Military Veterans
There are three major factors used in evaluating the usefulness of the military veteran segment. The first one is the number and growth of military veterans. Furthermore, their age, purchasing power, income, geographic, family, and other characteristics are all considerable variables for in the consumer markets. From the data of the U.S. Census Bureau reports, in 2010, there are 21.8 million veterans in the United States, and the percentage of veterans 25 and older with at least a bachelor’s degree in 2010 was 26%. Whereas, in 2014, there are 19.3 million military veterans in the United States, and 27.2% veterans 25 years and older with bachelor’s degree or higher in 2014. Compared to these data, the growth of military veterans getting bachelor’s degree is obvious. Secondly, college education’s structural attractiveness for the military veterans include returns of both future career and education investment, and opportunities during the years in college. The advantages of the college education can be enriching
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knowledge, leading to career options, and meeting different groups of people. The third factor is college’s objectives and resources. For-profit colleges target the military veterans, because the colleges need make revenue from the students with federal financial aid. At the same time, these military veterans are receiving $10 billion government subsidy. Therefore, these colleges are looking for the “investments” from military veterans that actually from government to get profit.
According to Appendix 2, chain ratio method is estimating market demand by multiplying a base number by chain of adjusting percentages ((Armstrong and Kotler, 646).
Using formula of Q=n*q*p: Q is total market demand; n is number of buyers in the market; q is quantity purchased by an average buyer per year; p is price of an average unit. In this case, n is the number of representatives which is 300; q is the revenue from federal aid which is 90%; and p is 30% recruitment of military veterans increase in one year. So Q=300*0.9*0.3=81 people. Then 81 people *$10 billion= $810 billion estimated total market demand in this chain ratio method. Based on the data of the U.S. Census Bureau reports in 2010 and 2014, the percentage of military veterans 25 years and older with bachelors’ degree has increased 1.2% in 5 years. Hence, I assume that there will be 28.4% in 2019. At this point, there will be 81*(1+1.2%)=91 people and $910 billion market potential in
2019.
knowledge, leading to career options, and meeting different groups of people. The third factor is college’s objectives and resources. For-profit colleges target the military veterans, because the colleges need make revenue from the students with federal financial aid. At the same time, these military veterans are receiving $10 billion government subsidy. Therefore, these colleges are looking for the “investments” from military veterans that actually from government to get profit.
According to Appendix 2, chain ratio method is estimating market demand by multiplying a base number by chain of adjusting percentages ((Armstrong and Kotler, 646).
Using formula of Q=n*q*p: Q is total market demand; n is number of buyers in the market; q is quantity purchased by an average buyer per year; p is price of an average unit. In this case, n is the number of representatives which is 300; q is the revenue from federal aid which is 90%; and p is 30% recruitment of military veterans increase in one year. So Q=300*0.9*0.3=81 people. Then 81 people *$10 billion= $810 billion estimated total market demand in this chain ratio method. Based on the data of the U.S. Census Bureau reports in 2010 and 2014, the percentage of military veterans 25 years and older with bachelors’ degree has increased 1.2% in 5 years. Hence, I assume that there will be 28.4% in 2019. At this point, there will be 81*(1+1.2%)=91 people and $910 billion market potential in
2019.