Tamilnadu State Board New Syllabus Samacheer Kalvi 12th Computer Applications Guide Pdf Chapter 15 E-Commerce Text Book Back Questions and Answers, Notes.
Tamilnadu Samacheer Kalvi 12th Computer Applications Solutions Chapter 15 E-Commerce
12th Computer Applications Guide E-Commerce Text Book Questions and Answers
Part I
Choose The Correct Answers
Question 1.
A company can be called E-Business if
a) it has many branches across the world.
b) it conduct business electronically over the Internet.
c) it sells commodities to a foreign country.
d) it has many employees.
Answer:
b) it conduct business electronically over the Internet.
Question 2.
Which of the following is not a tangible good?
a) Mobile
b) Mobile Apps
c) Medicine
d) Flower bouquet
Answer:
b) Mobile Apps
Question 3.
SME stands for
a) Small and medium sized enterprises
b) Simple and medium enterprises
c) Sound messaging enterprises
d) Short messaging enterprises
Answer:
a) Small and medium sized enterprises
Question 4.
The dotcom phenomenon deals with
a) Textile industries
b) Mobile phone companies
c) Internet based companies
d) All the above
Answer:
c) Internet based companies
Question 5.
Which of the following is not correctly matched
a) The First Wave of Electronic Commerce: 1985 -1990
b) The Second Wave of Electronic Commerce: 2004 -2009
c) The Third Wave of Electronic Commerce: 2010 – Present
d) Dotcom burst: 2000 – 2002
Answer:
a) The First Wave of Electronic Commerce: 1985 -1990
Question 6.
Assertion (A): The websites of first wave dot.com companies were only in En-glish
Reason (R The dot com companies of first wave are mostly American companies.
a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) (A) is true and (R) is false
d) (A) is false and (R) is true
Answer:
a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
Question 7.
Off-shoring means
a) Work outsourced to a branch of its own company
b) Work outsourced to new employees
c) Work outsourced to a third party locally
d) Work outsourced to a third party outside its own country
Answer:
d) Work outsourced to a third party outside its own country
Question 8.
G2G systems are classified into
a) Internal facing and external facing
b) Internet facing and Extranet facing
c) Internal flag and external flag
d) Internet flag and Extranet flag
Answer:
a) Internal facing and external facing
Question 9.
host the e-books on their websites.
a) Bulk-buying sites
b) Community sites
c) Digital publishing sites
d) Licensing sites
Answer:
c) Digital publishing sites
Question 10.
Which of the following is not a characteristics of E-Commerce
a) Products cannot be inspected physically before purchase.
b) Goods are delivered instantly.
c) Resource focus supply side
d) Scope of business is global.
Answer:
d) Scope of business is global.
Part II
Short Answers
Question 1.
Define E-Commerce.
Answer:
E-Commerce can be described as the process of buying or selling products, services, or information via computer networks.
Question 2.
Distinguish between E-Business and E-Commerce
Answer:
|
E-Commerce |
E-business |
| 1. E-commerce involves commercial transactions done over the internet. | 1. E-business is the conduct of business processes on the internet |
| 2. E-commerce is a subset of E-business. | 2. E-business is a superset of E-business. |
| 3. E-commerce usually requires the use of just a website. | 3. E-business involves the use of CRM’S, ERP that connect different business processes. |
| 4. E-commerce just involves buying and selling of products and services. | 4. E-business includes all kind of pre-sale and post-sale efforts. |
Question 3.
Differentiate tangible goods and electronic goods with an example of your own.
Answer:
|
Tangible goods |
Electronic goods |
| A physical item that can be perceived by the sense of touch. | Components for controlling the flow of electrical currents for the purpose of information processing and system control. |
| Example: cars, food items, computers, | Example: Goods with transistors and diodes. |
Question 4.
What are dotcom bubble and dotcom burst?
Answer:
Dotcom Bubble:
- The Dotcom Bubble was a historic excessive growth (excessive assumption) of the economy that occurred roughly between 1995 and 2000.
- During the dotcom bubble, the value of equity markets grew exponentially with the NASDAQ composite index of US stock market rising from under 1000 points to more than 5000 points.
