Effectiveness of Free Wifi As A Marketing Strategy To Business

PAMANTASAN NG LUNGSOD NG VALENZUELA
Tongco St.Maysan, Valenzuela City
EFFECTIVENESS OF FREE WI-FI IN RESTAURANTS AS A MARKETING

STRATEGY TO SELECTED GRADE 12 STUDENTS OF PAMANTASAN
NG LUNGSOD NG VALENZUELA IN PATRONIZING
THE BUSINESS
Submitted By:
ACOL, MA. KRISABELLE M.
GALON, HARVEY
MIRANDA, TRIXIA MAE K.
SOTAYCO, DANICA
TENEDERO, ABIGAILE
VELILLA, CHRISTINE
PRACTICAL RESEARH 2
Quantitative Research
Submitted to:
Ms. Mary Rose Diasanta
Chapter I
THE PROBLEM AND ITS BACKGROUND
INTRODUCTION
Over the past two decades there has been a very interesting transformation in
the area of communication and how people are sharing different forms of information
and ideas. Previously access to Internet in sharing of data information and communication
were done by the use of wired technologies, but recently things have changed with
the involvement of wireless communication technology (WCT) (Negus & Petrick,
2008). According to Kazmeyer (n.d.) wireless communication technology defines any
method of communication possible without a direct physical connection between the two
parties. In this case, many types of devices use wireless communication technology that
allowing users to remain in contact even in remote areas.
Smart Business says that there is an opportunity to introduce free offerings which
could generate significant returns. In the age of smartphones and gadgets providing free
Wi-Fi will give you a remarkable advantage over the competitors and gives business an
opportunity to attract and retain new customers. Customers tend to stay longer if they can
use their tablets and laptops via Wi-Fi. According to WIFI Alliance (2004), WIFI Internet
access may the tool that attracts new customers, holds customers loyalty, and increase
store sales. The network we most commonly encounter at the restaurants is just a tool
connecting us to the internet. The restaurants way in getting the information of their
customers is by offering them free Wi-Fi that uses their numbers or emails so that the
restaurants can contact them easily. One of the benefits of Wi-Fi to the customers and
restaurants is that the customers will spend more time to your business. According to
Comcast Businesses (2016) Wi-Fi access helps customers stay productive and
connected while they are in the store or at the place of business, so they will want to stay
longer.
People having access to the Internet is available almost everywhere. All
technologies are born out of purpose. It is rare these days for consumers to go into a
coffee shop, library or any place of business and not be able to access a Wi-Fi signal.
Anytime, consumers can access to the internet anywhere. That is why businesses comes
up having a free Wi-Fi to support every customer’s needs. According to Lamey (2018).
Looking back to the 1990’s, the Internet was a new commodity many, but not all,
households and businesses began to gain access.Websites advanced along with the
internet. This is the time when the blogging craze started. As new technologies started to
pop-up, each technology build to form a better, faster and stronger piece of technology.
With this speedy development, the Internet changed the way people live, work and
operate today. Constant connection seems to be the name of the game. And along with
connection, People see instant availability. Social networks continue to change the way
people engage with one another. The constant connection and way people interact with
one another seems to change to a specious setting online. Today, more people and
companies are using cloud based services for their business and store everything online
instead of on a single device. This change will continue to have an enormous impact on
the way business is done, transforming once-traditional office environments and how
people interact with companies on a regular basis. Technology is constantly changing

and it sometimes feels like way too much effort to keep up with a moving target keeping
up with technology adds value to the business.
Some people who frequently go to coffee shops is the people who have their
meetings or just a meet-up. Also, they consider the restaurant that has a free Wi-Fi.
People have become dependent to internet connections because of their daily activities
involving work, school, and online activities.
According to Scheck, S. (2015) technology is forcing businesses to think again of
this approach. We live in the age of smartphones. So providing free Wi-Fi can provide a
significant advantage over other competitors. According to Jones, M. (2016) offering free
Wi-Fi to the customers is not optional in 2018. It drives foot traffic to the small business,
keeps customers around longer than they otherwise would have stayed, and gives them
a reason to come back. Smart small businesses are offering connectivity that is fast,
hassle free and reliable. Today, in hyper-connected environment, if they not going to do
that, customers may simply go down the street to the competitor who does. Also, this
study helps to estimate the potential of Wi-Fi service to be an effective tool to build a
relationships with customers and increase customers patronization for restaurants. Thus,
Wi-Fi service may help restaurant owners establish effective operations and marketing
strategies for maximum customers retention. In this study, it can provides a significant
information that can help every restaurant owners to manage their businesses by
effectively utilizing Wi-Fi as a marketing strategy to patronize their business. As a
business owners they should consider to give their best to the customers. Free Wi-Fi will
make the lives of the customers easier and improve their perception in the business.
Lieshout and Rodriguez (2007) reported that cafe owners who do not offer Wi-Fi are
seeing one to three people leave every day.
One trend that many restaurants have already adopted is offering free in-store Wi-
Fi to guests. According to Spectrio (2018) more than 60% of businesses say customers
spend more time in their locations when they offer free Wi-Fi. For restaurants and bars,
this extra time increases the average ticket through the purchase of additional drinks and
desserts bought before customers leave. With all of these effect it definitely shows the
impact of having free Wi-Fi on restaurants. Also, customers appreciate being able to stay
connected, and free Wi-Fi is just another way that businesses can cater to the need of
the patrons.
THEORETRICAL FRAMEWORK
Market
Producer Customer
Needs
Trading
Products Exchange Money
Profit/
Unequity
Wi-Fi/
Reward
Figure 1: Social Exchange Theory (SET)

