1.5.2 Technology and Business

Question 1

E-commerce

Answer 1

Buying and selling of products and services using a device connected to an electronic network like internet.

Question 2

Advantages of e-commerce

Answer 2

Sell any time of day or night
Attract customers across the globe
Receive payments immediately
Reduced overheads compared to a physical shop

Question 3

Disadvantages of e-commerce

Answer 3

More competitors across the globe
Employees may need new skills such as website maintenance
New processes needed for delivering and processing returns
Need to maintain and update technology including security software which may be expensive

Question 4

How does a business use social media

Answer 4

Sales and marketing - cheap and widespread promotion
Interacting with customers - feedback
Communicating with stakeholders - such as job listings

Question 5

Types of digital communication

Answer 5

Email, Mobile phones, Mobile apps, Websites, Social Media, Web conferencing, cloud services, instant messaging.