A study of factors influencing students choice of FPT university

A STUDY OF FACTORS INFLUENCING STUDENT’S CHOICE
OF FPT UNIVERSITY

In Partial Fulfillment of the Requirements of the Degree of

MASTER OF BUSINESS ADMINISTRATION

In Marketing

By

Mr. Nguyen Thanh Duoc

ID: MBA04008

International University - Vietnam National University HCMC

August 2013


A STUDY OF FACTORS INFLUENCING STUDENT’S CHOICE
OF FPT UNIVERSITY

In Partial Fulfillment of the Requirements of the Degree of

MASTER OF BUSINESS ADMINISTRATION

In Marketing
by
Mr. Nguyen Thanh Duoc
ID: MBA04008

International University - Vietnam National University HCMC

August 2013

Under the guidance and approval of the committee, and approved by all its members, this thesis
has been accepted in partial fulfillment of the requirements for the degree.

Approved:

---------------------------------------------Chairperson

--------------------------------------------Advisor

---------------------------------------------Committee member

--------------------------------------------Committee member

---------------------------------------------Committee member

--------------------------------------------Committee member


Acknowledgements
This thesis would not be completed without the help and support of the people I have
benefited from during the preparation and completion of this study.

First and foremost, I would like to express my whole-hearted gratefulness to my
advisor, Dr. Nguyen Quynh Mai. It was her invaluable advice, encouragement and
inspiration that motivated me from the very beginning to the end of this study.

I also thank to the academic staff of School of Business, International University
HCMC for their help with the data collection.

I really appreciate the support of my colleagues at FPT University HCMC so that I
could pursue this study.

I also would like to thank my classmates of IU-MBA04 for their motivation and
sharing when I faced some challenges and problems.

I am especially thankful to the students who voluntarily took part in the interviews
and taking the survey. Without their help I would not have completed this study.

Last but not least, I owe my wife and little daughter a debt of gratitude. They always
silently support and sacrifice the quality time we should have had together for my
study.
Nguyen Thanh Duoc – August 2013
i


Plagiarism Statements
I would like to declare that, apart from the acknowledged references, this
thesis either does not use language, ideas, or other original material from anyone; or
has not been previously submitted to any other educational and research programs or
institutions. I fully understand that any writings in this thesis contradicted to the
above statement will automatically lead to the rejection from the MBA program at
the International University – Vietnam National University Hochiminh City.

ii

Copyright Statement
This copy of the thesis has been supplied on condition that anyone who
consults it is understood to recognize that its copyright rests with its author and that
no quotation from the thesis and no information derived from it may be published
without the author’s prior consent.
© Nguyen Thanh Duoc/ MBA-04008/2013

iii


TABLE OF CONTENT
List of Tables .................................................................................................................... vi
List of Figures ................................................................................................................ viii
Abbreviation..................................................................................................................... ix
Abstract ..............................................................................................................................x
CHAPTER I: INTRODUCTION ......................................................................................1
1.1.

Background of the study ......................................................................................1

1.2.

Statement of problem ...........................................................................................3

1.3.

Study objectives ...................................................................................................5

1.4.

Research Questions .............................................................................................5

1.5.

Significance of the study ......................................................................................6

1.6.

Scope and Limitation of the study ........................................................................6

CHAPTER 2: LITERATURE REVIEW ..........................................................................8
2.1 College choice theories............................................................................................8
2.1.1 Economic models ............................................................................................9
2.1.2 Sociological models ...................................................................................... 10
2.1.3 Combined models ......................................................................................... 11
2.2 Influencing Factors of College Choice ................................................................... 14
2.2.1 Student characteristics ................................................................................... 14
2.2.2 Significant people ......................................................................................... 14
2.2.3 University characteristics .............................................................................. 15
2.2.4 University communication to prospective students......................................... 19
2.3 Study on College Choice Undertaken in Vietnam ................................................... 20
CHAPTER 3: RESEARCH METHODOLOGY............................................................. 23
3.1 Conceptual Framework ......................................................................................... 23
3.1.1 Student Characteristics .................................................................................. 24
3.1.2 Significant people ......................................................................................... 25
3.1.3 University characteristics .............................................................................. 25
3.1.4 University communication efforts with prospective students .......................... 26
3.2 Research method ................................................................................................... 27
3.3 Measurement ......................................................................................................... 28
3.4 Questionnaire Design ............................................................................................ 28

iv


3.4.1
3.4.2
3.4.3

Qualitative Study........................................................................................... 28
First draft questionnaire - Pilot Test ............................................................... 31
Final draft Questionnaire ............................................................................... 32

