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Factors influencing student choice to study at private higher education

institutions

Article  in  Quality Assurance in Education · September 2013

DOI: 10.1108/QAE-04-2012-0019

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 Article Title Page

Factors Influencing Student Choice to Study at Private Higher Education Institutions

Author Details

Author 1 Name: Mahsood Shah

Department: English Language and Foundation Studies Centre
University/Institution: The University of Newcastle
Town/City: Callaghan
Country: Australia

Author 2 Name: Chenicheri Sid Nair

Department: Centre for Advancement of Teaching and Learning
University/Institution: University of Western Australia
Town/City: Perth
Country: Australia

Author 3 Name: Lorraine Bennett

Department: Centre for Innovation Learning and Professional Practice
University/Institution: Ballarat University
Town/City: Melbourne
Country: Australia

Corresponding author: [Mahsood Shah]

Corresponding Author’s Email: shah_mahsood@hotmail.com

Please check this box if you do not wish your email address to be published

Structured Abstract:

Purpose (limit 100 words)

There has been rapid growth in private higher education in Australia over the last decade. In increasing numbers, students are
turning to private higher education institutions which generally focus on offering courses in specialised areas. This is in contrast to
most traditional universities and colleges of further or advanced education which offer a wide range of discipline-based and
professional areas. The expansion in private higher education is attributed to many factors including: changes to government policy
related to tertiary education; unmet student demand in universities; migration policies which are linked to skills shortages; and huge
investments in education by private consortiums hoping to capitalise on the anticipated expanding tertiary education market after the
global recession. Not surprisingly, at this point in time there is a lag in the analysis and research into private higher education in the
tertiary education sector. This paper makes a contribution to the current lack of literature in the Australian context by reviewing
qualitative feedback collected from students in five private higher education institutions. In particular, the paper examines factors
influencing student choice to study at private higher education institutions and student perceptions of such institutions. Previous
studies on this topic are mostly focussed on universities with lack of research with the booming private higher education sector.
Design/methodology/approach (limit 100 words)
This study draws data from five different private for-profit higher education institutions in Australia. It involved feedback from 120
students undertaking higher education courses in different discipline areas at different stages of study. The study involved 15 focus
group interviews with 8 students in a group. The selection of students was based on the representation of different characteristics of
student such as: male/female, domestic/international, and discipline areas.
Findings (limit 100 words)
An analysis of the data collected from the students across these five institutions indicated that the main factors
influencing student choice can be grouped in six domains. These are: student perception; access and opportunity;
learning environments; quality of teachers; course design; and graduate success. This study reinforces that
student perception of the private for-profit higher education institutions is an important factor in influencing student
choice to study at the institution.
Research limitations/implications (limit 100 words)
The limitation of the study was the ability to interview more students from larger colleges, across all discipline
areas. However the time and length of the focus group interviews was largely managed by the five institutions.
 Type header information here

Originality/value (limit 100 words)

The private higher education sector has experienced consistent growth in the last few years in Australia. Currently, there is no
qualitative research done in Australian private higher education on factors influencing student choice to study with private
institutions. The rise of such providers require research on insights about student choice, student expectation and their experience.

Keywords: private higher education, student choice, student perception

Article Classification: Research paper

For internal production use only

Running Heads:

Type footer information here

 Factors Influencing Student Choice to Study at Private Higher Education Institutions

Abstract
There has been rapid growth in private higher education in Australia over the last decade. In
increasing numbers, students are turning to private higher education institutions which
generally focus on offering courses in specialised areas. This is in contrast to most traditional
universities and colleges of further or advanced education which offer a wide range of
discipline-based and professional areas. The expansion in private higher education is attributed
to many factors including: changes to government policy related to tertiary education; unmet
student demand in universities; migration policies which are linked to skills shortages; and
huge investments in education by private consortiums hoping to capitalise on the anticipated
expanding tertiary education market after the global recession. Not surprisingly, at this point
in time there is a lag in the analysis and research into private higher education in the tertiary
education sector. This paper makes a contribution to the current lack of literature in the
Australian context by reviewing qualitative feedback collected from students in five private
higher education institutions. In particular, the paper examines factors influencing student
choice to study at private higher education institutions and student perceptions of such
institutions. Previous studies on this topic are mostly focussed on universities with lack of
research with the booming private higher education sector.

