604 Nghiên cứu thị trường nhóm sản phẩm chăm sóc da tại Việt Nam và giải pháp Marketing của Công ty quốc tế Minh Việt
Trang 1INFORMATION TO USERS
This manuscript has been reproduced from the microfilm master UMI films the text directly from the original or copy submitted Thus, some thesis and dissertation copies are in typewriter face, while others may be from any type of computer printer
The quality of this reproduction is dependent upon the quality of the copy submitted Broken or indistinct print, colored or poor quality illustrations and photographs, print bleedthrough, substandard margins, and improper alignment can adversely affect reproduction
in the unlikely event that the author did not send UMI a complete manuscript and there are missing pages, these will be noted Also, if unauthorized copyright material had to be removed, a note will indicate the deletion
Oversize materials (e.g., maps, drawings, charts) are reproduced by sectioning the original, beginning at the upper left-hand corner and continuing from left to right in equal sections with small overlaps
Photographs included in the original manuscript have been reproduced xerographically in this copy Higher quality 6” x 9” black and white photographic prints are available for any photographs or illustrations appearing in this copy for an additional charge Contact UM! directly to order
ProQuest Information and Learning
300 North Zeeb Road, Ann Arbor, MI 48106-1346 USA 800-521-0600
®
Trang 3
THE USE OF RELATIONSHIP MARKETING TECHNIQUES IN HIGHER EDUCATION: A CASE STUDY
by
Judy Mary Campbell B.A., Otterbein College, 1984
M.S., Chapman University, 1997
A thesis submitted to the University of Colorado at Denver
in partial fulfillment
of the requirement for the degree of Doctor of Philosophy
Educational Leadership and Innovation
Trang 4UMI Number: 3056513
®
UMI
UMI Microform 3056513
Copyright 2002 by ProQuest Information and Learning Company All rights reserved This microform edition is protected against
unauthorized copying under Title 17, United States Cade
ProQuest Information and Learning Company 300 North Zeeb Road
Trang 5
This thesis for the Doctor of Philosophy degree by
Judy Mary Campbell has been approved
Trang 6
Campbell, Judy Mary (Ph.D., Educational Leadership and Innovation) The Use of Relationship Marketing Techniques by Institutions of Higher Education: A Case Study
Thesis directed by Professor Michael Murphy
ABSTRACT
Relationship marketing is a business technique that focuses on the customer as a distinct individual with unique wants and needs This focus leads
organizations to develop relationships with the customer that may eventually lead to customer loyalty and retention There are five basic concepts to relationship marketing: creating personal bonds, concern for the welfare of the customer,
commitment to the personal growth of the customer, customer fit, and
retaining/terminating the relationship with the customer Accountability
measures and competition are driving institutions to develop strategies that assist them in their retention efforts This exploratory case study examines the use of relationship marketing techniques by public institutions of higher education in Colorado
Trang 7
mission statements and other documents were evaluated for relationship marketing techniques
The research seems to indicate that these five public institutions of higher education are using three of the five concepts of relationship marketing: creating personal bonds with students, concern for the welfare of the student, and
commitment to the personal and academic growth of the student The questionnaire, and the document review supported statements made by the participants in their interviews
This abstract accurately represents the content of the candidate’s thesis I recommend its publication
Trang 8
ACKNOWLEDGEMENT
I would like to acknowledge and thank the Chair of my Dissertation
Committee, Dr Michael Murphy for his support, patience, and advice over the last two years I would also like to extend my warm thanks to the other members of my committee, Dr Laura Goodwin, Dr Michael Martin, and Dr Clifford Young for their generous support
I would also like to acknowledge Dr Maria Gier, she gave me my first job in higher education and has been a good friend for many years Her
encouragement and guidance throughout the years has been immeasurable
In addition, I wish to acknowledge Mark Velat for his continued
understanding and patience throughout this process And lastly, a very special thanks to Peter Bemski for his friendship and support throughout the last four
Trang 9
CHAPTER 1
2
CONTENTS
INTRODUCTIƠN .- 0 nhe Hi rHag 1 Background of the Problem -. -ccằcàs‡eiiằ 3 Conceptual Frameworf cà snnnnnhnhhhhhnhiie 6
Research Questions . - nhu 11
Methodology - 55 nhe ereg 13 Structure of Dissertation - nen 14
