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E-Bussiness Past Papers

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0% found this document useful (0 votes)
154 views21 pages

E-Bussiness Past Papers

Uploaded by

Daniyal Awan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 21

Page 1 of 21

QUESTION NO 1:
Define the term E-Commerce. Is E-Commerce equivalent to E-
Business? Differentiate Traditional and Electronic Commerce in
detail
E-Commerce:
E-commerce, short for electronic commerce, refers to the buying and selling of
goods and services over the internet or other electronic networks. It involves the
transaction of money, data, and information to complete commercial
transactions online. E-commerce can take various forms, including online retail
stores, online marketplaces, business-to-business (B2B) transactions,
business-to-consumer (B2C) transactions, and consumer-to-consumer (C2C)
transactions. It encompasses activities such as online shopping, electronic
payments, online auctions, and digital marketing. E-commerce has become
increasingly prevalent in modern economies, providing convenience and
accessibility to both businesses and consumers worldwide.
On the other hand, e-business, or electronic business, is a broader term that
encompasses not only online buying and selling but also all electronic
interactions between a company and its stakeholders, including suppliers,
customers, and business partners. E-business includes processes such as
electronic communication, online collaboration, digital marketing, supply
chain management, and customer relationship management, in addition to e-
commerce activities.
While e-commerce is a subset of e-business, the two terms are often used
interchangeably, especially in casual conversation. However, e-business
encompasses a wider range of online business activities beyond just
transactions, including activities that support and enhance the overall business
operations in the digital realm.
Differentiate Traditional and Electronic Commerce in detail.
Traditional commerce and electronic commerce (e-commerce) represent two
distinct approaches to conducting business. Here's a detailed differentiation
between the two:
1. Nature of Transactions:
 Traditional Commerce: Involves face-to-face interactions between
buyers and sellers in physical locations such as stores, markets, or
Page 2 of 21

offices. Transactions typically occur in cash or through checks, credit


cards, or other traditional payment methods.
 E-commerce: Transactions are conducted electronically over the internet
or other electronic networks. Buyers and sellers interact virtually through
websites, mobile apps, or online platforms. Payment is made digitally
using credit cards, online payment systems, or cryptocurrencies.
2. Location:
 Traditional Commerce: Transactions take place in physical brick-and-
mortar establishments like stores, markets, or offices.
 E-commerce: Transactions occur online, enabling business activities to
take place virtually without the need for physical storefronts or offices.
3. Operating Hours:
 Traditional Commerce: Typically operates during specific business
hours, which may vary depending on the business and location.
Customers must visit the physical store within these hours to make
purchases.
 E-commerce: Operates 24/7, allowing customers to shop anytime and
anywhere with internet access. E-commerce platforms are always
accessible, providing convenience and flexibility to both businesses and
customers.
4. Accessibility and Reach:
 Traditional Commerce: Limited by geographical constraints, as
customers need to be physically present at the location of the store or
business.
 E-commerce: Has a global reach, enabling businesses to reach
customers beyond geographical boundaries. E-commerce platforms
can attract customers from different regions, countries, and even
continents.
5. Costs and Overheads:
 Traditional Commerce: Involves significant overhead costs associated
with maintaining physical stores, including rent, utilities, inventory
management, and staffing.
 E-commerce: Generally, has lower overhead costs compared to
traditional commerce since there is no need for physical storefronts or
extensive infrastructure. However, e-commerce businesses may incur
costs related to website development, online marketing, and logistics.
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6. Customer Experience:
 Traditional Commerce: Provides a tangible shopping experience where
customers can physically see, touch, and try products before making a
purchase. Personalized customer service and face-to-face interactions
are common.
 E-commerce: Offers a convenient shopping experience with the ability
to browse through product listings, read reviews, and compare prices
online. While lacking physical interaction, e-commerce platforms often
provide features such as personalized recommendations, live chat
support, and hassle-free returns to enhance the overall customer
experience.
7. Security and Trust:
 Traditional Commerce: Relies on physical security measures such as
surveillance cameras, security personnel, and anti-theft devices to
ensure the safety of transactions and prevent fraud.
 E-commerce: Requires robust online security measures to protect
sensitive customer information and financial transactions. This includes
encryption technologies, secure payment gateways, and adherence to
industry standards and regulations such as PCI DSS (Payment Card
Industry Data Security Standard).
QUESTION NO 2:
How Broker-based services are performed online? Describe
the online travel tourism services and benefits in detail.
Broker-based services involve intermediaries who facilitate transactions
between buyers and sellers. These services can be performed online through
various platforms and websites. Here's how broker-based services are typically
conducted online:
1. Online Marketplaces:
Online marketplaces such as Amazon, eBay, and Alibaba serve as
intermediaries connecting buyers and sellers. Sellers list their products or
services on these platforms, and buyers can browse, compare, and purchase
items directly from the sellers. The marketplace acts as a broker, facilitating
transactions, managing payments, and providing tools for sellers to manage
their listings and orders.
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2. Real Estate Platforms:


