Beyondthe data

Hobsons EMEA, May 2014www.hobsons.com/emea

Share this report#HobsonsInsights

Influencing international student decision making

2

Table of contents

Foreword 3

Ten-point plan 4

The context 6 - The many definitions of teaching quality 6

Survey framework 8

Chapter One: Is there a typical international student? 9 - Key findings 9 - Key actions 9 - Who are they? 10 - Geography as an indicator 13 - Which other countries are they considering 14

Chapter Two: Motivations for selecting an institution 20 - Key findings 20 - Key actions 20 - What comes first — country, course or university? 21 - What makes a student decide to apply? 21

Chapter Three: Information gathering, decision-making and application 25 - Key findings 25 - Key actions 25 - What levels of service do international students expect? 26 - The role of social media 26 - How are students using agents in this process? 29 - How many other institutions are students applying to? 31 - Deciding between institutions 32

Chapter Four: What is teaching quality 34 - Key findings 34 - Key actions 34 - Actions speak louder than words 35 - Beyond the results 39

02

3

Foreword

Whilst compiling this report, which is based on the most recent findings from the Hobsons International Student Survey, we had the Higher Education Funding Council for England’s (HEFCE) report ‘Improving information for prospective students’ firmly ringing in our ears. Specifically:

“The decision-making process is complex, personal and nuanced, involving different types of information, messengers and influences over a long time.”

HEFCE articulate what those in the business of international student recruitment have known for some time; every international prospect is an individual and therefore requires an individual approach. The problem is, it is no easy task to tailor the recruitment and enrolment experience for every individual international student.

HEFCE also commented that “Greater amounts of information do not necessarily mean that people will be better informed or be able to make better decisions”.

We all know that international students have more choice than ever before, so it is important that we not only understand how they make their decisions, but also what influences their perceptions and expectations of study. We partnered with 16 universities from across the UK and Australia to survey their prospective, current and past student databases. The survey received 18,393 responses across 195 countries, 198 nationalities, and a total of 583 lines of enquiry.

Last year we found that for prospective international students, perception of teaching quality is the single most important factor in their decision making process. But although the term ‘teaching quality’ is widespread at the same time it is one of the most obscure. Therein lies the problem – prospective international students are making one of the most important decisions of their lives based on their perception of an obscure term.

From a recruiter’s perspective, this creates a conundrum: how do you positively impact perceptions of teaching quality available at your institution?

This report contains insight into the international student decision making process, how they assess teaching quality, what matters most when comparing countries and institutions.

At a time when data is everywhere but insight is hard to come by, we hope you will find some genuinely useful analysis that you can use to improve how you operate on a daily basis.

Duncan FindlaterDirector, Client and External Relations Hobsons EMEA

Duncan FindlaterDirector, Client and External Relations Hobsons EMEA

4

Ten-point plan

The brand value proposition of the UK as a study destination for international students and our individual institutions is a much debated issue. We have maintained a successful recruitment practice, even withstanding the recent small decline in international student enrolments and especially considering the challenges of a market unsure of whether it is “open”or “closed” – at least in the eyes of the prospective international students we are trying to recruit.

With the sector focusing on the UK’s place in the new world of international Higher Education, what can you be doing to make sure your institution gets and then stays ahead in this increasingly competitive global recruitment market? This ten point plan offers insight which can be implemented at an institutional level to help you do just that.

1. Course, then country, then institution: that is the order of an international student’s decision-making process. Students select a course to study first, then they evaluate the country and only after doing that will they select the institution. This demonstrates the importance of institutions leading their marketing with what matters most to the prospective student which will vary considerably depending on what stage of the process they are at. Right message – right time.

2. Fees are the second most important consideration for international students and are the number one reason for declining offers. Institutions must base their fee setting on solid evidence and this should include analysis of where their students expect fee levels to be set. If fees are higher, then the additional value proposition must be made clear. Setting the right fees might not be the deciding factor for a student to choose an institution, but setting the wrong fees can certainly be the reason they choose not to.

3. Subject/course rankings are more important in student decision-making than institution rankings or other factors including fees. Institutions should lead marketing campaigns with their top performing courses, paying specific attention to subjects or courses in which the institution ranks particularly well. Do not underestimate the power of the ‘halo’ effect.

4. Perception of student satisfaction does not drive choice of institution. Other factors such as rankings and fees are rated much higher when students are asked to choose. We recommend that institutions include student satisfaction as a secondary marketing message. Where reference in institutional marketing is made to student satisfaction, it is recommended that the satisfaction at course level is communicated, as it has far greater meaning to the student. Students consider student satisfaction important when choosing their institution, but when it comes to making their decision, the information they actually use to make their decision is quite different.

5. Graduate outcomes are a key factor in international students’ decision-making. Different graduate outcomes for postgraduate and undergraduate students need to be clearly defined. This involves aligning content and strategy with what the student wants once they have attained their degree. Remember, this will vary according to which of the six profiles* you are engaging.

6. Each institution has a role to play in marketing their country as a desirable destination. While institutions are primarily concerned with their graduate outcomes, enrolment numbers and financial targets, every institution has a role to play to collectively market the country as a study destination. Clearly articulating the benefits of studying in the UK, followed by location and the specific institution, will ensure that a complete lifestyle picture is being painted.

*Follow @HobsonsEMEA for further in depth student and country profiles over summer 2014.

5

7. Country level messaging reinforcing welcome and safety of international students will support institutional marketing. The government and the sector have a major role to play in providing consistent messages through policy and legislation in the UK and overseas. Institutions must have a voice where policy affecting international students is concerned — including the areas of visa application, processing, and international media and country perception. International students are temporary migrants and they need to be separated from the overall immigration debate.

