Higher Education is facing an increasingly competitive marketplace with high tuition prices, consumers are pushing back on rising tuition prices and choosing community and state colleges. A shortage in the traditional college age student population, has compounded the enrollment problem at small, private colleges. Most private colleges are dependent on tuition for operating costs and competition has driven the average discount to 52%, further reducing revenue. Several colleges have introduced "Tuition Restructure" or tuition reduction up to 50% with positive results. This quantitative, cross-section study investigated the relationship between tuition reduction and parent's perception of education quality in New England. Education quality factors were measured for perception change at 10%, 25%, and 50% tuition reduction. There was no change in perception at 10% and 25% tuition reduction and slightly positive perception change at 50%. The relationship between demographics, tuition reduction, and perceived quality of education was investigated and significant relationships were found between groups expecting to supplement tuition, with merit scholarship and loans, tuition reduction, and perceived education quality The study explored the relationship between demographic factors and price sensitivity and determined there is a significant relationship between gender and the maximum a parent will pay for tuition, the tuition supplement groups and the maximum a parent will pay for tuition, but there is no significant relationship between household income and maximum tuition payment. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]