The Class Project Series – Marketing
On AutoTrader.com you can view ads placed by individuals but also research new car models at the same time. In general, there is no negotiation taking place so in comparison, EBay Motors is much more flexible in this regard. In addition EBay Motors offers buyer protection when PayPal is used, which is not noticeably available on AutoTrader.com, but they do have CARFAx. Having used CARFAx as a stand alone myself, it is comparable to Ebay Motor’s PayPal guarantee.
On EBay Motor one can either place a bid or purchase directly and a potential buyer can review a seller’s feedback history. On AutoTrader.com you can get an insurance quote form Geico for the potentially used car purchase and if needed, apply for a Car Loan, which on EBay Motor is not possible other than via click-through ads. Overall, both seem to be on pretty even footing depending on individual preference on what is acceptable in the car purchasing process.
The stage a customer on the market for a used car would utilize such sites as AutoTrader.com would be after the problem recognition stage, when he or she enters the Information Search stage. In this stage, a buyer will generally look for information in all sorts of place; paper ads, opinions from coworkers, friends and neighbors and of course, if Internet savvy, check out internet sites dedicated to the used car market.
An individual’s level of involvement – the importance and intensity of his or her interest in a product in a particular situation – affects a buyer’s behavior in that it highlights the problem-solving process used. A used car purchase usually falls within the category of situational involvement; i.e. the interest is temporary (such as needing to replace a broken down car or get a second one). Normally that would indicate extended problem solving since the purchase is infrequent and expensive in most cases.
The brand of car is not important when compared between online or on-site car dealerships. People will tend to gravitate towards brands they know regardless. For example: I like BMW’s and would be inclined favorably towards BMW’s over other brands at a website or a used-car dealer.