TRUST

Trust is not associative (non-symmetric).

Trust is the amount of trust two parties have between each other. Within a buyer and seller relationship the amount of trust for each party is not always the same. Sellers can have a high quantity of trust in the buyer. Sellers place trust in buyers by them providing the money or service agreed on. This is contrasting to the buyers, where they may have less trust in the seller providing the goods or service that they might require to buy or agreed to. The buyer might not have the same trust that the product that will be delivered to them is the same as the one that was purchased.

Trust is not transitive.
Is the relationship extended automatically to one domain to another. Therefore each party has trust within each other.

Trust is always between exactly 2 parties.
Trust must involve two parties and work both ways. Therefore trust will not happen if both parties are not involved in the sale or service provided.

Trust will involve either direct trust or recommender trust.
Direct trust is when one party is directly trusting another party in a service or item provided. When they have placed trust in the individual, due to a third party recommending that they are trustworthy. 

Elements that have been incorporated to increase trust in the sites.

http://www.eBay.com.au
eBay is considered as being trustworthy as it has a protection policy for buyers. The policy protects consumers from losing money and offers protection of fraudulent behaviour. This type of website allows consumers to build confidence and they are more inclined to use it, as there is less worries of being victims of fraud.

http://www.anz.com.au

ANZ bank is the well-known and with online customer service, online banking and money transfer services it has provided credibility. It has achieved the credibility by having good security systems in place to protect its customers. Also customers have trust in banks, as they place their savings in a bank and the bank needs to build the trust for that to happen

http://www.thinkgeek.com

Think Geek - website homepage has a customer certified badge that points out to customers that they are a trustworthy organisation.

http://www.paypal.com.au

PayPal - is a highly secure website that many larger companies and business use. It has a good reputation and is considered as a very professional website for payments. The Security on the site is very detailed and explains that PayPal takes security issue seriously.

A web site that  looks untrustworthy.

Wikipedia is a website that can be considered as untrusted. This is due to the fact that anyone can add information to the web page. It is what someone has placed an opinion on and it may not be truthful or fact. It is based on the editors thoughts and beliefs.

 

Source:
http://www.seriousconsulting
.com.au/portal/cache/comzoo/images/trust-father-son_4da5cf3571f9c356dbf96fc1a23417b4.jpg

http://homeforbusiness.co.uk/homewp/wp-content/uploads/2012/11/How-To-Build-Trust-In-Your-Online-Business-300x300.jpg

https://www.youtube.com/watch?v=JDkhSORZd9s

Channel Conflict

Channel conflict
Channel conflict or otherwise known as dismissal of the online sources. This is done through channel eliminating the middleman may and can help close the gaps between the buyers and sellers.

Benefits of selling directly

In the normal process of distribution channels it would pass through such channels as supplier, manufacturer, wholesaler, retailer and finally to the buyer. With a process through cutting out the intermediaries there is direct contact through distribution channels and passing through a chain of supplier, manufacturer and then buyer.
Channel conflict can create benefits such as having direct control with pricing which will keep consumers satisfied therefore having customer returning to your website.

 

The different types of conflict
Vertical channel conflict:

Is a disagreement that occurs between two or more channel members on a consecutive levels.

Horizontal channel conflict:

Where a disagreement between two or more members of a channel. The members of the channel are on the same level.

Multichannel conflict:

This is where there is a disagreements among members that are in a separate marketing channels

 

An example where you have purchased something from a company that sells online and from a bricks and mortar store. Explain which one you chose and why?

East Bay is a fantastic online store and has direct factory supplies. It can be easier to buy direct from the supplier rather than buying further down the line at a retail store. It can be more convenient and cost less and also provide far more variety. Also there can be more sales than a bricks and mortar store, this due to the fact that a bricks and mortar store may not have the storage place for a lot of items. Generally there is better product information and guarantees when you buy direct as the brand has more power than the smaller stores.  

Source:

http://www.softwarethinktank.com/wp-content/uploads/Resolving-Channel-Conflict-with-Partners.jpg

 

http://image.slidesharecdn.com/channelconflict-131207075508-phpapp02/95/marketing-channel-conflict-4-638.jpg?cb=1386402980

 

ONLINE AUCTION

What is eBay's business model?

EBay follows the broker business model, where they acts as a middle person and bring the buyers and sellers together. Ebay offers sellers opportunities to sell their products through an action method and convenes the transactions through a safe payment system.

 

Why has it been so successful?
Ebay is a worldwide auction site and is the first site to introduce this type of buyer and seller interaction. It has also built trust with customers and it can credited itself with a secure payment option for customers. With Ebay allowing the process of asking the buyer or seller direct questions about the product can make the transaction between customer and seller worries free.

Q2: Other major web sites, like Amazon.com and Yahoo!, have entered the auction marketplace with far less success than eBay.

How has eBay been able to maintain its dominant position?
Amazon and Yahoo offer new products, unlike eBay that offers new, old and used products. Also Amazon and Yahoo have direct suppliers and there is no way to offer less money or have the power to control the amount you may want to spend. Therefore the customer has the feeling that they have more control over their purchase and can bid on products.

 

Q3: Ebay has a system where customers can communicate between one another. This allows for a more positive transaction between parties involved. Additionally if has a arrangement where customers and buyers can leave feedback about each other. This gives the buyer and seller credibility and can influence others to use the same buyer or seller for future reference.

What kinds of fraud, if any, are eBay users most susceptible?
Ebay has a security payment system in place, through PayPal. This can give customers peace of mind, as transactions are easily done.

 

 

Q4: eBay makes every effort to conceptualize its users as a community (as opposed to, say "customers" or "clients").

 

What is the purpose of this conceptual twist and does eBay gain something by doing it?
Ebay has created a way for people worldwide to connect through a web site that offers and attracts many customers a range of products that may not be assessable to them. By bringing people and countries together eBay benefits from the profit that is made for selling products. However it also has also made it easier for communities and countries to interact in a safe business environment. Therefore this could be seen as a good thing and bring together communities can make a strong sense of pride. Also as quoted by John Kander, Fred Ebb, “money makes the world go round.”

Q5: eBay has long been a marketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set-up shop on eBay?
There are many reasons why a business may set up a shop on eBay. It could provide to be a cost effective way to sell products that may be a surplus in the shop. It could also save money on renting a premises to sell products, paying staff can become expensive.  Furthermore eBay provides a hassle free environment to many business, as all the transactions are done directly through a PayPal system where the money goes directly into the business account.
There are also opportunities to market products worldwide, unlike a shop, where there may only be products available to shoppers who come into the store.

 

 

 

 

 

 

 

 

 

 

 

Source:
http://www.adweek.com/files/imagecache/node-detail/news_article/ebay-paypal-hed-2014.jpg
http://www.allgreatquotes.com/money_quotes.shtml
http://replacemyremotecarkey.com/EBAY/top.jpg

http://www.sellerexpress.com/wp-content/uploads/2013/01/ebay_supported_countries.jpg