Although different views of social exchange have emerged, theorists agree that
social exchange involves a series of interactions that generate obligations (Emerson,
1976). SET has been defined as Homans (1958,p. 606) as:
Social behavior is an exchange of goods, material goods but also non-material
ones, such as the symbols of approval or prestige. Persons that give much to others try
to get much from them, and persons that get much from others are under pressure to give
much to them. This process of influence tends to work out at equilibrium to a balance in
the exchanges. For a person in an exchange, what he gives may be a cost to him, just as
what he gets may be a reward, and his behavior changes less as the difference of the
two, profit, tends to a maximum.
This interaction between two actors (people, firms, etc.) results in various
contingencies, where the actors modify their resources to each other’s expectations
(Emerson, 1962). According to Cook (1977), social exchange is the voluntary transfer of
resources between multiple actors. In the context of this research, SET has been applied
for the exchange between restaurants and its customers. This exchange takes the form
of three business models of offering wireless internet access in restaurants. The next
section will discuss these business models.
Social exchange theory is a theory of Emerson (1976), which stated that the model
for interpreting society as a series of interactions between people that are based on
estimates of rewards and punishments. According to Cara (n.d.) the market has two
major components; the owner and consumer. To Khan (2017) he stated that “the producer
is the owner of the product that will satisfy the needs and wants of consumer while the
consumer will make an action to satisfy their needs and wants through buying”. The
number one objective of a business is maintaining profitability means making sure that
revenue stays ahead of the costs of doing business. Focus on controlling costs in both
production and operations while maintaining the profit margin on products sold (Root,
2019). To Bernazzani (2015), stated in her blog “How to keep customer loyal? Give them
a reward that they won’t forget”. Social behavior often involves social exchanges where
people are motivated to attain some valued reward for which they must forfeit something
of value (cost). They seek profits in our exchanges such that rewards are greater than the
costs. They are disturbed when there is not equity in an exchange or where others are
rewarded more for the same costs we incurred. In this study, the social exchange theory
used to present the relationship between the producer and consumer. Wherein, producer
and consumer benefits each other as the owner produced their products.
The framework mentioned above is a model of human behavior that has been
developed to explain the processes by which people make interaction and relationship. It
shows that Social Exchange Theory used to evaluate the relationship of the producer and
the customer by analyzing the benefits they might receive through each other. Wherein,
the producer will provide a free Wi-Fi as a marketing strategy that will attract customers
and patronize the business. Thus, relationship among individuals are based on their
exchange. Depending on what decision they make, they negotiate a system where the
other party also receives benefits from the interaction being established. Also, in this
study it shows that humans are motivated positive reinforcement. They are likely to repeat
the action when they receive benefits or rewards as a result of their actions.
STATEMENT OF THE PROBLEM
This research study aims to know the effectiveness of free Wi-Fi as a marketing
strategy to random Grade 12 students of Pamantasan ng Lungsod ng Valenzuela in a
restaurant. Specifically this study aims to seek and answer the following question:
1. What are the effects of having free Wi-Fi in restaurant to the customers?
2. How does having free Wi-Fi affects the consumer in buying the product?
3. Does having free Wi-Fi in the business considered as an effective marketing
strategy?
SCOPE AND DELIMITATIONS
This study will only focus on the effectiveness and impact of free Wi-Fi in
restaurants around Valenzuela City as a marketing strategy to the 294 selected Grade 12
Senior High School students of Pamantasan ng Lungsod ng Valenzuela. The study will
be conducted during the first semester of school year 2019-2020.
Moreover, the study did not limit the respondents in a certain strand because each
Grade 12 student can be in a restaurant located in Valenzuela regardless of the strand.
The general objective of this study is to know the benefits of using free Wi-Fi as one of
their business strategies. In addition, this study can help the business owners to use free
Wi-Fi as one of their marketing strategies if ever proven that it is effective.
The data that have been gathered will be used to assess and understand how free
Wi-Fi in Valenzuela City affects the patronization of Grade 12 students from Pamantasan
ng Lungsod ng Valenzuela. A survey questionnaire will serve as the main instrument of
the study to gather the needed information in order to provide a conclusion.
SIGNIFICANCE OF THE STUDY
The results of the study will be at great benefit to the following:
To the Students. This study will provide the students adequate knowledge
especially those who are in-line with the business field that they apply in the future.
To the Researchers. In doing this study, the researchers have acquired skills and
knowledge that they can use in their profession. This paper can enlighten their thinking
with regards to the reality of life especially as we walk towards our paths in business
world.
Academe. This study would serves as information for specific areas where in
learners could strengthen their ideas and develop their skills and so as the learning
institution would produce refine and competitive individual.
To the Business Owners. This study will open doors in discovering more
strategies in using free Wi-Fi in attracting potential customers. Moreover, this will help
them to be guided what kind of business opportunity they are going to engage.
DEFINITION OF TERMS
For better understanding of this research paper, the following terms used in this research
used authorial definition. The following terms are as follows:

