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Differences in willingness to pay for online and offline courses

  • With the increasing popularity of online learning, many education providers increase their portfolio of educational courses. This analysis looks at existing literature and conducts two studies regarding the willingness to pay (WTP) for online and offline courses. The first study consists of a van Westendorp price sensitivity meter (PSM) and a Gabor-Granger pricing method. The surveys are conducted to find differences in consumers´ WTP for online and offline courses and potential causes for the differences. The second study consist of short analogue case studies of services in the online and offline environment and factors that influence consumers´ WTP, supported by a literature review in the front of this analysis. The results are that the WTP for offline courses slightly exceeds the WTP for online courses and that a multitude of factors, with positive, negative, neutral or ambiguous effects, play a role in consumers´ WTP for online and offline services. The results and implications from this analysis are useful for service providers, that look to adapt their prices to the consumers´ WTP for services in online and offline environments. In particular for educational service providers and service providers that are unsure how to price online services in comparison to offline services.

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Author:Tobias Probst
Advisor:Kai-Markus Müller
Document Type:Bachelor Thesis
Year of Completion:2020
Granting Institution:Hochschule Furtwangen
Date of final exam:2020/12/31
Release Date:2021/01/11
Tag:Gabor-Granger pricing method; Willingness to pay; van Westendorp PSM
Page Number:84
Degree Program:IBW - Internationale Betriebswirtschaft
Functional area:Business Strategy
Licence (German):License LogoUrheberrechtlich geschützt