LITERATURE REVIEW nhe 15 Relationship Marketing -. SseneehhehHrrrre 16 Relationship Marketing and
Trang 10
4 5 Participant
Research Design - nhe I0 §@0J)(-v:) PP
Data Analyses - - - ¡(nhu hiờ In :riodEFlr daaiiiidia3ÝŸ4Ả l6 0 6/1/22: College Coin College ®9I-.: 0P Cross Case AnalyS1s Sàn nhhhHhhhhhhrrrrrrhrere
Institutional Similarities and
Differences - TQ TQ ng kg hen Retention Strategies Similarities
Trang 11
Summary of Findings - heo 86 Limitations PP 93 Conclusions - Sàn Hà HH Hà 94 Discussion of Findings cà hneerhhHide 95 Recommendations for Practice . -ccccnsàe 100 Recommendations for Future Study . - 102
APPENDIX
A CONCEPTUAL FRAMEWORK MODELS . 104
B CASE STUDY METHOD . cnànhhnHdnHrrre 109
C ®9091)/€59:125 01057 111
D INSTITUTIONAL PROFILES AND
CARNEGIE CLASSIFICATIONS OF INSTITUTIONS OF HIGHER
EDUCATION 115
E FOLLOW-UP LETTER AND
[@9)01)26/129):4 1 123 F, TNTERVIEW GUIDE - 5 nnhhhhhHHrrrhhriiieg 127
G 9)82-YN(9)))7 11.121 .ố 129
H DOCUMENT REVIEW FORM àằằhehehhrrte 137
7172:4500 212725755 139
Trang 12
CHAPTER 1 INTRODUCTION
Higher education is facing a variety of challenges as we enter the 21" century These challenges will inevitably change the way higher education thinks about its students Many of the issues confronting higher education are in response to a changing marketplace Higher education is no longer a luxury but a requirement for employment and prosperity for not only the individual but for the United States Higher education is the investment of an educated, productive workforce that will benefit society (Callan, 2000; Carnevale, 1999)
There is also a greater emphasis on accountability, assessment, technology, and learning then in years past Constituents such as the federal
government, state legislatures, the community, students, and their parents are
demanding more from institutions of higher education The future prosperity, growth, and develop of the economy is dependent upon the educational
achievement of its people Higher education is in part responsible to ensure the continued growth of the nation by developing an educated workforce (Callan, 2000)
Trang 13
over the accountability of higher education to its constituents One such accountability measure is retention Retention is defined in the study by two characteristics: persistence and completion Persistence is defined as a student who has returned to college after her/his freshmen year Persistence rates for four-year institutions varied from 62% in Idaho to 84% in Connecticut Completion rates are defined by the number of students who make progress toward and complete their certificates and degrees Nationally, only 52% of the full-time, first-time freshmen at four-year institutions earn a bachelor’s degree within five years
Legislators, administrators and the community are obviously concerned about the drop out rates of students Low retention rates can reflect a poor image to students and can reduce the institution’s ranking in academic circles Low
retention rates can also mean reduced tuition dollars, which can affect
institutional budgets In addition, a high drop out rate can lead to reduced state appropriations, which can also affect operating funds
A survey by The Nelson A Rockefeller Institute of Government found that at least 50% of the states are moving toward the use performance indicators,
such as persistence and completion, and tying those indicators to state
Trang 14
The State of Colorado has yet to tie funds to accountability measures but it does expect state-funded institutions to meet certain quality indicators The State of Colorado General Assembly passed the Higher Education Quality Assurance Act in 1996 (HB96-1219) It was not until 1999 under the administration of Governor Bill Owens that SB 99-229 established specific directives for public institutions of higher education One of those quality indictors measures freshman persistence and assesses the institution’s ability to retain a student through the first year and beyond (Executive Summary, 2000) Even though state appropriations are not tied to the quality indictors, public institutions of higher education in Colorado are held accountable for retention
Retaining students and seeing them through to graduation is an important responsibility of higher education With 56% of all jobs requiring a bachelor’s degree, it is even more important to see students complete their degrees and graduate (Carnevale, 1999) The marketplace demands an educated workforce but that can only happen if students persist and graduate The purpose of this research is to investigate the use of relationship marketing by public institutions of higher education in Colorado as a tool for retention
Background of the Problem
Trang 15