Dotcom Burst:
- The Nasdaq-Composite stock market index fell from 5046.86 to 1114.11. This is infamous, known as the Dotcom Crash or Dotcom Burst.
- This began on March 11, 2000, and lasted until October 9, 2002. During the crash, thousands of online shopping companies, like Pets.com failed and shut down.
Question 5.
Write a short note on out-sourcing.
Answer:
Out-sourcing is generally associated with B2B E-Commerce. If a company’s work is hired by another company, it would be termed as out-sourcing.
Part III
Explain In Brief Answer
Question 1.
Describe how E-Commerce is related to socio-technological changes.
Answer:
- The growth of E-Commerce is also related to socio-technological changes.
- The more, the medium becomes deep-rooted, the more, are the users drawn towards it.
- An increase of users increases the markets.
- As the markets expand, more business organizations are attracted.
- The more businesses accumulate it creates competition.
- The competition leads to innovation.
- Innovation in turn drives the development of technology.
- Technology facilitates E-Commerce’s growth.
Question 2.
Write a short note on the third wave of E-Commerce.
Answer:
The Third Wave of Electronic Commerce: 2010 – Present
- The third wave is brought on by mobile technologies. It connects users via mobile devices for real-time and on-demand transactions, mobile technologies.
- It connects users via mobile devices for real-time and on-demand transactions.
- Not only the information is filtered by time, but also the geographic coordinates are used to screen the specific location-tailored information properly.
- The term Web 3.0, summarizes the various characteristics of the future Internet which include Artificial Intelligence, Semantic Web, Generic Database, etc.
Question 3.
Explain B2B module in E-Commerce.
Answer:
- In B2B E-Commerce, commercial, transactions take place between different business organizations, through the Internet.
- For example, a cycle company may buy tyres from another company for their cycles.
- When compared to other models, the value per transaction in B2B transactions is high, because of bulk purchases.
- The company also might get the advantage of discounts on bulk purchases.
Question 4.
Write a note on name-your-price websites.
Answer:
Name-your-price sites are just like normal retail sites. In contrast, the buyer negotiates with the retailer for a particular product or service, https://in.hotels.com/
Question 5.
Write a note on the physical product dispute of E-Commerce.
Answer:
- Physical product disputes are a major disadvantage in E-Commerce.
- E-Commerce purchases are often made on trust.
- This is because; we do not have physical access to the product.
- Though the Internet is an effective channel for visual and auditory information it does not allow full scope for our senses.
- We can see pictures of the perfumes, but could not smell their fragrance; we can see pictures of a cloth, but not its quality.
- If we want to inspect something, we choose what we look at and how we look at it. But in online shopping, we would see only the pictures the seller had chosen for us.
- People are often much more comfortable in buying generic goods (that they have seen or experienced before and in which there is little ambiguity) rather than unique or complex things via the Internet.
Part IV
Explain in Detail
Question 1.
Write about the development and growth of Electronic Commerce.
Answer:
The Development and Growth of Electronic Commerce:
Economists describe four distinct waves (or phases) that occurred in the Industrial Revolution. In each wave, different business strategies were successful. Electronic commerce and the information revolution brought about by the Internet likely go through such a series of waves.
The First Wave of Electronic Commerce: 1995 -2003
- The Dotcom companies of the first wave are mostly American companies. Thereby their websites were only in English. The Dotcom bubble had attracted huge investments to first wave companies.
- As the Internet was a mere read-only web (web 1.0) and network technology was in its beginning stage, the bandwidth and network security were very low.
- Only EDI and unstructured E-mail remained as a mode of information exchange between businesses.
- But the first wave companies enjoyed the first-move advantage and customers had left with no options.
The Second Wave of Electronic Commerce: 2004 – 2009
- The second wave is the rebirth of E-Commerce after the dot-com bust. The second wave is considered as the global wave, with sellers doing business in many countries and in many languages.
- Language translation and currency conversion were focused on the second wave websites.
The second wave companies used their own internal funds and gradually expanded their E-Commerce opportunities. - As a result, E-Commerce grows more steadily, though more slowly. The rapid development of network technologies and interactive web (web 2.0, a period of social media) offered the consumers more choices of buying. The increased web users nourished E-Commerce companies (mostly B2C companies) during the second wave.