8. Institutions must be clear on their brand value proposition for each course. While this is usually clearly articulated at an institutional level, it is not as readily communicated at subject and course level. This will ensure that the value the institution perceives it is delivering through the provision of a course is also being delivered to the student.

9. Students want to engage with institutions and their content through visual social media sites (YouTube and Instagram) during the research phase of selecting an institution. This suggests that they are looking for more lifestyle and student experience content than what is currently available through other channels. We recommend that a clear visual social media strategy, including video (both illustrative and regular), infographics (dynamic and flat), images and photos, will engage students and provide an additional level of content.

10. It is not just about giving out information or an offer: students need to be nurtured from the information gathering phase through to enquiry and then application. We recommend that institutions invest the time at the outset to obtain key information about their prospective students and their expectations, enabling them to target their marketing by profile*. This moves us one step closer to that personalised, individual engagement which we know is crucial.

Another point to keep in mind throughout, but not an action point, is that there is a very clear difference between what international students say and what they actually do. As you will see in chapter four when a prospective international student is asked “trade-off” different factors and their importance a different picture emerges. Institutions should not base their marketing, recruitment and retention campaigns on what students say alone.

*Follow @HobsonsEMEA for further in depth student and country profiles over summer 2014.

6

The many definitions of teaching quality

There is no fixed definition of teaching quality. What we will do is provide you with insight into what students perceive teaching quality to be.

‘Excellent teaching faculty is essential. International students are going away from their home country to get a high standard of teaching so it’s extremely important that lectures are very much informative and ensure students understand. Extra time must be spent to ensure all students are able to get high marks. Extra revision class, tutorial, class test, practical examples and everything to ensure students get the maximum knowledge in today’s world.’

— Prospective student, Bangladesh

There are currently a number of schools of thought on perceptions of teaching quality. The first and most prevalent is that teaching quality is based purely on institution rankings, and this is the primary factor when a student makes a decision to select an institution and course. Challenges arise with this approach. Firstly, there are numerous sources for rankings, and secondly, there is often a discrepancy between institutional rankings and course or subject rankings. What we found is that students do consider rankings important, but they typically care more about subject ranking or a course’s academic reputation than that of the institution.

In the same way that we have seen the increased use of price comparison websites for a variety of products and services, students are continually looking for ways to compare courses and subjects, institutions and countries side by side. The influence that alumni, current students and their opinions on social media can have on a prospective student’s decision is significant. Do you have your engagement, influence and advocacy strategy mapped out for each student profile country, segment and market?

A student’s geography also has a role to play. Teaching quality is just one factor. Where a student resides is also important when selecting a country in which to study. Those in Africa and the Americas are more likely to pursue international study options in the UK and Europe, whereas those in South East Asia and South Central Asia are more likely to choose Australia as a study destination.

Safety is also important. Students and their families’ perceptions of a country’s safety and ‘warm welcome’ towards immigrants and international students can help clinch a decision on a study destination.

The context

7

Engagement with an international institution prior to commencement is a key indicator in the student’s perception of teaching quality. Speed, personalisation and accuracy of response to an initial enquiry or application provide the student with a great deal of insight into what it would be like to study at a particular institution.

‘Give information that is relevant, so that students will feel safe and encouraged to attend the institution. All the necessary information should be stated for the student’s convenience.’

— Prospective undergraduate student, Papua New Guinea

Where do graduate outcomes come into the equation? Is a postgraduate prospect wanting to migrate or are they looking to improve their prospects in their home country? The desired outcome is vastly varied for different student segments and they need to be “sold to” based on their desired outcome. Questions such as:

1. Will I get a better job in my home country?

2. Will I be able to demonstrate the quality of this course?

The responses to these questions will start to become the defining factors in the decision-making process.

By now you will see the picture. Teaching quality means different things to different people. We would never recommend the same marketing channel strategy for different student profiles, segments, countries and nationalities and the same goes for teaching quality. Teaching quality needs to be demonstrated through content in different ways to different audiences. Content cannot be used interchangeably, nor should it be if you want a targeted approach to marketing and recruitment in a competitive environment that results in high conversions.

8

In January 2014, we asked 100,000 prospective international students who had enquired to a UK or Australian higher education institution within the last two years about their perceptions and expectations of study in these countries.

We received more than 18,393 responses (18.3 per cent response rate), with 9156 respondents (49.8 per cent) from the UK and 9238 (50.2 per cent) from Australia.

The size of the data set, along with the number and quality of responses, has enabled a very robust student segmentation based on behavioural characteristics. This has resulted in a group of very clear findings about the perceptions and expectations of international students looking to study in the UK and Australia.

Due to the size of our sample, we are able to test what students say, compared to what they actually do, by using a conjoint analysis. Conjoint analysis is a marketing research technique that looks at the attributed value a customer places on particular factors equating to a product or service.

This report examines the importance of international students to the UK and Australia by understanding:• their perceptions and expectations• that there is a difference between what they say and what they do• that they are not just a homogenous group• that teaching quality is important and, critically, what it means to them

The final point is significant. Teaching quality, or perceptions of teaching quality, is the single most important factor to students when deciding which institution to select.

o We undertook further analysis of results from different student profiles* by: • defining different student profiles based on location, demographic and behavioural analysis • providing more meaningful segmentation based on a robust analysis of the factors affecting student choice

o We provide greater insight into the stages of an international student’s application by: • answering a very important question — the order of selection between country, institution and subject

o We tested of social media’s impact on institutional selection by: • looking into how and when students use social media in the application and decision- making process • understanding student preferences and expectations when interacting with universities

through social media

o We examine what teaching quality means to international students by asking: • what students perceive to be ‘good’ teaching quality and how important it is to them • how students trade-off teaching quality with other factors affecting institution selection

Survey framework

*Follow @HobsonsEMEA for further in depth student and country profiles over summer 2014.

