Price Studies

Client Challenge: In addition to all of the usual challenges associated with being a small liberal arts college at a time when large, urban universities are increasingly popular, Hendrix College faced an unusual threat: a $300 million gift to nearby University of Arkansas to fund an Honors College intended to compete directly with Hendrix for in-state students. This meant that the university would be offering generous scholarships to the high-ability students Hendrix traditionally recruited, as well as claiming to offer them a high-quality, small-college experience. How could Hendrix best compete?

Our Approach: We worked with the campus community to devise platforms on which Hendrix might stake its market identity and tested their likely effects on application and matriculation rates among the College’s prospective students, using Simulated Decision Modeling methods developed by our firm. We also identified key factors that prevented prospects from applying to and matriculating at Hendrix. Based on the findings, we recommended that the College position itself uniquely within its region as a liberal arts college offering an honors experience to all and specializing in hands-on learning. Our analysis of price sensitivities also resulted in changes in tuition and aid policy to strengthen the College’s net revenue position in order to help fund the new program.

What We Accomplished Together: On our advice, the College launched an engaged learning program for all students which became known as The Odyssey Program. The program ensures that all students have several hands-on experiences before graduation and provides significant funding for student-initiated projects, such as traveling to Australia to study Aboriginal music or organizing delivery of medical supplies to a poor neighborhood in Mexico. The Odyssey program remains true to the College’s mission, yet has strengthened its brand. In its first year of implementation, the program already has boosted new-student enrollments by more than 40% including significantly strengthening out-of-state recruitment, increasing net tuition revenue, energizing the campus, and providing the impetus and rationale for major-gift fundraising. Hendrix has captured the attention of the national media, and is now positioned to pursue even higher ambitions.