The Third Wave of Electronic Commerce: 2010 – Present
- The third wave is brought on by mobile technologies. It connects users via mobile devices for real-time and on-demand transactions, mobile technologies.
- It connects users via mobile devices for real-time and on-demand transactions. Not only the information is filtered by time, but also the geographic coordinates are used to screen the specific location-tailored information properly.
- The term Web 3.0, summarize the various characteristics of the future Internet which include Artificial Intelligence, Semantic Web. Generic Database etc.
Question 2.
List all the E-Commerce business models and explain any four briefly.
Answer:
The various E-Commerce business models are
- Business to Business (B2B)
- Business to Consumer (B2C)
- Business to Government (B2G)
- Consumer to Business (C2B)
- Consumer to Consumer (C2C)
- Consumer to Government (C2G)
- Government to Business (G2B)
- Government to Consumer (G2C)
- Government to Government (G2G)
1. Business to Business (B2B)
- In B2B E-Commerce, commercial transactions take place between different business organizations, through the Internet.
- For example, a cycle company may buy tyres from another company for their cycles.
- B2B transaction is high, because of bulk purchases.
2. Business to Consumer (B2C)
- In B2C E-Commerce, commercial transactions take place between business firms and their consumers.
- It is the direct trade between companies and end-consumers via the Internet.
- Example: A book company selling books to customers. This mode is intended to benefit the consumer and can say B2C E-Commerce works as a ‘retail store’ over the Internet.
3. Consumer to Consumer (C2C)
C2C in E-Commerce provides an opportunity for trading products or services among consumers who are connected through the Internet.
4. Consumer to Government (C2G)
- Citizens as Consumers and Government engage in C2G E-Commerce.
- Here an individual consumer interacts with the Government.
- C2G models usually include income tax or house tax payments, fees for issuance of certificates or other documents. People paying for renewal of license online may also fall under this category.
Question 3.
Explain any five E-Commerce revenue models.
Answer:
- Apart from the regular selling of commodities, today there are many other ways by which companies can make money from the Internet.
- The other forms of E-Commerce activities are:
1. Affiliate site
- It is a form of third-party marketing in which the site owner gets paid based on the performance.
- This site may be a price comparison service or shopping directories or review sites or blogs that contain a link to a normal retailing site and are paid when a customer makes a purchase through it.
- The affiliate site usually attracts visitors by offering more information and tutorials on some specific product or a topic.
2. Auction site:
It is a kind of website, that auctions items on the Internet and levies some commission from the sales, e.g. https://www.ebay.com/
3. Banner advertisement site:
It displays advertisements of other companies in its websites and thereby earns revenue.
4. Bulk-buying sites:
It collects a number of users together all of who want to buy similar items; the site negotiates a discount with the supplier and takes a commission. e.g. https://www.alibaba.com/
5. Digital publishing sites:
- It effectively hosts e-books or magazines on the web.
- They make profits in a number of ways such as advertising, selling, etc., https://wordpress. org/
Question 4.
How would you differentiate traditional commerce and E-Commerce?
Answer:
|
Traditional Commerce |
E-Commerce |
| Traditional commerce is buying or selling of products and services physically. | E-Commerce carries out commercial transactions electronically on the Internet. |
| Customers can easily identify, authenticate and talk to the merchant. | Neither customer nor merchant sees the other. |
| Physical stores are not feasible to be open all the time. | It is always available at all times and all days of the year. ‘ |
| Products can be inspected physically before purchase. | Products can’t be inspected physically before purchase. |
| Scope of business is limited to a particular area. | The scope of business is global. Vendors can expand their business Worldwide. |
| The resource focuses Supply side. | The resource focuses Demand side. |
| Business Relationship is Linear. | Business Relationship is End-to-end. |
| Marketing is one-way marketing. | One-to-one marketing. |
| Payment is made by cash, cheque, cards, etc. | The payment system is mostly credit card and through fund transfer. |
| Most goods are delivered instantly. | It takes time to transport goods. |
Question 5.
What are the advantages and disadvantages of E-Commerce to a consumer?
