1)Do you agree with the plans by Starbucks to offer time limited free Wi-Fi to customers? Do you think free Wi-Fi would be enough to instill that kind of loyalty? Based on the experiences of other coffee houses reported above, do you think free access was a critical factor in developing a loyal customer base?
Starbucks came up with the idea to offer time limited free Wi-Fi, which I think is one of the brilliant ideas which will attract customers towards it and also increase the revenue of the organization. Free Wi-Fi is used more as an incentive in star bucks which made the people to switch to them, this didn’t even increased their cost moreover it made star bucks popular along with people became loyal to them. This extraordinary benefit for customers helped star bucks to attract people to use their other services. Internet today is almost free at most of the places but still when people are provided it in a better way and in a better form then they definitely go for
it. Free internet access is just the icing on the cake.
Without icing as well cake is cake, icing is not actually the ingredient of the cake but if done then it looks good and makes it tastier. Quality of products and services that organization provides is the key factor for loyal customers but free packages and vouchers like free Wi-Fi makes people more loyal.
2)Part of the reasons for Starbuck’s move had to do with increased competition from chains like McDonald’s for the morning breakfast crowd. Do you think that free wireless access by such a competitor would have moved a significant portion of star buck’s customer’s away? Why or Why not?
Competition is all that helps to think and come up with new ides. When you have got giant company in front of you known for all good then it’s impossible to survive without implementing creative idea to compete. When you can’t compete with them in terms of cost and quality then you have to........click below to read all.
look for the second option. Starbucks did the same thing. Without much affecting the cost it packaged its service in such a package that it looked much better to others, than that of MacDonald’s. Starbucks did the same thing it provided something more in the same price and of same quality that people found it interesting.
Had it been MacDonald’s that has done the same thing then Starbuck’s would have lost significant number of customers. When people will find better alternative which provides them greater utility then definitely people switch to them. Free internet access has been the pulling factor as well as keeping factor to Starbuck’s because it packaged the same service of same quality and wrapped it around in the colorful package which was catchier than rest of the competitor’s package.
3)The case notes some companies that offer free Wi-Fi in exchange of viewing advertisements or answering questions for market research studies. Would you be willing to do so in order to get free wireless access, Say, at an airport? Would your answer change if you were using corporate laptop versus your own, Because of security concerns?
Internet has been the important part of our lives. In country like ours internet facilities are not that cheap and if it were cheap as well I would definitely be willing to do things that don’t take much time and effort and moreover its fun to get free internet coupons. Its human nature, weather the thing is less costly or costly they always become happy for winning something or getting something as gift. It always special to get something for free even if its not important to us so in case of internet free packages I would be more than willing to view advertisement and answer questions to get free Wi-Fi access.
In a place like airport where I would be using corporate laptops rather than my own may be my answers would change because there are chances of leakage of data when there are more users. If I were using corporate laptops, I might not be answering truly if they are more private and controversial questions due to security concerns.
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