11

PULSE POINTS

The Future of University Education:

On Campus vs. Online

June, 2013

22

PULSEPOINT PERSPECTIVE

• A national debate is being fueled by the rapid and widespread adoption by students and well-known, respected institutions of MOOCs (massive open online courses).

• Primarily based on cost efficiencies, there is a call for online universities to become the new model for higher education institutions.

• For some, large enrollments seem sufficient enough evidence to support the proposition for online universities, however, there has been little discussion about what would be sacrificed in the exchange of an online for an on campus experience.

• As Presidents and Boards of higher education institutions look to make decisions with long term implications, important issues have yet to be debated.

33

KEY QUESTIONS FOR SENIOR LEADERSHIP

1. What is the value proposition of an on campus versus an online experience?

2. What is the size of the US market for university sponsored online courses?

3. Who are the key target audiences for online courses?

4. What are prospective students willing to pay for online courses?

5. What is the University’s role in the national debate about offering online courses?

44

SURVEY METHOLODOGY

• Fielded May 23-May 27, 2013• Online Survey: 7 minutes (median)• Completed Sample Size: 1500• Complete Rate: 43%

55

SAMPLE CHARACTERISTICS

• National distribution: 25% in four quadrants of US; all states represented

• Education: (Distribution of degrees for college and post-college graduates)– High School graduates– College graduates– Post-graduates: Master’s, Doctorate, Post-Doctorate

• Age: 16-69 years of age• Income: Distribution range: less than $30K-$250K+• Children living at home: 73% (0-20+ years of age)• Racial and ethnic diversity (White: 85%)• Gender: Equal female/male

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SURVEY QUESTION AREAS

• Preference and benefits of attending a college or university in person versus online

• Awareness, participation, and completion of past online courses

• Influencers for taking online courses• Level of interest in taking online courses and

reasons for interest and hesitation about online courses

• Reasons for taking online courses at various price points

• Reasons for why online courses should be offered

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QUANTITATIVE RESEARCH:

FINDINGS

88

ON CAMPUS UNIVERSITY EXPERIENCE PREFERRED

5=Prefer to Attend University In Person4321=Prefer to Attend On-line University

44%

18%

17%

8%

13%

3 to 1 Preference for Attending a University in Person (top 2 box)

Question: If you had a choice, would you prefer to attend a university or college in person or online? Please use a scale of 1-5, where 1=I would prefer to attend an online university, 5=I would prefer to go to and attend a university in person.

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MORE BENEFITS WITH AN ON CAMPUS EXPERIENCE

Benefits On Campus %

Online %

Difference%

Get a better job 62 55 7

Meet new people 52 3 49

Learn more about a particular subject matter 52 50 2

Obtain a personally rewarding career 50 35 15

Be challenged 49 36 13

Learn how to think more critically and express myself better

46 24 22

Obtain financial security 43 37 6

Learn how to be independent 42 17 24

Get a degree and elevate my status in society 40 38 2

An opportunity I will remember the rest of my life 39 8 31

Learn more about the world 38 15 22

Become a better person 34 17 17

1010

MORE BENEFITS WITH THE ON CAMPUS EXPERIENCE

Benefits On Campus %

Online %

Difference%

Participate with other students in extracurricular activities

32 1 31

Become more social 32 2 30

Become a leader 29 11 18

Better contribute to the community 28 12 16

Work with faculty members 26 5 21

Live in a dorm and experience dorm life 23 .5 23

Have more fun 22 3 19

Make the world a better place 20 8 12

Be with my friends 18 1 17

Get into graduate school 17 15 2

Conduct research 17 12 5

Fits this time in my life 13 46 -33

1111

HIGH AWARENESS AND PARTICIPATION WITH ONLINE COURSES

• 98% have heard of an online course• 44% have checked out an online course • 42% started an online course, but did not

complete it – High school grads and Bachelor’s grad more

likely than graduate degree to not complete

• 59% started an online course and completed it

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ONLINE COURSES TAKEN IN COLLEGE AND BEYOND. PREFERENCE FOR NOT FOR

PROFITS

• When online courses were taken and completed:– During high school: 3%– While in college: 27%– While in graduate school: 14%– After formal education and not in school at the

time: 63%

• Where online courses were taken:– Not for profit online university: 42%– For profit online university: 36%– Other: 25%

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LESS FAMILIARITY WITH NEWEST PROGRAMS

None of the above

Other

Online high school

Khan Academy

For Profit

University associated

2U

Udacity

edX

Coursera

0 10 20 30 40 50 60

% Selected University associated searched by Bachelor’s and Graduate degree vs.

For Profit by all groups

Question: Which of the following, if any, have you checked out?

