OSU BA 495 - Wi-Fi Can Be Lure for Shops, But at a Price

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“Wi-Fi Can Be Lure for Shops, But at a Price” By Randall Stross New York Times News ServiceWi-Fi: The new Air ConditioningStarbucks & T-MobileMcDonald’sAC vs Wi-FiTo Charge, or not to Charge?SuggestionsSources““Wi-Fi Can Be Lure for Wi-Fi Can Be Lure for Shops, But at a Price”Shops, But at a Price”By Randall StrossBy Randall StrossNew York Times News ServiceNew York Times News ServiceLauren GaultLauren GaultJohn RogersJohn RogersIan PaulIan PaulWi-Fi: The new Air ConditioningWi-Fi: The new Air ConditioningThe article compares Wi-Fi in restaurants The article compares Wi-Fi in restaurants to Air Conditioning in theaters back in the to Air Conditioning in theaters back in the 1920’s. 1920’s. Theaters added Air Conditioning to entice Theaters added Air Conditioning to entice more customers. more customers. Wi-Fi has been added to some Wi-Fi has been added to some restaurants to try and increase patronage. restaurants to try and increase patronage.Starbucks & T-MobileStarbucks & T-MobileStarbucks is the most Starbucks is the most visible Wi-Fi equipped visible Wi-Fi equipped national chain.national chain.Partnered with T-Mobile.Partnered with T-Mobile.Started offering Wi-Fi in Started offering Wi-Fi in 20022002Now has over 5,100 Now has over 5,100 stores equipped. stores equipped. Charge $6 and hour on a Charge $6 and hour on a “pay as you go” plan. “pay as you go” plan. ““Offers internet from the Offers internet from the comfort of your favorite comfort of your favorite cozy chair.”cozy chair.”McDonald’sMcDonald’sNow offers Wi-Fi in more Now offers Wi-Fi in more than 8,000 of its 13,700 than 8,000 of its 13,700 restaurants in the United restaurants in the United States. States. Cheaper than Starbucks.Cheaper than Starbucks.Only Charge $2.95 for 2 Only Charge $2.95 for 2 hours of use. hours of use. You can’t apply your T-You can’t apply your T-Mobile subscription Mobile subscription because McDonald’s because McDonald’s uses a different provider. uses a different provider.AC vs Wi-FiAC vs Wi-FiIn 1920’s, to upgrade a theater to include air In 1920’s, to upgrade a theater to include air conditioning, it would cost more than $50,000 (roughly conditioning, it would cost more than $50,000 (roughly $600,000 today). $600,000 today). Patronage to theaters increased so sharply that even the Patronage to theaters increased so sharply that even the most expensive upgrades were quickly repaid.most expensive upgrades were quickly repaid.Seasonal patronage increased in the summer. Seasonal patronage increased in the summer. Today, the additional cost of adding Wi-Fi is trivial, since Today, the additional cost of adding Wi-Fi is trivial, since most places already have Business-Class Broadband most places already have Business-Class Broadband Connections. Connections. No increase in seasonal patronageNo increase in seasonal patronageIncrease in patronage due to Wi-Fi is moderate, but not Increase in patronage due to Wi-Fi is moderate, but not substantial. substantial.To Charge, or not to Charge?To Charge, or not to Charge?Wi-Fi is intended to encourage customers to come in Wi-Fi is intended to encourage customers to come in and stay longer. and stay longer. ““How welcome can one feel when staring at a meter How welcome can one feel when staring at a meter that is running?”that is running?”Providing free Wi-Fi gives the customers the feeling that Providing free Wi-Fi gives the customers the feeling that they are welcome to “stay and linger.”they are welcome to “stay and linger.”There is a trend of large cities starting to provide free There is a trend of large cities starting to provide free wireless internet in downtown and commercial areas, wireless internet in downtown and commercial areas, so charging for Wi-Fi will be pointless soon enough. so charging for Wi-Fi will be pointless soon enough.SuggestionsSuggestionsOffer free Wi-Fi to your customers. It is cheap Offer free Wi-Fi to your customers. It is cheap and easy to set up. and easy to set up. Free Wi-Fi entices customers to stay longer and Free Wi-Fi entices customers to stay longer and potentially buy more food.potentially buy more food.Free Wi-Fi increases customer loyalty, even if Free Wi-Fi increases customer loyalty, even if they never use it, because they know they have they never use it, because they know they have the potential to utilize it if they ever wanted or the potential to utilize it if they ever wanted or needed. needed. Free Wi-Fi makes the customers feel like they Free Wi-Fi makes the customers feel like they are being taken care of better than somewhere are being taken care of better than somewhere that charges for it. that charges for it.SourcesSourcesNew York Times News Service via The New York Times News Service via The Oregonian.


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OSU BA 495 - Wi-Fi Can Be Lure for Shops, But at a Price

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