In 1991, Minnesota was the first state to pass a charter school law. Since then, many states have followed suit. In the 2013-2014 academic year, only eight states didn’t have a charter law. The National Alliance for Public Charter Schools reports that in 2013-2014 there were 6,440 charter schools serving more than 2.5 million students, representing a 118 percent increase in the number of schools since 2003–2004 and a 225 percent increase in the number of students during the same period.1
Given that independent schools have started to face competition from charter schools, NAIS commissioned a study2 with current and prospective charter school parents to determine their perceptions of charter vs. independent schools, assess the relative impact of the variables that affect their school choice decision, and determine their parent segmentation (their dominant perspective on education) based on the parent groups identified by the NAIS Parent Motivations Survey from 2011.3
The study included current and prospective parents of K-12 students with annual incomes of at least $75,000. The survey was conducted nationwide with oversampling in the states of California, Florida, Texas, Minnesota, and Michigan as well as the cities of Chicago, Denver, and Phoenix. There were no material differences between the nationwide representative sampling and the oversample.
One of the main findings from this study was that current and prospective charter school parents see several similarities between charter and independent schools: both types of schools have high-achieving student bodies, a challenging curriculum, an environment conducive to learning, a well-rounded education, a strong use of technology, and high-quality teachers that believe in the ability of all students and are accountable for student achievement.
However, current and prospective charter school parents indicated some advantages of independent schools over charter schools, including how they help students gain an edge in college admission, focus on building student character, and provide more individualized student instruction. On the other hand, these parents identified some advantages of charter schools over independent schools, including that charter schools fit better with their lifestyle and that there is stronger parent involvement at charter schools.
The study also probed current and prospective charter school parents on their reasons for initiating the school search for their children. Thirty-six percent mentioned their curiosity about other school options, 26 percent said their child was ready to start school, and 25 percent indicated that their public school had a poor reputation.
Not surprisingly, when current and prospective charter school parents were presented with different scenarios with a range of features that could affect their school choice, tuition was the top driver. And while a high tuition will discourage current and prospective charter school parents from choosing independent schools, this view can be somewhat overcome by convincing these parents that the independent school is well established with dedicated, high-quality teachers, a strong focus on building students of character, and excellent preparation for the future success of students.
For instance, in a hypothetical scenario in which both an independent school and a charter school are similar — all school features (cost, teacher quality, focus on character, preparation for future, reputation, socioeconomic diversity, quality/use of technology, transportation, extracurricular activities) are equal — 57 percent of current and prospective charter school parents will still choose a charter school, compared with 21 percent choosing an independent school. Only in the scenario in which an independent school has a moderate tuition level ($20,000 to $25,000) and it can show its superiority in other aspects (higher-quality teachers, better future preparation, greater focus on student character) will the independent school expect to attract more high-income parents (43 percent) compared with the charter school (40 percent).
Do current and prospective charter school parents differ from other types of families? As noted, NAIS undertook a parents’ motivation survey in 2011 in which parents were grouped by their dominant motivational characteristics: success-driven parents, special kids’ parents, parents who push, character-building parents, and public school proponents. Charter school parents tend to be success-driven parents (those who wish to provide an education that will help their kids get into a top-tier college and be successful in life), and special kids’ parents (those who want a school that can address their child’s unique personality, learning, or behavior issues).
However, when compared with the broader market of high-income parents in the U.S. (families with annual incomes of $150,000 or more), high-income parents who chose or considered a charter school are more likely to be parents who push (those who are focused on ensuring their child gets a high-quality education with a challenging curriculum at a reasonable cost).
Finally, only a third of parents who currently send their child to charter schools considered an independent school during their search, which shows that independent schools are not typically in charter school parents’ consideration set.
This 2014 NAIS study reveals that, to better compete with charter schools, independent schools will need to stress that they excel in some key decision factors in school choice (strong preparation for future success, high-quality teachers, and character development), while keeping their tuition at moderate levels. Also, given the type of parents represented at charter schools, a marketing strategy targeting current and potential charter school parents will need to include some data and information that will clearly showcase the return on the investment in an independent school education.
Notes
1. National Alliance for Public Charter Schools, Dashboard, http://dashboard.public charters.org/dashboard/schools/year/2014.
2. 2014 NAIS Charter School Study, www.nais.org.
3. 2011 NAIS Parent Motivations Survey, www.nais.org.