3.5 Population and sampling ....................................................................................... 32
3.5.1 Target population .......................................................................................... 32
3.5.2 Sampling ....................................................................................................... 33
3.6 Data collection ...................................................................................................... 33
3.7 Data analysis technique ......................................................................................... 34
CHAPTER 4: DATA ANALYSIS AND FINDINGS....................................................... 35
4.1 Descriptive Statistics ............................................................................................. 35
4.1.1 Survey Response Rate ................................................................................... 35
4.1.2 Demographic profile ..................................................................................... 36
4.2 Reliability Analysis ................................................................................................ 42
4.3 Indentifying most influential factors ....................................................................... 42
4.4 Analyzing most influential factors .......................................................................... 44
4.4.1 Difference of influential factors among students by GPA ............................... 45
4.4.2 Difference of influential factors among students by living areas..................... 48
4.4.3 Difference of influential factors among students by household income .......... 51
4.4.4 Difference of influential factors among students by university ....................... 57
CHAPTER 5: DISCUSSION, IMPLICATIONS AND RECOMMENDATIONS ......... 62
5.1 Main Findings ....................................................................................................... 62

5.1.1 Most influential factors on student’s choice of university ............................... 62
5.1.2 Difference of most influential factors among students by such characteristics as
grade 12 GPA, living areas and household income ..................................................... 65
5.1.3 Difference of most influential factors between FPT University students and
students from other universities .................................................................................. 67
5.2 Implications........................................................................................................... 67
5.2.1 What to communicate.................................................................................... 68
5.2.2 Who to communicate..................................................................................... 68
5.2.3 How to communicate .................................................................................... 69
5.2.4 How to stay competitive ................................................................................ 69
5.3 Limitations and Recommendations for Future Research ......................................... 70
REFERENCES................................................................................................................. 71
APPENDICES .................................................................................................................. 78

v


List of Tables

Table 1: Higher Education Institutions in Vietnam, 2000 – 2012

1

Table 2: Students of Higher Education in Vietnam, 2000 - 2012

2

Table 3: Factors of Significant People

25

Table 4: Factors of University Characteristics

26

Table 5: Factors of University Communication efforts

27

Table 6: Reliability statistics of pilot data

32

Table 7: Response rate

36

Table 8: Frequency and percentage of respondents by gender

36

Table 9: Grade 12 GPA

37

Table 10: University Entrance Examination Scores

38

Table 11: Living area distribution

39

Table 12: Parents' level of education

40

Table 13: Household income

41

Table 14: Reliability Test

42

Table 15: Means of all factors

43

Table 16: Results of mean comparison with test value = 3.5

44

Table 17: Mean difference of university reputation among students by grade12 GPA
46
Table 18: Difference of influential factors among students by grade 12 GPA

47

Table 19: Mean difference of lecturers’ qualification among students by living areas

49
Table 20: Mean difference of university reputation among students by living areas 50
Table 21: Difference of influential factors among students by living area

51
vi


Table 22: Mean difference of employment opportunity among students by household
income

53

Table 23: Mean difference of educational facility among students by household
income

54

Table 24: Mean difference of English instruction language among students by
household income

56

Table 25: Difference of influential factors among students by household income

57

Table 26: Mean difference of educational facility among students by university

58

Table 27: Mean difference of English instruction language among students by
university

59

Table 28: Mean difference of university reputation among students by university 60
Table 29: Difference of influential factors among students by university

61

vii


List of Figures

Figure 1: Chapman’s (1981) Model of Influences on Student College Choice

12

Figure 2: Hossler and Gallagher’s (1987) three-phase model of college choice

13

Figure 3: Conceptual framework of factor influencing student choice of university 23

viii


Abbreviation

HCMC: Ho Chi Minh City
HEI: higher education institute
IT: Information Technology
IU: International University
MOET: Ministry of Education and Training
SPSS: Statistical Package for the Social Sciences

ix


Abstract

The purpose of this study was to explore the factors influencing student’s
choice of university. This study also compared the most influencing factors among
students by grade 12 GPA, living area and household income. Finally it compared
the influence of these factors between first-year students of FPT University and two
other universities to see if there were any significant differences among different
groups of students. The main research method applied in this study was quantitative
study. Through One-sample T-Test and analysis of variance, the results showed that
the most influencing factors are employment opportunity, educational facility,
English instruction language, lecturers’ qualification, university reputation, cost, and
admission opportunity. Results also indicated that there were more similarities than
differences of most influencing factors among students by grade 12 GPA, living area,
household income and university.