Keyword: private higher education, student choice, student perception

Introduction
The Australian tertiary education sector comprises 36 public universities, three private, one
foreign university, four self-accrediting institutions and more than 170 private higher
education institutions (AUQA, 2010) that offer and confer qualifications at all levels in the
Australian Qualifications Framework (AQF). The tertiary education sector also includes many
publicly-funded Technical and Further Education (TAFE) institutes, which have traditionally
offered vocational courses and are now also providing higher education courses. The tertiary
sector has more than 4800 private and community-based registered training organisations
offering vocational qualifications, with some also offering higher education courses.

Higher education was traditionally only offered by public and private universities. However,
in recent years there has been a rise of non-university providers such as private higher
education institutions offering courses in specialised areas. While the sector has grown
significantly in many parts of the world, with predictions of future growth, there is limited
research on factors influencing student choice to study in private higher education institutions
and their actual experience related to teaching, learning, education outcomes and support
services. This paper aims to address the current gap by providing analysis based on interviews
with 120 higher education students in five large to small private higher education institutions
in Australia. The study is timely in the Australian context as the private sector is experiencing
growth in both traditional face-to-face and external mode of delivery with significant
challenges related to quality assurance. Private higher education institutions in this paper are
non-university providers offering higher education courses.

1
Insights about student choice to study with private higher education institutions are important
as the Australian government introduces two key policies which will drive competition and
diversity within the sector. These policies include: a shift from funding projected student
enrolments in universities to a demand driven model which funds actual student places
(Commonwealth of Australia, 2011a). The second government policy which will impact on
the growth in private higher education institutions involves the introduction of student access
and participation performance funding. In particular, the government aims to increase the
number of citizens who complete tertiary education to the bachelor degree level. To support
this overall aim the government has put in place a number of incentives and funding initiatives
which are available to students wanting to access private higher education (Commonwealth of
Australia, 2009a). Examples include the extension of government funding such as subsidised
student loans to private providers; unmet student demand in traditional universities (8.1% in
2009) in Australia as a result of the growing demand of higher education (Commonwealth of
Australia, 2009a); and the political interest of governments in private higher education due to
limited public funding which brings public benefit at low public cost (McCowan, 2004).

In the Australian context some additional external factors have played a key role in the
ongoing growth of private higher education institutions. These include: huge investments
made by private providers and consortiums in terms of expansion; acquisition and mergers of
small family owned private higher education institutions with large consortiums; the
recognition and growth of student population during the global financial crisis with education
seen as a marketable commodity when many other sectors of business witnessed a downturn;
and large investments made by private higher education institutions in marketing and
advertising their courses (Shah and Lewis, 2010).

Apart from government policy and external factors, student choice has also played a key role
in the ongoing growth of private higher education institutions. The ease of entry in private
colleges provides students with an alternative choice to access and participate in tertiary
education which was not traditionally provided by universities (Shah and Nair, 2012). The
market forces and increased student choice have resulted in the growth of private higher
education institutions who cater for a wide range of students including mature aged and
students who may not be ready for direct entry into universities due to low academic
achievement in high schools. Recent studies in USA also suggest the growth of private higher
education institutions offering courses in flexible and online learning mode (Jee –Kim &
Bonk, 2006).