Answer:
The pros and cons of E-Commerce affect three major stakeholders: consumers business organisations, and society.
The following are the advantages and disadvantages of E-Commerce for a consumer.
Advantages:
1. E-Commerce system is operated on all days and all the day. It is able to conduct business 24 × 7. Neither consumers nor suppliers need a physical stores to be opened to do business electronically. People can interact with businesses at the time of their convenience.
2. Speed is a major advantage in E-Commerce. Advanced Electronic communications systems allow messages to reach across the world instantaneously. There is no need to wait days for a catalogue to arrive by post. Communication delay is not a part of the Internet or E-Commerce world.
3. The Internet is too easy to ‘shop around’ for products and services that may be more cheaper and effective than left o buy only in a Brick and Mortar shop. It provides an opportunity to buy at reduced costs. It is possible to, explore the Internet, identify original manufacturers, thereby bypass wholesalers and achieve a cheaper price.
4. The whole world becomes a shop for today’s customers. They can have a wide choice by comparing and evaluating the same product at different websites before making a purchase decision.
5. Customers can shop from home or anywhere at their convenience. They don’t need a long wait to talk to a salesman. They can read the details regarding model numbers, prices, features, etc. of the product from the website and buy at their own convenience. Payments can also be made online.
Disadvantages:
1. E-Commerce is often used to buy goods that are not available locally but from businesses all over the world. Physical goods need to be transported, which takes time and costs money. In traditional commerce, when we walk out of a shop with an item, it’s ours; we have it; we know what it is, where it is, and how it looks. But in E-Commerce, we should wait between placing the order and having the product in hand. Some E-Commerce companies handle this by engaging their customers in updating the status of their shipments.
2. Unlike returning goods to a traditional shop returning goods online is believed to be an area of difficulty. The doubts about the period of returning, will the returned goods reach the source in time, refunds, exchange, and postage make one tiresome.
3. Privacy issues are serious in E-Commerce. In E-Commerce generating consumer information is inevitable. Not all companies use the personal information they obtained to improve services to consumers. Many companies misuse the information and make money out of it. It is true that privacy concerns are a critical reason why people get cold feet about online shopping.
4. Physical product disputes are a major disadvantage in E-Commerce. E-Commerce purchases are often made on trust. This is because we do not have physical access to the product. Though the Internet is an effective channel for visual and auditory information it does not allow full scope for our senses. We can see pictures of the perfumes, but could not smell their fragrance; we can see pictures of a cloth, but not it’s quality.
If we want to inspect something, we choose what we look at and how we look at it. But in online shopping, we would see only the pictures the seller had chosen for us. People are often much more comfortable in buying generic goods (that they have seen or experienced before and in which there is little ambiguity) rather than unique or complex things via the Internet.
5. We couldn’t think of ordering single ice cream or a coffee from a shop in Paris. Though specialized and refrigerated transport can be used, goods bought and sold via the Internet need to survive the trip from the supplier to the consumer. This makes the customers turn back towards traditional supply chain arrangements for perishable and non-durable goods.
6. Delivery ambiguity. Since supplying businesses can be conducted across the world, it can be uncertain whether they are indeed genuine businesses or just going to take our money. It is pretty hard to knock on their door to complain or seek legal recourse. Further, even if the item is sent, it is easy to start bothering whether or not it will ever arrive on time.
The following are some of the advantages and disadvantages of E-Commerce for a Business organisation.
The benefit of E-Commerce to a business organisation
Access to Global Market:
The Internet spans the world of E-Commerce, and it is possible to trade with any business or a person who is connected with the Internet. It helps to access the global marketplace. Simple local businesses such as herbal product stores are able to market and sell their products internationally using E-Commerce. Thus, the whole world becomes a potential market for an E-Commerce company.
12th Computer Applications Guide E-Commerce Additional Important Questions and Answers
Part A
Choose The Correct Answers:
Question 1.
The term E-Business was coined by ……………………….
(a) Apple
(b) IBM
(c) Microsoft
(d) Sun Microsystems
Answer:
(b) IBM
Question 2.
The first online-only shop opens on ……………
a) 1991
b) 2000
c) 2005
d) 1999
Answer:
d) 1999
Question 3.