9

Is there a typical international student?

Key findings

J In the respondent pool, 32 per cent are currently studying at undergraduate level, 30 per cent are currently studying at postgraduate level and 14 per cent are currently studying at high school level.

J The majority of respondents fell within the 18–30 age bracket.

J Almost 60 per cent of those surveyed came from a family income bracket of £15,000 (US$25,000) or less per annum.

J The majority of the survey respondents originate from Asia.

J There are distinct markets that are attracted to the UK rather than to Australia.

J While students say their current location has no bearing on the country in which they apply to study, their actions show location and proximity to their home country has an impact.

J The UK, the USA and Australia are still the main three countries international students consider.

Chapter One

Key actions

J Institutions need to:

• know their core enrolment markets • segment those markets into prospective student profiles*, understanding

demographic and behavioural information • evaluate what the student says compared to how they act

*Follow @HobsonsEMEA for further in depth student and country profiles over summer 2014.

10

Who are they?

Is there a typical international student? The short answer, unsurprisingly, is no, and the importance of segmentation cannot be underestimated. This being said, we have provided some up-front analysis of the student demographic and key differences, where they exist, between those looking to study in the UK and Australia. This insight will help you navigate through the report, paying particular attention to those prospective students in your core enrolment markets.

Table 1: Respondent age groups

The majority of respondents fell within the 18–30 age bracket, which reflects the cross-level (undergraduate and postgraduate) survey respondents. It’s assumed for the lower age brackets of 16–17 and 18–21 there would be family input into funding. This is based on the qualitative feedback we’ve received from these respondents.

There is a small proportion of students aged 16–17 investigating international study options. While the figure is only five per cent, there is an opportunity to begin marketing to these students early and set your institution firmly in their mind. Of more significance is the 48 per cent of students who are 25 years old or over. Messages aimed at this group should be targeted to focus on decision factors such as family support and sources of funding.

11

Table 2: What is your household income in US dollars? If your parents will pay for your university fees, please indicate your parents’ combined household income:

Less than $25K (£15K)

$25K — $50K (£15K-£31K)

$50K — $75K (£31K-£46K)

$75K — $100K (£46K-£61K)

$100K — $150K (£61K-£92K)

Over $150K (£92K+)

Our previous research has shown that the highest proportion of respondents (48 per cent) came from a household income of £15,000 (US$25,000) per year or less. In Australia in particular, this is a very different picture from what is the common perception of an international student. This was reconfirmed with the majority, 59 per cent of those surveyed for this report, coming from a family income bracket of £15,000 (US$25,000) or less.

What level of study are they undertaking?

• 32 per cent are currently studying at undergraduate level• 30 per cent are currently studying at postgraduate level• 14 per cent are currently studying at high school level

51%22%

10%

7%5%5%

12

Table 3: What regions are they from?

Table 4: What countries are they from?

Brazil

1%

Canada

USA

USA

1%

3%

13%

4%

8%

Other Asian country22%

Other African country

Other country not listed

Other EU country

1%Australia

MalaysiaSingapore

Kenya

UK

SouthAfrica

Bangladesh China

Hong Kong

Thailand

2%

1%

6%

1%

3%1%

4%Ghana

Russia

1%

India

Pakistan 9%

8%1%

SaudiArabia

2%

7%

Nigeria

1%

1%

AMERICAS

Caribbean 0.8%

Central America 1.1%

Northern America 3.3%

South America 4.2%

ASIA

Eastern Asia 8.6%

Middle East 7.5%

South-Central Asia 25.0%

South-Eastern Asia 14.8%

AFRICA

Eastern Africa 8.4%Middle Africa 0.8%Northern Africa 3.7%Southern Africa 0.7%Western Africa 11.6%

EUROPE

Eastern Europe 1.6%

Northern Europe 1.7%

Southern Europe 1.9%

Western Europe 1.0%

OCEANIA

Australia & New Zealand 0.7%

Malanesia 0.7%

Micronesia 0.0%

Polynesia 0.0%

Unknown 1.8%

13

The majority of survey responses came from Asia, at 56 per cent. Within Asia, largest number of respondents were was from South Central Asia (25 per cent). India had the largest number overall, with 1700 respondents (9.5 per cent), followed by Pakistan with 1400 respondents (7.6 per cent).

Geography as an indicator

So who are these international students looking to study in the UK and Australia? Are there any differences between the groups in terms of where they come from, their grades or their household income?

We found that despite the globally mobile nature of international students, geographical location is by the far the strongest indicator of their preferred study destination. Geography is a stronger indicator than grades or wealth as to where a student is likely to choose to study.

Table 5: Geography as an indicator

UK preference: Brazil, Canada, China (PRC), Colombia, Ecuador, Egypt, Ghana, Hong Kong, Iraq, Jordan, Kenya, Mexico, Nigeria, Russia, Saudi Arabia, Singapore, Sudan, Syria, Tanzania, Thailand, Turkey, Uganda, USA

Australian preference: Bangladesh, Bhutan, Ethiopia, India, Indonesia, Iran, Malaysia, Nepal, Pakistan, Philippines, South Africa, Sri Lanka, Vietnam, Zambia, Zimbabwe

UK preference

Australian preference

14

Which other countries are they considering?

