Students’ willingness to pay for improved accommodation facilities: A case of the college of business education, Tanzania

Abstract

Purpose: This study explores the students’ Willingness to Pay (WTP) for improved accommodation facilities using the case of the College of Business Education (CBE) in Tanzania.
Design/Methodology/Approach: The Contingent Valuation Method (CVM) was used to estimate the value that the students attach to the  accommodation facilities. A survey was conducted on the two campuses of Mbeya and Dodoma involving a sample of 348 students out of the total  population of 3618 continuing students from the two campuses. An interviewer-administered questionnaire was used to elicit the information from  the respondents. In the analysis, the binary logistic regression was conducted to estimate the parameters for the students’ WTP for the  accommodation facilities and then the parameter estimates were used to compute the mean students’ WTP.
Findings: The findings of the study showed that the significant determinants of the students’ WTP for accommodation facilities included age of the  students, education level of the student, current accommodation of the student, students’ preference for accommodation, income of the students  and the campus dummy (Mbeya campus).
Research Limitations: The study findings are limited by the fact that its scope included only one higher learning institution. The inclusion of more  than one higher learning institution could yield a sounder conclusion. Besides this, the study is also limited by the ability of the applied methodology (CVM) in measuring WTP. Future studies can consider using other stated preference approaches like the Choice Experiment Method or a revealed preference method like the Hedonic Pricing Method.
Practical Implications: The findings of this study will be useful to decision-makers in higher learning institutions when allocating resources for improving accommodation facilities for the students. The study therefore first recommends that the determinants of the students’ valuation of the accommodation facilities should be considered when allocating accommodation facilities to the students in higher learning institutions. Secondly, higher learning institutions should attach equivalent value to the students’ accommodation facilities by improving the facilities to meet the needs of the students.
Social Implications: Students at CBE attach higher values to the accommodation facilities than the value attached to the services by the College. It also sends a signal that for the campus with no in campus hostels, the need for accommodation facilities is more pressing and thus receives a higher value (WTP).
Originality / Value: This study has contributed to the pool of knowledge in this area as it has unveiled the students’ valuation of (WTP for)  accommodation facilities in higher learning institutions, especially in Tanzania where there are scanty works of literature on the same area.