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."
According to the Hurun Wealth Report 2009, there are now 825,000 individuals in China with personal wealth of more than 10 million yuan and 51,000 individuals with more than 100 million yuan. One person in every 1,700 in China has 10 million yuan. One person in every 25,000 has 100 million yuan.
"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."
(China Daily 11/19/2009 page28)
