Factors influencing students' choice towards private universities - Research Paper Example

?Factors Influencing Choice towards Private Universities in Klang Valley, Malaysia: A Case Study of Korean Community Residing In Malaysia Table of Contents 1. Introduction 1 a. Rationale of the Study 2. Literature Review 2 a. Vitality of HEIs for Malaysian Economy 2 b. Previous Studies Conducted on Student Perception about HEIs 2 c. Why a Student Selects a Particular HEI - 3 Stages of HEIs Selection 2 d. How Do Students Compare the Various Alternatives? 2 e. What Are the Most Important Factors Influencing the Selection of a College among Korean Students 2 f. How Effective Is Marketing in Making a Student Choose a Foreign University? 2 g. How Much Their Parents or Sponsors Influence Them in Their Decision? What do Parents Expect? Cost - A Major Cause What Do Students Expect? 1. Introduction The Higher Learning Institutions (HEIs) situated in well developed countries like US and UK are the first preference of students all over the world. Earning a degree from Harvard, Stanford or Cambridge universities is considered highly prestigious. Students who get a chance to study in such renowned institutions get a special preference in the job market and are paid many folds higher than the students studying the same course in the other universities. But, not every student can secure a place in such esteemed institutions. Hence, there is very high demand for similar HEIs all around the world. Students from the eastern countries like Asia look forward to enter high class HEIs operating in collaboration with such foreign universities. Thousands of students from such countries were travelling to Australia and New Zealand in search of good HEIs before two decades. Malaysia emerged as a major player in the HEIs industry after 1990. The Malaysian government decided to make the country an international hub for higher education among the students from the eastern countries and succeeded enormously in the process. Students from several countries including China, Korea, India, Thailand, Russia and other surrounding countries now flock Malaysian universities as an alternative to Australian and New Zealand institutions. The Asian financial crisis which occurred during the mid 1990's hindered the spending power of many upper middle class people, who were keen on sending their children to study abroad in the western countries. Malaysian universities offered similar facilities in their colleges at a much lower cost with the sole aim of luring in the students going to Australia and New Zealand for higher studies. The Klang Valley region in Malaysia, also known as the Kaula Lumpur Metropolitan, became the hub many foreign students visiting the country for higher studies. There are nearly 7.5 million people in this region with ample number of students. At present there are over 8000 foreign students in the area. The Klang valley is connected to its neighbouring suburbs and cities through well structured RapidKL Light Rail Transit (LRT) and various other road and rail services. The infrastructure of the area is highly responsible for its flourishing trade and increasing number of HEIs in the area. Klang Valley can be reached easily from any part of Kaula Lampur and the adjoining cities. Malaysia has over 16 private universities and more than 4 foreign collaboration universities. Most of them are situated in the Klang Valley region of the Selangor state. The number of foreign students in the country increase from just hundreds in 1990’s to more than 12500 in 1999 after the introduction of the Higher Education Act in 1996. The Malaysian government’s liberalization policy in education attracted both foreign students and local students equally. However, foreign students who had more choices were targeted specifically by the HEI's in Malaysia. The private universities in Malaysia were mostly small self-financing colleges until the early 1990's. They grew massively like mushrooms in a rainy season only by mid-1990. The IT revolution which transformed the economy of many eastern countries was partly responsible for this. The Malaysian universities provided the best technological and management courses in the world for a very cheap cost attracting students from several different countries. The Malaysian Ministry of Education (MOE) provided extensive support to the upcoming HEIs transforming the Klang Valley into a world renowned hub for higher education in a very short period of time. There are total 20+ Private Universities in Malaysia     Established Asia Metropolitan University (AMU) Formally Masterskill University College of Health Sciences Upgrated on Oct 18, 2012 SUNWAY UNIVERSITY   upgraded in 2010 Management and Science University  (formerly was KUTPM) Selangor upgraded in 2007 Multimedia University 1- Cyberjaya campus 2- Melaka branch campus 1999 Universiti Tenaga Nasional (UNiTEN)   1- Kajang campus 2- Bandar Muadzam Shah branch campus  1999 Universiti Tun Abdul Razak (UNIRAZAK) Selangor 1999 Universiti Teknologi Petronas (UTP) (formerly The Institute of Technology Petronas - ITP) Selangor  