Online real estate platforms like Zillow, Realtor.com, and Trulia serve as
brokers for buying, selling, and renting properties. Sellers list their properties
with detailed descriptions, photos, and pricing information, while buyers can
search for properties based on their preferences and requirements. These
platforms facilitate communication between buyers and sellers, provide tools
for scheduling viewings, and may offer additional services such as mortgage
calculators and neighborhood information.
3. Financial Brokerage Services:
Online brokerage firms such as ETRADE, Charles Schwab, and TD Ameritrade
enable investors to buy and sell financial securities such as stocks, bonds, and
mutual funds online. These platforms provide trading tools, research, and
analysis, as well as access to real-time market data. Investors can place orders,
monitor their portfolios, and manage their investments through secure online
interfaces.
4. Freelance Platforms:
Online freelance platforms like Upwork, Freelancer, and Fiverr connect
businesses and individuals seeking freelance services with freelancers offering
their skills and expertise. These platforms act as intermediaries, facilitating
project bidding, negotiations, and payments. Freelancers can create profiles
showcasing their skills and portfolio, while clients can post job listings and
browse freelancer profiles to find the right match for their projects.
5. Insurance Brokers:
Online insurance marketplaces and comparison websites enable individuals
and businesses to compare and purchase insurance policies from various
providers. These platforms provide tools for obtaining quotes, comparing
coverage options, and completing online applications. Insurance brokers may
also offer personalized advice and assistance to help clients navigate the
complexities of insurance products and make informed decisions.
Describe the online travel tourism services and benefits in
detail.
Online travel and tourism services encompass a wide range of platforms and
websites that facilitate various aspects of travel planning, booking, and
management. These services offer numerous benefits to travelers, making it
easier and more convenient to research destinations, compare prices, book
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accommodations and transportation, and access travel-related information.


Here's a detailed overview of online travel tourism services
and their benefits:
1. Travel Aggregators and Booking Platforms:
 Platforms like Expedia, Booking.com, and TripAdvisor aggregate travel-
related information from airlines, hotels, car rental companies, and
other service providers.
Benefits:
 Comprehensive Search: Travelers can search for flights, hotels, rental
cars, and vacation packages in one place, saving time and effort.
 Price Comparison: These platforms allow users to compare prices and
offerings from multiple providers, helping them find the best deals and
discounts.
 Reviews and Ratings: Travelers can read reviews and ratings from other
users to make informed decisions about accommodations, restaurants,
and attractions.
 Flexible Booking: Many platforms offer flexible booking options,
including free cancellation and last-minute deals, providing travelers
with more flexibility and peace of mind.
2. Online Travel Agencies (OTAs):
 OTAs such as Expedia, Priceline, and Travelocity act as intermediaries
between travelers and service providers, offering a wide range of travel
products and services.
Benefits:
 Convenience: Travelers can book flights, hotels, vacation packages, and
activities online from the comfort of their homes or on the go.
 Customization: OTAs often provide tools and filters to help users
customize their travel itineraries based on preferences such as budget,
location, and amenities.
 Customer Support: Many OTAs offer customer support services,
including live chat, email, and phone support, to assist travelers with
booking inquiries, changes, or cancellations.
 Loyalty Programs: Some OTAs offer loyalty programs or rewards
programs, allowing frequent travelers to earn points or discounts on
future bookings
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3. Metasearch Engines:
 Metasearch engines like Google Flights, Skyscanner, and Kayak
aggregate flight and hotel prices from various sources and display them
in a single search.
Benefits:
 Comprehensive Search: Metasearch engines provide real-time pricing
and availability information from multiple airlines, hotels, and online
travel agencies.
 Flexible Dates and Destinations: Travelers can compare prices across
different dates and destinations to find the most cost-effective options
for their trips.
 Price Alerts: Many metasearch engines offer price alert features,
notifying users when prices drop or when there are changes in
availability for their desired travel dates.
4. Travel Planning and Inspiration Websites:
 Websites like Lonely Planet, TripAdvisor, and Travel + Leisure provide
travel guides, destination information, and inspiration for travelers.
Benefits:
 Trip Planning Resources: These websites offer destination guides, travel
tips, sample itineraries, and insider recommendations to help travelers
plan their trips.
 Inspiration: Travelers can browse articles, photos, and videos to discover
new destinations, experiences, and activities.
 Community Engagement: Many travel websites have forums, discussion
boards, and social media platforms where travelers can connect with
like-minded individuals, share experiences, and seek advice.
5. Mobile Apps:
 Mobile apps such as Airbnb, Uber, and Google Maps provide on-the-go
access to travel-related services and information.
Benefits:
 Accessibility: Travelers can access booking information, maps, directions,
and local recommendations directly from their smartphones or tablets.
 Convenience: Mobile apps offer features like mobile check-in, digital
boarding passes, and ride-sharing services, enhancing the travel
experience and reducing hassle.
Page 7 of 21

