User and instructor influences on the sales of online education courses

Abstract

Due to the rapid growth of the online knowledge market, the number of paid online courses has increased exponentially. Accordingly, it is necessary to analyze the signals that influence the sales of paid online courses. The signals affecting course sales, however, have not been comprehensively examined in previous research. This paper examines the influence of user-generated signal and instructor-generated signals on paid online course sales using the Hausman Taylor model based on panel data from Udemy courses. Based on the results, instructor-generated signals such as updates, the number of subtitle languages, and the number of course objectives positively affect sales, whereas a rating score, a user-generated signal, has no significant impact on paid online course sales. In this study, we provide insight into the signals that influence consumers' decision to purchase a paid online course.