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When Apple introduced its mobile payment system in 2014, the company was looking to leverage the popularity of its iPhone by adding more functionality and convenience for millions of customers. With Apple Pay, iPhone owners and Apple Watch wearers first enter their credit- or debit-card information, which Apple confirms with the banks. Once this information is on file, Apple creates a digital “token” that will be electronically transmitted to the retailer when an iPhone owner pays for something. To complete a purchase, the customer simply waves the phone or taps it at the checkout, uses the iPhone’s Touch or Face ID security to activate Apple Pay, and the phone instantly transfers the token as payment.
Even though Apple Pay offers consumers the benefits of convenience and security, Apple knew it wouldn’t succeed without a large network of retailers, restaurants, and other businesses agreeing to accept its mobile payments. Among the earliest businesses to sign up with Apple was McDonald’s, which agreed to honor Apple Pay in its 14,000 U.S. restaurants and drive-through locations. “We serve 27 million customers every day. This is a clear and compelling business opportunity for us,” explained McDonald’s chief information officer. Compared with cash transactions, Apple Pay transactions cost McDonald’s a few pennies more to process because of bank fees. Yet the fast-food giant was willing to sign on because it saw competitive advantage and profit potential in wooing iPhone users interested in speedy checkout.
Another early business supporter was Walgreens, the nationwide drug-store chain with 85 million customers enrolled in its frequent-buyer rewards program. Walgreens sells snacks, household products, and health and beauty items in addition to health-care products. Not only did Walgreens agree to accept Apple Pay at its checkout counters, but it was also the first U.S. retailer to add its rewards program to Apple Pay’s easy sign-on system. As a result, Walgreens’ customers tap twice at the checkout, once to activate the rewards account and display their savings, the second time to process the actual payment. By deciding to honor Apple Pay, Walgreens said it was “enabling a simple and convenient customer experience.”
Several hundred thousand businesses had signed on to participate by the time Apple Pay launched in October 2014. Apple’s ongoing efforts to increase business participation paid off: Eighteen months later, the network of participating businesses topped 2 million, and major companies like Starbucks, Domino’s, and Crate & Barrel were preparing to participate. Eyeing international expansion, Apple also initiated talks with banks in China to bring Apple Pay to millions of iPhone users there. Today, Apple Pay is accepted at more than 50 percent of all U.S. retail locations and in many retail stores in twenty countries.
Even though more consumers are making more mobile payments year after year, not every U.S. retailer is willing or able to work with Apple Pay. Some aren’t satisfied with the amount of consumer information that Apple Pay shares with participating merchants. Others would have to upgrade to new checkout technology for Apple Pay. Still others are locked into exclusive mobile payment deals with competing services.
Today, mobile payments represent a small fraction of all purchase transactions, dwarfed by cash as well as by credit and debit payments. And Apple Pay faces strong competition from Google, Samsung, and others operating in the mobile-payment market. To remain a leader, Apple will have to keep signing more participating businesses and showing consumers the benefits of paying by iPhone or Apple Watch whenever they make a purchase.
Which of the four categories of business markets is Apple Pay best suited for, and why?
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- When Apple introduced its mobile payment system in 2014, the company was looking to leverage the popularity of its iPhone by adding more functionality and convenience for millions of customers. With Apple Pay, iPhone owners and Apple Watch wearers first enter their credit- or debit-card information, which Apple confirms with the banks. Once this information is on file, Apple creates a digital “token” that will be electronically transmitted to the retailer when an iPhone owner pays for something. To complete a purchase, the customer simply waves the phone or taps it at the checkout, uses the iPhone’s Touch or Face ID security to activate Apple Pay, and the phone instantly transfers the token as payment. Even though Apple Pay offers consumers the benefits of convenience and security, Apple knew it wouldn’t succeed without a large network of retailers, restaurants, and other businesses agreeing to accept its mobile payments. Among the earliest businesses to sign up with Apple was McDonald’s, which agreed to honor Apple Pay in its 14,000 U.S. restaurants and drive-through locations. “We serve 27 million customers every day. This is a clear and compelling business opportunity for us,” explained McDonald’s chief information officer. Compared with cash transactions, Apple Pay transactions cost McDonald’s a few pennies more to process because of bank fees. Yet the fast-food giant was willing to sign on because it saw competitive advantage and profit potential in wooing iPhone users interested in speedy checkout. Another early business supporter was Walgreens, the nationwide drug-store chain with 85 million customers enrolled in its frequent-buyer rewards program. Walgreens sells snacks, household products, and health and beauty items in addition to health-care