Customer based brand equity
model of E-‐Bay
An Analysis of CBBE model for eBay.com
08D1652-‐ Siddharth Jain and 08D1656-‐ Tom George
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.
It deals in collectibles
, 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.
can be sold, too. Large international companies, such asIBM
, 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
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
for auction on eBay, attempting to profit from the potentially lucrative (and, in the United
States, illegal) market fortransplantable 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 itsterms of service
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.
§ 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.
§ 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
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
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
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
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.