1999 International Medical University (IMU) Kuala Lumpur 1999 Universiti Industri Selangor (UNISEL) Selangor (2 campuses in Selangor) 2000 Open University Malaysia Kuala Lumpur 2000 Malaysia University of Science and Technology(MUST)   Selangor  2000 AIMST University   (formerly known as Asian Institute of Medicine, Science & Technology) Kedah  2001 Universiti Tunku Abdul Rahman (UTAR) 4 campuses:  1- Kuala Lumpur campus 2- Petaling Jaya campus,  3- Bandar Sungai Long campus 4- Perak  campus  2001 Universiti Kuala Lumpur (UniKL) 3 faculties in Kuala Lumpur campus and 7 other campuses around Malaysia  2001 Wawasan Open University (WOU) Penang  2006 Albukhary International University Kedah  2006 LIMKOKWING University of Creative Technology (LUCT) Putrajaya Upgraded in 2007 Asia e University (AeU) Kuala Lumpur  2007 AI-Madinah International University (MEDIU) Selangor  2007 International Centre for Education in Islamic Finance (INCEIF) Kuala Lumpur  2007 They process of getting license to offer baccalaureate degrees and operate in collaboration with institutes from the western countries was simplified under the Higher Education Act introduced in 1996. Many private institutions made massive use of this liberalization policy. Even huge corporations like the Tenaga Nasional Bhd and Petronas came up to set up HEIs with the sole of aim of supporting MOE's aim. Their huge funds created many lucrative colleges and hostels attracting foreign students easily to Malaysia. Small private colleges joined hands with such huge corporations efficiently. These corporations provided the funds to improve the private colleges into world class HEIs, while the colleges provided them with a good return on their investment through the high admission rates. Malaysian universities are the only ones to be ranked in the stock exchange of the country. The HEIs in Malaysia are operating more or less similar to the institutions in the western world treating the foreign students as their potential campus customers. They follow various marketing strategies to make the students choose them instead of the colleges in their own country. Understanding what makes the students select a university will help them to stay ahead of others in the competitive era. The main aim of this study is to analyze the important factors influencing the choice of a university among the foreign students. The study selects a particular country, Korea for the purpose and researches what factors influence the students of Korea to choose Malaysian HEIs for higher studies. 1 a. Rationale of the Study Tertiary education involves very precise decision and investment. It has undergone significant changes in the past few decades as its importance have increased enormously (Kotler, 1976). Educating their Children in a foreign institution is an important decision for many parents. The recent world financial series has blocked the dram of many Asian students to pursue their higher studies abroad. Malaysian HEIs can serve as a great alternative for them. But, the private HEI's in Malaysia should understand some crucial factors that influence the choice of universities for higher education by students. Finding the answers for the questions given below is important to understand the needs of the campus customers and attract them towards choosing an institution. Why a student selects a particular HEI? What are the most important factors influencing the selection of a college? How do they compare the various alternatives? How effective is marketing in making a student choose a foreign university? How much their parents or sponsors influence them in their decision? According to various researches there are four main factors affecting the choice of a college by a student. The student's perception about the college and its facility is the chief influencer. Marketing, word of mouth by friends, performance and ranking of the college as well as opinion of previous students everything plays an important role in creating this perception. Gender of ethnicity usually do not affect youngsters choice but, most students who prefer to get post graduate education choose private institutions instead of public ones. The income of the family of the economical resources of the students is also very important in determining the selection of the colleges. Nearly 2000 Korean students live in the Klang Valley, studying the nearby universities and doing part time jobs in this highly posh area. Though students from numerous foreign countries visit the Klang Valley, Korean students dominate the number of foreign students by head count. There are various cultural, economical and social reasons affecting their choice. The research aims in finding the answer for these questions from the Korean student community residing in Malaysia for higher studies. 