A POWER POINT PRESENTATION ON BROKERAGE MODEL

1. BROKERAGE
MODEL

2. •Brokers bring sellers and buyers of products
and services together to engage in
transactions.
• Charges a fee to at least one party
involved in a transaction.

3. KINDS OF PRICE DISCOVERY
MECHANISMS:
•FORWARD AUCTION
•REVERSE AUCTION
•MARKET EXCHANGE
•UNIQUE VALUE AUCTION

4. FORWARD AUCTION
Auction in which one seller offers
item(s) for bidding and several
buyers compete to offer the price
the seller will accept.
Eg: ebay.in, marketdojo.com, opt-
source.com.

7. REVERSE AUCTION
 A reverse auction (also called procurement
auction, e-auction, sourcing event, e-
sourcing) is a tool used in business-to-
business procurement.
 In this process, the role of the buyer and
seller is reversed, with the primary objective
to compete purchase prices downwards.
 Eg: Quibids.com,priceline.com

11. MARKET EXCHANGE
Similar to barter system.
Customer community can
share and exchange products
each other.
Showing negative growth.

16. UNIQUE VALUE AUCTION
• Strategy game related to
traditional auctions where the winner
is usually the individual with
the lowest unique bid.
• Bidders pay a fee to make a bid, or
may have to pay a subscription fee
in order to be able to participate.