3.3.5 Technology and the marketing mix:

Question 1

Opportunities of e-commerce to business

Answer 1

Increased market – the business is able to sell its goods and services to more consumers
Reduced costs – The staffing and other costs of shops are saved
Better information – the website can provide potential consumers with all the information they need about the goods and services

Question 2

Threats of e-commerce for businesses

Answer 2

Increase competition – competitors can now be from any part of the world, not just the local market
Unfamiliarity – consumers are less likely to buy products from new business they don’t know

Question 3

Opportunities of e-commerce to consumers

Answer 3

Convenience – Consumers can order their products from the comfort of their own homes
Wider choice – Consumers are now able to buy goods which they would not have had access to if they were only able to uses local shops
Lower prices – competition is worldwide and this reduces prices
Better information – Consumers are able to read about the goods and services available from websites of different businesses

Question 4

Threats of e-commerce for consumers

Answer 4

Fraud – A website might take a consumer’s money and not deliver goods
Hacking – A consumer’s personal details or bank account details might be ‘stolen’
No personal service – There is no face-to-face contact between the consumer and seller
Returning items – it can be inconvenient and expensive to return goods which do no meet the consumer’s needs

Question 5

define e-commerce

Answer 5

The use of the internet and other technologies used by businesses to the market and sell goods and services to customers