The increasing tuition fees in universities and private higher education institutions and growth
of students have increased consumer interest in quality, standards and value for money for
higher education (Shah and Nair, 2011). Most research related to private higher education in
Australia suggest that some of the distinctive features of private higher education in Australia
include: vocational orientated learning with opportunity for students to undertake work
experience while studying; quality of teachers; small class size; personalised academic support
services; high student satisfaction on the national Course Experience Questionnaire (CEQ)
compared to public universities; and high graduate employment rate, approximately 8-10%
higher than university graduates (eg Shah and Brown, 2009; Shah & Nair, 2011). While the
private sector in Australia has experienced consistent growth of 20% in the last few years,
there is limited study on factors influencing student choice to study with private higher
education institutions. Previous research in the Australian context have revolved around

2
quantitative research (Shah and Brown, 2009) and this study is based on qualitative data
collected from 120 students on factors influencing their choice to study with five private
higher education institutions.

Conceptual framework
Most studies on factors influencing student choice to study with a particular institution of
higher education are based on universities in the USA and UK. There is limited research
worldwide on factors influencing student choice to study with private higher education
institutions despite the growth of the sector in many parts of the world. The study is pertinent
in the current context of higher education in Australia with government policies encouraging
institutional diversity and increased competition between providers.

International Growth of Private Higher Education

The growth of private higher education has been experienced in many parts of the world
including Europe, United States, Japan, Korea, New Zealand, Australia, Indonesia, Malaysia,
India, China, Hong Kong, South Africa, Taiwan, Brazil, Uganda, Kenya, Tanzania and the
Philippines (Gupta, 2008). The private higher education sector caters for more than 70% of
students in India, Malaysia, Japan, South Korea, Indonesia and Philippines, more than 30% in
mainland China, more than 15% in Thailand and Vietnam (Gupta, 2008) and 9.3% in New
Zealand (Xiaoying and Abbott, 2008). In China, students favour private higher education
institutions for acquiring ‘vocational knowledge’ or ‘a clear future career orientation’ (Wei
2006 pp. 8). Private higher education is also growing in the Middle East. According to Al-
Atiqi and Alharbi (2009), the private sector in Kuwait is expected to grow by 45,000 students
by 2025, which will exceed enrolments in public universities. In Europe, private higher
education enrolments range from 66.6% in Cyprus; 34.1% in Poland and 31.9% in Latvia.
Growth is also predicted in the countries such as Portugal, Georgia and Bulgaria. In Africa, the
growth of private higher education is evident in countries like Gabon with 47% enrolments;
Mozambique 32% and Ethiopia 24% (UNESCO, 2009).

Across the world, traditional universities are losing their monopoly with large numbers of
private higher education institutions entering higher education. Private higher education
institutions are found to be more adaptable to the changing needs of the market and to provide
a wider choice of job-related skills to students and employers. According to Levy (2007 p. 11),
these institutions are generally more ‘secular’, ‘culturally diverse’, ‘less politicised’ and
‘learner-friendly’. A study undertaken by Oketch (2009) in three African countries suggests
that private higher education institution has improved access to university education, and that
it could play a strategic role in further widening participation in future. According to
Jalowiecki (2001), private higher education in Poland is more responsive to the demands of
the economy and tends to operate more efficiently. Studies by Galbraith (2003) in countries
such as Poland and Romania, where private higher education enrolments are almost one third
of tertiary students, concluded that private institutions were better able to meet the higher
education needs of these societies.

Chae & Hong’s (2009) research also mirror previous research work in that it shows that
private higher education has played a significant role in making higher education accessible in
Korea. For example, it has increased the participation of people in the 25 to 64 year age group
to 32%, which is 6% higher than the Organisation for Economic Co-operation and
Development (OECD) average. McCowan (2004) suggests that the existence of private higher

3
education in Brazil, with its advantages of ease of entry, flexible hours and locations outside
metropolitan areas, has led to many Brazilians gaining a university degree who would not
otherwise have been able to access publicly-funded tertiary institutions. According to Lee
(2008), private higher education institutions tend to offer courses that do not require high
capital cost. Private providers are well informed about market intelligence and growth
avenues, and use innovative marketing strategies to reach prospective students. Enrolments in
private institutions in the USA jumped by 225% from 1998 to 2008; this was more than seven
times the rate for all post-secondary programs. The Apollo Group’s University of Phoenix, the
biggest proprietary college, now enrols 476,500 students. In 2008-09, around $24 billion in
federal loans went to private colleges (The Economist, 2010). Recent studies suggest a
declining trend in the growth of private higher education in countries such as Portugal,
Georgia, and Japan (Levy, 2010), Colombia (Uribe, 2010), and Thailand (Praphamontripong,
2010).