Key words: factors, choice of university, FPT University

x

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xi


CHAPTER I: INTRODUCTION
This chapter will describe with background of the study which provides some facts
and figures of higher education in Vietnam. Next it will discuss the problems FPT
University is facing. Then it will mention the study objects, research questions, and
significance of the study. Finally it ends with the scope and limitation of the study.
1.1. Background of the study
With the Government’s policy of socialization of education, higher education
is no longer the domain of public institutions. Since Thang Long Private University
received her official decision of establishment in 1994, there have been a number of
private colleges and universities founded (Lam Quang Thiep, 2009). The 2000s
period saw a booming growth of new higher education institutions (HEIs).
Table 1: Higher Education Institutions in Vietnam, 2000 – 2012
Year
2000 - 2001

2005 - 2006

2011 - 2012

Institution

178

279

419

3-year college

104

154

215

Public

99

142

187

Private

5

9

28

University

74

125

204

Public

57

100

150

Private

17

25

54

Source: MOET (2012)
Table 1 shows that in the 1999 – 2000 academic years, there were only 178
public and private HEIs of which 156 were public institutions and 22 were private
1


ones. Ten years later the total number of HEIs increased to 419 of which 337 were
public institutions and 82 were private in the academic year of 2011-2012 (MOET,
2012).

The socialization and expansion of higher education has increased the
number of both public and private HEIs and the participation of foreign universities
in Vietnam by setting up campuses in Vietnam or offering twining programs with a
local university in Vietnam. This phenomenon has provided more chances for
students to pursue their higher education. The Table 2 illustrates the number of
students of higher education over the period 2000 and 2012. In the academic session
2000 -2001 there were 918,228 students at all institutions of higher education. After
five years, this number was 1,387,107 and after ten years, this number was 2,204,313
students, 2.4 times as many as of that in 2000 – 2001.
Table 2: Students of Higher Education in Vietnam, 2000 - 2012
Year
2000 - 2001

2005 - 2006

2011 - 2012

Institution

918,228

1,387,107

2,204,313

3-year college

186,723

299,294

Public

171,922

277,176

613,933

Private

14,801

22,118

142,359

University

731,505

1,087,813

1,448,021

Public

642,041

949,511

1,258,785

Private

89,464

138,302

189,236

756,292

Source: MOET (2012)

2


The entrance to higher education in Vietnam is determined through a
National Entrance Examination like in some other countries such as China, Japan,
Greece, Iran and Turkey (Tatar & Oktay, 2006). Universities in Vietnam recruit
students according to their scores of this examination but not less than floor scores
set by MOET.
Besides the advantages of increasing number of HEIs, the growth of HEIs has
increased the competitive nature of higher education industry for undergraduate
students in Viet Nam. According to Tran and Cao (2009) the number of students
graduating from high school remains at 1.1 million in recent years. After recruiting
new students for the 2012 – 2013 academic session, many public universities and
private universities could not recruit enough students to run their training programs
(Lam, 2012).

1.2. Statement of problem
As a matter of facts the higher education industry in Vietnam is experiencing
aggressive competitiveness among higher education institutions. While public
universities offer new academic programs to attract more students, private
universities promise to offer financial aid packages, such as scholarships up to 100
percent tuition waiver for qualified students (Phan, 2012). The strategies deployed by
many institutions are considered short-term or temporary. Although HEIs invest a
huge amount of money on recruiting strategies, many of the institution are not
confident to what extent their strategies are successful or what they will be like next
year.
Every year graduating high school students have to make two critical
decisions in their lives. According to Johnson and Chapman (cited in Beswick, 1989)
first they have to decide whether or not to continue with higher education, second
3


they have to choose which HEI to attend. Based on some statistics by MOET, around
one million graduating high school students take annual National Entrance
Examination to University. However, the field of college choice and factors
associated with college choice has not been studied much in the context of Vietnam.
Identifying the most influencing factors that recent graduating high school students
have considered is the ultimate goal of this study.
FPT University (Hereafter called the University), established in 2006 by FPT
corporation, is a young private university. Its mission is to train high quality labor
force in information technology and related industries for FPT Corporation and other
businesses in Vietnam and worldwide. The University provides training courses in
three campuses in Ha Noi, in Da Nang and in Ho Chi Minh City. The University
offers undergraduate degrees in Software Engineering, Computer Science, Electronic
and communication, Graphic Design, Information Security and Safety, Information
System, Hotel Management, Business Administration and Finance.