Table 6: Which overseas countries are you considering attending university in?

We asked students which other countries they considered as potential study destinations. We found for students interested in studying in both the UK and Australia, their top three destinations in each case were the UK, Australia and the US. This reinforces the findings from our Competing Globally and Marketing Channel Optimisation reports. For students intending to study in either the UK or Australia, these three choices account for more than half the prospective students.

Table 7: Which countries are you considering attending university in?

We noted Germany as a rising competitor for students considering both the UK and Australia, at 12 per cent with Syrian, Colombian and Egyptian students were most likely to do so.

Bottom 10

India

ChinaHong KongSouth Africa

Malaysia

3%3%

2%

4%

3%

1%

2%2%2%2%Other Asian country

Bangladesh

UAE

RussiaTurkey

Top 10

Other EU countryIreland

FranceSingapore

Sweden

GermanyUSA

AustraliaUK

New Zealand

42%

5%

9%

6%6%

7%

42%27%

6%

12%

32%29%27%

22%22%

21%21%21%21%21%

Top 10

SyriaColombiaEgyptEcuadorJordanRussiaEthiopiaMexicoPakistanIran

Bottom 10

Sri LankaNigeriaZambiaBhutanAustraliaSaudi ArabiaSingaporeCanadaUKHong Kong

5%5%5%

4%4%

3%2%2%

1%0%

15

Table 8: Grades vs. nationality vs. where they want to study

These findings indicate that it is likely that geographical location holds greater sway on which country prospective students prefer, rather than any kind of perceived difference in academic reputation in Australia compared to the UK. If the latter were the case, you would expect to see clear correlation between higher/lower-achieving students and a particular market.

BrazilHong Kong

JordanMexicoNigeria

Saudi ArabiaSudan

SyriaTanzaniaThailand

TurkeyUganda

UKUSA

Agrade

student

Bgrade

student

Cgrade

student

Less thanC

gradestudent

UUUUUUUUUUUUUUUUUUUUUUUUKKKKKKKKKKKKKKKKKKKKKKKKBhutan

IndonesiaNepal

PakistanSri LankaVietnam

Agrade

student

Bgrade

student

Cgrade

student

Less thanC

gradestudent

AAAAAAA tustAustustAustust lit litralitralitralitralit a iiiaiaiaiaa

AustraliaBangladesh

CanadaChina (PRC)

ColombiaEcuador

EgyptEthiopia

GhanaIndiaIranIraq

KenyaMalaysia

PhilippinesRussia

SingaporeSouth Africa

ZambiaZimbabwe

Agrade

student

Bgrade

student

Cgrade

student

Less thanC

gradestudent

16

Table 9: Country vs. household income

Less than $25K (£15K)$25K — $50K (£15K-£31K)$50K — $75K (£31K-£46K)

$75K — $100K (£46K-£61K)$100K — $150K (£61K-£92K)Over $150K (£92K+)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

10%34%42% 1%3%10%Nepal6%22%52% 6%5%9%Nigeria

6%21%59% 3%5%7%Pakistan4%20%62% 1%3%9%Philippines

10%29%41% 5%7%8%Russia11%32%15% 20%8%13%Saudi Arabia

10%28%38% 5%7%13%Singapore9%31%45% 2%7%5%South Africa

8%22%42% 8%6%14%Sri Lanka4%11%66% 7%7%5%Sudan

7%14%61% 3%7%9%Syria7%13%66% 1%7%6%Tanzania

13%29%30% 11%4%13%Thailand7%25%45% 4%4%15%Turkey

2%13%71% 4%3%7%Uganda14%21%27% 10%8%20%UK

10%24%32% 8%9%16%USA8%27%54% 3%3%6%Vietnam

4%16%45% 11%17%7%Zambia5%12%68% 8%4%3%Zimbabwe

35% 15%24% 11% 6%9%Australia54% 4%22% 9% 4%7%Bangladesh

71% 4%13% 5% 4%3%Bhutan53% 3%22% 11% 5%5%Brazil

21% 12%18% 24% 16%10%Canada28% 3%37% 17% 5%10%China (PRC)

56% 6%28% 6% 3%2%Colombia56% 24% 6% 6%8%Ecuador55% 5%20% 8% 5%6%Egypt

73% 6%7% 5% 7%2%Ethiopia53% 8%16% 8% 6%8%Ghana

41% 5%22% 11% 9%13%Hong Kong51% 3%26% 10% 4%6%India

67% 2%19% 6% 3%3%Indonesia56% 3%20% 11% 6%5%Iran

38% 13%24% 9% 7%9%Iraq48% 3%23% 13% 4%8%Jordan

67% 3%18% 4% 2%6%Kenya68% 18% 8% 1%4%Malaysia

47% 3%28% 12% 1%9%Mexico

17

It would appear from the results that those at a lower price entry point (mostly from Africa) are looking to study in the UK, while the families from a mid-range income bracket are interested in £31,000 studying in Australia.

The majority of Chinese students (37 per cent) come from an income bracket of £15,000-(US$25,000–50,000) per annum. Chinese students’ preferred study destination is the UK across all income brackets (68 per cent). On average, Malaysians, Indians, Pakistanis and Chinese come from a family income of £15,000 (US$25,000) or less, while Saudi Arabians, Iraqis, Canadians, and Australians are well-funded, with 20 per cent reporting incomes above £92,000 (US$150,000).

It would appear from the results that those at a lower price entry point (mostly from Africa) are looking to study in the UK, while the families from a mid-range income bracket are interested in studying in Australia.

