The Willingness to Pay of Households in Batangas City for College Educational Plans

Date

6-2023

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Asst. Prof. Niño Alejandro Q. Manalo

Committee Member

Divine Krizza P. Cruz, Gideon P. Carnaje, Agham C. Cuevas

Abstract

Educational plans are seen as a viable option for financing the tertiary education of Filipino children. The current study focuses on how households in Batangas City value college educational plans. Specifically, the study aims to determine the awareness and knowledge of households regarding college educational plans, estimate their willingness to pay for it, and identify and assess the factors that affect their willingness to pay. Employing a Contingent Valuation Method (CVM), a total of 378 household heads were surveyed. Results show that about 84% of the respondents are aware of college educational plans. However, the majority is not yet knowledgeable of its benefits and risks. A mean willingness to pay of Php 2,731.08 for monthly insurance premium was calculated from the treated data with 310 observations through the Turnbull estimator. With the use of Logistic Regression, four variables were found to be statistically significant in affecting the willingness to pay of households for college educational plans. Bid (monthly insurance premium) and age have a negative relationship with willingness to pay. While, income and insurance knowledge and awareness have a positive relationship with willingness to pay. Considering these factors, strengthening consumer education about these products, targeting certain age groups, and establishing educational plan policies that fit the needs of existing and new policyholders might significantly increase educational plan enrollment in the Philippines.

Language

English

LC Subject

Educational planning, Willingness to pay

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2023 E2 B35

Notes

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Document Type

Thesis

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