Personal Finance
High pricing strategy tailored for status-conscious Chinese
By Hong Yi (China Daily)
Updated: 2009-11-19 08:10
Many business schools in fact have "prestige" pricing policies as their business strategy because they believe high tuition cost is an expression of strength and confidence in a competitive education market.
"Price is the first thing communicated to a social circle. And to some extent, it is an expression of personal identity, which can be an important product feature," said Lydia Zhang, a Shanghai-based market researcher who has been following luxury branding and marketing for seven years.
"Without premium pricing, the EMBA would lack its luster for status-oriented consumers."
Liu Zheng, senior consultant from the Beijing-based SDR consulting company, said high price can spur more interest out of affluent people.
"Charging top price for a blend of limited student numbers, an elegant learning environment and association with celebrities or luxury events can generate the interest of a rich man," said Liu. "High-end EMBA courses will undoubtedly continue to be in great demand."
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"In an age of new money, social status is enviably attractive and notoriously unsteady," Zhang said.
"And one of the best ways to maintain the mystique of expensive-for-the-sake-of-expensive EMBA, as well as other luxury goods, is to keep their exclusivity and avoid mainstream consumerism."