QUESTION NO 3:
What is E-Business Web site? Describe the objectives. types
and characteristics of Web advertisement.
E-Business Website:
An e-business website is an online platform that enables businesses to conduct
various electronic transactions and interactions with customers, suppliers,
partners, and other stakeholders. These websites serve as the digital
storefronts or portals through which businesses engage in e-commerce
activities, promote their products or services, and manage their online
presence. Here's a breakdown of the objectives, types, and characteristics of
web advertisement within the context of e-business websites:
Objectives of Web Advertisement:
1. Generate Traffic: Web advertisements aim to attract visitors to the e-
business website, increasing visibility and exposure to potential customers.
2. Drive Conversions: Advertisements seek to convert website visitors into
customers by encouraging them to make purchases, sign up for services, or
take other desired actions.
3. Build Brand Awareness: Advertisement campaigns help businesses
enhance brand recognition and recall among their target audience,
strengthening brand identity and reputation.
4. Promote Products/Services: Advertisements showcase the features,
benefits, and value propositions of products or services offered by the e-
business, persuading customers to make informed purchasing decisions.
5. Enhance Engagement: Web advertisements can foster interaction and
engagement with the target audience through interactive elements, compelling
content, and calls to action.

Types of Web Advertisement:


1. Display Ads: These are graphical or visual advertisements displayed on web
pages, typically in the form of banners, images, or videos. Display ads can
appear on websites, social media platforms, or within mobile apps.
2. Search Engine Marketing (SEM): SEM involves placing advertisements
within search engine results pages (SERPs) to target users searching for specific
keywords or phrases related to the business or its offerings. This includes paid
search ads and sponsored listings.
Page 8 of 21

3. Social Media Advertising: Social media platforms like Facebook, Instagram,


Twitter, and LinkedIn offer advertising options to businesses to promote their
products or services to targeted audiences based on demographics, interests,
and behavior.
4. Native Advertising: Native ads are seamlessly integrated into the content of
the website or platform where they appear, matching the look and feel of the
surrounding content. They blend in with the user experience, providing a less
intrusive form of advertising.
5. Video Advertising: Video ads are short video clips or commercials that play
before, during, or after online video content, such as YouTube videos or
streaming services. Video ads can be highly engaging and visually compelling.
6. Email Marketing: Email advertisements are promotional messages sent to a
targeted list of subscribers via email. Email marketing campaigns can include
newsletters, promotional offers, product announcements, and personalized
recommendations.

