Which strategy was the motivating factor behind eBay's acquisition of JotSpot and Kaboodle?

The correct answer highlights the strategy of product differentiation, which eBay pursued through its acquisition of JotSpot and Kaboodle. This approach involves creating unique offerings that distinguish a company's products or services from its competitors, thereby enhancing value to the customer.

In the case of JotSpot, a collaborative wiki tool, eBay aimed to enhance its platform by incorporating features that support user-generated content and collaboration, appealing to a community that sought more interactive features. Kaboodle, on the other hand, is a social shopping site that enables users to create and share lists of products, which aligns with eBay's strategy to provide a distinctive shopping experience that goes beyond traditional listing and bidding models.

Both acquisitions reflect eBay's commitment to enhancing its service offerings and user experience, allowing for differentiation in a competitive online marketplace. As consumers increasingly value unique and tailored online experiences, these acquisitions positioned eBay to leverage community engagement and social aspects in e-commerce, ultimately contributing to its competitive edge.