products. Not only did Walgreens agree to accept Apple Pay at its checkout counters, but it was also the first U.S. retailer to add its rewards program to Apple Pay’s easy sign-on system. As a result, Walgreens’ customers tap twice at the checkout, once to activate the rewards account and display their savings, the second time to process the actual payment. By deciding to honor Apple Pay, Walgreens said it was “enabling a simple and convenient customer experience.” Several hundred thousand businesses had signed on to participate by the time Apple Pay launched in October 2014. Apple’s ongoing efforts to increase business participation paid off: Eighteen months later, the network of participating businesses topped 2 million, and major companies like Starbucks, Domino’s, and Crate & Barrel were preparing to participate. Eyeing international expansion, Apple also initiated talks with banks in China to bring Apple Pay to millions of iPhone users there. Today, Apple Pay is accepted at more than 50 percent of all U.S. retail locations and in many retail stores in twenty countries. Even though more consumers are making more mobile payments year after year, not every U.S. retailer is willing or able to work with Apple Pay. Some aren’t satisfied with the amount of consumer information that Apple Pay shares with participating merchants. Others would have to upgrade to new checkout technology for Apple Pay. Still others are locked into exclusive mobile payment deals with competing services. Today, mobile payments represent a small fraction of all purchase transactions, dwarfed by cash as well as by credit and debit payments. And Apple Pay faces strong competition from Google, Samsung, and others operating in the mobile-payment market. To remain a leader, Apple will have to keep signing more participating businesses and showing consumers the benefits of paying by iPhone or Apple Watch whenever they make a purchase. Which environmental influences on the decision process seem to have been most important to McDonald’s when it decided to honor Apple Pay?arrow_forwardRajan, a customer of Jacky's looking for a Radio set. Rajan is particularly interested in purchasing a Radio, according to Michelle, the sales manager for the consumer electronics department at the cheap retailer. He informs Jacky, the salesperson at the cheap store where he believes he will get the best bargain, that his old radio recently died and he is desperate to listen up on his favourite songs. The sooner he can purchase and receive a replacement radio, the better, he explains. Jacky is aware that in three and a half weeks, the model Rajan appears to prefer significantly more than the others will go on sale for 10% off. He suspects, though, that Rajan is not willing to wait that long and may seek employment elsewhere. Additionally, Jacky will get less commission on the discounted price. As a result, he concludes that notifying Rajan of the planned sale makes little sense. When Jacky informs Rajan that the radio set, in which he is interested is now unavailable and will not be…arrow_forwardRajan, a customer of Jacky's looking for a Radio set. Rajan is particularly interested in purchasing a Radio, according to Michelle, the sales manager for the consumer electronics department at the cheap retailer. He informs Jacky, the salesperson at the cheap store where he believes he will get the best bargain, that his old radio recently died and he is desperate to listen up on his favourite songs. The sooner he can purchase and receive a replacement radio, the better, he explains. Jacky is aware that in three and a half weeks, the model Rajan appears to prefer significantly more than the others will go on sale for 10% off. He suspects, though, that Rajan is not willing to wait that long and may seek employment elsewhere. Additionally, Jacky will get less commission on the discounted price. As a result, he concludes that notifying Rajan of the planned sale makes little sense. When Jacky informs Rajan that the radio set, in which he is interested is now unavailable and will not be…arrow_forward
- Rajan, a customer of Jacky's looking for a Radio set. Rajan is particularly interested in purchasing a Radio, according to Michelle, the sales manager for the consumer electronics department at the cheap retailer. He informs Jacky, the salesperson at the cheap store where he believes he will get the best bargain, that his old radio recently died and he is desperate to listen up on his favourite songs. The sooner he can purchase and receive a replacement radio, the better, he explains. Jacky is aware that in three and a half weeks, the model Rajan appears to prefer significantly more than the others will go on sale for 10% off. He suspects, though, that Rajan is not willing to wait that long and may seek employment elsewhere. Additionally, Jacky will get less commission on the discounted price. As a result, he concludes that notifying Rajan of the planned sale makes little sense. When Jacky informs Rajan that the radio set, in which he is interested is now unavailable and will not be…arrow_forwardRajan, a customer of Jacky's looking for a Radio set. Rajan is particularly interested in purchasing a Radio, according to Michelle, the sales manager for the consumer electronics department at the cheap retailer. He informs Jacky, the salesperson at the cheap store where he believes he will get the best bargain, that his old radio recently died and he is desperate to listen up on his favourite songs. The sooner he can purchase and receive a replacement radio, the better, he explains. Jacky is aware that in three and a half weeks, the model Rajan appears to prefer significantly more