Characteristics of Web Advertisement:


1. Targeting: Web advertisements are often targeted towards specific
demographics, interests, or behaviors to reach the most relevant audience.
2. Measurable: Advertisement campaigns can be tracked and measured using
analytics tools to evaluate their performance in terms of reach, engagement,
conversions, and return on investment (ROI).
3. Interactive: Many web advertisements incorporate interactive elements
such as clickable buttons, forms, or quizzes to encourage user engagement and
participation.
4. Responsive: Advertisements should be optimized for various devices and
screen sizes to ensure a seamless user experience across desktops, laptops,
tablets, and smartphones.
5. Compelling Content: Effective web advertisements feature compelling
content, visuals, and messaging that capture the audience's attention and
convey the value proposition of the product or service.
6. Call to Action (CTA): Advertisements include clear and persuasive calls to
action prompting users to take the desired action, whether it's making a
purchase, signing up for a newsletter, or requesting more information.
Page 9 of 21

QUESTION NO 4:
(a): Is Online payment system risky? Describe the typical
security schemes used to meet security requirements.
Online payment systems can carry some level of risk, but the degree of risk
varies depending on various factors such as the security measures
implemented by the payment system provider, the user's behavior, and the
overall security of the transaction environment.
Here are some factors that contribute to the risk associated with
online payment systems:
1. Data Breaches:
Online payment systems may be targeted by cybercriminals seeking to steal
sensitive payment card information, personal data, or login credentials. Data
breaches can occur due to vulnerabilities in the payment system's
infrastructure, malware infections, or insider threats.
2. Unauthorized Transactions:
Users may become victims of unauthorized transactions if their payment card
information is stolen or if their account credentials are compromised. This can
result in financial losses and damage to the user's reputation.
3. Phishing and Fraudulent Websites:
Cybercriminals may create fake websites or send phishing emails to trick users
into disclosing their payment card information or login credentials.
Unsuspecting users may unknowingly provide sensitive information to
attackers, leading to fraudulent transactions or identity theft.
4. Payment Card Fraud:
Online payment systems are susceptible to payment card fraud, including card-
not-present (CNP) fraud, where stolen card details are used to make
unauthorized purchases online. Fraudsters may exploit weaknesses in the
payment system's authentication mechanisms or exploit stolen card data
obtained from data breaches.
5. Technical Issues:
Technical glitches or system failures within the online payment system can
disrupt transactions, delay payments, or result in errors. This can lead to
frustration among users and potentially impact their confidence in the reliability
of the payment system.
Page 10 of 21

Here are some typical security schemes used to meet security


requirements and ensure the safety of online payment transactions:
1. Encryption:
Encryption is a fundamental security measure used to protect sensitive
information transmitted over the internet. Online payment systems use
encryption protocols such as Secure Sockets Layer (SSL) or Transport Layer
Security (TLS) to encrypt data during transmission, making it unreadable to
unauthorized parties.
2. Tokenization:
Tokenization involves replacing sensitive payment card data with a unique
identifier or token. Instead of storing actual credit card numbers, online
payment systems store tokens that are meaningless to attackers if intercepted.
This reduces the risk of data breaches and unauthorized access to cardholder
information.
3. Two-Factor Authentication (2FA):
Two-factor authentication adds an extra layer of security by requiring users to
provide two forms of identification before completing a transaction. This could
include something the user knows (e.g., a password) and something the user
has (e.g., a one-time code sent to their mobile device).
4. Fraud Detection and Prevention:
Online payment systems employ fraud detection mechanisms to identify and
prevent fraudulent transactions in real-time. This may include algorithms that
analyze transaction patterns, IP geolocation checks, device fingerprinting, and
behavioral analytics to detect suspicious activity and flag potentially fraudulent
transactions for further review.
5. PCI DSS Compliance:
The Payment Card Industry Data Security Standard (PCI DSS) is a set of security
standards established by the major credit card associations to ensure the
secure handling of cardholder information. Online payment systems must
comply with PCI DSS requirements, which include implementing strong access
controls, regularly monitoring and testing security systems, and maintaining
secure networks and applications.
6. Secure Authentication Protocols:
Online payment systems use secure authentication protocols such as OAuth,
OpenID Connect, or SAML to verify the identities of users and ensure that only
authorized individuals can access payment accounts or initiate transactions.
Page 11 of 21

(b): Discuss the relationship between EFT and Debit card.