education to better themselves and their community Therein lies the problem: how to retain and graduate students so that they can become productive citizens
Higher education has begun to see a number of external pressures that make it more difficult to retain students The growing economy, changes in
student demographics and attitudes about education have made the retention of college students difficult Career oriented students, who are market savvy consumers, are making decisions that affect persistence and completion of degree programs Traditional as well as non-traditional adult students are placing greater emphasis on degrees and courses that lead to well-paid jobs rather than the importance placed on the educational experience by institutions of higher education (Ehrlich, 2000; Hendley, 2000)
Levine (2000) suggested there will be many changes facing the future of higher education in response to these external pressures According to Levine, there will be an increase in educational providers and their offerings will become more diverse There will be a shift from teaching to learning and college degrees will become less valuable Higher education will also focus more on the
individual student with customized learning plans and services
Trang 16
providers are mimicking business with customer service, individualized
education programs, and attention to the student’s educational desires These providers are presenting alternatives that are attractive to the consumer-minded student and creating a more competitive environment
“As institutions of higher education struggle for competitive advantage, they must examine new ways to compete and improve service and responsiveness Increasingly, institutions are
recognizing that administrative and bureaucratic functions, rules, and regulations can be eliminated with no corresponding
diminution in quality of service of program Competitive
advantage grows from improvement, innovation, and change It involves the entire value system of the organization It can often only begun if we break the mold with which we currently work It can only be sustained through relentless advancement (Penrod &
Dolence, 1992, p 19).”
Penrose and Dolence (1992) discussed the need to change the
organizational culture of higher education to meet the future, in order to respond
to the concerns over costs, student consumerism, and changes on the horizon for
higher education
“The first is customer focus There are internal customers such as students, staff, or other academic or administrative units; and there are external customers including taxpayers, parents, alumni,
donors, and outside agencies Customer focus means meeting the customers’ real needs The best way to do that is by asking how their needs might be better met and then doing it (Penrose &
Trang 17
The student in higher education is both a customer as well as a product of the educational system This means that the student is both an external and internal customer at the same time The student as both customer and product should be reflected in the marketing and retention strategies that are established by the institution (Conway, 1996)
"_ higher education must adjust to accommodate learners Consumers will exert their inexorable influence on higher education The era of a campus- centric model is ending (Twigg & Oblinger, 1997, para 34).” The sheer
numbers of potential students, both traditional age and adult learners, combined with changing student attitudes about education, are moving the needs and wants of the student to the forefront There has been a significant call to transform higher education by borrowing from business and re-engineering higher education (Dolence & Norris, 1995; Penrod & Dolence, 1992)
Conceptual Framework
“There’s no doubt that the university of the future will require some out- of-the box thinking, and a major revision in culture and organization (Peppers & Rogers, 1998, p 67).” The revision or re-engineering of higher education has already begun with the look, language and strategies of business In order to meet the increasing demands and needs of students, institutions must recognize
Trang 18
“To meet the challenge posed by these external influences, colleges and universities must cultivate a continuous stream of leadership and develop an administrative infrastructure which is optimized for service, speed, quality, and productivity (Katz & West, 1992, p 1).”
One vision for the student-customer is through the use of relationship marketing, which has its roots in business (Appendix A) The purpose of relationship marketing is to
“ establish, maintain, enhance and commercialize
customer relationships (often but not necessarily always long term relationships) so that the
objectives of the parties involved are met This is done by a mutual exchange and fulfillment of promises (Gronroos, 1990, p 5).”
