Dynamic Pricing and eBay Today
Dynamic pricing is a pricing technique virtually as old as commerce, not just virtual commerce! It takes its name as a form of responsive pricing, based upon demonstrated and immediately accessible consumer demand. In dynamic pricing, prices can skyrocket or plummet with depending on the demand and consumers willingness to tolerate certain pricing levels pricing. Its oldest manifestation is of course the horse auction at the country fair, but today, "auction-based pricing" referred to as "dynamic" or "fluid" pricing, can be set in contrast to static pricing mechanisms evident in such online organizations as eBay on the World Wide Web.
Today, "nowhere perhaps is the impact of the web more evident than in the case of auctions. By now everyone has heard of eBay," the Internet company credited with pioneering the use of dynamic pricing to its maximum value in the digital age. Auctions in general use the dynamic market mechanism to solve a difficult business problem: pricing in a competitive market. Setting prices can be tricky, as product managers well know, especially...
Thesis eBay can continue to experience economic growth in services if the company successfully manages to transform the insights gained from their data marts and base of intelligence into marketable services. Hypothesis Investing in R&D to continually grow the areas of reputation management and trust-based verification services will make a significant contribution to long-term value as these are areas all e-commerce strategies require. I. Progression of eBay Value Chain from the Physical to the
) to engage in online price discrimination (Ramasastry, 2005). For instance, Amazon has used dynamic price to offer discounts to customers comparing prices on a bargain hunter Web site and to offer special prices to first-time customers (Ramasastry, 2005). To date, online price discrimination based on information about individual customers has been limited primarily by consumer resistance to this practice. A University of Pennsylvania survey revealed that eighty-seven percent of
eBay needs to attack this issue of trust head-on first and make the most of turning around their reputation for accuracy, reliability of transactions, transparency and vetting of buyers and sellers if they are to preserve their reputation. When all of these factors are taken into account, including the lack of platform focus, the purchase and resale of Skype, the lack of focus on being an exchange over a platform
Amazon.com A Strategic Assessment of Amazons' e-Strategies Amazon's remarkable ascent as one of the top online global retailers can be attributed to the foresight they had in creating a comprehensive distributed order management, Enterprise Resource Planning (ERP), Supply Chain Management (SCM) and e-commerce series of systems. The many other e-commerce sites that rose quickly with massive infusions of venture capital just as quick exited the market, flaming out due to a lack
66). Furthermore, social software will only increase in importance in helping organizations maintain and manage their domains of knowledge and information. When networks are enabled and flourish, their value to all users and to the organization increases as well. That increase in value is typically nonlinear, where some additions yield more than proportionate values to the organization (McCluskey and Korobow, 2009). Some of the key characteristics of social software applications
82). Both desktop and Web widgets have the same basic components. Fundamentally, they use Web compatible formats, even if intended to run in a desktop environment. This means that the core of the widget is HTML and CSS code which contains the actual content of the widget, namely text, linked images/video or content pulled from a server of Web service. Alternatively, the widget content can be created using Flash, although
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