SimpsonScarborough discussed with Andrew Flagel, Dean of
Admissions and Associate Vice President for Enrollment Development for George
Mason University, the pricing study SimpsonScarborough recently conducted for
his institution.
Q.
Why did you decide to study George Mason University's price elasticity?
A. Mason has
enjoyed a steady surge in popularity, with extraordinary growth in our out-of-state
markets. As with most institutions we are under increasing financial
pressure, but while we had a fair amount of insight on in-state students,
we had conflicting data on price and cost related to our out-of-state
students. Most of our overlap was
with other D.C. area schools, where tuition was FAR higher than ours. At
the same time many, if not most, of our applicants indicated that they were
also strongly considering far less expensive options closer to their homes,
generally their state's flagship institutions. As a result, more often
than not we were the middle cost of the three top choices, both for the
students we were enrolling and those we weren't. To build our budget
models we needed a better idea of how price (including discounted price)
related to enrollment patterns.
Q. Why did you choose SimpsonScarborough to conduct the study?
A. Two
reasons, cost and scope of project. Many of the companies we reviewed wanted massive
investments of funds, several in excess of anything we were likely gain in
revenue from even optimistic projections. Others wanted comprehensive long-term contracts, which was problematic
since we had no experience with those companies on which to base a multi-year
contract, and the degree to which we would be able to impact our financial aid
formulas, given our historically low level of institutional discounting, wasn't
large enough to require the kind of longitudinal experimentation they were used
to exploring. SimpsonScarborough offered a statistical approach that was
very attractive for its flexibility in use for our planning process.
Q. Who were the major
beneficiaries of the resulting data once the study was complete?
A. The
data were most helpful to our institutional planning team, but also very
well received by our governing board who was wrestling with issues of price,
discount, and access.
Q. How have you used the findings?
A. Based
on the study, SimpsonScarborough developed a simulator which allowed us to see
the effect of a range of institutional decisions on price and discounting.
While there is no way to know what might have happened otherwise, Mason chose
the optimal model, which included a larger tuition increase with commensurate
discount, and our yield patterns closely tracked the model that suggested
increased yield in that scenario. Of course, it remains to be seen how
that pattern will hold in the new economic reality, and the subject certainly
bears further study. It is safe to say, however, that the model
gave our planning committee and our board the data needed to approve the
testing of a more aggressive tuition and discount model than our institution
had taken at any time in its history.
Andrew Flagel is the Dean of Admissions and Associate Vice
President for Enrollment Development for George Mason University, where he also
teaches in the Department of Communication. He has presented hundreds of seminars on the college
admissions process to students across the country, has been a featured speaker
at the Presidential Youth Inaugural Conference as well as the Washington
Journalism Conference, has been a featured guest on C-Span's Washington
Journal, and his quotes have appeared in recent educational stories in Newsweek, US News and World Report, The
Washington Post, and even Teen Vogue.
Dean Flagel serves on the Advisory Board for the National
Young Leaders Conference and the Executive Council of the Virginia ACT Advisory
Committee as the Virginia representative to the ACT national assembly. He
also served on the Seal of Approval Committee for the National Association for
College Admissions Counseling and spent three years as their national
membership chairman. Along with
speaking on the college admissions process, Dean Flagel regularly offers
presentations on communication styles for "millenials" as well as
motivational speeches.
Be sure to check out Dean Flagel's blog and his column
on Monster Worldwide's admissions.com.
- Renee Kart