Cbbemodel Ebay

Customer  based  brand  equity   model  of  E-­‐Bay   An  Analysis  of  CBBE  model  for  eBay.com  

08D1652-­‐  Siddharth  Jain    and  08D1656-­‐  Tom  George                                                                      

   

  INTRODUCTION   eBay   Inc.  is   an  American  Internet  company   that   manages   eBay.com,   an  online   auction  and   shopping  website  in   which  people  and  businesses  buy  and  sell  a  broad  variety  of  goods  and  services  worldwide.  Founded   in  1995,  eBay   is  one  of  the  notable  success  stories  of  the  dot-­‐com  bubble;  it  is  now  a  multi-­‐billion  dollar  business  with  operations   localized   in   over   thirty   countries.  eBay   expanded   from   its   original   "set-­‐time"   auction   format   to   include   "Buy   It   Now"   standard   shopping;   shopping   by  UPC,  ISBN,   or   other   kind   of  SKU  (viaHalf.com);   online   classified   advertisements   (via  Kijiji   or   eBay   Classifieds);   online   event   ticket   trading   (via  StubHub);   online   money   transfers   (via  PayPal)  and  other  services.     ITEMS   It  deals  in  collectibles,  decor,  appliances,  computers,  furnishings,  equipment,  vehicles,  and  other  miscellaneous  

items  are  listed,  bought,  or  sold  daily  on  eBay.  In  2005,  eBay  launched  its  Business  &  Industrial  category,   breaking  into  the  industrial  surplus  business.  Generally,  anything  can  be  auctioned  on  the  site  as  long  as   it   is   not   illegal   and   does   not   violate   the   eBay   Prohibited   and   Restricted   Items   policy.  Services   and  intangibles  can   be   sold,   too.   Large   international   companies,   such   as  IBM,   sell   their   newest   products   and  offer  services  on  eBay  using  competitive  auctions  and  fixed-­‐priced  storefronts.  Separate  eBay  sites   such   as   eBay   US   and   eBay   UK   allow   the   users   to   trade   using   the   local   currency.   Software   developers   can   create   applications   that   integrate   with   eBay   through   the   eBay   API   by   joining   the   eBay   Developers   Program.  In   June   2005,   there   were   more   than   15,000   members   in   the   eBay   Developers   Program,   comprising   a   broad   range   of   companies   creating   software   applications   to   support   eBay   buyers   and   sellers  as  well  as  eBay  Affiliates.   Controversy  has  arisen  over  certain  items  put  up  for  bid.  For  instance,  in  late  1999,  a  man  offered  one  of   his  kidneys  for   auction   on   eBay,   attempting   to   profit   from   the   potentially   lucrative   (and,   in   the   United   States,   illegal)   market   for  transplantable   human   organs.   On   other   occasions,   people   and   even   entire   towns   have  been  listed,  often  as  a  joke  or  to  garner  free  publicity.  In  general,  the  company  removes  auctions   that  violate  its  terms  of  service  agreement.                

  AUCTION  TYPES   eBay.com  offers  several  types  of  auctions.   §

Auction-­‐style  listings  allow  the  seller  to  offer  one  or  more  items  for  sale  for  a  specified  number  of  days.  The   seller  can  establish  a  reserve  price.  

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Fixed   price   format  allows   the   seller   to   offer   one   or   more   items   for   sale   at   a  Buy   It   Now  price.   Buyers   who   agree  to  pay  that  price  win  the  auction  immediately  without  submitting  a  bid.  

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Fixed  price  format  with  best  offer  allows  the  seller  to  accept  best  offers.  If  a  buyer  submits  a  best  offer,  the   seller  either  rejects  or  accepts  the  best  offer.  If  the  best  offer  is  not  satisfactory,  a  seller  may  submit  a  counter   offer   to   the   buyer.   Best   offer   is   not   available   for   auction   style   listings.   In   addition,   best   offer   is   not   available   in   every  category.  Sellers  also  meet  specific  requirements  in  order  to  sell  with  best  offer.    

