The effects of a price increase on cybercafé services in Abraka, Nigeria

Abstract

PurposeTo survey the effects of a general price increase on cybercafé services in Abraka, Nigeria. The price increase introduced in September 2004 by the Association of Cybercafé Operators in Abraka (ACOA) failed due to customers’ responses to it. The collapse of the pricing regime is investigated.Design/methodology/approachUses a literature review, questionnaire, interviews, and personal observations to gather data, and uses these data to determine reasons behind the pricing structure of cybercafés in Abraka, Nigeria, and customers' reactions to those pricing structures.FindingsFindings revealed that the cost of providing an alternative electrical power source ranked highest in what determined the price of cybercafé services prior to the period of the general price increase, followed by the ISP charge. A majority of the cybercafés experienced a drop in customer/client patronage, followed by a drop in daily income and customer dissatisfaction, due to the increased prices for internet service.Originality/valueAll the cafés have reduced their prices in order to satisfy their customers. Most of them reduced their prices in order to increase customer/user patronage. It was suggested that an increase in cybercafé service prices should not be introduced again to permit more users access and to encourage them to use the internet in the cafés.