To be accepted to the University, students must fulfill two academic
requirements. First students must obtain score at least equal to MOET floor score in
the national entrance examination to universities. Second students must pass the
University’s own entrance examination.
Competitive pressure has forced the University to spend hundreds of millions
of Vietnam dong on marketing programs all year round to attract students all over
Vietnam. However, in an interview with an FPT University recruiting representative,
he stated that for the last two years the University could recruit only between seventy
and eighty percent of expected number of new students.
In other words at the moment the University is facing strong competition
from other HEIs to attract and recruit prospective students.
4


1.3. Study objectives
The purpose of this study is
-

To explore factors that are most influential to students’ choice of
university;

-

To compare and contrast the most influential factors among students by
characteristics

-

To compare and contrast the most influential factors influencing
student’s choice of FPT University and other universities;

-

To provide suggestions on recruitment strategies to FPT administrators.

The main purpose of this study is to explore factors that are most influential to
students’ choice of university. Next focusing on the most influential factors the
researcher compares and contrasts to see if there are any differences of these factors
among students by such characteristics as grade 12 GPA, living areas and household
income. Then the researcher continues to compare and contrast whether or not there
are any differences of these factors between FPT University students and students
from other universities. Finally, the findings from above analysis help formulate
suggestions for FPT administrators on recruiting strategies.
1.4. Research Questions
The following questions are addressed in this study:
1. What factors most influence student’s choice of university?
2. Are there any differences of most influential factors among students by such
characteristics as grade 12 GPA, living areas and household income?
3. Are there any differences of most influential factors between FPT University
students and students from other universities?

5


1.5. Significance of the study
In terms of academic benefits the study has potential to contribute to the field
of college choice research. The findings may increase knowledge about factors
that are considered influential in Vietnam.
In terms of practical significance findings of this study will provide
meaningful insights about factors affecting student’s choice of university to

HEIs, high schools and those who are involved in recruiting and consulting.
Particularly, the results would help FPT University plan more effective marketing
programs in attracting new students. The survival of a college or university
depends on the number of students who are recruited every year and number of
students who successfully complete the programs. Therefore, institutions should
attempt to recruit students who will succeed in their higher education (Beswick,
1989). Hossler & Palmer (2008) also emphasized the importance of
understanding factors to college choice:
… “It is critical for admission professionals to understand factors that shape
the college decision-making process and the stages students move through as
they make decisions.”..
Knowing and understanding factors that students consider influential are very
important to high schools and counselors. This knowledge would enable
counselors to help students make appropriate choice (Beswick, 1989).
1.6. Scope and Limitation of the study
The participants in this study was limited to freshmen students of FPT University
in Ho Chi Minh City, International University, a one of the top public universities
and Hoa Sen University, one of the top private universities in Ho Chi Minh City.

6


These three universities emphasize on innovation and the use of English as a medium
in higher education.
First year students were chosen as the subject of this study because it is assumed
that first-year undergraduate students will still remember the process they underwent
in deciding to continue to university. Much research on student college choice has
been conducted on high school age students in Vietnam and other countries.
However, researchers have recently revealed that evaluation of student’s choice
process after they enter the university is more appropriate than previously suspected.

For example, Brennan (cited in Kusumawati, 2013) suggested that students were
surveyed during the early weeks of their first semester in order to limit the potential
for cognitive dissonance influencing the type of information the student had access to
and to attempt to limit the types of issues they felt were important in their decision.

The data was collected through a survey at one point in time (cross-sectional
study). Therefore, the findings were valid only to students of three chosen
universities in Ho Chi Minh City. It could not be generalized to other students in
other locations nor in other HEIs.

7


CHAPTER 2: LITERATURE REVIEW
This chapter discusses some college choice theories and popular models in the
world. Then it presents some typical influential factors from previous studies. Finally
this chapter provides results from other research on college choice undertaken in
Vietnam recently.
2.1 College choice theories
College choice – also known as university choice – is referred to as a process that
involves three decisions that students finishing high school education must make:
whether to attend college after high school; selecting a particular institution; and
applying (Hossler et al., 1989, as cited in Schwartz, 2011). For Hossler and
Gallagher (1987, cited in Schwartz, 2011) college choice is a rank order decision, a
process by which students choose a particular institution to attend from a set of
institutions to which they have been admitted.
The importance and value of higher education is unquestionable as increased
education leads to higher salaries, longer working lives, more career mobility, and a
higher quality of life. Students are now more careful when considering the important
choice of which higher education institution to attend and which program to follow

