The Chivas Regal False Assumption

11 Jan

chivas_image_for_wikipedia  Gotta watch those assumptions.  Reading in a recent news magazine about how one formerly pricey private college increased their admissions applicant pool intrigued me.

Struggling to attract enough incoming freshmen scared off by the $32,000+ tuition price tag, Rosemont College took the bold move to reduce tuition by 45%.  Applications soared and the quality of those choosing this Christian college increased.

Why do colleges like Rosemont and many other private institutions cost so much?   One reason has been attributed to the so-called ‘Chivas Regal effect’.  Apparently people assume that if something costs a lot, it must be worth it.  Associating a brand name with an ‘elites only can afford this‘ price tag creates a reputation.  Advertising works!  But does reality support the assumption?  Not always.  AND in some cases, as Rosemont discovered when inquiries and visits did not turn into applications, the published price tag can hurt – scholarships notwithstanding!

Apparently high-end colleges like the maneuver room to be able to ‘offer’ a tuition discount to students they court.  They can say, “Since you and your experiences would uniquely add to the Class of 2020, we are pleased to offer you scholarship assistance to make our institution more affordable.”

Rosemont College decided to do away with that tactic and settle on a tuition dollar amount that if EVERYONE paid it, the lights would stay on and the same standards of teaching and small classes would continue.

The results testify to the fallacy of the Chivas effect. More families and higher caliber students applied to Rosemont.  And this small Christian college outside of Philadelphia is not the only institution to experiment with tuition pricing and uncover a boost to enrollment.  Both colleges AND parents are finding out that it literally pays to question assumptions.

So if this common presupposition has holes, what other false assumptions might be limiting our options?  I love this kind of critical thinking and ingenuity!

 

 

 

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: