online consumer reports wcet

Online Higher Education Growth, Competition and Information

Richard Garrett

Program Director & Senior Analyst

Online Higher Education programEduventures, LLC

November, 2007

2Copyright © 2006 Eduventures, LLC.

The National Online Market

483,113

701,295

936,727

1,518,750

1,822,500

2,132,325

1,219,000

55%

45%

17%20%

24%

30%

34%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2002 2003 2004 2005 2006F 2007F 2008F

0%

10%

20%

30%

40%

50%

60%

Online Students

Growth

8.5% of headcount at degree-granting schools

Copyright © 2007 Eduventures LLC

Sloan-C= 3.5 million (including online course and program take-up)- c.20%

Estimated 20% of age 25+ headcount


5%

15% 17%

41%

84%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Experience of whollyonline program

Experience of whollyonline course

Preference for whollyonline

program/course

Likelihood of taking awholly online

program/course

Willing to considerwholly online

program/course

Prospective student experience of and interest in online higher education

Source: June 2006 Eduventures survey of 2,033 U.S. consumers interested in postsecondary education in the next three years- modeled to the U.S. adult population



Trend: increased institutional and consumer participation in online higher education means more choice, more customer diversity, and a greater need for quality, comparative information

Competition: An estimated 1,600 degree-granting, Title IV eligible schools offer online programs (c.37%)


State of information on online higher education…

• In general, from the perspective of the consumer, online providers are poorly differentiated

• Directory sites dominated by school-led, rather than aggregator-led information

• Little standardized, comparative intelligence to enable the prospective student to make an informed choice between schools

• Obvious causes: market immaturity; narrow value proposition centered on convenience; higher education “choice” under-developed in the mind of the consumer




Comparing information on online and campus offerings

Leading “Campus” Directories• accelerated completion• student clubs; • balance of in-state/out-of-state

students• credits accepted• graduation/employment;• geographical location;• institutional type;• internships/work study;• male/female ratio; • minority ratios• selectivity

Typical “Online” Directories• Degree level• Program• Accreditation• Tuition

Media/Directories want to compare- but do they have the right info?

• US News “eLearning Guide”• Online Education Database- “top 15”

online schools- undergraduate• CNN Money “best online

entrepreneurship programs”• OnlineDegreeReviews.org- 478 reviews,

321 colleges

School innovation- competitive advantage?

• e.g. AIU Online’s “Outcomes” page

Source: Eduventures report, “Informed Choice & Competitive Advantage: A Consumer Checklist for Online Programs”. The report includes a comparison of leading “campus” and “online” oriented directory sites- Fall 2006


• Housing, sports, freshman GPA, class size, Greek life, parental college ties, SAT/ACT score

“Online” Directory Innovation?


Why might greater transparency be helpful?

• Improved “fit”: help prospective student make more rational choices- boosting engagement and retention

• Differentiation: help schools stand out in an evermore crowded market; help directory firms innovate

• Operational efficiency: increase impact of value proposition, and reduce significance of marketing volume

• Maturation: capitalize on the growing breadth and diversity of distance education- develop value of “distance” beyond convenience

• Accountability: fashion appropriate reporting metrics• Brand: challenge perceptions of distance education as

second-rate


Copyright © 2006 Eduventures, LLC.

A “Consumer Reports” for the Online Student

Pat SheaWCET 20th Annual Conference

November 8, 2007


Common QuestionsWhat Students Want to Know

• Can you get a degree online or just take courses?

• Does a degree have the same value as one earned on campus?

• How long does it take to complete a degree or course?

• How much will it cost to complete?• How do employers view online study?• What is needed in a computer?


Common QuestionsWhat Students Need to Know

• How institution is accredited and why that is important• Difference between transfer and articulation• How educational choices impact career choices• Importance of motivation & time commitment• Requirements in computer skills• Total costs (tuition, books, software, fees, etc.)• Financial aid regulations• Schedule for synchronous or onsite segments• Instructors credentials• Syllabus


What WCET is Doing

• Website: Going to College Online: What’s It All About http://www.wcet.info/services/studentservices/faq.asp

• The Distance Learners Guide—available thru Amazon

• Using the CENTSS Audit to inform institutions about services online students need


What WCET Could Do

• Expand current online student web page• Work with accreditors, institutions, & others to

establish “guidelines or standard” for location to accreditation info

• Work with SIS vendors to identify data for display in catalogs

• Create student checklist for comparing courses or programs

• Promote employer experiences with employees educated online

• Encourage & support efforts for more efficient transfer & articulation

• Other?


Thank you!

Questions?

Pat Shea

[email protected]


Ohio’s Consumer Activism

Kate CareyOhio Learning Network

[email protected]

WCET November 2007


Student “consumer”

• Catalog transition pages with information on fees, registration, books, faculty, etc. www.ohiolearns.org

• Free E course to try out online learning www.e4meohio.org

• Tools for students www.ohiolearns.org/get_a_plan/getaplan.org

– Time management– Career counseling – Real person – Regional Coordinators


Faculty “consumer”

• Learning Communities

• Lists for best practices www.oln.org/lists.php

• Webinars http://wiki.teachuohio.org

• CourseCheck – rubric for course delivery– www.oln.org/ILT/coursecheck.php


Regents’ “consumer”Initiatives

• Student Success Plans – www.regents.ohio.gov/Studentsuccess– Define outcomes/assessments in Gen Ed,

major, specials

• University System of Ohio Incentive Funding– Innovation (refocus doctoral programs)– Choose Ohio First Scholarships (STEM)– Campus Security – www.universitysytem.ohio.gov

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