The majority of Chinese students (37 per cent) come from an income bracket of £15,000-£31,000 (US$25,000–50,000) per annum. Chinese students’ preferred study destination is the UK across all income brackets (68 per cent). On average, Malaysians, Indians, Pakistanis and Chinese come from a family income of £15,000 (US$25,000) or less, while Saudi Arabians, Iraqis, Canadians, and Australians are well-funded, with 20 per cent reporting incomes above £92,000 (US$150,000).

Wealth (or fee sensitivity) is one of the defining factors in the segmentation. Above, we can see that particular locales (like Saudi Arabia, the USA and Canada at one end of the scale and Ethiopia, China and Nepal at the other) declare wealth across differing bands. This is an important consideration when targeting particular segments of students.

Income has an impact on preferred study destination, and things like perceived cost of living and value-for-money from an education provider come into play. Students from more wealthy families, or those who have higher grades, are more likely to go to the UK to study — but there are less of these students in the total cohort.

In could be argued that the perceived brand value proposition of high quality, including a number of very highly ranked institutions in the UK, is preventing access to higher volumes. Meanwhile Australia’s brand value proposition of perceived value for money could potentially appeal to larger volumes of students.

18

Table 10: Country vs. earnings vs. where they want to study

BrazilChina (PRC)

GhanaNigeriaSudan

USAUUUUUUUUKKKKKKKK

Less than$25K

(£15K /AUS $28K)

$25K-$50K (£15K-£31K /

AUS $28K-$56K)

$50K-$75K (£31K-£46K /

AUS $56K-$84K)

$75K-$100K (£46K-£61K /

AUS $84K-$112K)

$100K-$150K (£61K-£92K /

AUS $112K-$168K)

OverUS $150K (£92K+ /

AUS $168K+)

BangladeshBhutan

EthiopiaIndia

IndonesiaIran

NepalPakistan

PhilippinesSri LankaVietnam

AAuAuAuAuAuAu ttustustustustustustt lttraltraltraltraltraltrallillialialialialialia

Less thanUS $25K(£15K /

AUS $28K)

$25K-$50K (£15K-£31K /

AUS $28K-$56K)

$50K-$75K (£31K-£46K /

AUS $56K-$84K)

$75K-$100K (£46K-£61K /

AUS $84K-$112K)

$100K-$150K (£61K-£92K /

AUS $112K-$168K)

OverUS $150K (£92K+ /

AUS $168K+)

CanadaColombiaEcuador

EgyptHong Kong

IraqJordanKenya

MalaysiaMexicoRussia

Saudi ArabiaSingapore

South AfricaSyria

TanzaniaThailand

TurkeyUganda

UKZambia

Zimbabwe

Less thanUS $25K(£15K /

AUS $28K)

$25K-$50K (£15K-£31K /

AUS $28K-$56K)

$50K-$75K (£31K-£46K /

AUS $56K-$84K)

$75K-$100K (£46K-£61K /

AUS $84K-$112K)

$100K-$150K (£61K-£92K /

AUS $112K-$168K)

Over$150K

(£92K+ /AUS $168K+)

19

Table 11: Location vs. study destination preference

Table 12: Location vs. study destination preference — regions

In line with earlier comments relating to the influence of geography, there is a clearly defined split between nationalities that choose to study in either Australia or the UK. Australia attracts more students from South East Asia and South Central Asia, whereas the UK attracts more students from Africa and the Americas.

20

Chapter Two

Motivations for selecting an institution

Key findings

J Prospective UK students choose a course, then the country, then the institution.

J The five most important factors for international students when considering study abroad are consistent regardless of where they intend to study. These five factors

in order of importance are: quality of education (compared to their home country), international recognition of qualifications, the country’s attitude to international students, safety and ease of getting a visa.

J The four least important factors for international students when considering study abroad are also consistent regardless of where they intend to study. The four least important factors are: distance from home country, ability to get permanent residency in the destination country after study, exposure to culture or life in the destination country, better job prospects in the destination country.

Key actions

J Course choice is crucial. Institutions should market their courses and subjects, followed by the country and then their institution.

J The competitive landscape in terms of country choice remains the same; however, as the competition increases, differentiating their country is every institutions’ responsibility.

J Perception of prestige plays a significant role in defining country of choice. We recommend that Australian institutions demonstrate prestige, while UK institutions should demonstrate successful graduate outcomes.

J Central government in both the UK and Australia have a role to play in communicating a welcoming message to international students and that appropriate safety mechanisms are in place to protect them. Immigration policy and practice must reflect this welcoming approach.

21

What makes a student decide to apply?

Table 14: How important or unimportant are the following factors when choosing which country to study in?

We asked students to rank certain factors in terms of importance when choosing the country where they will study.

We found subject was the most important priority with 60 per cent of respondents selecting this option. For students intending to study in the UK, the first preference for subject climbs to 63 per cent.

‘The most important factor is course ranking and employment prospects.’

— Prospective student, Zimbabwe

‘University ranking in relation to the course curriculum is important.’— Prospective student, Sierra Leone

What comes first — country, subject or university?

Table 13: When you consider where and what to study, how do you make your decision?

* Students were asked to rate the importance of the following factors on a scale of 1-7. These numbers represent the percentage of students who selected 4-5 or 6-7

22

We asked students to rank certain factors in terms of importance when choosing the country where they will study. Table 14 could be considered as a three step process in the decision making of a prospective student. Firstly they make the initial decision to study abroad because they hope the education will be of a higher quality than if they stayed at home. Secondly, they want to study overseas because they think another country’s qualifications (probably the UK, Australia or the US) will be recognised in their home country. Then their decision comes down to:

o Country’s attitude to international studentso Safety o Ease of getting a visa

‘We are speaking to international students on a daily basis. When a student was murdered in Salford in 2011 or riots were taking place in London and other major cities in summer 2012, we saw an immediate increase in enquiries about safety from worried students and parents. We’ve worked hard with our partner institutions to address any concerns immediately with specific content and communications.’

