The Impact of Psychological Pricing on Students’ Perceptions of Higher Education Value: Managerial Insights for Institutions

Abstract This study explores the influence of psychological pricing on students’ perceptions of the value of higher education programs in Morocco. It focuses on how the perception of tuition fees affects students’ views on academic quality, institutional reputation, and post-graduation employability. With a sample of 691 students from a variety of Moroccan higher education institutions, this research adopts a quantitative approach, utilising multiple regression analysis to examine the relationships between these variables. The primary research questions investigate how tuition fee perceptions impact students’ assessments of academic quality, the prestige of the institution, and their expectations regarding employability after graduation. The findings reveal that higher perceived tuition fees are significantly correlated with better academic quality and a stronger institutional reputation. Students who perceive higher fees tend to associate them with superior education and more prestigious institutions. On the other hand, the influence of tuition fees on post-graduation employability is moderate, suggesting that while higher fees are seen as an indicator of quality, other factors—such as internships, professional networks, and industry partnerships—also play crucial roles in shaping students’ perceptions of employability. This study contributes to a deeper understanding of how psychological pricing strategies shape student decision-making in higher education. It offers valuable insights for educational institutions looking to optimise their pricing strategies and enhance the appeal of their programs. By recognising that psychological pricing can influence not just financial decisions but also perceptions of academic quality and future career prospects, institutions can better align their tuition pricing with students’ expectations. Future research should explore the impact of socio-economic factors, as well as the moderating effects of other variables, on the relationship between tuition fees and the perceived value of higher education.