title and shall not be construed as declaring what the specific duties and responsibilities of any particular position shall be. It is not intended to limit or, in any way modify the right of any supervisor to assign, direct and control the work of employees under supervision. The use of a particular expression or illustration describing duties shall not be held to exclude other duties not mentioned that are of similar kind or level of difficulty. ***** -Bob Topor * Marketing Evangelist Web Site: http://www.marketinged.com Email: topor@marketinged.com ***** NOTICE: As a subscriber to this electronic newsletter, you have permission to reproduce and use this article on your campus. All others please note ©1999, Topor Consulting Group International. Comments about, or requests to reprint should be directed to Bob Topor at topor@marketinged.com. ********** -------------------------------------------------- Original posting: 3/31/99 Marketing Higher Education Newsletter is published by Topor Consulting Group International (http://www.marketinged.com). Newsletter posted by WEBB Internet Marketing & Consulting (http://www.firstchapter.com). copyright 1999 Topor Consulting Group International