Electronic Funds Transfer (EFT) and debit cards are closely related as both are
electronic methods for accessing and transferring funds from bank accounts.
Here's a discussion on their relationship:
1. Definition:
 Electronic Funds Transfer (EFT): EFT refers to the electronic transfer of
funds from one bank account to another, typically initiated through
computer-based systems or electronic payment networks. EFT
encompasses various forms of electronic payments, including direct
deposits, wire transfers, Automated Clearing House (ACH) transactions,
and electronic bill payments.
 Debit Card: A debit card is a payment card issued by a financial institution
that allows cardholders to make purchases or withdraw cash directly from
their bank account. Debit cards are linked to the cardholder's checking or
savings account and can be used at automated teller machines (ATMs) or
point-of-sale (POS) terminals for in-person or online transactions.
2. Usage:
 EFT: EFT can be used for various types of electronic transactions,
including transferring funds between accounts, paying bills electronically,
receiving salary deposits, and making recurring payments such as
mortgage or loan installments.
 Debit Card: Debit cards are primarily used for retail purchases and cash
withdrawals. Cardholders can use their debit cards to make payments at
merchants' point-of-sale terminals by entering a Personal Identification
Number (PIN) or by swiping or tapping the card for contactless
transactions. Debit cards can also be used for online purchases and bill
payments.
3. Transaction Processing:
 EFT: EFT transactions are typically processed through electronic payment
networks such as the Automated Clearing House (ACH) system, which
facilitates the transfer of funds between financial institutions. EFT
transactions may take a few business days to settle, depending on the
type of transfer and the participating banks.
 Debit Card: Debit card transactions are processed in real-time or near
real-time through payment networks such as Visa, Mastercard, or
Page 12 of 21

proprietary networks operated by banks. When a debit card is used for a


purchase or ATM withdrawal, the transaction is authorized instantly, and
the funds are debited from the cardholder's account immediately or within
a short time frame.
4. Authorization and Security:
 EFT: EFT transactions typically require authentication and authorization
through secure channels, such as online banking portals, mobile banking
apps, or electronic signature systems. Security measures such as
encryption, authentication protocols, and transaction monitoring help
protect the integrity and confidentiality of EFT transactions.
 Debit Card: Debit card transactions require authentication through a PIN
or signature to verify the cardholder's identity and authorize the
transaction. Debit cards also incorporate security features such as EMV
chip technology, which helps prevent counterfeit card fraud, and fraud
detection systems that monitor for suspicious activity.
5. Account Access:
 EFT: EFT allows individuals and businesses to access their bank accounts
electronically for various financial transactions, including deposits,
withdrawals, transfers, and payments.
 Debit Card: Debit cards provide convenient access to funds in the
cardholder's bank account for everyday purchases and cash withdrawals.
Cardholders can use their debit cards at ATMs, POS terminals, and online
merchants, providing flexibility and convenience in accessing their funds.
Page 13 of 21

QUESTION NO 5:
Describe C2B and B2C E-business models, highlight their
unique characteristics.
C2B (Consumer-to-Business) and B2C (Business-to-Consumer) are two
distinct e-business models that involve transactions between consumers and
businesses. Here's a description of each model along with their unique
characteristic
C2B (Consumer-to-Business):
In the C2B e-business model, consumers offer products or services to
businesses, and businesses pay for them. This model represents a departure
from the traditional B2C model, where businesses sell products or services to
consumers. C2B transactions can take various forms, such as freelance work,
crowdsourcing, user-generated content, and product reviews. Some common
examples of C2B interactions include:
Characteristics of C2B Model:
1. Consumer Empowerment:
C2B empowers consumers to monetize their skills, knowledge, and resources,
enabling them to participate actively in the digital economy.
2. Flexible Work Arrangements:
C2B platforms offer flexible work arrangements, allowing individuals to work on
their terms, choose their projects, and set their prices.
3. Diverse Talent Pool:
C2B models tap into a diverse talent pool of freelancers, creatives, and experts
from around the world, providing businesses with access to specialized skills
and expertise.
4. Innovation and Collaboration:
C2B encourages innovation and collaboration between consumers and
businesses, fostering co-creation and mutual value exchange.
5. Quality Control:
Businesses may need to implement quality control measures to ensure the
reliability, consistency, and professionalism of C2B services and deliverables.
B2C (Business-to-Consumer):
In the B2C e-business model, businesses sell products or services directly to
consumers. This model is ubiquitous in e-commerce and encompasses a wide
range of industries, including retail, entertainment, travel, and services. B2C
Page 14 of 21