A Snap Shot of Private Higher Education in Australia

In 2010, the total commencing student enrolment in private higher education institutions was
43, 676 which constitutes 9% of the total higher education enrolment. The sector has
consistently experienced growth with increases of 2.5% in 2010; 20.5% in 2009; and 21.7% in
2008. By comparison, the commencing student growth in Australian public universities was
3.8% in 2010; 8.6% in 2009; and 3.9% in 2008. The growth in 2010 in private high education
sector is low compared to the average growth of 20% in the previous two years. This is
primarily due to the decline in international student enrolments (Commonwealth of Australia,
2010). New trends appear in the recent data with 78.3% growth of commencing student
enrolments in external mode of delivery compared to 1.2% in public universities
(Commonwealth of Australia, 2011b).

The growth of private higher education is mainly driven by customer demand. It is agile and
responsive to the market and draws on business models of operation to capitalise on growth
opportunities. This is particularly evident in the marketing and self-funding strategies most
private providers employ. Private higher education is also quick to adapt to new modes of
education delivery with growing number of providers offering flexible and online learning
(Shah and Nair, 2012). In recent years new relationships between private institutions and
public universities in Australia have started to emerge involving partnerships and pathway
programs. These arrangements benefit private higher education institutions in that they allow
them to offer their students pathways to advanced study. They benefit universities in that they
shore up a steady stream of future students which is critical in a highly competitive student
driven market (Shah and Lewis, 2010).

Private higher education in Australia has been particularly attractive to students who were
disadvantaged with direct access to university education due to their performance in high
schools or for mature age adults who commenced employment after completing high school.
Despite the lack of government policy and incentives for such providers to provide access and
opportunity for disadvantaged students, many providers have large proportion of students from
diverse backgrounds. A study undertaken by Shah and Lewis (2010) suggests that almost 45-
48% of students in some private higher education institutions are first in the immediate family
to undertake tertiary education; 37-45% mature age students and in one college 68% of
students are female. This analysis suggests that the private sector in Australia is playing a key
role in providing access, opportunity and pathway for many domestic and international

4
students who would not have direct access to tertiary education in traditional universities.
While some critics from the university sector question the credibility of some private higher
education institutions and the quality and standard of education offered, it is clear that private
providers are growing rapidly (Commonwealth of Australia, 2009) and the sector is catering
for a cohort of student who would not have the opportunity to access tertiary education based
exclusively on a secondary school performance score. Characteristics such as small class size
with an average of 20 students; vocational orientated education with opportunity for students
to undertake work based learning with employers; opportunity for students to link with
prospective employers while studying; use of leading industry practitioners as teachers; short
duration of courses (e.g. diploma in one year); and use of technology in learning with
significant student support for online learning are some of the many features which make
private higher education attractive to a growing cohort of students (Shah and Brown, 2009).

Previous Research on Student Choice and Experience in Private Higher Education

Investigation into factors influencing student choice to study in an institution is important for a
number of reasons. Primarily it gives the institution an understanding of the reasons why
students choose a particular institution over others. Secondly, the information obtained can
and should be used by institutions to assist in the development of their marketing strategies.
The knowledge on student choice and perception of an institution can also help institutions to
understand student expectations and strategies that could be implemented to improve the
student experience. In addition, it gives empirical evidence to the institutions to strive for
change. For example, Agronow & Hengstler (1995) study at the University of California,
Santa Barbara (UCSB) identified problems with top students rejecting UCSB because of its
academic reputation.