The  CBBE  Model  of  eBay   1) Brand  salience    The   brand   has   customized   and   made   its   websites   region   wise   so   that   the   people   of   those  regions  are  able  to  understand  the  website  very  easily  and  get  a  homely  feeling  at   the   time   of   using   the   site.   For   e.g.   eBay.in   has   been   especially   for   the   consumers   of   India.   The   availability   of   used   as   well   as   new   products   along   with   the   availability   of   collectible   and   practical   goods   makes   it   on   top   of   the   list   for   the   consumers.   There   is   also  a  person  to  person  as  well  as  a  merchant  to  person  interaction  which  makes  it  even   more  unique  for  the  consumers  as  this  kind  of  things  is  normally  not  performed  by  the   other  companies.     2)

Brand  Performance:   a)

The  company  provides  a  guarantee  that  the  items  in  the  site  are  not  stolen  nor  they  are   used  by  anyone  before  being  sold  out  in  the  company’s  website.  

b) The  company  promises  a  timely  delivery  of  the  product  within  a  time  span  of  2-­‐3  days.   This  varies  from  place  to  place  of  delivery  and  the  time  the  ordered  has  been  made.   c)

The   customer   is   assured   that   the   product   will   reach   him   will   be   in   full   warranty   or   guarantee   as   per   the   companies   policy.   So   the   customer   doesn’t   need   to   worry   about   expired  or  broken  products.  

d) A   wide   variety   of   options   to   choose   from,   the   available   information   of   the   product   of   different  brands  as  well  as  the  price  of  the  product  makes  the  selection  of  the  product  

for  the  consumer  very  easy  thus  saving  the  problem  of  having  to  think  very  much  before   buying  a  product  by  just  having  a  look  at  the  available  options  and  then  decide  to  buy   the  product  which  the  consumer  thinks  is  offering  the  best  deal  for  them.   e)

There   is   a   proper   amount   of   transparency   in   the   transactions,   with   an   element   of   smart   purchasing  makes  eBay  a  successful  value-­‐shopping  brand.    

3)

Brand  Imagery   a)

Millions   all   over   the   world   use   this   brand   widely   and   transactions   ranging   from   small   amounts   to   bigger   amounts   take   place   in   it.   eBay   is   one   of   the   most   widely   accessed   websites  in  the  world.  It  has  users  from  around  the  world  of  almost  all  age  groups.  

b) The  site  is  very  easy  to  use.  The  people  who  don’t  know  how  to  use  these  kind  of  sites,   they  are  trained  by  eBay  trainers  in  a  special  known  as  eBay  Training.   c)

The  symbol  is  also  simple  and  easy  to  recognize.  

d) The   absence   and   banning   of   drugs   and   other   illegal   things   such   as   arms   ammunitions,   used   products   and   other   things   which   might   spoil   the   name   and   image   of   the   brand   from   the   site   makes   it   a   very   safe   website   for   its   consumers   and   this   kind   of   things   is   what  makes  the  consumers  so  happy  and  secured  about  their  transactions.   e)

The   facility   of   buying   products   365   days   throughout   the   year   makes   the   consumers   attracted   towards   it   because   if   they   need   something   which   cant   be   procured   by   them   from   their   native   place   will   lead   to   them   having   it   delivered   at   their   doorstep   by   the   courier  company  through  which  eBay  will  sell  its  product  to  the  consumer.  

f)

Since   its   inception   in   1995   eBay   has   been   out   there   as   the   premier   website   for   online   auctioning   and   direct   selling.   People   have   associated   the   brand   name   “eBay”   with   the   process  of  searching  for  resale  products.  

g)

Personality   and   values-­‐   Fairness,   Validation,   Engaging,   Community   involvement,   Empowerment.      

4)

Brand  Judgement   a)

eBay  has  been  a  pioneer  in  the  area  and  they  are  the  No:1  brand  for  online  auctioning.  

b) Quality:  The  brand  has  been  able  to  satisfy  the  needs  of  the  consumers.  It  has  been  able   to   match   itself   in   the   market   as   compared   to   the   competitors   and   has   become   a   billionaire   industry   in   today’s   time.   The   brand   offers   very   good   value.   The   presence   of   products  at  lesser  prices  along  with  the  other  benefits  being  associated  with  it  attracts   the  consumers  to  a  very  good  extent  towards  it.  

c)

Credibility:   The   option   of   paying   for   the   product   online   with   the   use   of   a   credit   card   becomes   a   problem   for   some   people   who   don’t   have   cards   with   them,   but   makes   the   work   easy   for   others   who   want   to   deliver   a   product   to   some   other   place   without   having   to  go  buy  the  product  from  the  store  and  then  send  it  to  the  respected  person.  Thus  the  

 

site  has  also  successfully  become  an  easy  shopping  destination. The  credibility  of  eBay   as   a   brand   is   so   high,   that   people   have   been   synonymously   using   the   term   for   the   service  category.   d) Brand   consideration-­‐   The   profit   percentage   that   users   get   out   of   selling   through   eBay   really   helps   it   retaining   customers.   They   consider   eBay   to   be   the   highest   priority   whenever  there  is  a  need  to  buy  a  used  product   e)

Brand   superiority-­‐   In   the   vast   market   of   online   sales,   eBay   has   become   one   of   the   superior  brands  like  some  of  the  others  for  example  amazon.com  for  books  and  movies.   The   uniqueness   and   availability   of   a   wide   variety   of   products   at   reasonable   offers   and   prices  makes  it  unique  amongst  its  competitors.      

5) Brand  Feelings     a)

 The  site  provides  a  feeling  of  security  and  safety,  and  has  social  approval  by  everyone.   The   site   has   been   able   to   maintain   a   self-­‐respect   amongst   itself   and   its   competitors   and   has  come  up  with  advertisements  which  don’t  harm  its  competitors  and  is  able  to  covey   its  message  across  to  people.  

b) Genuine-­‐  People  shopping  online  always  have  a  feeling  that  chances  of  getting  heated   are  high,  but  not  with  eBay  as  they  know  at  eBay,  they’re  dealing  with  real  people  with   eBay  as  the  intermediary.   c)

Surprising-­‐   The   online   version   of   what   that   happens   in   a   auction   house,   when   introduced  was  of  great  surprise  to  a  large  number  of  people.  And  it  s  this  element  of   surprise  that  keeps  the  business  going  to  a  great  extent.    

d) Quirky-­‐   There   aren’t   many   websites   out   there   that   follows   the   successful   pattern   of   eBay  as  a  business  model.  Which  results  it  to  be  the  market  leader  around  the  world.    

    6) Brand  Resonance   a)

Enlightened   trading-­‐   This   just   is   enlightened   trading   since   it   gives   a   real   life   shopping   experience  to  the  customers  at  the  luxury  of  their  homes,  with  an  element  of  profit.  

b) Senses   of   Community-­‐   People   participating   in   the   bidding   process   do   have   a   sense   of   community  and  feels  related.  

c)

Active   engagement   of   customers-­‐   This   is   one   of   the   basic   requirements   of   bidding   process   and   it   is   this   active   engagement   of   customers   that   keep   the   bidding   scene   lively   and  encouraging  to  participate.  

d) The   brand   is   thought   to   be   a   part   of   the   person,   and   has   a   series   of   repeat   purchases   by   people  all  over  the  world.  If  the  brand  is  started  to  be  compared  with  its  competitors,   the  brand  wins  over  the  others  by  along  margin  leading  to  a  belief  amongst  others  that   the   brand   has   something   in   it   as   compared   to   its   competitors.   The   full   details   of   the   products  in  detail  form  and  version  makes  the  doubts  not  to  be  there  in  the  consumers   mind   at   all.   The   process   of   biding   leads   to   a   sense   of   community   development   and   their   active  engagement  in  the  bidding  process  is  what  makes  the  whole  process  of  bidding   very  interesting  for  everyone  in  the  process.