(Leslie and Brinkman, 1988 and Pascarella and Terenzini, 1991; as cited in Vrontis
et al., 2007).
Vrontis et al. (2007) express that looking at higher education as a process, it is
apparent that given the above parameters, the customer in this process is the student.
On the other hand, the providers, the educational institutions, just like any other
industry with customers, have as a primary purpose to satisfy their customers.
Relying on fundamental marketing concepts, it becomes apparent that once
institutions identify the needs and wants of the customer, the task of satisfying these
8


needs and wants becomes more feasible (Eagle and Brennan, 2005, cited in Vrontis
et al., 2007).
Punj and Staelin (1978) state that ‘little is known about the underlying student
buying behavior and how they select a college’. A number of researchers try to
understand and explain this student behavior. Chapman (1981) was the first to
develop

a model intended “to assist college administrators responsible for

recruitment policy to identify the pressures and influences they need to consider in
developing institutional recruiting policy, and to aid continued research in the area of
student college choice” (Vrontis et al., 2007).
Over the years several theoretical models attempt to describe the factors that
influence a student’s choice of a specific institution of higher education. The college
choice models include the following: (1) economic models; (2) sociological models;
and (3) combined models (Fernandez, 2010).
2.1.1 Economic models
According to Hossler and Palmer (2008) college choice models that use
economics as a lens approach college decision making as a rational process. These

researchers explain economic studies view going to college as an investment decision
and assume students seek to gain the maximum return on their investment.
Similarly, Fernandez (2010) expresses that students choose a college based on
the level of value that each institution offers by comparing costs with perceived
benefits. She indicates that the underlying assumption of the economic models is that
students will select a particular institution if the benefits of attending the institution
are greater than the perceived benefits of enrolling in other institutions.
The economic models look at the influence of tuition costs and financial aid on
college choice. For example, there are noteworthy differences in the way students
9


from low-income families and those from higher-income families respond to college
costs (Paulsen and St. John, cited in Hossler and Palmer, 2008)
2.1.2 Sociological models
College choice models that draw on sociological approaches tend to focus on
individual actions of students in the college choice process. These models often
examine the influence of others, campus climate, cost, and academic programs on
student choices. Many of these studies are longitudinal, focusing on the stages
students go through when deciding on a college. These models also provide insight
into the timing of various aspects of the decision-making process (Hossler and
Palmer, 2008).
Jackson (1982) expresses that the sociological models specify a variety of
social and individual factors leading occupational and educational aspiration.
Different from economic models, sociological models describe a process that
considers decision determinant developed through a student’s life. Sociological
approaches to college choice typically emphasize the ways in which socio-economic
characteristics influence students’ decisions (Fernandez, 2010).
In Manski and Wise (1983)’s view, sociological approaches do not offer a
framework for examining how individuals ultimately decide whether to aspire to

tertiary education, apply for admission to a set of colleges, or enroll in a particular
college or university (cited in Fernandez, 2010).
However, Hossler and Palmer (2008) reason that in a lot of college choice
studies economic and sociological approaches are not mutually exclusive. Rather,
they have a great deal in common and are combined to help explain college choice.
Economic models (reflecting the influence of cost on students’ decision-making) and
sociological models (demonstrating the influence of interrelated factors influencing
10


college aspirations) were combined in later studies to reflect a more comprehensive
view of students’ college choice (Kinzie et al. (2004).
2.1.3 Combined models
Two popular combined models of college choice are Chapman Model and
Hossler and Gallagher Model.
2.1.3.1 Chapman’s model
Chapman’s (1981) model (figure 1) proposes that a student’s general
expectation of college life forms when various student characteristics, such as socioeconomic status and scholastic aptitude, interact with external influences from
significant others or college characteristics. Chapman separates the choice as being a
model of two stages—that of the pre-search and search stage. In the first stage,
factors like family income have a direct effect on which colleges are considered. In
addition, students appear to favor colleges that enroll students with academic ability
similar to their own. During the second stage, the search stage, students gather
information about specific institutions. He concluded that there are three external
influences that affect a student’s college choice.
These are:
(1) Significant persons: friends, parents, and high school personnel.
(2) Fixed college characteristics: cost, location, availability of program.
(3) College efforts to communicate with students: written information,
campus visits and admission /recruitment activities.

11


Figure 1: Chapman’s (1981) Model of Influences on Student College Choice

2.1.3.2 Hossler and Gallagher’s model
Hossler and Gallagher’s (1987) three-stage model (figure 2) emphasizes
aspiration, search, and choice. In the first phase, Predisposition, students decide
whether to go to college or to pursue another alternative. In the first stage, familial,
societal and economic factors encourage students to attend a college. In the second
stage, Search, students proactively explore and gather information about the various
higher educational institutions and then decide to apply to certain institutions. They
evaluate their academic and financial capabilities in relation to these potential
choices. In the last stage, Choice, students choose one institution to attend based on a
ranking and rating of each institution available (cited in Chia, 2011).
12