Find the wrong statement from the following.
(a) E-commerce is a subset of E-Business
(b) E-Business is a subset of E-Commerce
Answer:
(b) E-Business is a subset of E-Commerce
Question 4.
The nascent stage is a ……………. of growth.
a) Initial stage
b) Secondary stage
c) final stage
d) None of these
Answer:
a) Initial stage
Question 5.
…………… is a platform for advertising products to targeted consumers.
a) Television
b) Radio
c) Mobile phones
d) social Media
Answer:
d) social Media
Question 6.
E-Commerce first emerged on private networks in ……………………….
(a) 1965
(b) 1967
(c) 1970
(d) 1972
Answer:
(c) 1970
Question 7.
The First business to a business transaction from …………….
a) Amazon
b) e-bay
c)Thompson Holidays
d) reddiffshop
Answer:
c)Thompson Holidays
Question 8.
The First business to the business transaction was established in the year …………..
a) 1995
b) 1981
c) 1985
d)1987
Answer:
b) 1981
Question 9.
Who invented Teleputer?
(a) Michael Aldrich
(b) Sting’s
(c) Bob Frankston
(d) Dan Bricklin
Answer:
(a) Michael Aldrich
Question 10.
The second wave of electronic commerce was …………..
a) 1995-2003
b) 1992-2003
c) 1993-2004
d) 2004-2009
Answer:
d) 2004-2009
Assertion And Reason
Question 1.
Assertion (A): E-Commerce can be described as the process of buying or selling products, services or information via computer networks
Reason(R): E-Commerce is not a completely new type of commerce
a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) (A) is true and (R) is false
d) (A) is false and (R) is true
Answer:
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
Question 2.
Assertion (A): The growth of E-Commerce is also related to socio-technological changes.
Reason(R): Electronic commerce and the information revolution brought about by the Internet likely go through such a series of waves.
a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) (A) is true and (R) is false
d) (A) is false and (R) is true
Answer:
a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
Question 3.
Assertion (A): The Dotcom Bubble was a historic excessive growth (excessive assumption) of economy
Reason(R): Dotcom Bubble occurred roughly between 1990 and 2000.
a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) (A) is true and (R) is false
d) (A) is false and (R) is true
Answer:
c) (A) is true and (R) is false
Question 4.
Assertion (A): if a company’s work is hired to another company, it would be termed as out-sourcing.
Reason(R): If the work is outsourced to a company, which is outside of its own country, is termed off-shoring.
a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) (A) is true and (R) is false
d) (A) is false and (R) is true
Answer:
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
Question 5.
Assertion (A): Traditional commerce is buying or selling of products and services Physically.
Reason(R): Scope of business is Unlimited to a particular area.
a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) (A) is true and (R) is false
d) (A) is false and (R) is true
Answer:
c) (A) is true and (R) is false
Question 6.
Assertion (A): In E-Commerce Payment system is mostly credit card and through fund transfer
Reason(R): Licensing sites allow other websites to make use of their software.
a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) (A) is true and (R) is false
d) (A) is false and (R) is true
Answer:
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
Question 7.
Assertion (A): Speed is a major disadvantage in E-Commerce.
Reason(R): The pros and cons of E-Commerce affect three major stakeholders: consumer’s business organizations, and society.
a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) (A) is true and (R) is false
d) (A) is false and (R) is true
Answer:
d) (A) is false and (R) is true
Question 8.
Assertion (A): FinTech Financial technology is a collective term for technologically advanced financial innovations
Reason(R): Fintech is a new financial industry that uses technology to improve financial activity.
a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) (A) is true and (R) is false
d) (A) is false and (R) is true
Answer:
a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
Question 9.
Assertion (A): Web 2,0 (Web of Communication) If 7 is a read-write web that allowed users to interact with each other.
Reason(R): The dot-com bubble was a rapid rise in the U.S, equity market of Internet-based companies during the 1990s.
a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) (A) is true and (R) is false
d) (A) is false and (R) is true
Answer:
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
Question 10.
Assertion (A): Marketing plays a significant role in any business.