2. Literature Review 2 a. Vitality of HEIs for Malaysian Economy According to MOE, the growth of HEIs is important for national economic benefits. It is a proven fact that higher education is important for the extra-national income and the progress of indigenous labour forces in any country (Yorke, 1999). In many developed western countries education, particularly HEIs are the greatest source of export. For example higher education market is considered as the second largest export area in US next to agriculture (Ableless, 2001). The income generated by the foreign students is indispensable to a country like Malaysia which has invested a lot in the area. 2 b. Previous Studies Conducted on Student Perception about HEIs Extensive research on student perception about a university is highly limited. The study conducted by Mazzarol and Soutar in 2002 regarding the international student’s choice of universities in other countries is considered as the most reliable one so far. Another study conducted by Hemsley-Brown and Oplatka (2006) is also widely referred. The study emphasizes the necessity of good marketing to attract international students towards a college or a university. The research is divided into 11 parts covering various aspects from transactional marketing to marketing segmentation in HEIs. However, many researchers still argue a study conducted among a group of students from a single country will have very little "cultural distance" and cannot be used to determine the overall needs of all the foreign students on the whole (Joseph & Joseph, 2000). But, choosing a dominant group among the existing foreign students will help us understand what prompts the students from that particular area to choose a university. This will help the HEIs enhance their marketing strategies in the particular country retaining their image and attracting more students from the same place. Hence the study gives importance to Korean students studying in Malaysia, particularly in the Klang Valley for the study. Understanding what makes them choose the Malaysian HEIs will prove quite beneficial to the institutions in Malaysia to draw more students towards them and market them efficiently in the Korean soil. 2 c. Why a Student Selects a Particular HEI - 3 Stages of HEIs Selection These studies state unlike school education and preliminary college education, students get a chance to select the course they want and the university they want. Students have the choice to decide whether they should pursue higher education or go for a job, study part-time or fulltime, in which university they should join etc (John, 1990). Scholars say the college or university selection for higher studies is a three stage decision making process involving the students as well as their sponsors (Hossler & Gallagher, 1987, Jackson, 1985). The first stage is the decision to continue education and the second stage is applying for various colleges. The third and the most important stage is the selection of an institution and enrolment (Paulsen, 1990). Understanding what influences a student in the second and the third stage will prove valuable for HEIs who strive to attract more students towards them. Students check whether the college have the academic course they are looking for, whether the fees is affordable by them and the social factors in the area in the second stage (Brown, 1991). They apply only to the colleges which satisfy these three basic necessities. Several colleges will offer them seats. They select a particular institution to study based on five main factors the academic programs, the popularity of the college in the job market, types of financial aids the college provides, facilities in the college (campus, extracurricular activities) and the overall budget (Plank, 1998). The more the tuition fees or the enrolment fees, the lesser is the enrolment rate (Leisie and Brinkman, 1987). 2 d. How Do Students Compare the Various Alternatives? The increased competition in the education industry make the HEIs look upon the students like their customers. They try their best to please them. The students pay money and expect a certain degree of standard from the product or education they receive. The students have a paid membership type of relationship with the education institutions (Lovelock, 1983). Foreign students are usually more demanding than the domestic students and expect a few other features the locals do not consider important. For example, a domestic student requires only hostel facilities while the foreign students require a good currency exchange facility within the campus. It is necessary for them to get funds transferred from their home country. Similarly they require special language training courses and cultural activities which make them feel at home and understand the culture of the new country. Most of the HEIs take care of the basic needs like the immigration process and the accommodation for the foreign students. But, only a very few pay attention to the above mentioned factors and market them properly to the foreign students gaining a competitive edge over the others. The research conducted among the Korean students in Malaysia help us understand the basic an as well as meticulous reasons similar to the above state ones, which helps the HEIs to enhance their marketing strategies in Korea. 