Cbbemodel Ebay

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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  as


,  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  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  







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  

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  


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.  




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