1. THE STUDENT POINT OF VIEW
ANALYSING THE COSTS OF EDUCATIONAL SERVICES
FOR UNIVERSITIES AND E- UNIVERSITIES:
THE STUDENT POINT OF VIEW
Joseph Hassid – Marilou Ioakimidis – Yannis Smirlis • University of Piraeus

2. Most previous studies in the bibliography are focused mainly:
Studies of higher education cost in traditional and/or distance/electronic environment-I
Most previous studies in the bibliography are focused mainly:
On the distinction and analysis of costs from the viewpoint of the education providing institution (supply side of the educational services market)
On comparing the costs that the Academic Institution incurs in cases of traditional or distance education
Joseph Hassid – Marilou Ioakimidis – Yannis Smirlis • University of Piraeus

3. They analyse costs without detailed comparative approach.
Studies of higher education cost in traditional and/or distance/electronic environment-II
Previous research efforts* on the demand side of the educational services market (students’ cost in traditional and/or distance learning) are limited
They analyse costs without detailed comparative approach.
*e.g Riley et al (1999), Mc Clean (2004)
Joseph Hassid – Marilou Ioakimidis – Yannis Smirlis • University of Piraeus

4. Contribution of the present study
The rationale for the present study is the identified absence of economic analyses of the students’ cost for education and the implied need for a comparison between traditional and distance/electronic education.
This study presents and analyses a model which specifies, measures and compares costs related with the two alternative ways of education : traditional and distance.
Joseph Hassid – Marilou Ioakimidis – Yannis Smirlis • University of Piraeus

5. The Model’s Specifications
Conceptual model able to be applied in all university cases that use all types of education (mainly in the social sciences).
Easy to understand and to be applied.
Based on common measures for both distance and traditional education, enabling direct comparison between the two learning environments.
Provides objective measurement of user’s costs in traditional & distance / electronic learning.
Joseph Hassid – Marilou Ioakimidis – Yannis Smirlis • University of Piraeus

6. Methodology of the Study
Recognition of costs for educational services
on the Demand side – “The Real World”
Model Design
Pilot Testing /
Implementation
Results : Interpretation & Reporting
Joseph Hassid – Marilou Ioakimidis – Yannis Smirlis • University of Piraeus

7. Description of the Model
The total cost that students incur is analysed using a two level hierarchical structure of specific categories of expenses. This hierarchical structure for costs analysis is the same for both traditional and distance education, allowing for direct comparison of costs in the two cases.
According to the model, total cost for students is composed of seven (7) main cost categories C1, C2, C3..., C7 which in turn are distinguished in more detailed.
Total cost TSC (Total Student Cost) is the aggregation of all category costs i.e.:
TSC = C1 + C2 +C3+…+ C7
Joseph Hassid – Marilou Ioakimidis – Yannis Smirlis • University of Piraeus

8. The two-level hierarchical structure of the Model
Total Student Cost (TSC)
1ST LEVEL
Attendance
& equipment
Time
Opportunity
Psychological
Tuition
fees
Travelling
Seminar C1 C2 C3 C4 C5 C6 C7
C1.3
C1.1
C1.2
C1.4
C1.5
C1.6
C2.1
C3.2
C3.1
C4.1
C4.2
C5.1
C7.1
C6.1
C6.2
C6.3
C6.4
C6.5
2ND LEVEL
TRADITIONAL education
DISTANCE education
BOTH TRADITIONAL & DISTANCE education
Joseph Hassid – Marilou Ioakimidis – Yannis Smirlis • University of Piraeus

9. The detailed description of the cost analysis
COST CATEGORY
TRADITIONAL EDUCATION
DISTANCE EDUCATION
Purchase of a PC
Software upgrades
Peripherals
Telephone Line
Internet subscription
Stationery
Purchase of academic books, handbooks
Cost of purchase and use of electronic and other educational material and equipment.
Cost of Attendance in the educational process C1
Tuition fees
Cost for Tuition fees C2 _
Renting of accommodation
Cost of transportation and travel
Travel – Transportation Cost C3
Time for the completion of academic papers, examinations and other work
Time of transportation,
Time for the completion of academic proposals, examinations and other work
«Time» Cost or Cost from Time Consumption C4
The value of lost productivity
The value of lost productivity (forgone earnings)
Opportunity Cost C5
Stress of faults while attending the educational process,
Stress of using and keeping the computer equipment operational
Stress of competition,
Absence of teaching staff
Interruptions of the flow of a course
“Psychological Cost” or “Psychological pressures” from the educational procedure C6
“Seminar” Cost : effort for reaching the adequate knowledge to follow a course
“Seminar Cost” : effort for reaching the adequate knowledge to follow a course
Cost for non academic, private tutorial schools C7
Joseph Hassid – Marilou Ioakimidis – Yannis Smirlis • University of Piraeus

10. Model Implementation: The case of a Greek University
A validation - implementation of the model has been performed to a Greek University (University of Piraeus) that has mainly traditional type of learning and limited distance education.
A questionnaire survey was conducted on a number of students who were asked to:
Indicate approximately the money they spent in order to participate in the traditional procedure of education
Estimate the cost that they would have incurred if they had chosen to participate in a similar distance learning course
The basic fieldwork data are :
204 students (108 female - 96 male) which they had uniform distribution in academic semesters.
132 originated from local areas (region of Attica), 53 from Greek province and 19 from abroad.
Age range: 19 – 26 years
Joseph Hassid – Marilou Ioakimidis – Yannis Smirlis • University of Piraeus

11. Previous experience of students in different types of Distance /Electronic education
Joseph Hassid – Marilou Ioakimidis – Yannis Smirlis • University of Piraeus

12. Comparison of Total Student Cost for traditional and for distance education according to students’ origin. (€)
Joseph Hassid – Marilou Ioakimidis – Yannis Smirlis • University of Piraeus

13. Traditional vs. Distance education: Perceived qualitative relative advantages
Joseph Hassid – Marilou Ioakimidis – Yannis Smirlis • University of Piraeus

14. Interpretation of findings
Each of the two alternative educational environments is characterized by own comparative advantages
Traditional Education: Qualitative aspects appreciated more
Distance Education: Undeniable cost advantages
Simultaneous use is feasible
Joseph Hassid – Marilou Ioakimidis – Yannis Smirlis • University of Piraeus

15. Tentative Conclusion
The results of present study, lead to the conclusion that the most rationale solution to the basic students’ (and educational planner’s dilemma) is the application of a mixed (blended) approach, through which the student will benefit clearly from the cost efficiency of distance /electronic education and at the same time exploit the advantages of personal contact with their professors as well as those of “networking“ with their fellow students implied by the traditional process of education.
Joseph Hassid – Marilou Ioakimidis – Yannis Smirlis • University of Piraeus