Business- Business is an organization that provides goods or services in order to earn
profit (Mahajan, 2014)
Patronize- Patronize means to buy the goods and services offered by an establishment,
so if you patronize a business in this sense of the word, you are using your money or
influence to trade for commodities or needed favors (Smith, 2016).
Restaurant- Restaurants are generally defined in the literature as organizations providing
food, beverages and services at a specific location in return for monetary gain
(Brotherton, 2003; Kiefer, 2002; Ottenbacher et al., 2007).
Wi-Fi- Wi-Fi is a wireless networking technology that allows computers and other devices
to communicate over a wireless signal (Techterm, 2014)

Chapter II
REVIEW OF RELATED LITERATURE AND STUDIES
This study is designed to determine the effectiveness of free Wi-Fi in restaurants
as a marketing strategy to patronize the business by the selected Grade 12 students of
Pamantasan ng Lungsod ng Valenzuela. To give the comprehensive view of this
research, review of related literature and studies are presented below.
MARKETING STRATEGY
Among the best business ideas, restaurants can generate a good income if
managed well. However, without a proper plan and a clear implementation strategy, it will
not be possible to make it in the restaurant business (Digital Media Marketing, 2019).
Many business owners does not discovered the importance of a marketing strategy. In
fact, having a Marketing Strategy is useful that they can think of it as having a road map.
It will guide them in just about every business decision that they make. In short, marketing
strategy will highlight the path that they are taking to achieve their specific objectives and
goals (Standberry, 2018). According to Barone (2019) Marketing Strategy refers to a
business overall game plan for reaching prospective consumers and turning them into
customers of the products or services what the business provides.
According to Kotler & Keller (n.d.) the Marketing Strategy lays out target markets
and the value proposition that will be offered based on an analysis of the best market
opportunities. Also, Marketing Strategy helps the firm gain a competitive advantage in the
market amidst the tough competition with an edge over the existing players and the new
entrants who are trying to establish their brand presence in the market (Bhasin, 2018)
and as stated by Thompson (2018) the businesses that have a marketing strategy are
538% more likely to report success than businesses that do not have a marketing
strategy, because Marketing strategy builds brand loyalty and customers for life while
giving a clear path to follow and a concise way of explaining the value to others and a
well-planned digital marketing campaign gives restaurants an edge during high-volume
sales times Radetich (2018).
According to Bradley (2019) having a marketing strategies in the business can help
the owner to identify the skills of employees and utilize it so that it can help develop
creative approaches to sales and customer service also it is important for developing a
promotional strategy as it helps the business identify its target markets and to set
measurable goals, the goal of having marketing strategies in the business is to aim for
growth and positive change in the business. Restaurant marketing is an important aspect
of business. A well-defined marketing strategy leads to an increase in the business sales
and marketing. This directly impacts the revenue generated as the more you reach out to
people, the more they reach out to your business or brand. (Lath, 2018).
Marketing strategy will meet the needs of the target market by developing products
and services in the business. Good marketing helps the customers to understand why the
product and service is much better than, or different from the other competitors
(Business.gov.au, 2018)
According to O'Dwyer (2016) just like a gold, with great marketing strategies it can
help to build trust. Wherein, trust will customers invested in terms of products, services,
and brand of the business.
A marketing strategy helps a company effectively use its resources to deliver a
sales message to a target audience. A marketing strategy takes time and market research
information to create (Root, 2017)
There are many marketing strategy that will help the business to be more
competitive. One of the example of Marketing Strategies is Wi-Fi Marketing, Wi-Fi
Marketing is when retailers provide wireless internet access to shoppers and then use
that as a channel to communicate messages and promotions. It is just one of the many
ways that physical retailers are embracing the digital world and creating a multichannel
experience for their shoppers in the process, the benefits of Wi-Fi Marketing in a retail
environment are for customer (a) for convenience, consumers can access faster network
than their smartphone service providers and they can also save data usage and for
retailers (b) to increased sales (Sheejan, 2018).
According to Blair (n.d.) the importance of having marketing strategy in the
business is to connect the business value to the right customer base. It is a simple
concept but it can take on a million different shades. Also, marketing strategy provides an
organization an edge over other competitors (Juneja, n.d.)

