1.5.2 - Technology And Business

Question 1

Different types of technology used by business

Answer 1

• e-commerce
• social media
• digital communication
• payment systems

Question 2

Advantages of e-commerce

Answer 2

• can trade around the world, at any time of day or night
• can process order immediately
• can give real time order updates to customers
• may be able to avoid running a retail shop or outlet and so reduce costs
• easier ordering process for customers

Question 3

Disadvantages of using e-commerce

Answer 3

• can be expensive to keep up with technology
• customers may have security concerns over fraud and the security of their account details
• can make it harder to build, relationships with customers, leading them to make purchase decisions because of price rather than brand loyalty

Question 4

Disadvantages of using e-commerce

Answer 4

• can be expensive to keep up with technology
• customers may have security concerns over fraud and the security of their account details
• can make it harder to build, relationships with customers, leading them to make purchase decisions because of price rather than brand loyalty

Question 5

Benefits of payment systems

Answer 5

• easy
• fast
• open all the time
• immediate
• trend in sales can be identified quickly
• can work in different currencies

Question 6

Drawbacks of payment systems

Answer 6

• may be vulnerable to fraud
• may be additional fees to be paid by the business