LANGUAGE IN INDIA

Strength for Today and Bright Hope for Tomorrow

Volume 12 : 11 November 2012
ISSN 1930-2940

Managing Editor: M. S. Thirumalai, Ph.D.
Editors: B. Mallikarjun, Ph.D.
         Sam Mohanlal, Ph.D.
         B. A. Sharada, Ph.D.
         A. R. Fatihi, Ph.D.
         Lakhan Gusain, Ph.D.
         Jennifer Marie Bayer, Ph.D.
         S. M. Ravichandran, Ph.D.
         G. Baskaran, Ph.D.
         L. Ramamoorthy, Ph.D.
Assistant Managing Editor: Swarna Thirumalai, M.A.

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Pricing Policy of Engineering Education –
A Study in Tamilnadu State

A. Pradhip Babu, M.A., M.Phil. &
N. Malathi, M.Sc., M.A., M.Phil., Ph.D.

Abstract

In India, during the last three decades, the government is gradually receding from financing the institutions of higher learning and the private enterprises are coming up to meet the demand for higher education. An in-depth study of the issue of pricing policy has assumed importance, as private institutions work and charge prices on market principle. Their main objective is profit maximization, which may be attained in various ways like charging higher admission fees, tuition fees, hostel-mess fees, rent, etc. The paper focuses on the pricing cost and in terms of its revenue of self-financing engineering education in Tamilnadu state.

The researcher chose 50 self-financing engineering institutions from two districts in Tamilnadu, namely, Kancheepuram and Tiruvallur. Out of 32 districts in Tamilnadu, these two districts have a high concentration of self-financing engineering colleges and these colleges adopt a variety of pricing policies. For purposes of this paper, these 50 colleges are further classified into five groups (A, B, C, D and E), each with 10 colleges, on the basis of fee structure, student strength, pass percentage and placement. Each institution’s unit cost of education is analysed in order to measure internal as well as external efficiencies of the educational institution in terms of productivity and allocation of resources. The researcher observed that each group earned a different amount in profit minimum from 10.9 percent to the maximum of 52.7 percent, but group E colleges incurred losses.

This is only the beginning part of the article. PLEASE CLICK HERE TO READ THE ARTICLE IN PRINTER-FRIENDLY VERSION.

A. Pradhip Babu, M.A., M.Phil.
Assistant Professor
Department of Economics
Annamalai University
Annamalainagar
Tamilnadu
India

N. Malathi, M.Sc., M.A., M.Phil., Ph.D.
Professor and Head (Retd.)
Department of Economics
Annamalai University
Annamalainagar
Tamilnadu
India

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