PATRONIZATION
The foundation of any business’ success is the customer (Hose, n.d.). Businesses
need money to survive. To make money, businesses need customer’s satisfaction and
patronization (Chambers, 2019). According to Pokalsky (n.d.) satisfied customers spend
more money, refer more customers and patronize businesses longer than unsatisfied
customers. When people patronize the business it means the people are supporting the
business,that is why patronization is a must (Wilson, 2017).
FREE WI-FI
According to Harun (2018, March 30) Business Owners can turn store's visitors
into paying customers by using Wi-Fi Marketing because in the modern world of
smartphones, Wi-Fi has become an incredibly valuable resource, consumers are often
using their smartphones upon entering the stores to check if the store offers free Wi-Fi
and consumers hate using their own data plans and will oftentimes enter a store just to
use the Wi-Fi. Having free Wi-Fi as a Marketing Strategy will entice consumers to spend
more time and hopefully more money in their restaurant as stated by Ross (2017,
November 6)
Consumers tend to stay longer if they can use their phone, tablet or laptops and
can access the internet. Some businesses surveyed that almost 62% of the customers
said that they spent more time on their shop once Wi-Fi was introduced. Around 50% of
the said customers spent more money, too. A tiny number of business owners said that
customers spent less when Wi-Fi was available.
According to Berezina et al., (2012), it has been suggested that restaurants may
build stronger loyalty than before by providing free Wi-Fi service for customers. Also, Wi-
Fi service has shown to have significant effect on attracting customers to return to
restaurants. In addition, Wi-Fi service may help restaurant operators establish effective
operations and marketing strategies for maximum customer’s retention.
If the business wants to be successful, attracting new customers physically is not
enough in today’s era. Nowadays, people expect to be able to connect and if the store
does not offer free Wi-Fi service the business may lose some of the potential customers
and loyal customers. Free Wi-Fi gives a reason to customers to spend as much as time
at the business. The more time they spend hanging at your business because they are
constantly looking at their device courtesy of the free internet your store offers, the more
money they could spend. A data said that nearly 70% of customers spend more time at
establishments that offer free Wi-Fi. (Business Achiever, 2018)
Each business needs to adopt its own strategy in order to secure their return on
investment and profitability. In today’s generation, providing free Wi-Fi can be a strategy
to remain competitive, because technology has become an added value in achieving
competitive advantage (Yusop et al., 2011).
According to Simonson (2018, July 2) Businesses who offer free Wi-Fi to boost
sales numbers have a success rate of 72% because 64% of consumers make a
restaurant choice based on availability of Wi-Fi services and 62% of local business
customers spend more time in store if Wi-Fi is available and 75% of businesses say they
consider free wireless access to be either “important” or “very important” to their business
now and 50% of consumers feel comfortable making a large purchase in-store if Wi-Fi
access is available.
According to Ream and Beales (2003), Wi-Fi networks are like LANs except the
data is transmitted via radio waves instead of electric cable. Wi-Fi is short for “wireless
fidelity”, and is another name for a wireless communications standard called “IEEE
802.11b” or “802.11g” (Wu, 2007). There is no denying that the internet has become an
essential part of life both professionally and socially (Gilham and Van Belle, 2005). More
people than ever are looking for internet access, whether that is on their laptops, smart
phones, tablets or even games consoles (Giussani, 2001; Sarker and Wells, 2003;
Ashford, 2004). Nowadays, Wi-Fi is not expensive technology and it is easy to set up the
Wi-Fi service in the public area because there are a lot of companies that provide Wi-Fi
service to cafes, hotels, and public places. Wi-Fi technology can be easily set up in
offices, airports, markets and other any locations, and it can provide advantages in
mobility, ease of use and low cost. Thus, demand in Wi-Fi has become more important in
business and 15 everyday-life and most people are able to connect to Wi-Fi service at
public places, such as shopping malls, hotels, airports and restaurants (Ullah, 2012).
As said by Olsen & West (2008), in the rapidly changing environment, technology
is one of the most significant competitive advantages for any hospitality company.
Additionally, according to Natasa (2014), restaurants are more likely to generate higher
revenues when customers spend more time at the restaurants. Wi-Fi has been found to
act as a tool to encourage consumers to stay longer at restaurants./
Businesses find free Wi-Fi access to be a customer magnet. As wireless Internet
access becomes more common, businesses are setting up free Wi-Fi hotspots for their
customers (Fife and Pereira, 2003; WBA, 2013). According to Nor Iadah et al. (2011), Wi-
Fi in food outlets is a new combination of business model that provides extra convenience
for those who want to go online while having a meal”. Also, it concludes that technology
can be used in an innovative way to attract more customers and also retain them.
According to Scheck (2015) business is bound to have an advantage over the
competitors who do not offer free Wi-Fi, because people nowadays select a venue based
upon the availability of free Wi-Fi. Similarly, Houliston & Sarkar (2004), state that there
has been a consequential growth in Wireless Fidelity Networks (Wi-Fi) technology in
recent years. Internet has an important place in daily life. People have become dependent
on their connection to the Internet for daily activities involving work, school, and ever-
growing online social networking.
Offering free Wi-Fi can be used to create a competitive advantage. Wi-Fi can be
used as a tool by food outlets to attract customers to their shops. According to Campbell
(2016). One of the biggest benefits of offering free Wi-Fi is that it increases time of the
customers spent on the premises. Also, consumers tend to stay longer if they can use
their phone, tablet or laptops and can access the internet. Some businesses surveyed
that almost 62% of the customers said that they spent more time on their shop once Wi-
Fi was introduced. Around 50% of the said customers spent more money. A tiny number
of business owners said that customers spent less when Wi-Fi was available. Also, to
explore the impact of Wi-Fi service on customers, Cobanoglu, et al., (2012) examined the
directions of randomly chosen 1000 restaurant customers. The results showed that (1)
Wi-Fi access has become an important amenity in restaurants and cafés in the United
States; (2) Customers prefer restaurants or cafes with Wi-Fi service; (3) Customers prefer
free Wi-Fi in restaurants over paid models; and (4) The overall results showed that
providing Wi-Fi service in a restaurant is a predictor of the likelihood of customers
returning to a restaurant.
According to Elkins, M. (2018). It's a connected world, and restaurants offer of free
Wi-Fi is a great marketing tool. The business can plan a marketing campaign to attract
guests and businesses to take advantage of a free Internet connection. Local businesses
can schedule working lunches, dinners and business meetings.
According to Thornton (2017). Free and reliable Wi-Fi makes ordinary customers
happy, and that leads to increased sales and repeat business. Free Wi-Fi can also attract
patrons who might otherwise dine elsewhere. This is particularly true for the 18-34-year-
old crowd, who typically eat out more than other age groups.
Consumers nowadays are increasingly mobile and are constantly connected to the
Internet. Being connected to the Internet is a need most people have, which emphasizes
the importance of Wi-Fi availability. A study conducted by Cobanoglu et al. (2012) found