Relationship marketing strategies are characterized by several attributes, which enhances the rapport with the customer in such a way that it leads to a long-term, mutually beneficial interaction for both parties
Relationship marketing focuses on the customer as a distinct individual with unique wants and needs This focus leads organizations to develop individualized communications, customized goods and services, and creates a learning relationship with the customer (Gilmore & Pine, 2000; Peppers &
Rogers, 1993, 1997; Peppers, Rogers, & Dorf, 2000; Pine, Peppers, & Rogers,
Trang 19
In addition, the organization makes a commitment to the customer to be honest, fair, provide excellent service, and quality products (Buttle, 1996) A key to this commitment is that it needs to be mutually beneficial The organization and the customer must both be satisfied and remain loyal to each other
However, there are times in the organization-customer relationship that the interaction is not mutually beneficial and the organization or the customer must decide to leave the relationship A relationship, which is not mutually beneficial, is not conducive to good business practices (Peppers & Rogers, 1993, 1997, Shani & Chalasani, 1993) Relationship marketing and its characteristics lead to a long-term relationship that keeps the customer loyal to the organization (Peppers & Rogers, 1993, 1997)
Ultimately, strategies for retention aim for satisfaction by the customer or
student, so he/she will continue to purchase that item, service, or education that is
provided by the organization or institution There are many factors that influence the level of satisfaction by a customer or student Two such factors, consumer culture and expectations are affecting the attitudes of customers not only in business but in higher education
Consumers as well as students expect more from the companies and the educational institutions that they patronize These expectations for high quality
products, excellent service, individual attention, and anytime transactions are
Trang 20
in the consumer’s attitude Consumer culture and consumer demand is being driven by many factors including, an increase in availability and variety of products, increase in shopping opportunities, and consumer protection (Lury,
1996) This demand has pushed the envelope of expectations that customers
have on businesses or institutions (Gray, 1983; Lury, 1996; Stark, 1977)
Consumers today are used to making purchases and communicating anyplace and at anytime This customer is accustom to buying on-line, using cellular phones and communicating via e-mail This new student-customer
will neither understand nor content themselves with less from their campus environments (Katz & West, 1992, p 16).” Students now expect to purchase books, register, pay bills, and review transactions all on-line In order for
institutions to attract and retain student customers, higher education must change the way it thinks about its students
Expectations and satisfaction are interconnected If expectations are not met then satisfaction by the customer is not met and the customer leaves the relationship Bluedorn’s (1982) unified model of turnover by employees parallels the behavior of consumers The individual employed by an
Trang 21
Satisfaction is key to retaining customers Stodt (1987) suggested that
there are three institutional factors that influence retention of students: academic,
administrative policies and student life Dissatisfaction of the academic
performance by either the college or the student indicates a need to discontinue the relationship Research has shown a high correlation between academic performance and persistence (Getzlaf, Sedlacek, Kearney, & Blackwell, 1984;
Pantages & Creedon, 1978; Tinto, 1975, 1993; Webb, 1988)
Several researchers have reported that students who are dissatisfied with administrative policies or the resolution of problems are more likely to leave the institution (Demitroff, 1974; Heverly, 1999; Pantages & Creedon, 1978) The research also suggests that student’s perception of student life can lead to dissatisfaction and attrition Student life can reflect the relationship between the student and other students, faculty and staff (Beatty-Guenter, 1994; Jones, 1986;
Nippert, 2000-2001; Pantages & Creedon, 1978; Tinto, 1990) It also refers to
the student environment fit with the mission and vision of the institution (Peltier, Laden & Mantranga, 1999; Tinto, 1993) Students who do not feel this
connection or bond with the institution will not be retained
Tinto’s (1990) principles of retention match remarkably the characteristics and attributes of relationship marketing The first principle emphasizes the personal relationship and bond that is developed by the student with other students, faculty and staff The second principle reflects an enduring
Trang 22
institutional commitment to the welfare of the student The third principle fulfills the promise to provide social and intellectual growth through a quality education The fourth principle underscores the importance of the student environment fit in determining what students should be retained Finally, Tinto points out that when the institution considers the welfare of the student a priority, it can mean letting a student leave rather than retaining that student
Relationship marketing and higher education retention strategies are attempting to achieve the same end result That result is the satisfaction and retention of students that ultimately leads to a long-term relationship
Relationship marketing is another vehicle that can assist institutions of higher
education in the satisfaction and retention of its student-customer
Research Questions
The retention of college students continues to be an issue of importance for higher education In recent years, it has become an important criterion in the accountability measures, which rely heavily on persistence and completion rates Retention of students is important to the survival of an institution as more competitors enter the market and attract students away from traditional avenues of higher education Pressures by external constituents including student-
customers are impacting the way higher education does business The purpose of
Trang 23
this research is to investigate the use of relationship marketing techniques by public institutions of higher education in Colorado as a tool for retention
The specific research questions are:
1, What relationship marketing techniques are being used by public institutions of higher education in Colorado?
2 To what extent are relationship marketing techniques being used by public institutions of higher education in Colorado?
3 Why are these institutions of higher education using relationship marketing techniques?
4 What are the similarities and differences in the use of relationship marketing by different Carnegie Classifications of Institutions of Higher Education?