Reason(R): Marketing could be started as early as it could be,
a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
b) Both (A) and (R) are correct, but (R) is not the correct explanation of (A)
c) (A) is true and (R) is false
d) (A) is false and (R) is true
Answer:
a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
Find The Odd One On The Following
1. (a) Marketing
(b) Finance
(c) Negotiation
(d) Gateways
Answer:
(d) Gateways
2. (a) Internet
(b) Ethernet
(c) Extranet
(d) Intranet
Answer:
(b) Ethernet
3. (a) EDI
(b) email
(c) HTML
(d) http
Answer:
(c) HTML
4. (a) Online Transaction
(b) Electronic Payment
(c) SCM
(d) Inventory Management Systems
Answer:
(d) Inventory Management Systems
5. (a) Network Infrastructure
(b) Messaging
(c) Multimedia Content
(d) Globalization
Answer:
(d) Globalization
6. (a) Scientific Journals
(b) Dotcoms
(c) Fintech
(d) Startups
Answer:
(a) Scientific Journals
7.(a) B2B – 1981
(b) E-mail – 1985
(c) Zappo’s – 1999
(d) Groupon – 2008
Answer:
(b) E-mail-1985
8.(a) 24×7 Working
(b) Low Cost
(c) platform dependent
(d) low transaction cost
Answer:
(c) platform dependent
9. (a) dynamic application
(b) Interactive Services
(c) Machine to Machine Interaction
(d) Hyperlinks
Answer:
(d) Hyperlinks
10. (a) Television
(b) Computer
(c) Telecom
(d) Modem
Answer:
(d) Modem
11. (a) Web 1.0 : Content
(b) Web2,0: Communication
(c) Web 3,0 : Contex
(d) Web4,0 : 4G :Tech
Answer:
(d) Web4,0 : 4G :Tech
12. (a) Facebook
(b) Whatsapp
(c) twitter
(d) eBay
Answer:
(d) eBay
Important Years To Remember:
| 1960 | Electronic data interchange allows companies to carry out electronic transactions-a precursor to online Shopping |
| 1979 | English inventor Michael Aldrich connected a TV set to a computer with a phone line and created “teleshopping” |
| 1981 | The first business-to-business transaction from Thompson holidays |
| 1984 | The ‘Electronic mail’ is launched by CompuServe |
| 1991 | The National Science Foundation allows the internet to be used for commercial purposes |
| Aug 1994 | Online retailer Net Market makes the ‘first secure retail transaction on the web’ |
| Oct 1994 | Joe McCambiey ran the first-ever online banner ad. It went like on Hot Wired.com and promoted 7 art museums. |
| July 1995 | Amazon sold its first item – a science textbook |
| Sep 1995 | eBay sold its first item – a broken laser pointer |
| 1999 | The first online-only shoe, Zappo’s, opens |
| 2005 | Social commerce (people using social media in their buying decisions) is born thanks to networks like Facebook India |
| 2008 | Group on is launched |
| 2009 | India’s Total E-Commerce sale is3,9 billion American Dollar 1991 Oct 19 |
| 2018 | With mobile commerce, it is expected to hike 265% up and will be $ 850 billion American Dollar |
|
PERIOD |
DEVELOPMENT AND GROWTH OF ELECTRONIC COMMERCE |
| 1995 -2003 | The First Wave of Electronic Commerce |
| 2004 – 2009 | The Second Wave of Electronic Commerce |
| 2010- Present | The Third Wave of Electronic Commerce |
Abbreviation:
1. B2B – Business to Business
2. B2C – Business to Consumer
3. B2G – Business to Government
4. C2B – Consumer to Business
5. C2C – Consumer to Consumer
6. C2G – Consumer to Government
7. G2B – Government to Business
8. G2C – Government to Consumer
9. G2G – Government to Government
10. SMEs – Small Medium-sized Enterprises
11. SCM – Supply Chain Management
Match The Following:
1. Business to Business – House tax payments
2. Business to Consumer – Bulk purchases
3. Business to Government – Similar to C2G
4. Consumer to Business – Advertisement Website
5. Consumer to Consumer – Retail store
6. Consumer to Government – Web of Context
7. Government to Business – Reduce burdens on business
8. Government to Consumer – Services by Government
9. Government to Government – Non-Commercial
10. Web 1.0 – Web of Content
11. Web 2.0 – Web of Communication
12. Web 3,0 – Travel Website
Answers
1. Bulk purchases
2. Retail store
3. Services by Government
4. Travel Website
5. Advertisement Website
6. House tax payments
7. Reduce burdens on business
8. Similar to C2G
9. Non Commercial
10. Web of Content
11. Web of Communication
12. Web of Context
Very Short Answers
Question 1.