that offering Wi-Fi as a complementary service is positively correlated with customers’
intention to return to a place and they also concluded that there is a positive correlation
between perceived value of Wi-Fi and the intention to return. Also, it stated that the future,
an increase in Wi-Fi demand is expected.
However, some businesses who offers free Wi-Fi have their disadvantages.
Business owners are thinking twice whether they will offer free Wi-Fi or not because the
cost of Wi-Fi service are not proportion to the revenue they earn and some of these
establishments offer the service because they feel they have no choice, especially if their
competitors offer it. In addition, some consumers visit the cafe just to buy a cup that worth
$1.70 for four person table and just stay for a long time during peak business time
(Wisdom, 2011). Also, Berry, J. (2013). A restaurant offers free Wi-Fi facing a marketing
dilemma comes when a consumers do not leave after finishing their meals an example
for this is a one frustrated chain namely Panera an innovative company, Panera was one
of the first café chains to offer free Wi-Fi, long before Starbucks and they are one of the
first to suffer the flood of WiFreeloaders, their original marketing idea was to attract more
customers, but lately its starting to backfire , the customers do not leave neither buy drinks
or food, they just come in, plop down, open up their laptop, and hog a table for hours. To
avoid happening again Panera order a new policy that every consumers only have 30
minutes of Wi-Fi wherein this clears the tables, but it also pisses off regular customers,
who always have a sense of entitlement from their weekly $1.47 coffee order. Therefore,
there are advantages and disadvantages in terms of offering free Wi-Fi as a marketing
strategy.
SYNTHESIS
The paper focused on restaurants offering free Wi-Fi as part of their marketing
strategy. Hence, collecting related literatures and studies will strengthen the study.
Among the best business ideas, restaurant can generate a good income if managed well.
However, without a proper plan and a clear implementation strategy, it will not be possible
to make it in the restaurant business. Having marketing strategy in the business is very
important. In fact, having a Marketing Strategy is useful that they can think of it as having
a road map. It will guide them in just about every business decision that they make. In
short, marketing strategy will highlight the path that they are taking to achieve their
specific objectives and goals. Wherein, Marketing Strategy refers to a business overall
game plan for reaching prospective consumers and turning them into customers of the
products or services what the business provides. A marketing strategy helps a company
effectively use its resources to deliver a sales message to a target audience. It lays out
target markets and the value proposition that will be offered based on an analysis of the
best market opportunities. Also, Marketing Strategy helps the firm gain a competitive
advantage in the market amidst the tough competition with an edge over the existing
players and the new entrants who are trying to establish their brand presence in the
market. Furthermore, the businesses that have a marketing strategy are 538% more likely
to report success than businesses that do not have a marketing strategy. Also, having a
marketing strategies in the business can help the owner to identify the skills of employees
and utilize it so that it can help develop creative approaches to sales and customer service
also it is important for developing a promotional strategy as it helps the business identify
its target markets and to set measurable goals, the goal of having marketing strategies in
the business is to aim for growth and positive change in the business.
Having marketing strategy is much better if the customers patronize the business.
Patronization in the business is very important. It is to act as patron of and to provide aid
or support for something. In line with business, it is to be a frequent or regular customer
or client. That is why patronization in the business is necessarily in order to achieve
the goal of the business as mentioned above, marketing strategy is indeed important
for the customers to patronize the business. In this study, offering free Wi-Fi used as a
marketing strategy. Business Owners can turn store's visitors into paying customers by
using Wi-Fi Marketing because in the modern world of smartphones. In Today’s
generation, providing free Wi-Fi can be a strategy to remain competitive, because
technology has become an added value in achieving competitive advantage. Wi-Fi has
become an incredibly valuable resource, consumers are often using their smartphones
upon entering the stores to check if the store offers free Wi-Fi and consumers hate using
their own data plans and will oftentimes enter a store just to use the Wi-Fi. Having free
Wi-Fi as a Marketing Strategy will entice consumers to spend more time and hopefully
more money in their restaurant. Consumers tend to stay longer if they can use their
phone, tablet or laptops and can access the internet. Some businesses surveyed that
almost 62% of the customers said that they spent more time on their shop once Wi-Fi
was introduced. Around 50% of the said customers spent more money, too. A tiny number
of business owners said that customers spent less when Wi-Fi was available. Also, it has
been suggested that restaurants may build stronger loyalty than before by providing free
Wi-Fi service for customers. Also, Wi-Fi service has shown to have significant effect on
attracting customers to return to restaurants. In addition, Wi-Fi service may help
restaurant operators establish effective operations and marketing strategies for maximum
customer’s retention. Nowadays, people expect to be able to connect and if your store
does not offer free Wi-Fi service you may lose some of the potential customers and loyal
customers. Free Wi-Fi gives a reason to customers to spend as much as time at your
business. The more time they spend hanging at your business because they are
constantly looking at their device courtesy of the free internet your store offers, the more
money they could spend. A data said that nearly 70% of customers spend more time at
establishments that offer free Wi-Fi. Offering free Wi-Fi can be used to create a
competitive advantage. Wi-Fi can be used as a tool by food outlets to attract customers
to their shops. Each business needs to adopt its own strategy in order to secure their
return on investment and profitability. Having a great marketing strategy helps the
business to gain more profit and to be competitive. But then, some businesses who offers
free Wi-Fi have their disadvantages. Business owners are thinking twice whether they will
offer free Wi-Fi or not because the cost of Wi-Fi service are not proportion to the revenue
they earn and some of these establishments offer the service because they feel they have
no choice, especially if their competitors offer it. In addition, some consumers visit the
cafe just to buy a cup that worth $1.70 for four person table and just stay for a long time
during peak business Also, a restaurant offers free Wi-Fi facing a marketing dilemma
comes when a consumers do not leave after finishing their meals an example for this is
a one frustrated chain namely Panera an innovative company, Panera was one of the first
café chains to offer free Wi-Fi, long before Starbucks and they are one of the first to suffer
the flood of WiFreeloaders, their original marketing idea was to attract more customers,
but lately its starting to backfire , the customers do not leave neither buy drinks or food,
they just come in, plop down, open up their laptop, and hog a table for hours. To avoid
happening again Panera order a new policy that every consumers only have 30 minutes
of Wi-Fi wherein this clears the tables, but it also pisses off regular customers, who always
have a sense of entitlement from their weekly $1.47 coffee order. All in all, offering free
Wi-Fi in the business has its advantages and disadvantages.