Businesses are using relationship marketing strategies to gain competitive advantage, develop long-term relationships and retain customers for a life-time It can be suggested that higher education may be using relationship marketing for the same reasons that business use these techniques but it is necessary to
understand the institutional reason for using these strategies It is important to assess how much an institution has implemented relationship marketing strategies and to what extent are those institutions using those strategies
Trang 24
Methodology
The methodology for this study was an exploratory case study This study did include the use of interviews, a questionnaire, and a document review for each institution Each institution was considered its own case study since their demographics and administrations were unique
The institutions studied were public higher education institutions in Colorado There were five institutions chosen and three Carnegie Classifications of Higher Education were represented The participants from the chosen
institutions were selected based on their responsibility for institutional retention The participants included such individuals as the Vice President for Student Affairs and the Vice President for Enrollment Management Other individuals
were interviewed, as needed
Data analyses resulted in a ‘portrait’ of each of the institutions This portrait or synopsis was used to define and describe relationship marketing and retention strategies used by these institutions In addition, the synopsis for each institution was used in a cross-case analysis to evaluate the differences found
between the institutions
Trang 25
Structure of the Dissertation
This dissertation consists of five chapters Chapter One includes an introduction and background of the problem, conceptual framework, research questions and a brief overview of the methodology Chapter Two presents a review of the literature on retention in higher education and relationship
marketing Chapter Three describes the methodology of the research including the instrumentation, data collection, and data analysis Chapter Four presents the results of the research Finally, Chapter Five summarizes the findings and
implications of the research for institutions of higher education in Colorado attempting to utilize relationship marketing for retention purposes
Trang 26
CHAPTER 2 LITERATURE REVIEW
Higher education is facing a multitude of challenges in part from the growing demand for educated workers However, this demand is also fueling a greater emphasis on accountability, assessment, technology and learning Rooted within these values is a consumer-oriented environment requiring institutions of higher education to re-evaluate the way it thinks about the educational process
Businesses have already begun to change their approach to customers ‘based on this environment Consumerism and consumer expectations have
gained greater influence on customer satisfaction Customer satisfaction is vital
to the survival of the business, without satisfaction, there will be no customers
The purpose of this research is to investigate the use of relationship marketing by public institutions of higher education in Colorado as a tool for retention There are four questions that will be answered by this study What relationship marketing strategies are being used by institutions of public higher education in Colorado? To what extent are relationship marketing techniques being used by public institutions of higher education in Colorado? Why are these institutions using relationship marketing techniques? And finally, what are the
Trang 27
similarities and differences in the use of relationship marketing by different Carnegie Classifications of Institutions of Higher Education? |
This literature review will explore the definition of relationship marketing and the use of relationship marketing techniques in non-profit organizations It will also delve into the areas of consumerism and consumer expectations and how they are related to customer satisfaction Finally, this literature review will summarize results of retention studies and their findings related to higher
education
Relationship Marketing
The traditional marketing mix management paradigm is slowly shifting to an emphasis of customer retention, market economies and customer relationship economics (Gronroos, 1994) This concept is being driven by more intense competition, fragmentation of markets and more demanding customers who have rapidly changing customer buying patterns (Buttle, 1996) This change in
customer attitudes has changed the direction of marketing
The marketing strategy continuum reflects transaction marketing on the far left of the continuum and relationship marketing on the far right There are fundamental differences between transaction marketing and relationship
marketing Transactional marketing requires a short-term focus, quality products, price sensitivity and ad hoc customer satisfaction surveys
Trang 28
Relationship marketing, however, has a long-term focus, quality interactions with the customer, not as price sensitive and real time customer feedback (Gronross,
1991)
The purpose of relationship marketing is to “ establish, maintain, enhance and commercialize customer relationships (often but not necessarily always long term relationships) so that the objectives of the parties involved are met This is done by a mutual exchange and fulfillment of promises (Gronroos,
1990, p 5).” This definition reveals a variety of underlying concepts that make up the relationship between the organization and the customer These concepts includes the development of learning relationships and individualized
communications (Peppers & Rogers, 1993; Peppers, Rogers, & Dorf, 2000; Pine,
Peppers, & Rogers, 2000), commitment and concern for the customer (Buttle,
1996; Gronroos, 1990, 1994), trust between the customer and the organization (Buttle, 1996; Gronroos, 1990, 1994), mutually beneficial interactions (Buttle,
1996; Gronroos, 1990, 1994; Peppers & Rogers, 1993), and long-term customer loyalty (Buttle, 1996; Peppers & Rogers, 1993; Shani & Chalasani, 1993)
Relationship marketing tackles the challenge of a changing marketplace by establishing a learning relationship with the customer (Peppers & Rogers,
