eBay Marketing Strategy and Retail Atmosphere Analysis

Retail Atmosphere and the Shopping Environment

There can be little doubt that retailers believe consumers will be influenced by the shopping environment. Retailers spend large amounts of money managing retail spaces to attract customers and encourage spending (Kotler & Keller, 2011). Arguably, atmosphere — the way a shop "feels" — is the most important element of the environment as perceived by its customers. If a shop feels welcoming, the environment is likely to be interpreted as positive, and customers may be more inclined to stay and make purchases. Conversely, if an atmosphere is oppressive, it is unlikely to generate positive feelings, and the environment will probably be interpreted as unwelcoming, deterring potential buyers.

There are many influences that impact the way an environment is perceived: shop layout, lighting, sound, and the body language and attitude of those in the shop. Notably, all of these elements affect atmosphere and create an emotional response associated with that environment (Pride & Ferrell, 2014). Positive influences can create an atmosphere aligned with the business — low, soft lighting for a romantic restaurant, energetic background music for a children's toy shop, or somber music and a layout that affords privacy at a funeral parlor. Even the most appropriate physical environment can be undermined by 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 seeking funeral services may find the atmosphere inappropriate if lively, jolly music is playing in the background.

According to atmospherics theory, environment and atmosphere are interdependent, each influencing the other. However, atmosphere may be considered the more important of the two, given its stimulation of emotions, which heavily impact purchase decision-making (Pride & Ferrell, 2014).

Aromas and the Shopping Experience

Aromas have a potentially strong psychological influence on those who encounter them. The smell of baking may stimulate hunger, while other smells may trigger memories — for example, the smell of bubblegum may remind someone of childhood (Solomon, 2010). These feelings or memories are accompanied by emotions. If aromas stimulate positive feelings or emotions, they can create pleasure and enjoyment, enhancing the experience they accompany (Solomon, 2010). Unpleasant aromas, however, may have the opposite effect, detracting from an experience and creating a negative association (Solomon, 2010). The reason aromas can be so powerful is their capacity for direct emotional stimulation, which in many instances exerts a subconscious influence on perceptions. The sense of smell is uniquely connected to the brain's limbic system, making scent-based associations especially durable and emotionally resonant.

eBay's Evolving Marketing Environment

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

Over the years, competition increased, and the delayed gratification associated with auctions — along with the uncertainty of whether a bid would be successful — became less attractive to many consumers. The desire for immediate purchasing resulted in eBay's movement toward the "Buy It Now" option. Consumers could make an immediate purchase without facing the uncertainty of auction outcomes. This change also increased eBay's attractiveness to more businesses, which wanted greater certainty in how they made sales. With consumers demanding a large array of goods from different sellers, choice on the platform also expanded.