Identification of Factors Influencing Students’ Choice and Their Segmentation, by Using Conjoint and Cluster Analysis Technique: Marketing of University

Abstract

In this competitive era, it is much necessary for the management of educational institutes to have deep understanding about needs and desires of their current and potential students. At time of taking admission and making choice about their future university, students tend to make tradeoff between different attributes and features of educational institutes. In this article, conjoint analysis is conducted to gain insight how students value various factor, while choosing a university. Furthermore, cluster analysis technique is used to segment whether there are groups of students for whom different attributes were more important. By applying simple random sampling technique, a sample of 317 students selected from three departments of The University of Lahore and analysis were performed. Findings indicate that the location and advice (Average Importance Score 22.941 and 20.252 respectively) are the most important factors for selecting university. Moreover, three different preferences – based segments of prospective students were identified based on cluster analysis. This research tends to add value to educational managers and educationist by helping them understand needs and desires of their potential students. Finally, based on results of this study, management of universities can devise their marketing strategies.