1993; Peppers, Rogers, & Dorf, 2000; Pine, Peppers, & Rogers, 2000) The
learning relationship is a mutually beneficial set of communications where the individual customer teaches the company or institution about their preferences
Trang 29
and needs The more the organization or institution can learn about the customer the better they will be able to respond and make it more difficult for the customer to be enticed away by a competitor (Pine, Peppers, & Rogers, 2000)
Individualized communication refers to collaboration, listening and engaging the customer in dialogue that appropriately assesses the customer’s needs, in relationship to what the company or institution is providing The organization or institution utilizes this dialogue as a way of gathering information from the customers so to better provide services and products It also allows for creativity and anticipation of future needs (Pepper, Rogers, & Dorf, 2000; Pine, Peppers, & Rogers, 2000)
In an attempt to further interact more effectively with the individual customer, organizations began to customize products and services to specifically meet their customers’ needs Customization of products and services has grown out of the era of mass production Mass production, the process by which standardized, low-cost, consistent quality products were created and sold on the market, no longer fits in the emerging marketplace (Pine, 1999) Mass
customization, on the other hand, is the answer to a society that wants a variety
of choices and products designed with their individual tastes in mind “Mass customization calls for a customer-centered orientation in production and delivery processes, requiring the company to collaborate with individual
Trang 30
customers to design each one’s desired product or service (Pine, Peppers, & Rogers, 2000, p 55).”
Relationship marketing is the genuine desire of the organization or institution to be concerned for the welfare and satisfaction of its customer It is about preserving a long-term relationship with that customer through dialogue, excellent service, and an organizational commitment to quality in all aspects of its business (Buttle, 1996; Gronroos, 1990, 1994) “At its best, relationship marketing is characterized by a genuine concern to meet or exceed the
expectations of customers and to provide service in an environment of trust and commitment to the relationship (Buttle, 1996, p 13).”
Trust in the organization is key to the development of the long-term relationship with the customer (Buttle, 1996; Gronroos, 1994) An organization that gives promises but does not keep those promises, may initially attract customers and begin to develop relationships “However, if promises are not kept, the evolving relationship cannot be maintained or enhanced (Gronroos,
1994, p 9).”
In addition to trust, the relationship must be mutually beneficial There are times in the customer-organization relationship that one or the other discovers that the relationship is no longer valuable In order to develop a long-term
commitment, the relationship must be valuable to both parties (Buttle, 1996;
Gronroos, 1990, 1994; Peppers & Rogers, 1993)
Trang 31
Relationship marketing changes the company or institutional focus from continuous recruitment to retaining existing customers and growing that bond Relationship marketing emphasizes the share of customer rather than share of market By concentrating on the share of customer, the organization or
institution focuses on building a long-term relationship that extends beyond one product but to a lifetime (Buttle, 1996; Peppers & Rogers, 1993; Shani & Chalasani, 1993)
Relationship marketing is a new approach to attracting and retaining customers It is a complex tool for developing relationships with customers and through the development of these relationships the organization strives for long- term customer loyalty
Relationship Marketing and Nonprofits/Higher Education
Higher education and other non-profits are not strangers to the traditional concept of marketing No matter the product, whether it is intangible such as education or as tangible as a book at the library it is “ an offering designed to prompt some kind of exchange relationship with members of the market (Berry & George, 1978, p 161).” In addition, the survival of the organization depends on a continuous stream of individuals wanting to be involved in that exchange relationship In order to engage new customers, whether they are students,
Trang 32
donors or patrons, the organization must effectively market their goods and services
Marketing in higher education and non-profits has been difficult Many “simply see their product or service as inherently desirable They find it hard to believe that anyone would turn them down (Kotler & Andreasen, 1987, p 45)!” However, it is becoming more apparent that businesses and nonprofits are not as different as they seem Both face high competition from a variety of sources for the same potential customer (Berry & George, 1978)
This high level of competition is spurring businesses to utilize relationship marketing techniques to assist them in recruiting and retaining customers Institutions of higher education and non-profits can also utilize these techniques “Nonprofit agencies have unique characteristics that mesh well with a relationship marketing strategy (McCort, 1994, p 54).” Relationship
marketing and the non-profit organization both emphasize the need for fostering long-term and mutually beneficial relationships (McCort, 1994)
The use of relationship marketing in higher education will transform the way it does business Relationship marketing techniques such as individualized attention and communication, and developing long-term relationships will
change the way higher education thinks about its students In the near future, the success of an institution of higher education will depend on treating
Trang 33
“ _.different customers differently based on whether a particular individual is looking for a four-year socialization experience, personal enrichment and the satisfaction of curiosity, preparation for the current job she has or the next one she wants, or something else (Peppers & Rogers, 1998, p 48).”