2 e. What Are the Most Important Factors Influencing the Selection of a College among Korean Students With the strained relationship between the US and South Korea showing no signs of proper healing in the near future, several Korean students are opting to study in the Malaysian universities with foreign tie ups, rather than studying directly in the western countries. Everything from the food they eat to the cultural tolerance in Malaysia is much greater than the universities found in Australia or any other western countries. Korean students feel at home in a country like Malaysia where so many cultures are simply intertwined and everybody lives in harmony. They are able to enjoy western lifestyle while they still feel at home. Many parents also prefer to send their children to the Malaysian colleges as its close proximity to Korea makes it easy for them to visit. Further, continuing higher studies in Malaysia is much cheaper. The universities take care of every minute need of the student from picking them from the airport by giving them a student pass to taking care of their student loans if any. They have various interesting options like the twining program for students which help them to purse a few semesters in the Malaysian universities and the rest in the foreign universities which have close tie-ups with them. Word of mouth is an important way of luring in students to study in a particular foreign university. Off late, Australia which have been the favourite destination for Korean students have been losing popularity steadily due to racial issues. News about foreign students being harassed or murdered keeps dominating the media constantly. Further, the cost of living in countries like New Zealand and Australia are quite high. Malaysian environment seems much friendlier compared to other western countries. Language is also a major factor affecting the Korean students. Most of them are trained to speak good English, but have a very strong Korean accent. Several languages are spoken in Malaysia along with English. Pursuing their higher education in Malaysia gives the students a chance to hone their English skills in a country where their accent is not looked upon strangely, unlike Europe or Canada where they have great difficulty in making themselves clear. The crime rate in Malaysia is much lower than the other western countries, making it a safer country for foreign students to study and stay. They culture of the country is a mixture of both ethnic as well as modern concepts. Hence, they do not feel totally out of home. 2 f. How Effective Is Marketing in Making a Student Choose a Foreign University? The HEIs in Malaysia can be classified into the single discipline colleges and the comprehensive course-delivery institutions. Most of the public institutions come under the first section while nearly all of the private institutions come under the second section (Noran and Ahmad, 1997). The poor quality of HEIs in many of the developing Asian countries, lack of good infrastructure in campuses and access to limited technology oriented courses make many people choose Malaysian universities over the ones present in their own countries (Mazzarol and Soutar, 2002). Malaysian HEIs give high importance to quality management and aim in educating the undergraduate students who come to their country pursue higher education within the country (Sohail, Rajadurai and Nor, 2003). The foreign students demand the best quality academics as well as laboratory, library and cafeteria facilities. The infrastructure, the staff qualification and the quality of teaching play a potential role in creating a good image for the college. To say in simple words both the faculties and the facilities play a prominent role in attracting the foreign students towards a HEI (Tang, Tang and Tang, 2004). Any university showcasing both these factors prominently with efficient marketing gains a competitive advantage over others easily. 2 g. How Much Their Parents or Sponsors Influence Them in Their Decision? What do Parents Expect Various studies have been conducted among the foreign students who come to Malaysia for studies. One key point taken into consideration in many of the studies about international students is about their gender and age (Sam, 2000). Most of these studies state the beliefs and expectancies among both the genders were nearly same regarding career as well as facilities in the campus (Wang and Bu, 2004). However, parallel studies also suggest many stakeholders like the parents, employers, friends and counsellors are involved in making a final choice about a university. The parents of the Korean students usually prefer sending their girls to countries like Malaysia or Singapore rather than Europe or Australia for the fear of cultural differences and safe environment. These stakeholders are well aware of the institution ratings and the chance of securing a job by studying in them better than the students itself (Veloutsou, Paton and Lewis, 2005). Though they want both their sons and daughters to secure a job as quickly as possible, Korean parents mostly prefer to settle the girls quickly than boys with a good job and are ready to spend more money for key institutions