A Small Private University Normally Charges the Same Price-$400-Per Credit-Hour

question 52

Essay

A small private university normally charges the same price-$400-per credit-hour for all courses and for all students. While the university is pretty near capacity in the fall and spring, it finds that its classrooms are only about 40% occupied during the summer session. A student of operations management (who has recently read this chapter) wonders if yield management might be useful to both the university and its students alike. This student, with help from some economics majors, estimates a demand curve for summer course enrollment. Points on this demand curve include 6000 credit-hours at the current rate of $400, 10,000 credit hours at $240, 15,000 credit-hours at $180. Based on this demand curve, what price point would best serve the university, if its objective is the greatest revenue for the summer session?

Identify ethical dilemmas and understand ethical behavior in business practices.

Understand the implications of public opinion on the perception of ethical standards in various professions.

Recognize the importance of ethics in marketing and business decisions.

Understand the role of laws in shaping business ethics and ethical behavior.

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Definitions:

Cafeteria Compensation

A type of employee benefit plan where employees can choose from a variety of pre-tax benefit options, similar to a cafeteria.

Personal Ownership

The sense of responsibility and commitment an individual feels toward a task, project, or role, fostering accountability and dedication.

Employee Participation

The involvement of employees in the decision-making process of an organization, which can enhance motivation and commitment.

Clear Policies

Well-defined principles or rules that guide decisions and actions within an organization.