— Duncan Findlater Director, Client Services and External Relations

Hobsons EMEA

The four least important factors are also consistent. From least important upwards, these factors are: distance from home country, ability to get permanent residency in the destination country after studying, exposure to culture or life in destination country, and better job prospects in /migration to the destination country.

‘The most important factor is universities’ attitude towards international students.’

— Prospective student, India

23

Table 15: How important or unimportant are the following factors when choosing which country to study in?

The above table indicates that students consider distance from home country unimportant. However, as previously mentioned despite what students say geographical location does impact upon their decision making.

For both undergraduates and postgraduates quality of education compared to their home country and international recognition of qualifications are very important. These are followed by safety and the country’s attitude towards international students. Is the current government’s attitude towards immigration painting a picture of how welcome international students are through visa processing, immigration policy and government regulation?

‘Ability to get permanent residency is the second least most important factor in student decision-making. The UK needs to understand that when a student is thinking of coming to the UK to study in, most cases, this means they don’t want to live in the UK after they have completed their course. What it does mean is that they value the high standard of education they will receive from one of our universities. The quality of education in the UK is high and so is the demand to study here. We must be open and welcome to international students.’

— Duncan Findlater Director, Client Services and External Relations

Hobsons EMEA

24

Table 16: Please select from the list below those factors that were influential in your decision not to study in the UK/Australia

‘Since April 2012, non-European Union graduates looking to stay on to work in the UK after their studies have 4 months to find a job paying at least £20,000 at a registered sponsor company that will support their application for a Tier 2 visa.’

— Times Higher Education, 2013 01

Again, a significant factor influencing the decision not to study in Australia, (26 per cent), was post-study work options. This will change with the introduction of the post-study work visa in Australia.

Of concern for both the UK and particularly Australia was the continued perception of each country’s attitude to international students. Of the students considering Australia 25 per cent said that their attitude towards international students was the highest influencing factor. This dropped to 16 per cent for the UK.

Too little is being done to demonstrate to international students that both the UK and Australia welcomes them. International students provide a significant financial and cultural contribution to both countries.

1 http://monitor.icef.com/2014/04/english-universities-record-first-international-enrolment-drop-in-29-years

25

Chapter Three

Information gathering, decision-making and application

Key findings

J Electronic content is vital. An institution’s website is important to more than 70 per cent of respondents, and the online/electronic university prospectus is important to more than 50 per cent.

J Social media is primarily used in the research and information gathering phase, but relevance of this media declines as the lifecycle matures. Students indicate that during the research phase they would like to engage with universities and their content through Facebook, Youtube, Instagram and instant messaging.

J Almost 60 per cent of respondents say they’ll never use an agent in the search process.

J Students applying to the UK apply to more institutions, particularly at undergraduate level - 40 per cent apply to five or more.

Key actions

J An institution’s website is the key source for international students to gather information. Institutions need to ensure that all roads lead to enquiries and there are enough signposts to lead international students there.

J Social media strategies that include a strong element of visual content, such as interactive infographics, video, photos and imagery, are essential. YouTube and Instagram are key in core markets and this reconfirms that institutions should focus social strategies on the platforms being used by prospective students.

J While students say that they do not intend to use agents, Hobsons’ experience is that many do. We recommend that institutions consider those markets where agents are important and if there are strategies to make students more self-reliant. How students use agents also needs further analysis, relating to whether they are supporting students with their evaluation of an institution and initial application, or in the decision making phase. We recommend that institutions evaluate the nature of the service provided by agents when compared to the costs.

J Students applying to UK institutions, particularly at undergraduate level, are applying to more than one institution. We recommend that institutions build relationships and actively follow up with offer holders.

26

‘Instead of just redirecting students to the ‘FAQ’ page, please take a bit of time to actually respond along with posting a link to the appropriate place or answer.’

— Prospective masters’ student, Pakistan

Students expect quick responses when seeking information from an institution. Around three quarters (74 per cent) of respondents want a detailed reply by email within three days, and 71 per cent expect a short reply (possibly automated) within 24 hours. This reconfirms Hobsons’ commitment to the value of combining an automated email marketing strategy with a personalised intervention.

The role of social media

‘A stronger bond between the university and a student is achieved through social media.’

— Prospective student, Pakistan

Table 18: Which of the following social media sites that you use would you expect a university to have?

What levels of service do international students expect?

Table 17: Response expectations% Rank 1/2

A detailed reply via email in a week

A short reply via email in a week

A detailed reply via phone in three days

A short reply via phone in 24 hours

A detailed reply via email in three days

A short reply via email in 24 hours

0% 10% 20% 30% 40% 50% 60% 70% 80%

20%

4%

13%

18%

74%

71%

Prefer to interact Prefer not to interact

6%

4%

3%

1%

1%

1%

1%

1%

1%

5%

6%

84%

36%

32%

21%

6%

3%

3%

18%

8%

21%

54%

Internet forums (e.g. student room)

Instant messaging on university website

Other

g student room)

27

Social media is primarily used in the research and information gathering phase, with relevance of this media declining through the student lifecycle. Students expect institutions to be active on Facebook, YouTube, LinkedIn and Twitter.

