IDENTIFYING AND ANALYZING FACTORS THAT AFFECT THE WILLINGNESS-TO-PAY OF TUITION OF A BOARDING HIGH SCHOOL IN A REMOTE AREA IN INDONESIA

Abstract

Tuition is a critical consideration for families who plan to send their children for superior high school. In any purchase strategy, ability to pay (ATP) and willingness to pay (WTP) have a different understanding. ATP depends on any information related to families’ wealth while WTP is determined by how families’ perceived the value proposition provided. This study aims to measure WTP and identify the factors that influence the tuition of superior high school, so it can be use in determining marketing strategies and pricing strategies. This data was collected by questionnaire to 360 respondents obtained during student admission of SMA Unggul Del. The relationship of factors that influence the WTP is determined by multiple linear regression methods. Based on the analysis, the average WTP is Rp1.135.322,22, while the mode value is Rp1.000.000,00 per month. Factors influencing WTP are the age of parents, income level, and parent’s WTP ratio of the tuition of SMA Unggul Del with that of other favorite school. Based on these factors, to be able to target parents of students with higher WTP, an effective marketing strategy is targeting parents with higher income levels, younger, and perceive SMA Unggul Del more than other schools.