There is limited research study on factors influencing student choice in private higher
education in Australia. Most research to-date is based on universities and publicly funded
community colleges in the USA and UK using quantitative method. Chapman (1981) suggests
three factors influencing student choice. They include: information obtained from friends,
parents and high school staff, secondly: institutional characteristics such as cost and location
and finally, institutional effort to communicate with students. In addition Joseph and Joseph’s
study (1998) with 300 students found such factors as service quality and the value of
education and the degree also important in influencing student. Similar findings were also
found in a study undertaken in Scotland with accounting and engineering students. The study
undertaken by Briggs (2006) suggested that academic reputation, distance from home, and
location were also key factors in student choice. Studies undertaken by Canale et al (1996) and
Coccari and Javalgi (1995) in the United States suggest that quality of teachers, academic
reputation and cost were seen as the top three highly ranked items influencing student choice
of university. Research on factors influencing student choice to study in higher education has
so far shown that the most important factors include characteristics related to quality of the
institution, quality of teachers or quality of academic programs and infrastructure. Studies
undertaken with both students and parents by Broekemier and Seshadri (1999) show that the
quality of program of study, campus safety, cost and academic reputation as the top key
criteria used by students and parents to choose institutions.

The only quantitative study undertaken in Australia with 750 students on factors influencing
student choice to study with a private higher education institution suggest that the top three
reasons in rank order are: quality of teaching staff; quality of courses; and reputation of the

5
college (Shah and Brown 2009). Despite the growth of private higher education, there is no
qualitative research which has attempted to find out the factors influencing student choice to
study with private higher education colleges. Such study is important as the private sector
continues to grow in both traditional face-to-face learning and external mode of delivery. The
study on factors influencing growth is timely as governments are also introducing policies to
encourage higher education diversity and to provide publicly available information on
MyUniversity website for the public to assess the quality and performance of universities.

Methodology
The research is based on qualitative study undertaken with five private higher education
institutions in Australia. The institutional size varied between 300-5,000 students offering
courses in diverse disciplines including: business and commence, journalism, health and
sciences, and graphic and interior design. A sample of 24 students were interviewed from each
institution using structured open ended questions (refer to appendix 1). The questions were
related to the factors influencing student choice to study with private higher education
institutions, and student’s views on whether their expectations met their actual experience. The
paper only aims to explore the factors influencing student choice. The representative sample of
24 students in each institution aligned with the student profile of the institution with student
characteristics such as: male/female, domestic/international, and discipline areas. Two private
higher education institutions offered diploma and advanced diploma courses with pathways
into universities and the other three offered their own undergraduate degrees. A total of 15
focus group interviews where held with 8 students in a group. Three external interviewers
were engaged to run focus group interviews with expertise in the measurement and
enhancement of student experience. The interviewers first reviewed the student profile from
each of the five institutions and identified the number of students in each category. Students
were invited to be part of the focus group interviews with formal email invitation sent by the
institutional quality unit. Telephone follow up was undertaken with the quality unit to confirm
student attendance.

The reviewers communicated the purpose of the focus group interviews to each group and
confirmed anonymity of their feedback. The main purpose of the study was to find out the
factors influencing student choice to study with private higher education institutions and their
experience of teaching, course of study, and other aspects of learning. All students in the focus
group interviews were invited to provide comments/feedback on the questions asked.

The limitation of the study was the ability to interview more students from larger colleges,
across all discipline areas. However the time and length of the focus group interviews was
largely managed by the five institutions.

Findings and Discussion

Student Choice
The qualitative study on factors influencing student choice to study with private higher
education institutions is unique. So far, there is no qualitative study in the Australian context
across five different institutions on factors influencing student choice despite the ongoing
growth of private higher education.

6
An analysis of the data collected from the students across these five institutions indicated that
the main factors influencing student choice can be grouped in six domains. These are: student
perception; access and opportunity; learning environments; quality of teachers; course design;
and graduate success. Table 1 outlines these key factors influencing student choice to study in
private higher education institutions. The six domain areas illustrated in Table 1 are aligned to
quality cycle discourse including input, processes and outcomes.