When a company is called an E-Business?
Answer:
A company can be called E-Business if and only if-
- It has the ability to conduct business electronically over the Internet.
- It manages payment transactions through the Internet.
- It has a platform for selling products & services via the Internet.
Question 2.
Expand FinTEch.
Answer:
Financial technology
Question 3.
What is FinTech?
Answer:
Fintech is a new finance industry technology to improve financial activity.
Question 4.
What do you mean by dot-com bubble?
Answer:
The dotcom bubble was a rapid rise in U.S. equity market of Internet-based companies during 1990s.
Question 5.
What is Traditional commerce?
Answer:
It is buying or selling of products and services physically.
Question 6.
What is E-Commerce?
Answer:
It carries out commercial transactions electronically on the Internet.
Question 7.
What is another name of C2B?
Answer:
C2B is also called as reverse auction model,
Question 8.
Expand C2BC.
Answer:
Consumer to Business to Consumer
Question 9.
Mention the two types of G2G systems.
Answer:
Internal facing,
External facing.
Question 10.
What is the objective of G2B?
Answer:
The objective of G2B is to reduce burdens on business.
Part B
Short Answers
Question 1.
What is mean by Brick and mortar?
Answer:
Brick and mortar is the term that refers to a business that has a physical store; the opposite of online store.
Question 2.
What is mean by Mobile Commerce?
Answer:
Mobile commerce Businesses that are conducted through the Internet using mobile phones or other wireless hand-held devices.
Question 3.
Write a note on Business to Consumer?
Answer:
Business to Consumer (B2C):
In B2C E-Commerce, commercial transactions take place between business firms and their consumers. It is the direct trade between companies and end-consumers via the Internet. B2C companies sell goods, information, or services to customers online in a more personalized dynamic environment and are considered as real competitor for a traditional storekeeper. An example of a B2C transaction is a book company selling books to customers. This mode is intended to benefit the consumer and can say B2C E-Commerce works as a retail store’ over the Internet.
Part C
Explain In Brief Answer
Question 1.
Write short notes on web1.0, web2.0, web3.0.
Answer:
- Web 1.0 (Web of Content) ¡s the early web that contained text, images, and hyperlinks and allowed users only to search for information and read it. There was very little in the way of user interaction or content generation.
- Web 2.0 (Web of Communication) ¡s a read-write web that allowed users to interact with each other.
- Web 3.0 (Web of Context) is termed as the semantic web or executable web with dynamic applications, interactive services, and “machine-to-machine” interaction.
Question 2.
Write a note on E-business building block elements.
Answer:
- E-Business is grounded on technologies such as Network Infrastructures (like the Internet, Intranet, Extranet)
- Multimedia content &network publishing infrastructures (like HTML, Online Marketing)
- Messaging and information distribution infrastructures (like EDI, e-mail, http,
Computerized Inventory Management Systems) and - Other Common business service infrastructures (like electronic payments gateways, globalized Supply Chain Management (SCM), Online Transaction Processing).
Question 3.
When a company is can be called E-business?
Answer:
A company can be called E-Business if and only if
- It has the ability to conduct business electronically over the Internet.
- It manages payment transactions through the Internet.
- It has a platform for selling products &services via the Internet.
Part D
Explain In Detail
Question 1.
Explain the Benefits of E-commerce to a business organisation?
Answer:
The benefit of E-Commerce to a business organisation.
1. Access to Global Market:
The Internet spans the world of E-Commerce, and it is possible to trade with any business or a person who is connected with the Internet. It helps to access the global marketplace. Simple local businesses such as herbal product stores are able to market and sell their products internationally using E-Commerce. Thus, the whole world becomes a potential market for an E-Commerce company.
