The Problem
A local independent school focusing on secondary education wanted to develop a standalone semester program to offer to both their existing students and students across other schools and regions. Before developing the program, the school needed to evaluate its appeal, identify key elements of interest to parents and students, and determine a viable price point.
The Approach
We fielded a survey-based study, and distributed it to our client’s parents and students. Additionally, we also recruited external, higher-income parents into the study. We included a concept test to gauge program appeal, and then assessed the resonance of individual value propositions. Lastly, we used a particular pricing method to measure overall willingness to pay and price elasticity.
The Results
Target Audience
We found extremely high appeal among external parents with children in private schools and parents living out-of-state. This finding helped our client develop a target audience for the semester program outside of the school’s current population.
Value Proposition Resonance
We isolated some skepticism about the program’s academic rigor among the school’s current parents and students, while also finding strong resonance for the school’s legacy among external parents. This helped our client understand key talking points to use with different audience segments.
Price Elasticity
We measured different price elasticity among the school’s current parents and external parents, providing an opportunity to develop different pricing strategies for different audiences.
Did You Know...
With higher price point items like semester-long education programs, consumers may be less sensitive to price increases. Understanding this sensitivity lets organizations determine how much they can charge without alienating consumers.