Table 1: Factors Influencing Student Choice to study in Private Higher Education

Institutions
Student Access and Learning Graduate
Teachers Course design
Perception opportunity environment Success
Reputation Pathway to Small class size Teachers from Duration Success of
university industry graduates
Word of mouth Personalised Practical nature
Stepping stone in environment Easy accessibility Doing well in
Transfer from tertiary education Work experience industry
University to Online learning One to one
private college Ease of entry interaction with Flexibility
due to referral Student profile teacher
Location (mature age in Specialised
some colleges) course relevant to
Completing professions
degree via Hands on
pathway experience
Input Processes Outcomes

Generally, all students portrayed themselves as confident consumers who were well informed
of the institutions and their needs. This translated into student making decisions about where
to study with clear expectations of the course requirements, the nature of the study and
workload and the end product (qualification/employment).

This study reinforces that student perception of the private higher education institutions is an
important factor in influencing student choice to study at the institution and align with the
study in universities carried out by Briggs (2006), Canale et al (1996) and Coccari and Javalgi
(1995). Almost 60% of students who enrol in private higher education institutions do so
because of the reputation of the institutions. Tied in with this is on how the institution is
perceived by alumni, current students and employers of institution graduates. Some students
interviewed reported that they had transferred from university education to a private higher
education institution because of the positive learning environment. The main reasons backing
this were the small class size in private colleges; a personalised learning environment; and
greater flexibility. These same reasons were echoed by the other students interviewed as their
main reasons for choosing a private higher education institution. This suggests that the
positive student experience of the course, teaching and the overall institution is largely based
on the institutions ability to manage student expectations with flexibility to change systems
and processes based on the insights on what matters to students in terms of their expectations.

In many instances employers in professions such as counselling, psychotherapy, naturopathy,

Chinese medicine, design, hospitality and journalism have played a critical role in student
choice. The professions have on a number of occasions recommended students to consider
private higher education institutions instead of the traditional route through universities.

7
Supporting this view were employers who endorsed courses in private higher education
institutions because of their personal experience and the standard of private institutions
graduates that they now employ.

Another key factor influencing student choice that came out strongly in student interviews was
the positive response to the alternative opportunity to participate in tertiary education provided
by the private higher education institutions. This factor has shown to be important in a study
carried out by Oketch (2009) in Africa. Approximately 80% students reported that not only
did the private higher education institutions provide an alternative pathway into university
studies; they also offered a more staged transition from secondary to post-secondary education
for those who were not ready or who were ineligible for direct entry into university. Students
reported that private higher education institutions at the diploma or associate degree level
enabled transition from work to tertiary education or from high school to tertiary education.
For many students who did not perform well in high schools, private higher education has
provided access and opportunity to participate in higher education which they may not have
accessed directly through the university. In addition, many students also reported that the ease
of access enabled them to continue their education with the hope of success and a second
chance to succeed after experiencing low academic achievement in high school. While these
students had low academic achievement in high schools, they were keen to complete an
undergraduate degree through the opportunity provided by private higher education
institutions to achieve their goals and career aspirations. Supporting this is the enrolment data
in one private higher education institution where 42% of students enrolled had high school
achievement below the normal cut off accepted in universities with 37% being mature age
students and 45% students first in the immediate family to undertake tertiary education.
Though this demographic data revealed a diverse student cohort, the data also showed good
course completion rates. For example course completions in one provider was as high as 95%
with 94% of students finding employment on completion of courses in their field of study
(Shah and Nair, 2012).

The location of the institution near public transport and its accessibility within the city precinct
also played a key role in student choice. This supports studies of Chapman (1981) and Briggs
(2006) who found that location played an important part in choice of provider. This was
highlighted by students from all five institutions who are located near to the public transport.
Students liked the fact that the institution was in the heart of urban life and transportation was
not an issue and they did have to rely on private transportation to access the campus.

