Ebay Pricing And Method Of Pricing

870 words - 4 pages

-How does ebay price their service? Is it an effective method of pricing?

Pricing as per buyer/seller perspective:-
eBay started their business on the concept of bidding for products that are listed on their website. In the bidding pricing eBay asks seller to list a product on their website for a base price that seller can afford to sell for. After setting up the base price a seller selects the duration for which the product should be listed on the website. Once the product is listed with appropriate categories it reaches out to the buyers and then buyers quotes bid for the listed product.
After the expiry of auction for a particular product the product is sold to the most suitable ...view middle of the document...

It creates a virtual market for the transactions. eBay follows the Auction method for pricing which is very effective as large number of customers can bid for the desired platform and it helps to create fair opportunities for seller and buyer both .

-Do we price products and services in different ways?

Every product category is different from the other and hence the pricing also differs according to product life cycle, brand name, and customer segments. Hence marketers need to develop different pricing strategies for different products.

Mark-up pricing:- the most elementary pricing method is to add a standard mark-up tp the product’s cost. This is used by manufacturing companies.
Mark up price=
Unit Cost1-desired returns on Sales

Target- return pricing:- the firm determines the price that yields its target rate of return on investments. Public utilities, which need to make a fair return on investments use this method.
Target Return pricing = Unit cost+ Desired return*Invested capitalUnit sales
Perceived- Value pricing:- an increasing number of companies now base their price on the customer’s perceived value. Perceived value is made up of host of inputs such as the buyers image of the product performance, the channel deliverables, the warranty quality, customer support and softer attributes such as suppliers reputation, trustworthiness and esteem, companies must deliver the value promised by their value proposition and the advertising sales force and the Internet, to communicate and enhance perceived value...

Other Essays Like Ebay Pricing and Method of Pricing

Strategic Relevance of Pricing to Marketing Management

3441 words - 14 pages include fixed and variable costs associated with product V. Understand the environmental factors- this involves estimating likely competitors’ actions, understand legal constraints etc. VI. Set pricing objectives- this can be any of the following: profit maximization, revenue maximization or price stabilization (status quo) VII. Determine pricing – using information collected in (i –vi) above, select pricing method, develop the pricing

Future of Gas Pricing in India

1048 words - 5 pages mechanisms for the markets to absorb the gas, and rationalizing the pricing mechanisms in order to encourage efficient consumption as well as efficient and adequate souring of the commodity. Imports will be a significant component of the fuel and feedstock price basket for new power and fertilizer customers, and these two sectors will continue to anchor the growth of a country gas grid. Under the circumstances, pooled price of natural gas in India may

The Impact of Transfer Pricing on Corporate Disclosues

3494 words - 14 pages to illustrate the problem that is caused by MNC transfer-pricing system in a Third-World nation. Transfer-pricing system is a technique that is primarily used in international business as practiced by multinational corporations. Under this method the price of goods and services is not determined by the local market structure, but by a highly sophisticated internal sales system within subsidiaries of an MNC. The system offers opportunities to

Evaluation of Ebay and Youtube's Business Models

2606 words - 11 pages 1.1Introduction In this report we are going to evaluate the efficiency of two websites YouTube and eBay and looking closely at their business models. The reason why we have chosen to evaluate these two companies in particularly is because of their enormous success in their field making them the leaders with competition lagging far behind. The reason behind their success was the fresh idea and the correctly chosen business model that allowed

Compare the Efficient Markets Hypothesis with Other Theories of Pricing in Financial Markets

2317 words - 10 pages EFFICIENT MARKETS HYPOTHESIS AND OTHER THEORIES OF PRICING IN FINANCIAL MARKETS Name Course Title/Code Instructor’s Name Date Efficient Markets Hypothesis and other theories of pricing in financial markets Efficient market hypothesis (EMH) is a theory that emerged in the 1960s. It states that it is difficult to predict the market since the price has been set and reflect the current market conditions. It is a disputed and controversial theory

Channel and Pricing Strategies

1567 words - 7 pages types of marketing vehicles such as advertising and public relations they plan on using to reach those goals. The communication plan is the most important part of the product launch because it helps decide what key elements will work best for a company’s budget and target audience (Kotler & Keller, 2007, p. 23). Innovation Wireless (IW) is a cell phone company based out of the United States that is looking to use China as a second country

