Chapter 5 Conclusion and Recommendations
Relying on discussing the research topic “Which strategic methods lead to eBay running a successful business, Dynamic Pricing or Consumer to Consumer, or both?” In this chapter, first of all it will review of what the research has got and achieved. Secondly, it shows several recommendations to future research.
It is clear that the study is around clear structure through the whole research:
The research displays a couple of definitions of Dynamic Pricing and Consumer to Consumer (C2C). According to (Prince, 2007) the dynamic format is defined by the back and forth bidding and ensure whether an item is up for bid in an online auction environment or not. Consumer to Consumer (C2C) is one simple type of model facilitates between consumers. The most famous C2C company is eBay, which is the largest personal on-line trading community in globalization. On eBay flat fees for matching buyers and sellers and commission for each dealing are the main revenue (Korper and Ellis, 2001). In literature review part, it also gives more extent knowledge to explain Dynamic Pricing and Consumer to Consumer (C2C). For instance, in Dynamic Pricing, the study conducts the knowledge of auctions, which can be divided into four segments: Ascending, Descending, Dutch and Vickery. In Consumer to Consumer, from explaining the meaning of 4C (customer, cost, convenience and communication) to refer to consumer behavior. Besides, with interpreting the B2B (Business to Business) and B2C (Business to Consumer) to in-depth explain C2C. Depending on the topic is researching on eBay, the study also shows a great deal of relative knowledge concern to the relationship between E-business an E-commerce to give ideas of eBay' e-business before Dynamic Pricing and Consumer to Consumer.
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The research methodology reveals the investigator how to carry on the research. The main research methods in the study are going along questionnaire as primary research and analyzing the communication records between consumer to consumer in eBay as secondary research. The reasons for picking up these two research methods are as following:
- According to Dörnyei (2003), carrying out the questionnaire as the research method which save researcher's time and improve the effort. By administering a questionnaire to a couple of people (depend on the need of the respondents), which can collect a large number of needed information in couple of minutes (rely on the number and difficulty level of questionnaire). When doing the questionnaire, the investigator also can enquire and interview respondents more information according to the questions which might not showing on the questionnaire papers.
- Collecting and analyzing the answers of the questionnaire from 130 respondents, it only takes investigator a couple of weeks. Therefore, questionnaire not only brings efficiency to investigator, but also gives investigator a clear and useful result what he expected.
- Communication records between consumers to consumers on eBay are directly shows what is going on buyers and sellers on e-business, whether it is comfortable or valuable for consumers or not. In addition, with the usage for the consumer, it can see that whether eBay is popular and well loved as an e-business or not. This secondary data is also very simple to get from the eBay Web sites to make the investigator more convenient.
The research sample scale is mainly around Hertfordshire. The questionnaire is investigated 5 residential areas, in front of the ASDA and around the University of Hertfordshire. The research has been chosen because in such places the population density is relatively concentrated and the respondents are full of patients.
After collecting the useful data from questionnaire and communication records between consumers and consumers on eBay, the research carries on analyze the data. The data is concentrate on discussing which marketing strategy is much more helpful for eBay, Dynamic Pricing or Consumer to Consumer (C2C). The results of analyzing relative data, the researcher find both of Dynamic Pricing and Consumer to Consumer are making the eBay as a successful e-business, though few respondents stand on negative standpoints and give a couple of reasons. For example, one of the Dynamic Pricing methods is on-line auction, which is just an attractive way at the beginning to attract the consumers in eBay. It cannot seem as a main marketing strategy to support eBay as a successful company, the evidence is not enough and lack of persuasion. Referring to the Consumer to Consumer, it seems as a coin-competitiveness in eBay, however, in eBay the main target is to give consumers convenience. Consumer to Consumer only one of the methods to achieve the final gain. In terms of Dynamic Pricing and Consumer to Consumer, they are both refer to on-line auction, which the main promotion and business method to eBay, and personal business that just according to own interest to sell or buy the product with the lower price compared with real market. The reasons for lower price are:
Always on Time
Marked to Standard
The seller does not need physical store to increase his cost, which will pay a majority of fees, such as the wages for employees, electronic and water bills and income tax, etc.
Someone removes the home address, some furnitures are not easy to be arranged in the new property but they are available, thus some of sellers get rid of them as a lower price. However, most of furniture should be picked by buyers themselves.
In order to improving the positive reputation, sell products as a lower price even lose money.
With cheaper products and fulfill shopping desire to consumers, and using both Dynamic Pricing and Consumer to Consumer make eBay to convenient the consumers, and finally makes it as a well known and popular e-business company.
In terms of the conclusion, a couple of recommendations could be expressed to the researcher in the future study.
- In the research method, if the researcher would carry on future study like this type of survey, he could use group interview. It would be more images and specific to the analysis of issues. However, it also would spend investigator a great deal of time to organize the interview time.
- More questions could be used in questionnaire if researcher wished to more in-depth analysis of research topic. This would depend on your respondents whether they would like to spend much more time to complete the questionnaire.
- According to the respondents, whether researcher to do another type of topic could choose the college students in University of Hertfordshire. It is not necessary to investigate in other places. Because these students might have much more idea of Dynamic Pricing and Consumer to Consumer marketing strategies and also might have more experience on eBay.
- The result of analyzing the research topic is both of Dynamic Pricing and Consumer to Consumer, which are lead to eBay running a successful business. This result is proved as same as the hypothesis with enough evidence and adequate theories.