2.1 Technology

Question 1

E-commerce

Answer 1

Any form of business activity conducted
electronically can be defined as e-commerce.

Question 2

E-commerce methods

Answer 2

• online advertising
• online auctions
• online bookings
• online purchases
• online shopping
• websites
• mobile apps
• electronic payments
• internet banking
• social networking
• contactless transactions

Question 3

Digital communications

Answer 3

Communications is the process of sending information to others and receiving information back from them. Digital communications involves sending and receiving such information electronically

Question 4

Online advertising

Answer 4

Display ads can be used online and target a specific area or demographic

Question 5

Online auctions

Answer 5

An online auction is a virtual market place
where customers can bid for products or
services
• This means that the business owner does not need their own website, so they do not need technical ICT skills
• The business also will not need a shop or sales room, this will reduce the business costs

Question 6

Online purchases

Answer 6

• A business can use the internet to buy goods and services
• For example they may
need to buy
– Raw materials for
production
– Consumables like ink,
paper and stationery
– Services like cleaners

Question 7

online shopping

Answer 7

• A business may be able to
increase sales by offering
an online shop to their
customers
– Means customers can buy
24/7
– Opens the business up to
international markets

Question 8

websites

Answer 8

• Allows customers to browse the products before purchasing in-store
• The website also sends a
signal to competitors in the
marketplace
• Websites have fewer staff than shops so can be a very cost effective way to boost
sales revenue

Question 9

Mobile apps

Answer 9

A business could develop a mobile app to help them communicate with their customers
Benifits: could offer; a store locator, a loyalty scheme, personalised offers to customers
Drawbacks: apps are expensive to develop and may not be suitable for all types of business

Question 10

Internet banking

Answer 10

• Easy to send payment to suppliers or pay staff
• Internet banking can help a sole trader by allowing them to carry out banking on the go through the use of mobile apps