changes in technology

Question 1

What is meant by the term ‘e-commerce’ + include examples of this ?

Answer 1

E-commerce is any business transaction that takes place on the internet.

This can mean:

• business selling to consumers (business to consumer, B2C)
• businesses selling to other businesses (business to business, B2B)
• consumers selling to other consumers directly through online auction sites or online shopping sites e.g. eBay, vinted etc. (consumer to consumer, C2C)

Question 2

State advantages of E-commerce.

Answer 2

E-commerce has allowed businesses:

• to sell to different countries
• to reach customers on a much wider scale.

Question 3

What is meant by the term ‘m-commerce’ ?

Answer 3

M-commerce is any business transaction that takes place though a mobile device, e.g. a mobile phone or tablet.

Question 4

State the advantages of businesses using m-commerce.

Answer 4

Businesses using m-commerce means that they can develop their own mobile apps to sell their products and services. Another advantage of m-commerce is that transactions can also take place when consumers access the business’s website through mobile devices, which allows for a much more easy and accessible way for customers to buy the business’s products or services.

Question 5

State advantages of a business using so social media to sell products and services.

Answer 5

Advantages include:

• SM has allowed businesses to be able to interact with their customers in more ways, which allows businesses to create more personal relationships w their customers: this therefore increases customer loyalty and is better customer service.
• SM offers businesses a simple, cheap and effective way of creating brand awareness.
• Businesses can also pay other businesses, celebrities or influencers to promote their brand or product by posting photos/videos of them using a product / service. This is much cheaper than the traditional advertising + allows businesses to target their desired market more easily.

Question 6

What is meant by the term ‘brand awareness’ ?

Answer 6

The extent to which customers are aware of the qualities and image of a particular brand.

Question 7

What is meant by the term ‘target market’ ?

Answer 7

Target market is the group of people or area of a market that a business aims to sell their products/services to.

Question 8

What are examples of changes in technology?

Answer 8

• Social Media
• M-commerce
• E-commerce