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The Market for Online Degrees in Liberal Arts

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The Market for Online Degrees in Liberal Arts Learning Collaborative for Higher Education Online Higher Education Custom Research Report December 2007 Catalog No. 62OHECRR1207 The Market for Online Degrees Key Questions in Liberal Arts How large is the national market for online degrees in liberal arts? Who are the existing players in this market? Data Type Key Sources What are the major points of positioning and differentiation among Institutional Web sites existing online liberal arts programs? In-house Eduventures data Secondary National Center for What opportunities exist for expansion Education Statistics into this market? Inquiry Overview Table of Contents Inquiry Overview 1 The inquiring member is interested in expanding their program offerings to include online courses and/or degrees from their Methodology 2 College of Arts & Sciences. Planning for the proposed online offerings is still in the exploratory phase. In following, the Findings 3 inquiring member seeks additional insight into existing online program offerings and their differentiation strategies in order to Analysis & identify opportunities for the penetration into the online liberal Recommendations 18 arts market. In addition to examining existing liberal arts offerings from selected providers, the inquiring member seeks Future Research Opportunities 19 information about the size of the existing online liberal arts market, in order to inform program development strategies. Appendix 20 Custom Research Reports - In-depth analysis of issues of concern to individual members. The OHE program maintains dedicated staff to support members' needs for detailed, quick-turnaround research. Requests may be prompted by issues raised in the OHE program's Collaborative Research investigations, may seek to leverage the collective experience of the OHE membership, or may take the form of small-scale primary research investigations or reviews of secondary literature. Requests are fulfilled on a first-come basis and generally take 10 weeks to complete subsequent to the receipt of an approved proposal. OHE staff work to deliver accurate, reliable data and information in all cases; however, we cannot guarantee the accuracy of data and information from all sources used. Key Investigation Steps: Step 1 Step 2 Step 3 Step 4 Step 5 Define scope Identify Collect data and Summarize key Recommend and objectives secondary test research findings with specific actions of inquiry, and and/or primary hypothesis reference to and areas for formulate sources to be supporting further hypothesis investigated evidence research, if needed • Interview •Scan of •Conduct • The online • Consider OHE member Competitor competitive market for combining core regarding Institutions’ scan of select, postsecondary liberal arts objectives Web sites major providers programs in elements with • Formulate •National of online and liberal arts is practical research Center for on-campus emerging professional skills hypothesis: Education liberal arts • The online in order to Market Statistics programming market for increase appeal to working opportunity •Existing in- •Conduct Bachelor’s professionals exists for house secondary degrees appears viable online Eduventures analysis of larger than for •If market entry is programming data existing in- any other desired, utilize in liberal arts. house credential effective Eduventures • Interest in differentiation data to provide online liberal strategies insight into the arts •Future market programming Research: •Conduct appears Consumer market sizing strongest for preferences for using degree consumers ages curriculum, conferment data 25-34 years pedagogy, from NCES & • To date, delivery mode, existing existing etc., among the Eduventures in- programs are target audience house resources not strongly for credentials in differentiated the liberal arts Methodology OHE staff conducted an initial environmental scan to identify major providers of online degrees in liberal arts. In collaboration with the inquiring member, OHE staff selected the following fifteen providers to include in the competitive scan: Northeastern University St. John's University SUNY Stony Brook 2/40 Boston University The New School Skidmore College SUNY Empire State College Syracuse University University of Oklahoma University of Toledo Harvard University Duquense University Drexel University Thomas Edison State University University of Illinois at Urbana-Champaign OHE scanned selected providers’ institutional Web sites to uncover information regarding product offerings (B.S., B.A., M.S., M.A., program titles, etc.), pricing, accreditation, pedagogy, curriculum, delivery mode, and other major points of positioning and differentiation. In order to provide additional insight into the online market for liberal arts, OHE staff collected degree conferment data pertaining to liberal arts from the National Center for Education Statistics. OHE staff triangulated potential online liberal arts market size utilizing the NCES data and existing in-house Eduventures data. OHE staff also conducted a review of in-house survey data to provide insight into the preferences of consumers interested in pursuing liberal arts degrees. Findings are outlined below. Findings Key Findings: Overall, the U.S. online market for liberal arts degrees in emerging at best. Two separate arenas appear to exist, the market for online liberal arts courses, and the market for online liberal arts degrees. In theory, separate target audiences exist for each market. The market for online degrees at the Bachelor’s level appears much more sizeable than does the market for online degrees at the Master’s level. Existing in-house Eduventures survey data indicates that there exists some interest among consumers for online liberal arts and humanities programming. Interest for the totally online delivery mode is strongest among consumers ages 25-34. Existing programs do not appear to be differentiated strongly. Most programs position themselves as providers of degrees for working adults, relying heavily on the ‘convenience & flexibility’ premise that oftentimes accompanies online education. Most degrees currently offered, at least among this set of providers, are positioned as degrees unique to each student with individualized sets of curricula, with core courses focusing on traditional liberal arts themes, including critical thinking, math, analytical skills, writing skills, and the sciences. 3/40 Part I. Online Liberal Arts Market Sizing In the 2004-2005 academic year (the most recent year for which data is available from the National Center for Education Statistics), 43,751 Bachelor’s degrees in liberal arts were conferred in the U.S., a growth rate of about 4 percent over the previous year. Over the past ten years, on average, U.S. degree conferment at the Bachelor’s level for liberal arts has grown about 3.12 percent per year. Although this growth rate isn’t as explosive as for other disciplines, such as technology, the growth has been steady, and OHE staff predicts that this trend will most likely continue. Over the past ten years, on average, U.S. degree conferment at the Bachelor’s level for liberal arts has grown about 3.12 percent per year. The online market for degrees in liberal arts is emerging; OHE staff has observed heightened levels of interest in online liberal arts degree programs or courses among institutions in recent years, though most interest has most commonly been at the exploratory level. Increased interest among postsecondary providers appears to fall into one of two realms: core online liberal arts courses online, and online liberal arts degrees. Theoretically, each one of these ‘realms’ targets a different audience, and so presents a separate market. Presumably, students interested in online liberal arts courses are most commonly traditional college-age students, studying in on-campus setting, who for reasons of scheduling convenience prefer to take one or two liberal arts courses online rather than on-campus. This market is explored more in-depth in the recent OHE Custom Research Report entitled Consumers Preferences for Online General Education Courses and the Ohio Regional Market (Eduventures catalog number 38OHECRR0607). Conversely, online degrees in liberal arts may appeal to a different type of learner. Interestingly, there are little to no providers of online liberal arts degrees among for-profit schools, indicating that this market is dominated almost entirely by non-profit providers. The nature of the online liberal arts degree is inherently different than the nature of historically popular online degrees in fields such as business, technology, and education, that are targeted for a specific set of working adults looking for practical degrees to enhance their careers in a particular field. However, as the markets for such career-oriented postsecondary education near saturation, non- profit providers looking to enter the online market may seek alternate online programming targeted toward a learner looking to develop the types of analytical thinking skills that are common in liberal arts programs. Little is known about the target audience for this type of programming to date; it may be that online liberal arts programs may appeal to a younger audience than has been historically attracted to online education (the 25-54 age group comprised of working professionals). More research is necessary to uncover the demographics, preferences, and motivations of students interested in pursuing online postsecondary degrees in liberal arts. Figure 1 below illustrates the
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