Chapter 5: E-Commerce & Technology P2

Question 1

Elements of a good e-commerce:

Design

Answer 1

• Must be attractive to all consumers all around the world
• Should accommodate varying computer operating systems and internet speeds
• Provide language options

Question 2

Elements of a good e-commerce:

Mobile Version

Answer 2

• Should be available on mobile devices

- Easy access to the e-commerce as people have their phones on them at all times

Question 3

Elements of a good e-commerce:

Payment Process

Answer 3

• Easy to use and secure

- Minimise risk of online fraud

Question 4

Elements of a good e-commerce:

Location Detector

Answer 4

• Platform can be designed to detect location of customers from all around the world
• Trigger adjustments such as language, currency, pricing and product availability

Question 5

Elements of a good e-commerce:

Local URL

Answer 5

• Give impression of a local business where one is committed to the local market rather than foreign business competing with domestic businesses
• Gain customer loyalty and recognition in the market

Question 6

E-Commerce security:

Secure Website

Answer 6

• All e-commerce website should have https instead of http, which indicates that the website is secure
• May also have a padlock icon in the address bar
• This means data transfer security standard encrypts data and authenticates the server and integrity of its message

Question 7

E-Commerce security:

Live Address Verification System

Answer 7

• Prevent credit card fraudulent purchases by comparing the address enter online to the address on file with the credit card company
• Request for the 3 or 4 card security code (CSC)

Question 8

E-Commerce security:

Secure Payment Process

Answer 8

• Use establish third party services such as Paypal or Visa

- They already have security and fraud management in place

Question 9

E-Commerce security:

Policy about E-Commerce Security

Answer 9

• Have a statement or a policy to encourage customers to trust the business
• Say that the customer’s information is encrypted, protected and credit card details will not be shared without consent

Question 10

Privacy Concerns:

Unauthorised Access to Personal Data

Answer 10

• Security breaches or lack of internal control due to weak security set up by company
• Weak employee integrity/ Hacking

Question 11

Privacy Concerns:

Risk of Secondary Use

Answer 11

• Reuse of information for unrelated purposes without consent
• Like sharing with third party that were not part of the transaction

Question 12

Distribution of Products:

Get their products to international market

Answer 12

• Consumers can buy online instead of from retail stores

Question 13

Distribution of Products:

Businesses can communicate directly with the customers

Answer 13

• Instead of going through wholesalers and retailers

Question 14

Distribution of Products:

Digital Distribution

Answer 14

• Music, movies and e-books can be purchased and consumer online
• Businesses can reduce barriers to market entry
• Avoid cost, time and risk of manufacturing and supplying, establishing distribution channel and transporting goods

Question 15

Distribution of Products:

Inventory Tracking

Answer 15

• Can be used to track inventory and automate distribution

- Linked to warehouse for real time stock availability and generate orders accordingly