Peppers and Rogers (1998) relate a vision of the future of higher
education The future university would have on-line registration, personal course planner, web calendar, and customized enrollment statement (already available to students at the University of Minnesota) The student might also receive
individualized communications about upcoming events, registration information and career opportunities The university would know the student and his/her wants and needs This learning relationship benefits both the student and the institution with rewards of retention, satisfaction and loyalty
The key value to relationship marketing is the development of the long- term relationship and what that means to the institution
“The ideal expression of actual valuation is
customer lifetime value (LTV), that is, the stream of
expected future value, net of costs, of a student’s
monetary and other contributions, discounted at some appropriate rate back to its net present value (Pepper & Rogers, 1998, p 57).”
Trang 34
The lifetime value of a student is more than just the price of tuition; it also includes referrals, donations, successful graduation and employment (Peppers & Rogers, 1998)
Consumer Culture
The university graduating class of 2001 was born into a society full of changes This society holds greater opportunities, advancements in technology, and immense political upheaval Along with societal and political changes came, what appears to be, greater material wealth, health, and a better world in which to live (Levine & Cureton, 1998)
College students of the 21* Century are much different from the traditional student of past generations Only one in six students is truly a
‘traditional student.’ In addition to non-traditional adult students returning to college, most students now work and have family obligations that keep them from the traditional concepts of campus life When asked by researchers what students did for fun, 30% said that they had no social life and 11% responded that they slept College students also put greater emphasis on higher education as a way to careers, jobs and financial security (Levine & Cureton, 1998) College students today, whether traditional or non-traditional see their future careers riding on the back of higher education It is no wonder that students demand
more from their institutions
Trang 35
“As a consequence, older, part-time and working students, especially those with children, often say they want a different type of relationship with their colleges from one undergraduates have historically had They prefer a relationship like those they already enjoy with their bank, the telephone
company, and the supermarket (Levine & Cureton, 1998, p 50).”
The influence of the consumer culture has changed student’s attitudes towards education Modern consumption has changed drastically with the advent of technology, the increase in consumer goods, and consumer protection The availability of an assortment of goods through a variety of outlets for shopping has created a more competitive environment (Lury, 1996) This is certainly the case with businesses as well as higher education There are a multitude of choices in clothes, electronics and now higher education The increase in choices has opened the door for consumers to demand more and have greater
expectations of the supplier
Consumer protection has also played a role in the changing attitudes of college students The late 1970’s provided legislation for consumer protection in higher education through the ‘truth-in-advertising’ model (Stark, 1977)
“The new notion of consumer protection in postsecondary education implies a new understanding of accountability—that of a reciprocal student-institution relationship that is built on mutual responsibility of the parties to each
Trang 36
other and to a goal beyond themselves—the educational process (Stark, 1977, p 16).”
