A student’s initial perception of value when selecting a college: an application of value added

Abstract

Higher education customers can be defined as either the faculty, students or administration. The key stakeholder often has been identified as the student. Selecting a college is the first step the student undertakes in the educational process of a higher education. The educational value perception to be earned has an important impact on the student’s choice of a particular college. The value‐added concept of an organized activity originated in Europe. Applying the concept was difficult in manufacturing operations and it is even more difficult to apply it to a service operation such as higher education. Working through the application difficulties should provide valuable insights into why a student chooses a particular college over another similar institution. The out‐of‐pocket costs to attend a college may be a useful surrogate for the perceived value for the student in valuing the education from individual colleges.

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