FAIR MARKET VALUE OF ACCOUNTING

Fair Market Value of Accounting

Fair Market Value of Accounting

Measuring relational capital at eBay

Online auctioneer eBay had a market capitalization of $28.06 billion (as of 31 December 2002) and personal assets of $238.8 million founded on their latest yearly report. When you address eBay's worth proposition, the phrases “brand”, “community”, and “customer service” directly arrive to mind. One can contend that most of eBay's high-flying valuation can be attributed to its relational capital. By tallying eBay on this set of relational capital metrics one starts to realize why it is one of the most thriving businesses in the new economy.

Customer retention

EBay tallies very high in clientele keeping because it is very so straightforward to list and mail items. Conversely, this alleviates of use makes it conducive for clients to easily browse the location and not purchase or mail items. EBay works hard to confirm that clients have an affirmative first know-how with eBay in order that they will extend to use the location and become a hardworking part of the community. eBay's powerful sense of community furthermore devotes it very high clientele retention. Community characteristics for example brief converse rooms; bulletin planks and “About me” sheets boost clientele commitment and replicate usage.

Strength of connection with customers/information distributing - ratio. eBay is a major demonstration of a business that evolves close connections with its clients and gets them to share data which endows eBay to assist its clients better and appeal new customers.

Customer acquisition costs

In the world of e-commerce, businesses are expending billions to propel traffic to their world broad web sites and it is significant for businesses to assess their charges of obtaining new customers. From 31 December 1998 to 31 December 2002, the number of listed eBay users increased from roughly two million to over 62 million and eBay expended $349 million on sales and marketing.

Customer approval index

eBay's Feedback Forum boost every eBay client to supply remarks and response on other eBay users with who they combine and boasts users profile that supply response rankings and integrate these comments. eBay does an excellence job of utilizing the world broad web and its large database of users to inquire clients for their opinions. This directs to expanded clientele approval and builds community.

Brand equity

eBay's emblem equity can be assessed by the premium they relish over their competitors. Many auction sites have cropped up in the awaken of eBay's achievement and numerous offer their services free. However, eBay can extend to ascribe a little charge for posting its pieces since they offer such large community that buyers are eager to yield for it. Consumers understand that the powerful emblem title of eBay adds more traffic to their proposing and raises their possibilities of developing concern in their auction items.

Reputation

Reputation is one facet of eBay's emblem equity that is very strong. Consumers are distributing many of data about themselves, encompassing borrowing business card data and dwelling locations and they should believe that eBay will be to blame with this ...