than the others will go on sale for 10% off. He suspects, though, that Rajan is not willing to wait that long and may seek employment elsewhere. Additionally, Jacky will get less commission on the discounted price. As a result, he concludes that notifying Rajan of the planned sale makes little sense. When Jacky informs Rajan that the radio set, in which he is interested is now unavailable and will not be…arrow_forwardA shady broker offers a dubious investment opportunity. In week 0, he sells a $11,000 note promising to repay $11,500 in one week. In week 1, he sells two such notes and uses to proceeds to pay off the week 0 investor. In week 2, he sells 4 notes and pays off week one investors. Each week, he sells twice many notes as the week before and uses the proceeds to pay off last week’s investors. An investment scam of this sort is known as a Ponzi scheme. a) How many notes did the broker sell in week 10?b) What was the total number of notes sold by week 10? c) How much money was collected by week 10? d) How much money was paid out by week 10? e) In week 10, the broker took his profits and left the country. How much money was the loss of the investors?arrow_forward
- In the 1990’s, almost 70 percent of qualified Ghanaians used the banks. That percentage has now fallen to less than 30 percent due to the introduction of the mobile money technology. Some banking institutions such as Ghana commercial bank, fidelity bank, etc. have tried to deal with this threat by developing their own mobile money apps. Research these bank-based mobile money apps and the regulatory environment regarding them, then write a report advising the banking institutions in Ghana on the opportunities and threats posed by this technology. Discuss some cultural trends in Ghana. Research one of them in depth and write a report on the trend’s impact on marketing in the country. Discuss why marketing as important for not-for-profit organizations as profit-driven ones?arrow_forwardIn August 2016, Ryan Lochte, the winner of 12 Olympic medals, publicly claimed that he was being held up at gunpoint while competing at the Rio Olympic Games in 2016. CCTV later proved that story was fabricated, resulting in a 10-month ban bestowed on Ryan Lochte.Use the following link to access the article.ResourcesChan, M. (2016, August 19). How Ryal Lochte’s Rio Robbery Story Fell Apart. Time. https://time.com/4458405/ryan-lochte-rio-robbery-olympics/Requirements: Use the following questions to guide your analysis of the Case Study above and to include the suggested areas of analysis:1. A summary/overview of the case which:(a) Summarize the events that occurred with Ryan Lochte during the 2016 Olympics.(b) Identify key areas of focus for this case.2. An analysis of the case which does the following (a) Defines crisis management and identifies the key phases of crisis management.(b) Discusses how public relations models are applicable to this sport setting and ways that public…arrow_forwardAccording to AASB 16, an entity that provides the right to use an underlying asset for a period of time in exchange for consideration is termed as Lessor. Select one alternative: True Falsearrow_forward
- Manchester United Soccer Club Nicolette Larson was loading the dishwasher with her husband, Kevin, and telling him about the first meeting of the Manchester United Tournament Organizing Committee. Nicolette, a self-confessed “soccer mom,” had been elected tournament director and was responsible for organizing the club’s first summer tournament. Manchester United Soccer Club (MUSC), located in Manchester, New Hampshire, was formed in 1992 as a way of bringing recreational players to a higher level of competition and preparing them for the State Olympic Development Program and/or high school teams. The club currently has 24 boys and girls (ranging in age from under 9 to 16) on teams affiliated with the New Hampshire Soccer Association and the Granite State Girls Soccer League. The club’s board of directors decided in the fall to sponsor a summer invitational soccer tournament to generate revenue. Given the boom in youth soccer, hosting summer tournaments has become a popular method for…arrow_forwardManchester United Soccer Club Nicolette Larson was loading the dishwasher with her husband, Kevin, and telling him about the first meeting of the Manchester United Tournament Organizing Committee. Nicolette, a self-confessed “soccer mom,” had been elected tournament director and was responsible for organizing the club’s first summer tournament. Manchester United Soccer Club (MUSC), located in Manchester, New Hampshire, was formed in 1992 as a way of bringing recreational players to a higher level of competition and preparing them for the State Olympic Development Program and/or high school teams. The club currently has 24 boys and girls (ranging in age from under 9 to 16) on teams affiliated with the New Hampshire Soccer Association and the Granite State Girls Soccer League. The club’s board of directors decided in the fall to sponsor a summer invitational soccer tournament to generate revenue. Given the boom in youth soccer, hosting summer tournaments has become a popular method for…arrow_forward35 - Which of the following is wrong about the bond?A) The right to apply before the due date can be used by withdrawing the protest against the bill.B) If the place of payment is not written on the bill, the place of draw is accepted.C) A bill is one of the bills of exchange that cannot be issued in writing.D) The payment of the bill amount cannot be subject to any conditions or conditions.E) Bills are also a loan tool in terms of economy since they have a maturity.arrow_forward
