Determinants of student demand at Florida Southern College - Case research abstract and methodology

Oct 3, 2026

Determinants of student demand at Florida Southern College examines how tuition levels and related variables shape both freshman and total enrollment, with an emphasis on the role of price. A time-series analysis uses published tuition, net tuition and fees, and other explanatory factors, comparing Florida residents with out-of-state applicants to test group differences. The study also estimates price elasticities to evaluate demand responsiveness over time and across student populations.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages9

Reading Time23 min

AccessFree to download

Abstract

Introduction

Methodology

Journal of Case Research in Business and Economics Determinants of student demand at Florida Southern College Carl C. Brown Florida Southern College Andrea McClary Florida Southern College Jared Bellingar Florida Southern College ABSTRACT Determining the factors impacting student demand for higher education at Florida Southern College enables calculation of the effect that tuition levels and other variables have on enrollment and revenue. A times series study utilizing data on published tuition, net tuition and fees, and other potential explanatory factors is conducted to determine their impact on both freshman and total enrollment levels at Florida Southern. Separate analyses of students hailing from Florida and from out-of-state are conducted to determine if there are significant differences in the factors impacting the decisions by these groups to enroll at Florida Southern. In addition, estimates of price elasticities of demand are calculated based on the available data. This study finds that price-adjusted net tuition (including fees) is a statistically significant determinant of freshman enrollment, as is real per capita income, the annual number of highschool graduates, and the US unemployment rate. The net tuition elasticity of demand among Florida freshman students is-1.8, while net tuition is statistically insignificant as a determinant of enrollment by non-Florida freshman students. The study also finds that the price elasticity of demand for the aggregate freshman student population has increased over time as net tuition has risen in real terms. When tuition +fees and financial aid are entered as separate variables (as opposed to being combined as net tuition) into the regressions, the explanatory value of the regression equations increase. Keywords: Net tuition, price elasticity, price discrimination. Determinants of student, Page 1 Journal of Case Research in Business and Economics INTRODUCTION There have been numerous studies conducted on the demand for higher education. These studies have sought to specify the factors that determine enrollment in both private and public institutions. Jackson and Weathersby (1975) defined their independent variables impacting student demand as: the cost of attending the institution, the cost of attending nearby colleges, unemployment, wage levels, median family income, and the number of high school graduates. In a separate study, Toutkoushian et al (2010) analyzed variables such as whether students were in-state residents or out-of-state residents. Both studies used institution pricing as the basis for changes in demand. A number of studies, including one conducted by Bryan and Whipple, (1995) gathered data through random student sampling in the form of a survey. Others have used aggregate enrollment data from US colleges and universities. While surveys allow for more specific variables to be analyzed, aggregate data provide a broader explanation of movements in demand based on fewer, more generalized variables. An example of the use of aggregate data is a study by Campbell and Seigel (1967) on the effects of income and price on student demand. While some studies such as Campbell and Seigel conclude that student demand is inversely related to price and directly correlated with income, other studies have shown results that are less predictable. For example, Avery and Hoxby (2004) found that students are more apt to attend an institution if it offers named scholarships rather than general grants, even if the amount of the financial aid is the same. This study also concluded that students have a greater demand when financial aid is front-ended as opposed to being evenly distributed over the period of study. Research by Cantona and de Jong (2004) concluded, somewhat unexpectedly, that students are not responsive to tuition at all, but are sensitive to factors such as financial support, the college premium on future labor market earnings, and the alter

FAQs

What variables are used to explain student demand at Florida Southern College?

The study uses published tuition, net tuition and fees, and other potential explanatory factors in a time-series framework to model enrollment demand.

How does net tuition affect freshman enrollment?

Price-adjusted net tuition (including fees) is a statistically significant determinant of freshman enrollment, while net tuition is statistically insignificant for non-Florida freshman students.

Does the demand for tuition change over time?

Yes. The price elasticity of demand for the aggregate freshman student population increases over time as net tuition rises in real terms.

Oct 3, 2026

Upload by xXChrisXx