transactions occur through online storefronts, marketplaces, or digital


platforms where consumers browse, select, and purchase products or services
offered by businesses. Some key examples of B2C interactions include:
Characteristics of B2C Model:
1. Mass Market Appeal:
B2C caters to a broad consumer audience, targeting mass market segments
with products or services that appeal to their needs, preferences, and lifestyles.
2. Convenience and Accessibility:
B2C offers consumers convenience and accessibility by providing 24/7 online
access to products and services, seamless shopping experiences, and flexible
payment options.
3. Brand Building and Marketing:
B2C businesses invest in brand building, marketing, and customer acquisition
strategies to attract and retain consumers, differentiate themselves from
competitors, and drive sales.
4. Customer Engagement:
B2C brands focus on building relationships and engaging with customers
through personalized experiences, customer service, loyalty programs, and
social media interaction.
5. Transaction Security:
B2C platforms prioritize transaction security and data privacy to protect
consumers' personal and financial information, instilling trust and confidence
in online shopping experiences.
QUESTION NO 6:
Explain the role of SEO, social media, and E-Mail Marketing in E-
Business.
SEO (Search Engine Optimization), social media, and Email Marketing are three
essential components of digital marketing strategies for e-commerce
businesses.
Each plays a distinct role in driving traffic, engaging customers, and ultimately
boosting sales. Here's an overview of their roles in e-commerce:
1. SEO (Search Engine Optimization):
SEO is the process of optimizing a website to improve its visibility in search
engine results. For e-commerce, SEO is crucial because it helps potential
Page 15 of 21

customers find your online store when they search for products or services
related to what you offer.
Here are some key roles of SEO in e-commerce:
 Organic Traffic:
SEO helps attract organic traffic, which refers to visitors who find your website
through search engines like Google. Higher visibility in search results can lead
to more clicks and potential customers.
 Keyword Optimization:
Identifying and optimizing for relevant keywords is essential in e-commerce
SEO. By targeting the right keywords, you can reach your target audience
effectively
and improve your chances of ranking higher in search results.
 On-Page and Off-Page SEO:
On-page SEO involves optimizing your website's content, meta tags, and
structure. Off-page SEO focuses on building high-quality backlinks from
reputable websites, which can enhance your site's authority and credibility.
 User Experience:
SEO also involves improving user experience on your website, such as page
load speed, mobile-friendliness, and ease of navigation, which can positively
impact search engine rankings.
2. Social Media Marketing:
Social media platforms like Face book, Instagram, Twitter, and Pinterest are
powerful tools for e-commerce businesses. Here's how social media marketing
contributes to e-commerce success:
 Brand Awareness:
Social media helps e-commerce businesses build and increase brand
awareness. It allows you to reach a wide audience, engage with potential
customers, and promote your products or services.
 Customer Engagement:
You can engage with your audience through social media by posting content,
responding to comments, and running contests or giveaways. This interaction
can foster customer loyalty and trust.
 Product Promotion:
Social media provides a platform for showcasing your products through images,
Page 16 of 21

videos, and product listings. Paid advertising options on platforms like


Facebook and Instagram enable you to target specific demographics and
increase product visibility
 Customer Support:
Many customers use social media to ask questions and seek assistance.
Effective social media customer support can improve the overall shopping
experience and customer satisfaction.
3. Email Marketing:
Email marketing involves sending targeted emails to a list of subscribers, which
can include customers and prospects. In e-commerce, email marketing serves
several important functions:
 Customer Retention:
Email marketing is a powerful tool for retaining existing customers. You can
send personalized recommendations, product updates, and special offers to
keep customers engaged and coming back for more.
 Abandoned Cart Recovery:
E-commerce businesses often use email to remind customers about items left
in their shopping carts, offering incentives to complete the purchase.
 Promotions and Newsletters:
Sending promotional emails and newsletters with exclusive deals, updates, and
product launches can drive sales and keep customers informed.
 Data Analysis:
Email marketing allows you to track user engagement, click-through rates, and
conversion rates, providing valuable insights for refining your marketing
strategies.
QUESTION NO 7:
Discuss the Two Ethical Issues Commonly seen in E-Commerce.
In e-commerce, as in any business domain, ethical issues can arise that impact
consumers, businesses, and society at large. Two common ethical issues in e-
commerce include:
1. Privacy and Data Security:
 Issue: Privacy concerns arise when personal information collected from
users during online transactions is misused, mishandled, or
compromised. Data breaches, unauthorized access to customer data,
and the unauthorized sharing or selling of personal information are ethical
Page 17 of 21