with high ranking through which can get it done easily. Cost – A Major Cause Another major factor affecting the Korean student’s choice of university is money. Cost of living in Malaysia is quite low and good Korean food is available at a very low cost. A student can afford to live in less than half the cost they spend in Australia here. Since Malaysia is transforming itself into an international hub quickly, the chances for students to get internships and part-time jobs in international banks and reputed industries is quite high here than in Australia or Canada. The students get a chance to earn while they learn, work in jobs related to their studies and live spending very little. The Korean students studying in the Klang valley have ample opportunities to find part-time work, hone their language skills and enjoy a completely metropolitan life style. They get plenty of chances to socialize with people belonging to different cultures in a very safe environment. All these factors make the Korean parents enrol their children in the Malaysian universities rather than foreign universities. What Do Students Expect? From the student perspective they are wide variety of technology oriented courses starting from 6 months duration to full-fledged management courses ranging for nearly three years or more. They feel the courses offered in the Malaysian universities are much easier to complete as the teaching method is more or less similar to the Korean education system. Whereas the western universities offer only selected courses and limited time to complete the same in student visa. Further, the academic standards expected by the Western universities are also very high. Obtaining a degree from the foreign collaboration university in Malaysia is much easier than studying directly in the western countries and it still gives them a competitive edge over others having degrees from domestic universities. Culture, cost and the chances to win better jobs easily are the three main push factors attracting high number of Korean students towards the Malaysian HEIs. References 1. Abeless, T.P., 2001, ‘Rethinking the university’, The journal of future studies, strategic thinking and policy. 2. Brown, J. D, 1991, ‘Identifying benefit segments among college students’, The Journal of College Admission. 3. Hemsley-Brown, J. and Oplatka, I., 2006, ‘Universities in a Competitive Global Marketplace: A Systematic Review of the Literature on Higher Education Marketing’, International Journal of Public Sector Management. 4. Hossler, D. R., & K. S. Gallagher, 1987, ‘Studying student college choice’, College and University. 5. Jackson, T. J, 1985, ‘Bolstering graduate school enrolments through effective use of alumni’, College and University, pp. 210-218. 6. Joseph, M. and Joseph, B., 2000, ‘Indonesian Students’ Perceptions of Choice Criteria in the selection of a tertiary institutions: Strategic Implications’, The International Journal of Educational Management. 7. Kotler, P. 1976, ‘Applying marketing theory to college admissions’, A Role for Marketing in College Admission, New York. 8. Lovelock, C., 1983, ‘Classifying services to gain strategic marketing insights’, Journal of Marketing. 9. Leslie, L.L. and Brinkman, P.T., 1987, ‘Student price response in higher education’, Journal of Higher Education. 10. Mazzarol and Soutar, G. N., 2002, “Push-Pull” factors influencing international studentdestination choice, International Journal of Educational Managem. 11. Noran, F., and Ahmad, M., 1997, 'Development of Graduate Education in Malaysia:Prospect for internationalization'. Paper presented at the 2000 ASAIHL. Seminar onUniversity and Society. 12. Sohail, M.S; Rajadural, J. and Nor Azlin, A. R., 2003, ‘Managing Quality in Higher Education: a Malaysian Case Study’, The International Journal of Educational Management. 13. Paulsen, M. B., 1990, ‘College choice: Understanding student enrolment Behaviour’, School of Education and Human Development, Washington. 14. Plank, R. E., & Chiagouris, L., 1998, ‘Perceptions of quality of higher education: An exploratory study of high school guidance counsellors, Journal of Marketing for Higher Education. 15. Sam, D. L., 2001, ‘Satisfaction with Life among International Students: An Exploratory Study’, Social Indicators Research. 16. St., E. P. John. ,1990, ‘Price response in enrolment decisions: An analysis of the high school and beyond sophomore cohort’, Research in Higher Education. 17. Tang, T. L.; Tang, D. S. and Tang, C. S., 2004, ‘College tuition and perceptions of private university quality’, International Journal of Educational Management. 18. Veloutsou, C., Paton, R.A. and Lewis, J., 2005, ‘Consultation and reliability of information sources pertaining to university selection. Some questions answered?’, International Journal of Educational Management. 19. Wang, B.C.Y. and Bu, N., 2004, ‘Attitudes toward International Careers among Male and Female Canadian Business Students after 9-11’, Career Development International. 20. Yorke, M., 1999, ‘Assuring quality and standards in globalised higher education’, Quality Assurance in Education. Read More