Marketing Questions and Ebay Atmosphere and the Case Study

Marketing Questions and eBay

Atmosphere and the retail environment

There can be little doubt that retailers believe consumers will be influenced by the shopping environment; retailers will spend large amounts of money to manage the retail spaces to attract customers and encourage spending (Kotler & Keller, 2011). Arguably, the atmosphere or the way a shop 'feels' is the most important element of the environment is perceived by the shops customer. If a shop feels welcoming the environment is likely to be interpreted as positive and customers may be more likely to stay, and make purchases but if an atmosphere is oppressive it is unlikely to cause positive feelings and the environment is likely to be interpreted as unwelcoming and deter purchasers.

There are many influences which impact on the way an environment is perceived; shop layout, lighting, sound, and body language and attitude of those in the shop, notably they all impact on the atmosphere and create an emotional response that is associated with that environment (Pride & Ferrell, 2014). Positive influences many create an atmosphere aligned with the business; low soft lights for a romantic restaurant, energetic background music for a children's toy shop, or somber music and a physical layout to give privacy at a funeral parlor. Even the most appropriate physical environment many be undermined with the creation of the wrong atmosphere, for example somber music and low light would not create a positive atmosphere in a children's toy shop. Likewise, a consumer looking to purchase funeral services may find the atmosphere inappropriate if lively and jolly music is playing in the background.

Environment and atmosphere are interdependent, each influencing the other, but atmosphere may be argued as most important due its stimulation of emotions which heavily impact on purchase decision making (Pride & Ferrell, 2014).

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Aromas and the shopping experience

Aromas have a potentially strong psychological influence on those who smell them. The smell of baking may stimulate hunger, while other smells may stimulate memories, for example the smell of bubblegum may remind someone of childhood (Solomon, 2010).These feeling or memories will be accompanied by emotions. If the aromas stimulate positive feelings or emotions they can create pleasure and enjoyment, enhancing whatever the experience the aromas accompany (Solomon, 2010). However, unpleasant aromas may have the opposite effect, detracting from an experience and/or creating a negative association (Solomon, 2010). The reason aromas may be so powerful is their direct emotional stimulus, which in many instances exerts a subconscious influence on perceptions.

Part 2 - eBay

The marketing environment for eBay has changed a great deal over the years, different forces shaping the way the business has developed, as consumers interests and technology has changed (Pride & Ferrell, 2014). The initial years of growth for eBay was heavily influenced by increasing interest in e-commerce, and the desire of consumers to get a good deal. This helped to stimulate the demand for auction sites, and they used by buyers and sellers. The model also facilitated the expansion of the traditional e-commerce business of business to consumer, into the model of consumer to consumer, especially the second hand market. The company had a significant first mover advantage, and benefited from the growth of the Internet and the associated technology. The expansion into areas such as PayPal were influenced not only by the potential synergy that could realize more profits for eBay, but also by the demand for convenience, and ease-of-use, by customers.

Over the years competition has increased, and the delayed gratification associated with auctions, as well as the uncertainty regarding whether or not a bit will be successful, has become less attractive to many consumers. The desire for the ability to make an immediate purchase resulted in eBay's movement towards the "buy it now" options. Consumers would be able to make an immediate purchase, and not be faced with the uncertainty regarding whether or not they had won an….....