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MODERATE INTEREST IN NEXT 3 YEARS

26% Express Interest (Top 2 Box)

5=Very interested4321=Not al all interested

11%

15%

26%

29%

19%

Question: How interested are you in taking an online course in the next three years? Please rate on a 5-point scale, where 1=not at all interested, and 5=very interested.

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ANTICIPATED POPULARITY OF ONLINE COURSES

20-60% of people taking online courses next 5 years

0-19%20-39%40-59%60-79%80-100%

12%

42%27%

16%2%

Question: If you had to predict, what percent of people will be taking online courses in the next five years?

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INFLUENCERS WILL ACCELERATE INTEREST

• 19% of their children have taken an online course

• 88% of their children are 14+ years of age and have taken an online course– 54% are 19 years old

• 58% know of someone who has taken an online course or received an online degree

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VARIED BENEFITS WITH ONLINE COURSES

Benefits % Selected

Add to knowledge in an area of interest 54

Learn something new 54

Supplement my job 35

Add to my knowledge in my current degree 32

Get a new degree 32

Get up to speed on what’s happening today 18

Finish a degree 15

Receive instruction from a well-known university/college 12

Retake something I didn’t learn well before 11

Test preparation 7

Receive instruction from a well-known professor 6

More fun learning this way 4

Meet new people 2

Other 4

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HESITATIONS FOR TAKING ONLINE COURSES

Hesitations % Selected

Too expensive 38

Not sure it would be worth my while 32

Don’t have the time 31

I prefer going to a class and being with people 29

Not well taught 20

Less fun learning this way 19

Too much homework 11

Haven’t heard of it before 3

I don’t have ready access to a computer 2

Other 7

Question: What would make you less interested or make it less possible for you to take an online course? Select all that apply.

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PRICE AFFECTS INTEREST

Course is free $100/Course $250/Course $500/Course $1,000/Course

0102030405060708090

% Indicating “Wouldn’t take or pay this much for an online course”

2020

ATTRIBUTES INFLUENCED BY PRICEAttributes % Free % $100 % $250 % $500 % $1,000

Subject matter of interest/relevant to me 67 50 32 16 9

Relevant to my job 48 42 31 18 11

Good instruction by any professor 38 30 19 8 4

Offered by a well known university 37 31 26 15 9

Relevant to a job I hope to get 32 32 25 14 8

Certification for my job 32 32 25 15 8

Good word of mouth recommendations 27 22 17 9 5

Become registered professionally 20 21 18 11 6

Offered by any university 19 16 11 6 3

Professor tries to make it fun/interesting 18 17 12 8 4

Good instruction by well known prof 17 20 18 12 7

Offered by a university close to me 16 13 9 6 3

I wouldn’t take a free/pay this much for an online course

7 18 40 64 77

Other 1 2 1 1 1

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EQUAL SPLIT ON RESPONSIBILITY TO OFFER ONLINE COURSES

% Rating

5=Should definitely have to offer4321=Should definitely not have to offer

33%

13%

21% 19%

15%

Question: Do you think that universities and colleges should have to offer free online courses? Please rate on a scale of 1-5, where 1=universities should definitely not have to offer free online courses, and 5=universities should definitely have to offer free online courses.

2222REASONS FOR WHY UNIVERSITIES SHOULD OFFER FREE ONLINE

COURSES Reasons % Selected

This makes it possible for everyone to receive some additional education

64

The current cost of university education is too high 52

It is important to improve the level of education for all citizens

52

With access to the Internet, it is possible to offer online education

41

Some universities are already offering free online instruction 20

Other 6

Question: Why do you think universities/colleges should be offering free online courses. Select all that apply.

2323

SURVEY CONCLUSIONS:

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CONCLUSIONS

• Balance and build infrastructure.– Prospective students highly value the on campus

experience. Therefore, the adoption of online offerings should be more evolutionary than revolutionary. The most appealing educational experience is a combination of the best of the on campus experience AND the online offerings.

– The pricing of online offerings makes the non-academic offering more transparent. Therefore, the non-academic experience will become more important than ever as a meaningful differentiator.

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CONCLUSIONS

• Fortify your brand.– Prospective students are willing to pay the

most for the best brands.– In the online world, the competitive frame

increases dramatically. Knowing your customer and what is relevant is more important than ever in a crowded marketplace with similar products.

– Create an identifiable brand and strategically reinforce it with internal and external audiences.

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CONCLUSIONS

• Take charge.– Don’t let provider dilute your brand.– Put a basic infrastructure in place including a

business plan, the right leadership, and partnerships.– Start with students and alumni, those who know you

best. Include alumni as a key beneficiary of this new form of learning and engage them as brand stewards.

– Create a narrative for your faculty regarding this issue.

– Communicate with the Board on the pros and cons of online programs and long term implications.

– This is an important national agenda item and one with which institutions should have a point of view.

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PULSE POINTS

The Future of University Education:

On Campus vs. Online

June, 2013