The learning environment was also a factor that was identified as influencing student choice to
study in private higher education institutions. The small class size with an average of 16-23
students and the opportunity for students to interact with the peers and the teacher were
reported as attractive features for many students, including those who transferred from
universities. Prior to enrolment, many students visited the institution during open days. Many
students reported that their visits and conversations with course advisors and institution staff
along with the small and personalised learning environments had influenced their decision to
study at the institution. In two of the institutions, a large proportion of students were female
mature-aged students. This feature was a draw card in at least two of the institutions which
tended to recruit and attract students from similar age groups who were searching for ongoing
peer support and networks of colleagues with similar study aspirations.

8
The provision of online study was also an attraction of some students in institutions. Students
studying through online learning modes in courses such as counselling, human resources, and
business management reported that they are able to complete the full course from remote
regions across Australia where access to tertiary education with work experience is often
difficult. The emergence of online learning in private higher education and its continued
growth in the area will undoubtedly improve access and participation of many students from
remote regions.

The quality of teaching staff was identified as a key factor influencing student choice to study
with private higher education institutions and lines up with an earlier quantitative study
reporting the positive influence of teaching in private higher education (Shah and Brown
2009). Private higher education institutions in Australia have a large proportion of teaching
staff who are engaged in a sessional capacity. In the main teachers are drawn from industry
and professions and bring to the learning experience relevant and up-to-date industry
experience. Most students in private higher education institutions believe that the use of
leading industry practitioners as teachers provides up-to-date knowledge on changing practices
in various industries and more importantly it enables students to connect with employers and
industry via the teachers. The small class size also allowed regular contact with teachers.

Another factor influencing student choice was the design of the courses. The shorter course
duration such as a one year diploma and a 1.5/2 year associate degree is seen as an attractive
option and provides flexibility for many students. The practical nature of courses which have
work experience or employer based practicums and a placement embedded in their courses is a
strong feature of the courses. Both students and employers view the practical experience as
preparing work ready graduates with key employability skills attained prior to completing the
course. This benefit was prominent in student feedback related to why they had chosen the
course and the institution. Many institutions develop a highly regarded reputation for these
niche areas and attract new students because of the high profile alumni and teaching staff in
specialised areas.

Finally, one of the main factors influencing student choice was the success of private higher
education institutions graduates in industry. Private higher education graduates who complete
courses in health and wellness areas such as counselling, naturopathy, psychotherapy and
other areas open their own practice with successful outcomes. The five private higher
education institutions included in this study have more than 90% of their graduates in part
time or full time work in their professions after completing their courses.

The factors influencing student choice to study with private higher education institutions align
with Abraham Maslow’s (1965) need hierarchy. Most of the factors contributing student
choice are mostly related to social needs such as: pathway and opportunity to access university
education; ease of entry; location of the college; small class size; flexible study options;
profile of students (e.g. same age group or gender) e.t.c. The social needs are related to
demographic marketing segmentation which is focused on consumers from certain
demographics. In the case of student choice in private higher education, most students who
enrolled with private higher education institutions may not have attained high results in
secondary education. Therefore, private higher education provides an alternative pathway with
ease of entry with transition from college to university education for such group of students.
According to Patterson et al, (1998) higher education is a pure service and is characterised by

9
a greater amount of interpersonal contact, complexity, divergence, and customization than
other service businesses. Most of the quality attributes in higher education cannot be
perceived, felt, or tested in advance (Cubillo, Sánchez and Cerviño, 2006). Early structural
models (Gambetta (1996), Roberts (1984) and Ryrie (1981) explain choice in the context of
institutional, economic and cultural constraints imposed upon choosers whose decisions can be
predicted along socio-economic, cultural and ethnic lines. Such models have been used to
predict and explain participation and progression of students into higher education.