violations that can harm individuals' privacy rights and erode trust in e-
commerce platforms.
 Implications: Violations of privacy and data security can result in
financial losses, identity theft, reputational damage, and legal
repercussions for businesses. Consumers may become reluctant to
share their personal information online or transact with businesses that
fail to adequately protect their privacy, leading to lost sales and
diminished brand loyalty.
 Mitigation: E-commerce businesses can address privacy and data
security concerns by implementing robust security measures, such as
encryption, firewalls, and secure payment gateways, to protect customer
data from unauthorized access or theft. Transparency and clear
communication about data collection practices, privacy policies, and
opt-in/opt-out mechanisms can also help build trust and reassure
consumers about the handling of their personal information.
2. Fairness and Transparency in Pricing and Marketing:
 Issue: Fairness and transparency in pricing and marketing are ethical
concerns in e-commerce, particularly when businesses engage in
deceptive or unfair practices to manipulate consumers or gain a
competitive advantage. Examples include price gouging, false
advertising, hidden fees, bait-and-switch tactics, and misleading product
descriptions or reviews.
 Implications: Unfair or deceptive pricing and marketing practices can
harm consumers by misleading them about product value, manipulating
their purchasing decisions, and eroding trust in e-commerce platforms
and brands. Such practices also undermine fair competition and
consumer welfare, leading to market distortions and inefficiencies.
 Mitigation: E-commerce businesses can uphold fairness and
transparency in pricing and marketing by adhering to ethical standards
and regulatory requirements, such as truth-in-advertising laws and
consumer protection regulations. Providing accurate product
information, pricing transparency, and clear terms and conditions can
help consumers make informed choices and avoid confusion or
frustration.

.
Page 18 of 21

QUESTION NO 8:
Explain how alliances and outsourcing are used as strategic
approaches in E-Business.
Alliances and outsourcing are strategic approaches commonly used in e-
business to enhance competitiveness, leverage expertise, and achieve
business objectives. Here's an explanation of how each approach is utilized:
1. Alliance:
Alliances involve forming strategic partnerships or collaborations between two
or more businesses to achieve mutual goals, share resources, and capitalize on
complementary strengths. Alliances can take various forms, including joint
ventures, strategic alliances, partnerships, and co-branding arrangements.
 Utilization in E-Business:
 Technology Partnerships:
E-businesses often form alliances with technology providers, software vendors,
or platform developers to gain access to cutting-edge technologies, tools, or
infrastructure that enhance their e-commerce capabilities. For example, an e-
commerce retailer may partner with a cloud computing provider to leverage
scalable infrastructure and advanced analytics for their online storefront.
 Distribution Partnerships:
E-businesses may establish alliances with distribution partners, logistics
companies, or third-party fulfillment centers to expand their reach, improve
delivery efficiency, and provide better customer service. By collaborating with
established distribution networks or logistics providers, e-commerce
businesses can fulfill orders faster, reduce shipping costs, and reach new
markets.
 Marketing and Promotion Alliances:
E-businesses often form alliances with complementary brands, influencers, or
marketing agencies to co-promote products or services, reach new audiences,
and increase brand visibility. For example, an e-commerce fashion retailer may
collaborate with a popular social media influencer to showcase their products
to a wider audience and drive traffic to their online store.
 Strategic Alliances for Innovation:
E-businesses may enter into strategic alliances with research institutions,
universities, or startups to collaborate on research and development (R&D)
initiatives, innovation projects, or product co-creation. By pooling resources
Page 19 of 21