Chapter III
METHODOLOGY
This chapter intends to give and explain the methods that will use by the
researchers to fulfill the purpose of the study.
Research Design
The study will employed a quantitative research. According to Aliaga & Gumberson
(2000), quantitative research is explaining a phenomenon by collecting numerical data
that are analyzed using mathematically based methods (in particular statistics).
Quantitative research is deductive in nature, and that researchers make inferences based
on direct observations with the primary goal to describe cause and effect (Kerlinger & Lee
2000).
The type of quantitative research that the researchers will use study is a
correlational research under the descriptive research. According to Bhat (n.d.),
descriptive research describes the characteristics of the population or phenomenon
studied. In this study, it describes the effectiveness of free Wi-Fi as a marketing strategy
in order to patronize the business by the participants. According to Fraenkel & Wallen
(2003). The purpose of descriptive research is to become more familiar with phenomena,
to gain new insight, and to formulate a more specific research problem or hypothesis.
This study is considered as a correlational research. According to Creswell (2012),
correlational research design is used by investigators to describe and measure the
degree of relationship between two or more variables or sets of scores. Wherein

researchers measures the two variables which are marketing strategy and free Wi-Fi to
understand and assess the statistical relationship between them with no influence from
any extraneous variable
Research Locale
The study will be conducted at the campus of Pamantasan ng Lungsod ng
Valenzuela also known as PLV. It is a state owned public university located at Valenzuela
City. The University was founded on June 05, 2002. The Pamantasan ng Lungsod ng
Valenzuela initially located beside the old municipal complex of Valenzuela way back
2008. And currently headed by Dr. Nadenena Torralba. Also, a member of Association of
Local Colleges and Universities (ALCU)
The university offers 12 bachelor courses, two masteral course and one
certificate course, which are the Bachelor of Science in Business Administration major in
management, Bachelor of Science in Public Administration, Bachelor in Science in
Electrical Engineering, Bachelor of Elementary Education, and Bachelor of Secondary
Education major in Math, English, Biology and Filipino.
Based on the research of FindUniversityPh, the weighted board exam ran of the
university in Metro Manila was 15th out of 47 schools and 57th out of 73 schools in
Philippines. After four (4) years PLV offered new courses, the Bachelor of Science and
Accountancy and Bachelor of Secondary Science in Business Administration major into
three major courses (Financial Management, Marketing Management, and human
Resource and Personal Management). PLV added an annex building under the city
resolution No. 194 series of 2008 at Maysan Road, Malinta Valenzuela City that provides
more opportunities, facilities that can accommodate the number of high school graduates
in Valenzuela City. The government bought a land near at Children of Mary Immaculate
College (CMIC) and expanded their eight (8) courses to 19.
The University offers Senior High School and College. Over the past years, the
university continues to develop academic program and plans for the benefits of the
students under the guidance of Dr. Nedena C. Torralba. Pamantasan ng Valenzuela first
open its Senior High School department in 2016 with the total of 25 sections of Grade 11
students with different strands such as Accountancy and Business Management (ABM)
with 10 sections, Science Technology Engineering and Mathematics (STEM) with seven
(7) sections, General Academic Strand (GAS) with five (5) sections, Arts and Design
Track with only one (1) section.
Sample & Sampling Technique
This research that will be conducted will use stratified random sampling under
random sampling technique. Random sampling means “every member of the population
presumably had an equal chance of being selected” (Fraenkel, Wallen & Hyun, 2012) and
as according to Sevilla (in Tejero, 2006) describe random sampling as a method of
selecting a sample size from a universe such that each member of the population has an
equal chance of being included in the sample and all possible combinations of size have
an equal chance of being selected as the sample, also sampling method in this research
is important because it helps the study to eliminate biases and to lower the cost of
gathering data samples.