‘A strong Twitter account is quite helpful; students not only get quick access to a university representative but also receive insight into the activities at the institution.’

— Prospective undergraduate student, Indonesia

Previous Hobsons research has shown that students want to be contacted by email once they have made initial contact with an institution. Essentially, during the research phase website and social media content is sufficient, however once they have initiated a one-on-one dialogue, they expect a tailored and personalised experience as they are guided through the application and decision-making process.

We recommend that social media is used in the following ways:

• Facebook — to engage with university staff, current or prospective students • Twitter — for short, quick questions or updates (e.g. open day announcements) • YouTube — university, current student and alumni experience • LinkedIn — professional interest (postgraduate) or alumni experience and connections

‘Social media is essential for a university — if a university doesn’t have a presence and are planning to start developing one, I would recommend the university officials start a Facebook page where they can have a discussion forum and post videos and status of what’s going on in the university. FB is the best place to connect the dots.’

— Prospective undergraduate student, India

Table 19: At what points did you use social media to research the university and the application process?

28

The previous question asked students to indicate the channels they expected an institution to have. This question asks how they would like to have engaged with an institution and their content during the research phase. Here instant/chat messaging, Instagram and YouTube came out on top. This suggests that students are looking for more lifestyle and student experience information. We recommend that a clear visual social media strategy could help engage students with the additional information they need when researching their options. The importance of instant/chat messaging is important and mechanism not used by most institutions.

‘A picture speaks louder than words. I would suggest you use a lot of pictures taken by the students themselves.’

— Prospective undergraduate student, India

‘Universities need to upload videos on YouTube giving guided tours of the campus and accommodation as most of the time international students are unable to be present for open days. Facebook is also a great way to show prospective students what the university can offer and also gives us a chance to contact present students at the university.’

— Prospective undergraduate student, India

It is important to customise your message to the right social media channel, giving thought to students’ mindset while researching.

‘When it comes to social media ‘never post and run’ — leaving the conversation or question unattended.’

— Prospective undergraduate student, India

Table 20: You mentioned that you would’ve liked to have interacted with a university on the following social media, but the option was not available to you. At what stage of your application process would you have liked to use the following social media?

29

Table 21: To what extent do you agree or disagree with the following? Please indicate on a scale of 1–7, where 1= Strongly Disagree and 7= Strongly Agree: “Social Media is useful to...”

There is no clear picture of what information is primarily being sought on social media in the research phase. Students see social media as a channel to get factual information, as well as opinion and direct contact.

How are students using agents in this process?Table 22: Have you used an agent to support your university search process?

When asked if they intend to use an agent in their search process, ten per cent of students wishing to study in Australia say they will always use an agent. Meanwhile of, the total respondents, 65 per cent said that they would never use an agent. This figure rises to 71 per cent for students intending to study in the UK.

30

Overall, of those students who will always use an agent, South East Asian nationalities favour agent assistance in the search process: Thailand (23 per cent), Malaysia (17 per cent), Vietnam (17 per cent), Hong Kong (14 per cent) and China (14 per cent).

‘I used an agent because it was easier to complete the administrative procedures… constant feedback about the application and readily available course/university information via face-to-face discussion.’

— Prospective masters’ student, Mauritius

Table 23: Have you used an agent to support your university search process? (Regions)

31

Table 24: How important or unimportant are the following factors when deciding which university to apply to?

How many other institutions are students applying to?

Table 25: How many universities did you apply to in the UK/Australia?

Of students intending to study in Australia, 70 per cent applied to two or fewer institutions, and only seven per cent applied to five or more institutions. In contrast, students intending to study in the UK apply to a much greater number of institutions. Only approximately 40 per cent of students intending to study in the UK applied to two or fewer institutions while 34 per cent applied to five or more institutions. There is also a clear difference in the number of institutions that prospective UK undergraduate students intend to apply to and marketing strategies should take this into account.

32

This is where we see the most variation between the UK and Australian respondents. Academic reputation/ranking is the most important factor for students intending to study in the UK, yet it is only the fourth most important for students intending to study in Australia. More significantly, an institution’s facilities are the third most important factor for students intending to study in the UK, but ranked least important (18th place) for students intending to study in Australia.

Deciding between institutions

Table 26: When choosing between these two universities, what are the five most important criteria in your decision to pick one over the other? Please rank the five most important criteria where 1 = most important.

Table 27: You previously mentioned that entry requirements are important to you. When thinking about entry requirements, to what extent do you agree or disagree with the following?

33

When students were asked how they applied or intend to apply for their visa, the question elicited different responses based on which country they intended to study in. The percentage who used or intended to use an agent ranged from 14 per cent for students intending to study in the UK, to 30 per cent for students intending to study in Australia. This is probably as a result of the higher proportion of Asian students, who traditionally have a higher reliance on agents.

Institutions in the UK are expected to play a larger role in supporting students in the visa processing area (39 per cent), compared to Australian institutions (32 per cent).

Students intending to study in Australia appear to have a greater understanding of the process that they will need to go through to obtain a visa. We recommend that UK institutions look at the information that is provided to prospective students on visas, not only to reduce reliance on agents but to reduce likely administrative burden as students contact the institution directly for support.

When analysing responses we found that the majority are looking for institutions that match their expected grades.

34

Chapter Four

What is teaching quality

Key findings

J When students are asked to make decisions and choose the most important attribute that could influence their perception of teaching quality, they choose tuition fees.

J Student satisfaction becomes one of the less important attributes – so while student satisfaction is important, it is not the most important factor in student decision making.