and expertise, businesses can accelerate innovation, bring new products or


features to market faster, and gain a competitive edge in the digital
marketplace.
2. Outsourcing:
Outsourcing involves contracting out specific business functions, processes,
or services to external third-party vendors or service providers. Outsourcing
enables businesses to focus on their core competencies, reduce costs, access
specialized expertise, and improve operational efficiency.
 Utilization in E-Business:
 IT Outsourcing:
E-businesses often outsource IT functions such as software development,
website design, maintenance, and technical support to external vendors or IT
service providers. Outsourcing IT services allows businesses to access
specialized skills, reduce development costs, and stay up-to-date with
technology trends without the need for in-house expertise.
 Customer Support Outsourcing:
E-commerce businesses may outsource customer support functions such as
call center operations, live chat support, or email management to third-party
providers or business process outsourcing (BPO) firms. Outsourcing customer
support allows businesses to provide round-the-clock assistance, scale
support operations as needed, and improve customer satisfaction.
 Logistics and Fulfillment Outsourcing:
E-commerce businesses often outsource logistics, warehousing, and order
fulfillment operations to third-party logistics (3PL) providers or fulfillment
centers. Outsourcing logistics allows businesses to streamline operations,
reduce shipping costs, and focus on core activities such as marketing and
product development.
 Content Creation and Marketing Outsourcing:
E-businesses may outsource content creation, digital marketing, and social
media management tasks to external agencies, freelancers, or content
creators. Outsourcing content creation and marketing enables businesses to
generate high-quality content, reach target audiences effectively, and optimize
marketing campaigns for better results.
QUESTION NO 9: How Search Engine and Web Portals are
different? Give suitable examples of each.
Page 20 of 21

Search engines and web portals are both tools used to access and navigate the
vast amount of information available on the internet, but they serve different
purposes and have distinct functionalities. Here's a comparison of search
engines and web portals, along with suitable examples of each:
1. Search Engine:
a. Purpose: A search engine is a software system designed to search for
information on the internet by indexing web pages and returning relevant
results based on user queries.
b. Functionality: Search engines crawl and index web pages across the
internet, analyze the content of each page, and rank them based on
various factors such as relevance, authority, and popularity. Users can
enter keywords or phrases into the search engine's search bar to find
information, websites, images, videos, and other online content related to
their query.
c. Examples: Google, Bing, Yahoo, and DuckDuckGo are popular search
engines used by millions of people worldwide to search for information on
the internet. These search engines provide comprehensive search
capabilities, advanced features, and customizable search settings to help
users find relevant results quickly and efficiently.
2. Web Portal:
a. Purpose: A web portal is a website or online platform that serves as a
gateway or entry point to a variety of information, services, and resources
available on the internet.
b. Functionality: Web portals typically aggregate content and services
from multiple sources, organizing them into categories or sections to
provide users with a centralized hub for accessing information,
communication tools, and online services. Web portals may include
features such as email, news, weather updates, forums, social
networking, shopping, and entertainment, catering to the diverse needs
and interests of users.
c. Examples: Yahoo, MSN (Microsoft Network), and AOL (America Online)
are examples of web portals that offer a wide range of services and
content to users. These portals provide access to email services, news
articles, weather forecasts, sports scores, financial information, and
entertainment content, all within a single platform.
Page 21 of 21

Q1: Define the term E-Commerce. Is E-Commerce equivalent to E-


Business? Differentiate Traditional and Electronic Commerce in
detail.
Q2: How Broker-based services are performed online?
Describe the online travel tourism services and benefits in detail.

Q3: What is E-Business Web site? Describe the objectives. types


and characteristics of Web advertisement.

Q4: (a): Is Online payment system risky? Describe the typical


security schemes used to meet security requirements.
(b): Discuss the relationship between EFT and Debit card.
Q5: Describe C2B and B2C E-business models, highlight
their unique characteristics.
Q6: Explain the role of SEO, social media, and E-Mail Marketing in
E-Business.
Q7: Discuss the Two Ethical Issues Commonly seen in E-
Commerce.

Q8: Explain how alliances and outsourcing are used as


strategic approaches in E-Business.
Q9: How Search Engine and Web Portals are different? Give
suitable examples of each

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