The university in the market-place,
the student as customer,
and the consequences
James Kennedy
Director International office
History of student fees in the UK
UK/EU
students
1967
1981
1998
2004
2012
£1,000+
£3,000+
<£9,000
Non EU
students
Fees introduced
‘full-cost’ fees: £3,000+
£13,800 - £18,650
The introduction of student fees
• new relationship between the
student and the university
• a contract for the co-creation of
value
• the student as customer
Student customers may demand:
• enhanced quantity and quality of
tuition
• improved library, IT and study space
provision
• better social facilities
• access to job opportunities
Universities in the market place
• competition for student talent
• competition for academic talent
• marketing activities
• private sector entrants: service
providers and competition
• league tables and rankings
What happens to students:
“It’s trying to turn young people who
want to be inspired by what they
experience into a bunch of consumers
who pore over frankly meaningless
data…and turn the university
experience into another form of
consumerism.”
Participant in the Guardian roundtable
debate, April 2012
Consequences from an institutional perspective:
• Funding through fees offers the university greater autonomy
and independence from direct government funding.
• Fees generate increased income that can be invested into
improvements for students
• Fees income can provide scholarships to attract students from
low-participation backgrounds
• Listening to students and their representatives, and surveying
their opinions, becomes an essential part of planning for the
university.
• Uncapped fees from non-EU students can deliver significant
extra resources to the university
General economic benefits of student fees
“International students at the University (of Exeter)
contribute over £88 million a year to (the city of)
Exeter’s GDP and support 2,880 jobs, which is
equivalent to 2.8% of all employment in the city.”
The economic impact of the University of Exeter’s
international students, University of Exeter and
Oxford Economics, April 2012
James Kennedy
+44 (0)24 76 522500
James.Kennedy@warwick.ac.uk