J There is very little change in student perceptions of institutions that charge between £5,000 and £11,000 in fees.

J Students are typically more interested in a subject or course ranking than the overall institution ranking.

J If a course or institution is ranked in the bottom quintile of rankings moving into the fourth quintile will have a significant impact on student perceptions.

*Follow @HobsonsEMEA for further in depth student and country profiles over summer 2014.

Key actions

J Understanding your core enrolment markets and the profiles* within them will help you understand what teaching quality means to students and the content you need to develop to help influence the perception of your institution’s teaching quality.

J When students are looking at rankings they are primarily focused on course or subject rankings, rather than the overall rank of the institution. Lead your marketing with courses or subjects where you rank well.

J Review tuition fees. If you are charging more than £14,000 ensure that the value proposition is well articulated.

35

What can you do to influence perception of teaching quality?

We have established that perception of teaching quality is the most important factor when selecting an institution. But how do students form this perception of your institution’s teaching quality? What are the factors that they consider, and how do they weight different factors that could represent teaching quality? Is there a difference between what they say and what they do? Most importantly, how can you influence their perceptions and ensure that they select your institution?

Table 29: What’s important when deciding between institutions?

When choosing between two institutions 90 per cent of respondents said that teaching quality is the most important deciding factor, followed by subjects available to study (86 per cent), academic reputation and ranking and tuition fees. The least important factor is ease of getting permanent residency after studying (45 per cent). Again, this indicates that most international students are not intending to migrate.

Actions speak louder than words

What they sayTable 30: When thinking about teaching quality, how important or unimportant are the following factors? Please rate on a scale of 1–7 where 1= not at all.

36

When students are asked to rate the importance of factors related to teaching quality respondents said that academic reputation (76 per cent), subject or course ranking (76 per cent), student satisfaction with the institution (74 per cent), tuition fees (72 per cent) and use of technology in teaching (72 per cent) were their most important determinates for teaching quality. It was interesting to us that graduate employment rates (64 per cent) and teaching hours per week (57 per cent) were less important. The two least important factors were the age of the institution (33 per cent) and high entry requirements (39 per cent).

What they do

The large number of respondents to this survey allowed us to undertake conjoint analysis in order to take a closer look at which attributes were the most important in influencing perceptions of teaching quality.

In consultation with our partners we selected six attributes: tuition fees, student satisfaction, institution ranking, subject ranking, teaching hours per week and the percentage of students in employment. The attributes were chosen because they are the ones that are most commonly associated with teaching quality and are most likely to be included in marketing materials.

The conjoint analysis allowed us to assess the relative importance of each of these attributes in assessing teaching quality and the preferred level within each attribute. Respondents were repeatedly (eight to ten times) shown a set of ‘institutions’, each one consisting of a random combination of levels for each of the attributes, and were asked to choose which one represents the best teaching quality.

Table 31: Conjoint factors of importance

When asked to make ‘trade-offs’ between attributes, tuition fees (25 per cent) emerge as the most important attribute, followed by subject ranking (23 per cent), institution ranking (21 per cent), percentage of students in employment (15 per cent), teaching hours per week (10 per cent) and finally student satisfaction (8 per cent).

This demonstrates that while student satisfaction is important and it is a determinate of teaching quality, it is not the most important factor in student decision-making.

37

Table 31: Conjoint utilities

We then took each of these six attributes from these responses, broke them down into components, and calculated a utility score based on level of preference for each of these components. The utility score of attribute components represents the total satisfaction or attractiveness of that option.

If we take a close look at each of the top three attributes - tuition fees, subject ranking and institution ranking - we can start to make some recommendations about how to target your marketing.

When it comes to annual tuition fees table 32 clearly shows a very small change in utility score between charging £5,000 and £11,000. If you currently charge £5,000 you may wish to consider reviewing this upward as, depending on the nature of the courses, you may not lose as many students relative to the possible income you may gain.

Charging fees of £14,000 or above markedly decreases the attractiveness of that course to prospective students. We recommend that if you are charging £14,000 or above, your marketing materials should make the additional value proposition very clear.

38

‘Institutions should have a clear understanding of their core markets and the types of students they are attracting from each of these. Critically they must have the content that is relevant to these groups to support the students make an informed decision about the course, institution and country in which they wish to study. The next step is to deliver that content through the channels that students actually use and in the frequency they demand — this is the key differentiator and will be the decider for a prospective international student.’

— Duncan Findlater Director, Client and External Relations

Hobsons EMEA

When it comes to subject and institution rankings respondents clearly categorise institution and subject rankings into three levels – top quintile, those in the middle three quintiles and bottom quintile. If you are ranked in the top quintile you are probably already leading your marketing with this. We recommend that if you are in the top quintile for any subject you should lead your marketing with this to create a ‘halo’ marketing effect.

If you fall into the middle three quintiles, any movement up or down should make very little difference to students’ perception of your teaching quality. If you are in the bottom quintile you have the most to gain, and any movement into the fourth quintile for any subject or overall institutional ranking may have a significant impact on student perception.

39

What next?

The analysis provided in this report is conducted at a very high level. Hobsons can analyse the information across multiple demographic variables. This allows institutions to better understand how they can engage their target audiences through content, and better understand student perception and decision making at all stages of the student lifecycle.

We can also provide institutions with a full strategic framework that can be used to start the process of marketing optimisation. Follow @HobsonsEMEA for further in depth student and country profiles over summer 2014 that will be invaluable to target and segment your marketing.

If you are interested in learning more, please visit our website www.hobsons.com or contact Marie Clark on +44 2072506622 and marie.clark@hobsons.com for further details.