The target population of the study is the selected Grade 12 students of
Pamantasan ng Lungsod ng Valenzuela which consist of 27 sections in total. The
researchers will select 11 students in ABM which has 8 sections, STEM which has 11
sections, GAS which has 4 sections, and ARTS, while the researchers will only select 10
participants in HUMSS which has 3 sections to sum up a total number of 294 students.
To get the sample size, the researchers used Slovin’s formula with 5% margin of
error. Slovin’s formula was used for calculating sample size to determine the ideal sample
size for a population. According to Ellen (2018), Slovin's formula allows a researcher to
sample the population with a desired degree of accuracy. It gives the researcher an idea
of how large the sample size needs to ensure a reasonable accuracy of results.
Formula:
𝑁
𝑛=
1 + 𝑁𝑒
Where:
n = number of samples
N = total population
e = margin of error
1107
𝑛=
1 + 11107(0.05)
1107
𝑛=
1 + 1107 (0.0025)
1107
𝑛=
1 + 2.7675
1107
𝑛=
3.7675
𝑛 = 293.82
= 294
From 1107 as the total number of population of grade 12 students, 294 is the
computed sample size or the total respondents of the study.
Instrumentation
The researchers will use survey questionnaires using likert scale. Survey research
is defined as "the collection of information from a sample of individuals through their
responses to questions" (Check & Schutt, 2012, p. 160). This type of research allows for
a variety of methods to recruit participants, collect data, and utilize various methods of
instrumentation. Survey research can use quantitative research strategies (e.g., using
questionnaires with numerically rated items), qualitative research strategies (e.g., using
open-ended questions), or both strategies (i.e., mixed methods). As it is often used to
describe and explore human behavior, surveys are therefore frequently used in social
and psychological research (Singleton & Straits, 2009). According to Jamieson (2017),
likert scale is a rating system that is used in questionnaires, it is designed to measure
people’s attitudes, opinions, or perceptions. In addition, the researchers will provide 15
survey questionnaires.
Consequently, the survey was designed to measure customers' level of agreement
using a five-point scale, meaning 1 as “strongly disagree” to 4 as “strongly agree”.
Simulation studies and empirical studies have generally concurred that reliability and
validity are improved by using 5- to 7-point scales rather than coarser ones (those with
fewer scale points). The questionnaire that will be distributed to the respondents of the
study is consist of 15 questions which will be focus on three factors: respondents' opinion
about the purpose of marketing strategies of a business, the impact of free Wi-Fi in
customers patronization on a restaurant and factors of Wi-Fi as the marketing strategy in
a business. Furthermore, the first factor was adopted to the study of “Strategic Marketing
and Marketing Strategy: Domain, Definition, Fundamental Issues and Foundational
Premises” by Varadarajan, Rajan (2010) and the two remaining factors that will be
provided is created by the researchers which is based on the statement of the problem
and to the theoretical framework. In addition, the questionnaires that will be provide by
the researchers will undergo the process of validation to be done by the researcher
adviser.
Statistical Treatment
To interpret the data effectively, the researchers will employ the following statistical
treatment.
1. Weighted Mean
According to Corporate Finance Institute (CFI, n.d.) weighted mean is a type

of mean that is calculated by multiplying the weight or probability associated with a
particular event or outcome with its associated quantitative outcome and then summing
all the products together.
The researchers will used weighted mean determining the effectiveness of free Wi-
Fi as a marketing strategy to patronize the business by the selected grade 12 students of
Pamantasan ng Lungsod ng Valenzuela. Also, this will used to calculate a quantitative
outcome from a certain event
Formula of Weighted Mean:
𝛴𝑊𝑋
𝑋𝑤 =
𝛴𝑊
Where:
X = sample mean
W = weight
Σ = sum of
X = values in sample
LEGEND
1.00-1.75 Strongly Disagree
1.76-2.50 Disagree
2.51-3.25 Agree
3.26-4.00 Strongly Agree

Data Gathering Procedure
• Construct Survey Questionnaire

1
2 • Instrumentation to be used and Validation
3 • Where the survey will be conducted and who are the respondents
• Conduct consent
4
• Conduct Survey
5
• Collect Data
6
• Analysis and Interpretation