Type of Investment and Accounting Method

988 words - 4 pages type of investment and accounting methods:Indirect Investments: Types of Investments and Accounting Method No Significant Influence, Joint Control or Control Significant Influence Control Cost or FV Method (AASB 9) Consolidation Method (AASB 10, AASB 3) (Topic 7,8,9) Equity Method (AASB 128) (Topic 10) JV = Equity Method JO = Share of interest (AASB 128 & AASB 11) (Topic 10) Joint Control Equity Investment

Is Carbon Pricing the Way of the Fututre?

896 words - 4 pages Diogenes was a Greek philosopher who was famous for wandering around Corinth with nothing except a lamp. When asked about the lamp he would say, "I am looking for an honest man". His pupils founded the philosophical school of Stoicism which existed for many centuries. I am still looking for an honest person. Their gender is irrelevant. I haven't found many of these rare animals amongst the media, the economists and the politicians. I

Evaluate the Uses and Limitations of Participant Observation as a Method of Sociological Enquiry

567 words - 3 pages Participant observation is a method used by researchers to gather information on a certain group, in which they become a member of the group to gain in depth knowledge. There are two types of participant observation, these being covert and overt. Overt observation is where the group knows your identity, and what you are doing. This can be useful as it means you can act yourself, and you don’t have to be overly secretive about doing the research

Atkins and Low Carbohydrate Diets: Not the Optimal Method of Weight Loss

628 words - 3 pages Atkins and Low Carbohydrate Diets: Not the Optimal Method of Weight Loss In the help of today’s society where looks seem to matter more than personality, different types of diets quickly became popular. In the year 2003 to 2004 the Atkins Diet reached its peak, from its wide advertising to its celebrity connections an increasing amount of Americans focus their interest on this unusual way of losing weight. The Atkins Diet was introduced by

Strategic Management

2910 words - 12 pages communicate via Skype but neither seller nor buyer took the bait and the venture failed. On the contrary to this failure as a piece of successful forward vertical integration with PayPal, this has reduced the level of fraud noted on eBay as it provides a secure payment method for online users. (Kane, 2002) The final strategy eBay implemented are numerous alliances with other e-commerce companies to secure their spot amongst the biggest

Related Papers

Channel And Pricing Essay

2058 words - 9 pages RUNNING HEAD: Channel and Pricing Strategies Channel and Pricing Strategies- TRANERGY University of Phoenix MKT/571 July 1st, 2010 Dr. Edward Wirth Channel and Pricing Strategies: TRANERGY Toyota presents TRANERGY, electronic devices with green energy that not only benefit the individual consumer, but it also improves the trucking and freight business, and public transportation. Toyota’s transportable energy device unlocks the

Pricing And Exchange Rates Essay

1204 words - 5 pages opinion on the matter of immigration. I am not against and think that immigration has positive effects on economies period whether it is seen at first or not, but ultimately it does. Forbes.com says that 40% of largest United States companies are founded by immigrants or their children. Companies like EBay, Google, Brightstar, and U.S. Steel where all founded by immigrants. One of the largest companies in electronics, Intel, was even founded by

The Impact Of Changes In Supply, Demand, And Pricing

813 words - 4 pages Generally we are affected by changes in our environment in many different ways. People reactions to those almost any change will vary. With the increased technology we have become accustom to products which provide us with convince, and often feel they are necessary for us to maintain existence. Sudden changes in supply and demand and pricing could lead us to analyze our need for a particular product or service, and consider using alternative

Pricing To Market, Implication And Evidence

2277 words - 10 pages rate (15 percent per year) at which deviations from PPP seem to die out?’ (Rogoff, 1996, p. 664). To solve the PPP puzzle, numerous explanations arose including the core of this essay, Pricing to Market. The objective of this essay is threefold: (i) to explore and review the concept of Pricing to Market (PTM), (ii) to illustrate the implications of PTM for Purchasing Power Parity, and (iii) to analyse the empirical evidence of PTM. Initially, I