The college student of today is much more consumer oriented due to changes in the marketplace and the rise of consumer protection
Satisfaction is derived from the expectations and demands placed on the institution by the student, who are faced with external pressures on their time, finances and careers This generation of students places its values in
the consumer culture
Customer Expectations
In higher education as in business, students will remain loyal to the institutions as long as expectations are met Students expect the educational experience or services that the institution provides to meet specific desires and needs When a student’s expectations are met, the student is satisfied and will continue the relationship However, when expectations are not met and the
student is not satisfied, attrition occurs and the student seeks to complete their
education elsewhere A related concept to customer or student attrition is
employee turnover Just as students have expectations of the interactions with an organization, employees have expectations about the job and the organization in which they work
Trang 37
Bluedorn’s (1982) Unified Model of Employee Turnover parallels the actions of customers or students in a consumer relationship Bluedorn’s Unified Model is a synthesis of three models of employee turnover that focuses on voluntary separations Each of the three models points towards dissatisfaction resulting from a disconnect between expectations and experiences with the organization as the cause for the voluntary separation
New employees who enter a company have formed expectations about the organization prior to their employment The more realistic the expectation, the greater the level of satisfaction the employee has about her/his job (Wanous,
1980) “The model specifies that this set of expectancies will interact with the organization the experiences to produce satisfaction (Bluedorn, 1982, p 90).” This combination of expectations and experiences shape job satisfaction in a way that leads the employee to either stay with the organization or leave voluntarily As job satisfaction decreases, due to the disconnect between expectations and experiences, the employee’s commitment to the organization decreases leading to eventual voluntary separation (Bluedorn, 1982)
This model parallels the actions of a student attending higher education for the first time The student has preconceived expectations of their enrollment in an institution of higher education As the student begins to experience
academic life, he/she will relate those experiences to their expectations If their expectations are not met, the student will not be satisfied with the educational
Trang 38
experience and leave the institution Expectations influence the level of
satisfaction felt by the student, which in turn influences the level of commitment and ultimately their graduation from that institution
Retention
“More students leave their college or university prior to degree
completion than stay (Tinto, 1993, p 1).” The statistics for degree completion in 2000 demonstrate that retention is still an issue with only 52% of full-time, first- time freshmen completing their bachelor’s degree within five years (NCPPHE, 2000) Retention continues to be a concern for not only higher education administrators but legislatures as well
Tinto (1993) organized the reasons for departure from higher education into three categories The first category reflects the personal disposition of the student as he/she enters college This disposition is reflected in the commitment and intention of the student towards their educational goals The intention of the student to achieve their educational or career goals is an important predictor in the likelihood that the individual will complete their degree (Astin, 1975; Bean, 1982; Panos & Astin, 1968) It is with this commitment and intention that the student works towards the goals that he/she has set
The second category reflects the individual’s experience once they enroll at an institution of higher education The student faces issues of adjustment,
Trang 39
difficulties (academic or social), incongruence with the institution, and possible isolation (Tinto, 1993) Students may struggle with identity issues, career choices, self-confidence, and value formation (Stodt, 1987) These issues can interfere with the student’s educational endeavors Poor academic performance can have a markedly detrimental affect on the student’s ability to complete their education There is a high correlation between academic performance and
persistence in college (Aitken, 1982; Spady, 1970) Poor academic preparation is frequently sighted as a reason why students leave higher education (Bean & Metzner, 1985; Keim, 1981)
Incongruence or incompatibility and isolation of the student can lead to dissatisfaction The lack of social and academic integration is an important factor influencing attrition Students who feel alienated by the institution, its faculty and staff, and other students are likely to leave the institution (Heverly,
1999; Keim, 1981; Pascarella, Smart & Ethington, 1986; Tinto, 1993) The final category takes into account the external obligations and finances that can affect a student’s ability to complete their education (Tinto,
1993) Non-traditional students as well as traditional students face a greater number of external forces, which can derail their educational goals More
students have to work, have families and attend school part-time than in previous generations of students (Levine & Cureton, 1998) Even though many traditional students face these external issues, the hardest hit are the non-traditional adult
Trang 40
students who become dissatisfied with the educational process and leave higher education altogether (Bean & Metzner, 1985; Grimes & Antworth, 1996; Kinnick & Ricks, 1993)
Administrative policies and problem resolution also affect retention (Heverly, 1999; Stodt, 1987) Heverly (1999) focused her research on the administrative processes of an institution of higher education Heverly found that returning students were significantly more satisfied with processes than non- returning students Student interviews found that 20% had received wrong information, 11% received incorrect information about their financial aid and
11% had received billing errors Students that received wrong information were more likely to feel alienated by the institution and were at greater risk of
withdrawing
There are numerous reasons for students to leave higher education However, there are even more important reasons for students to complete their education Research in this area needs to continue to assist administrators in the battle against attrition
Summary
Retention is just one of the many challenges facing higher education today Today’s college student faces external pressures and obligations, which distract them from their educational goals Retention is reflected by student