7
After gaining the knowledge about the study, researchers will proceed in gathering
data. The first thing to do by the researchers is to make survey questionnaires that will be
answered by the respondents.
Second, they will analyze what is the instrumentation to be use that will settle the
questions and know if it still has the accordance to the problem of the study. Next, is to
validate all the created questions by the researchers to confirm if it is ready to let the
respondents answer the following questions and if it will answer the problem of the study.
After validating the research questionnaires, the researchers will identify who are
their respondents and where the survey is conducted

Then, after the questionnaire is ready they will first conduct a consent to their
research teacher to conduct a survey on their campus.
Next, the researchers will conduct the survey personally and explain what the
objectives, the process of the survey are and how will it last to prevent misunderstanding
and distracting the respondents from what they're doing. The researchers will guide the
respondents to answer the survey questionnaire and if there are questions regarding to
that, the researchers will be able to answer them immediately.
After collecting the data, the researchers will visualize the outcomes or the results
of the survey honestly.
Lastly, when the researchers know the results they will enable to have
interpretation of their study and they already have answers to their problems.
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Name : Section:
Direction: Read each statement carefully and indicate your level of agreement and
disagreement with each of these statement.
4- Strongly Agree 2- Disagree

3- Agree 1- Strongly Disagree
Marketing Strategy
4 3 2 4
Statements Strongly Agree Disagree Strongly
Agree Disagree
It is necessary for the

business to have a
marketing strategy.
Marketing strategy helps

to attract customers.
With marketing strategy,

business gain more profit.
Marketing strategy helps

the business to be more
competitive.
In the business field, it is

very important for the
business to have a
marketing strategy to
sustain its life.
Patronization
4 3 2 4
Agree Disagree
Free Wi-Fi
4 3 2 4
Agree Disagree

Effectiveness of Free Wifi As A Marketing Strategy To Business

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PAMANTASAN NG LUNGSOD NG VALENZUELA

Tongco St.Maysan, Valenzuela City

EFFECTIVENESS OF FREE WI-FI IN RESTAURANTS AS A MARKETING

THE PROBLEM AND ITS BACKGROUND

the involvement of wireless communication technology (WCT) (Negus & Petrick,

2008). According to Kazmeyer (n.d.) wireless communication technology defines any

allowing users to remain in contact even in remote areas.

People having access to the Internet is available almost everywhere. All

people interact with companies on a regular basis. Technology is constantly changing

up with technology adds value to the business.

involving work, school, and online activities.

According to Scheck, S. (2015) technology is forcing businesses to think again of

effectively utilizing Wi-Fi as a marketing strategy to patronize their business. As a

seeing one to three people leave every day.

Figure 1: Social Exchange Theory (SET)

social exchange involves a series of interactions that generate obligations (Emerson,

1976). SET has been deﬁned as Homans (1958,p. 606) as:

Social behavior is an exchange of goods, material goods but also non-material

two, proﬁt, tends to a maximum.

section will discuss these business models.

STATEMENT OF THE PROBLEM

strategy to random Grade 12 students of Pamantasan ng Lungsod ng Valenzuela in a

3. Does having free Wi-Fi in the business considered as an effective marketing

SCOPE AND DELIMITATIONS

be conducted during the first semester of school year 2019-2020.

Grade 12 student can be in a restaurant located in Valenzuela regardless of the strand.

Wi-Fi as one of their marketing strategies if ever proven that it is effective.

ng Lungsod ng Valenzuela. A survey questionnaire will serve as the main instrument of

the study to gather the needed information in order to provide a conclusion.

SIGNIFICANCE OF THE STUDY

The results of the study will be at great benefit to the following:

institution would produce refine and competitive individual.

used authorial definition. The following terms are as follows:

Business- Business is an organization that provides goods or services in order to earn

profit (Mahajan, 2014)

influence to trade for commodities or needed favors (Smith, 2016).

Restaurant- Restaurants are generally defined in the literature as organizations providing

(Brotherton, 2003; Kiefer, 2002; Ottenbacher et al., 2007).

to communicate over a wireless signal (Techterm, 2014)

This study is designed to determine the effectiveness of free Wi-Fi in restaurants

as a marketing strategy to patronize the business by the selected Grade 12 students of

Pamantasan ng Lungsod ng Valenzuela. To give the comprehensive view of this

research, review of related literature and studies are presented below.

goals (Standberry, 2018). According to Barone (2019) Marketing Strategy refers to a

customers of the products or services what the business provides.

well-planned digital marketing campaign gives restaurants an edge during high-volume

sales times Radetich (2018).

of business. A well-defined marketing strategy leads to an increase in the business sales

and brand of the business.

A marketing strategy helps a company effectively use its resources to deliver a

information to create (Root, 2017)

competitive. One of the example of Marketing Strategies is Wi-Fi Marketing, Wi-Fi

retailers (b) to increased sales (Sheejan, 2018).

According to Blair (n.d.) the importance of having marketing strategy in the

organization an edge over other competitors (Juneja, n.d.)

patronization (Chambers, 2019). According to Pokalsky (n.d.) satisfied customers spend

business,that is why patronization is a must (Wilson, 2017).

customers spent less when Wi-Fi was available.

Fi service has shown to have significant effect on attracting customers to return to

operations and marketing strategies for maximum customer’s retention.

If the business wants to be successful, attracting new customers physically is not

establishments that offer free Wi-Fi. (Business Achiever, 2018)