2. Lower Transaction Cost:
E-Commerce reduces the cost of business transactions substantially. For instance, a significant number of customer service representatives in a bank can be reduced by using net banking. Since these interactions are initiated by customers, the customers provide a lot of data for the transactions that may otherwise need to be entered by employees. This means that some of the work and costs are effectively shifted to customers; this is referred as customer outsourcing’.
3. 24×7 working:
A website is open all 24 hours, 7 days a week. As an E-Commerce firm can provide information about its products and services to customers around the clock, it can thus, take
orders, keep an eye on delivery of goods and receive payments at any time.
4. Low cost of entry:
Though E-Commerce was fist emerged in private networks it did not remain the same. The Internet has changed the face of E-Commerce. The Internet is all about democratization. Internet is a place where the small guy can effectively fight against the giants and hope to win. Days, when E-Commerce was only for affordable large national chains, are gone.
Today, it is common for retailers to move their traditional store to online with very little add-on only for building a good website.
5. Computer platform-independent:
Most computers have the ability to communicate via the Internet, irrespective of operating systems and hardware. Consumers need not have to upgrade their computers or network to participate in E-Commerce. They are not limited by existing hardware or software.
Also, the E-Commerce company need not worry about fast changes in computer network technology. E-Commerce applications can be more efficiently developed and distributed because they are platform-independent. Internet’s altruism helps E-Commerce.
6. Snapping middleman:
E-Commerce enjoys the benefit of bypassing middlemen and reaching the end customer directly through the Internet. In B2C E-Commerce business firms establish direct contact with their customers by eliminating middlemen. It helps to increase the sales of the organization without any interventions. This results in cheaper prices for consumers and higher
profit margins for the companies.
Question 2.
Explain various limitations of Ecommerce for a business organisation?
Answer:
1. People won’t buy all products online:
There are certain products like high price jewels, clothes or furnishings which people might not like to buy online. They might want to, inspect it, feel the texture of the fabric, etc. which are not possible in E-Commerce. As online shopping does not allow physical inspection, customers have to rely on electronic images of the products.
E-Commerce is an effective means for buying known and established services, that is, things that are being used every day. Example booking tickets, buying books, music CDs and software. It is not suitable for dealing with the new or unexpected. Traditional commerce always takes advantage when it is perishables and touches and feel products.
2. Competition and Corporate vulnerability:
Access to Global Market is beneficial on one hand but it also comes with competition. The open Internet has paved way for all business firms to operate in the global market. Many businesses have been already facing international competition from web-enabled business opponents.
The competitors may access product details, catalogs, and other information about a business through its website and make it vulnerable. They might then indulge in web harvesting. Web harvesting is the illegal activity of extracting business intelligence from a competitor’s web pages.
3. Security:
Security remains to be a problem for E-Commerce. Customers might be reluctant to give their credit card numbers to the website. As a lot of cyber frauds take place in E-Commerce transactions, people generally afraid to provide their personal information. Legal issues arise when the customer’s data falls into the hands of strangers. Fraudulent activities in traditional commerce is comparatively less as there is the personal interaction between the buyer and the seller.
4. Customer loyalty:
Businesses cannot survive long without loyal customers. The customers would like to buy from a website where they are able to get the best deal. They cannot be loyal to a particular seller. In traditional commerce, the shopkeeper would interact with the consumer “face-to-face” and gain their loyalty too.
In E-Commerce, the interaction between the business and the consumer is “screen-to-face”. The customers would feel that they do not have received sufficient personal attention. Since there is no personal touch in E-Business, companies could not win over their loyalty easily.
5. Shortage of skilled employees:
Though most of the process in E-Commerce is automated, some sectors like packaging and delivery need manual interventions. There could be problems related to shipping delays which would need technically qualified staff with an aptitude to resolve.
E-Commerce has difficulty in recruiting, training and retaining talented people. There is a great shortage of skilled employees. Traditional organizational structures and poor work cultures in some places inhibit the growth of E-Commerce.
6. Size and value of transactions:
The delivery cost of a pen surpasses the cost of the pen itself. E-Commerce is most often conducted using credit cards for payments, and as a result, very small and very large transactions tend not to be conducted online.