technology and business

Question 1

what is e commerce

Answer 1

the buying and selling of products or services using devices connected to an electronic network

Question 2

advantages of e commerce

Answer 2

can trade around the world at any time of day or night, increasing potential sales
be able to avoid running retail shop or other outlet, decreasing overhead costs
place- products can be sold director to customers online, reducing need for intermediaries
promo- digital ads often integrated into e commerce platforms

Question 3

disadvantages of e commerce

Answer 3

employees may need new skills (eg website maintenance)
can be expensive to keep up with technology
customers may have security concerns over fraud and account details
also expensive shipping costs
harder to build relationship with customers, making them purchase because of price rather than brand loyalty, decreasing sales

Question 4

what is social media

Answer 4

any form of electronic communication THAT enables users to share ideas content info and messages

Question 5

advantage of social media

Answer 5

sales - drives sales by connecting businesses with target customers through ads
costs- cheaper than trad advertising
promo- enables direct interaction with customers, building brand awareness and loyalty
product- feedback from customers can guide product improvements

Question 6

advantages of digital communication

Answer 6

improve customer service through email or chat, increasing customer satisfaction- repeat sales
costs- reduces need for physical customer service locations, saving costs
promo- personalised emails enhance promotional strategies
place- supports online and hybrid business models by enabling seamless communication

Question 7

advantage of payment systems

Answer 7

sales - easy and fast transactions, improving customer experience+ encouraging more purchases
costs- reduces costs related to handling cash and bank related insufficiencies
price-businesses can offer flexible payment options like instalment plans
place-secure and efficient payment systems make online sales more accessible

Question 8

disadvantage of payment systems

Answer 8

may be vulnerable to fraud
additional fees for payment processing services can increase costs