Conclusion

This paper provides interesting insights into why students choose to undertake tertiary
education study at private higher education institutions. The feedback, primarily gathered from
students revealed a number of factors many of which were directly related to the quality of the
student experience. Factors such as the potential for greater engagements with peers and the
teaching staff, the currency and industry specific knowledge of the teaching staff, the
opportunity to undertake practical industry-based experience and to build relationship with the
industry and the small class sizes and potential for dialogue within the class room were cited
as key reasons why students decided to study with private higher education institutions. Such
key factors are not new in the university context but this is the first study that reveals
qualitatively that such factors are drivers to students choosing private higher education
institutions. Additionally, some students acknowledged that the private higher education was
their only study option as they had not met the higher entry requirements of a university.
However, others indicated that they intentionally chose the private college though they could
have accessed university study or had previously tried university study but found it too
isolating and depersonalised.

It is clear from the feedback gathered in this study that private higher education institutions are
a viable, exciting and popular stream within the Vocation Education and Training and Higher
Education sector. It is a section of the market which is growing. Most private higher education
institutions are still quite small and focus on a few specialised areas which mean that they can
respond quickly to market trends and changing policies. The fact that many staff are practicing
professionals is very appealing to students as they get to engage in authentic contemporary
topics and issues and draw on current resources and information.

In the past colleagues in the higher education sector have had limited exposure to or
connection with private higher education institutions. This has changed slightly in the last few
years. Some universities are starting to engage private higher education institutions to deliver
pathway courses in which articulate into university courses. Many universities have also
established articulation arrangements with private higher education institutions whereby the
VET diploma and associate degrees are delivered by the private provider and once completed
the students feed into the university degree and post degree programs.

The study on factors influencing student choice is important in gaining insights on student
expectations of private higher education. The findings of this study in private higher education
institutions are different from previous studies undertaken with universities in the USA and
the UK. For example, this study showed that the factors influencing student choice to study
with private higher education includes:

10
 • pathway to University education after completing first year diploma;
• ease of entry with lower entry criteria;
• small class size and opportunity to interact with teachers and peers;
• personalised learning environments;
• flexible study options such as online learning;
• course design with opportunity to undertake work placement while studying to gain
experience;
• age group of students in disciplines such as counselling and psychotherapy;
• teachers are drawn from industry with up-to-date knowledge; and
• specialised courses for the profession e.g. clinical myotheraphy, naturopathy

Some of the findings in this study align with the quantitative findings by Shah and Brown
(2009) in a private college who suggest that quality of teachers, quality of courses, and the
reputation of the private college seen as key factors influencing student choice.

The study on student choice and future need for studies in student experience in private higher
education in Australia is critical for a number of reasons including: understanding the views of
students about private higher education; ways by which private higher education institutions
could enhance student experience; understanding the role of private higher education in social
and economic development; changing government policy with focus on improving the access
and participation of disadvantaged students in tertiary education; governments initiative to
extend public funding of private higher education using student loan; strengthening the
accreditation and regulation of all higher education institutions with single criteria to ensure
public confidence of all providers; and finally the governments’ plan to introduce
MyUniversity website as a mean to ensure transparency by providing publicly available
information on institutional performance.

Across Australia the number of students accessing private higher education is increasing
rapidly and this study reveals a number of specific reasons as to why students choose to study
at private higher education institutions. Many of these reasons are a result of deliberate
decisions by students to choose a course appropriate to their needs and priorities and not as a
course of last resort. While the future for the private higher education sector looks healthy this
study also highlighted the importance of listening to the student voice. To ensure that the
sector remains robust and relevant, such institutions are well advised to ensure that they
implement and monitor quality improvement systems and processes to continue to grow the
quality of their courses and offerings.

11
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 Appendix 1

Discussion Questions Prepared for the Focus Group Interviews

Factors influencing student choice

1. What were some of the contributing factors influencing your choice to study with xxxx
College?

2. How did you find out about xxxx College?

3. Has your expectations prior to enrolment met your actual experience?

Student experience

4. How is xxxx College different from your experience at the University? (Question was only
asked to those students who commenced at the University and later joined the private college).

5. What are the best aspects of your experience at xxxx College?

6. What are some areas where improvement is needed?

7. If you were the CEO of the College, what would you do to improve student experience?

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