Ebay may use business intelligence to: Multiple Choice Track the cost of iPhones on its website. Monitor the price of iPads at Amazon. Track the cost of their airplane fuel. Monitor prices on competitive routes.
Added by Alba T.
Step 1
Step 1: Identify the context of the question, which is about how eBay can utilize business intelligence. Show more…
Show all steps
Your feedback will help us improve your experience
Manasvee Singh and 51 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
1. Visit StreetSounds' eBay Storefront. What types of items do you see? Are there any auctions?2. What is StreetSounds' seller rating? How important is customer service to their success?3. Look up Selling Manager Pro on eBay's site. Compare the free and paid versions. If you were an seller, which version would you opt for?4. What do social networks, auctions and portals have in common?5. What are the four defining elements of a social network - online or offline?6. Why is Pinterest considered a social network, and how does it differ from Facebook?7. Why are mobile social networks growing so fast?8. What are two measures that can be used to understand the importance of social networks and to compare them to other Internet experiences?9. List and describe four different types of auctions.10. How does a Name Your Own Price auction, such as Priceline's, work?11. List and briefly explain three of the benefits of auction markets.12. What types of products are well suited for an auction market? At what points in the product life cycle can auction markets prove beneficial for marketers?13. Why has Yahoo! struggled in the last 3 years?
Manasvee S.
Adi S.
Suppose that you are interested in buying an Apple iPod (either a new or used one) on eBay (the auction website) but you want to avoid overbidding. One possible way to get an insight into how much to bid would be to run a regression on the prices for which iPods were sold in previous auctions. This is an example of hedonic model of pricing. Assume you choose the following specification: Pricei = β0 + β1Newi + β2Scratchi + β3Bidrsi + i where: P ricei = the price in dollars at which the i th iPod sold on eBay Newi = a dummy variable equal to 1 if the i th iPod was new, and 0 otherwise Scratchi = a dummy variable equal to 1 if the i th iPod had a minor cosmetic defect, 0 otherwise Bidrsi = the number of bidders for the i th iPod Now answer the following questions: (a) Estimate the above regression equation using the dataset IPOD.xls. Check whether the estimated coefficients correspond to your expectations. Explain. (b) Which of the regression coefficients are statistically significant? Interpret the estimated coefficient of Bidrs. (c) One of your friends told you that each additional bidder increases price by more than 1 $. How will you test veracity of your friend’s claim using the given data? Explain. (d) Another friend of yours told you that minor cosmetic defect and number of bidders both do not matter for iPod pricing. How will you test veracity of your friend’s claim using the given data? Explain. (e) Using the estimated regression equation predict the price of a new iPod without any cosmetic defect when you know it has 3 bidders. Data: Regression Statistics Multiple R 0.662743904 R Square 0.439229482 Adjusted R Square 0.431256442 Standard Error 30.64061972 Observations 215 ANOVA df SS MS F Significance F Regression 3 155161.4594 51720.49 55.08933 2.43434E-26 Residual 211 198096.8387 938.8476 Total 214 353258.2981 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 109.2351254 4.478863692 24.38903 2.56E-63 100.4060729 118.0642 NEW 54.98653093 5.344129198 10.28915 2.2E-20 44.45180591 65.52126 SCRATCH -20.44182363 5.114388385 -3.99692 8.87E-05 -30.52366733 -10.36 BIDRS 0.725029464 0.58826868 1.23248 0.219141 -0.434607316 1.884666
Rachel G.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD