Econometric Modeling
Predict the effect of tuition and awarding changesEconometric modeling as part of the ERMS provides a means for estimating the effect of net student charges (total direct cost minus total gift aid) on student yield behavior. As direct costs increase, they impact different segments of students depending on the percentage of need met with gift aid. For instance, if you raised your tuition $1,000, it would cost students: The ERMS goal-setting process uses the yield impact of changes in net student cost to project both the resulting enrollment level and the net revenue that will be generated by a particular packaging strategy, level of direct cost, enrollment number, and academic mix for the incoming class.
Econometric modeling allows you to predict the impact of tuition and awarding changes on enrollment behavior. However, econometric modeling is not a “magic bullet” for enrollment. There are other factors that impact student enrollment beyond the net price of attending. For instance, the perception of quality—how students value a degree from your institution—could have a much bigger impact than any changes in pricing strategies. The advantage of ERMS is that you receive the complete package—thorough data, on-the-fly modeling, and strategic consulting—so that you can adjust your strategies properly and track progress toward your goals.The strategic values—and limits—of econometric modeling
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How can you increase your net revenue and enrollment yields while controlling discounting? Ask for a free consultation and demonstration of the Enrollment & Revenue Management System. Call 1-800-876-1117 or e-mail Noel-Levitz.