E BUSINESS

Question Paper 54 Pages

Bengaluru City University

Bachelor of Business Administration

Contributed by

Prajwal Hallale

E-BUSINESS
Smt DIVYASHREE D V, MESIOM Page 1

E BUSINESS
QUESTION BANK
VI SEM BBA

SMT DIVYASHREE D V
MES INSTITUTE OF MANAGEMENT
RAJAJINAGAR
BANGALORE

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COURSE OBJECTIVE

To make the students understand the computer application in various Electronic business
activities and its processing. It provides sufficient support for real business world information
through various computer applications

COURSE OUTCOME

The students able to analyse the importance of information Technology and also demonstrate
an understanding of the foundations and importance of E-commerce; retailing in E-commerce
by: analyzing branding and pricing strategies, implement in their professionals in future.

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CHAPTER1: INTRODUCTION TO E-BUSINESS

TWO MARKS QUESTIONS

1. What is E-commerce? 2018

E-Commerce refers to the online transactions (i.e.) buying and selling of
goods and/or services over the internet.
Examples of E-Commerce:
(a) Online shopping:
(b) Electronic payments:

2. Define E-business/E-tailor 2017,2015

E-Business is the conduct of business on the Internet, not only buying and
selling, but also servicing the customers and collaborating with the
business partners. E-Business includes customer service (e-service) and
intra-business tasks.
Examples:
• An online system that tracks the inventory and triggers alerts at specific
levels is E-Business Inventory Management is a business process. When
it is facilitated electronically, it becomes part of E-Business.
• An online induction program for new employees automates part or
whole of its offline counterpart.

3. What is B2B model? 2016

Business - to - Business (B2B) is a transaction that exists between
businesses, such as those involving
• a manufacturer and wholesaler, or,
• a wholesaler and a retailer

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4. Name any four examples of B2B. 2018,2015

• Orders for Electronics manufacturing
• Shipping and Warehousing
• Motor Vehicles
• Acknowledgement of Payments

5. What is Web auction? 2017,2015

Online auctions are places that people can go in order to buy or sell goods
or services online for a small fee. Anyone can sell an item and anyone
can bid on an item. The highest bidder wins the auction and pay for the
good or service and then expects for to receive their winning
in the next couple of days through the mail or some other way of
delivery.
Example:
• Auction-Warehouse - http://www.auction-warehouse.com
• Craigslist - http://www.craiglist.org
• E-Bay – http://www.ubid.com

6. Differentiate private network and public network. 2016

SL
NO
PUBLIC NETWORK PRIVATE NETWORK
1
These are the networks usually
owned by a commercial chain-
like or some malls and
community centres
These are the networks usually
owned by an individual – usually
be located in Homes and Offices
2
Neither your device will be
visible on the network nor will
you be able to see any other
devices on the network
Device is visible to others and
even
initiate a data transfer
between devices on the common
network
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3
Features such as
Homegroup
won’t work when
your PC is connected to a
Public Network. This saves the
machine from malicious attacks
and defends it from attacks
from threats over a network.

Features such as Homegroup will
be enabled by default for the user
to take advantages of high-speed
data transfer via LAN

7. What is EDI? 2015

Electronic data interchange (EDI) is the electronic transmission of
structured data by agreed message standards from one computer system to
another without human intervention. It is a system for exchanging business
documents with external entities like,
• Interchanges between health care providers and insurers
• Travel and hotel bookings
• Education
• Supply chain management
• Administration
• Tax reporting

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SIX MARKS QUESTIONS

1. What are the advantages and disadvantages of E Business to buyers?
2018

Advantages of E commerce

• Gives freedom to make choices: It also gives customers an opportunity to
look for cheaper and better quality products.
• Increase in variety of goods: As the market will expand the variety of
goods available will also expand.
• It gives more choice and alternatives: E-Commerce provides more choice
and alternatives to customers that will increase the choice of vendors or
products
• Convenience of Shopping at Home: allows the consumers to shop online
conveniently and home shopping on the internet provides a lot of
opportunity and convenience.
• Ensure Secrecy: the various security measures that are in built are used in
E Commerce transactions to prevent any unauthorised access to
information on the internet
• More Competitive Prices and Increased Price comparison capabilities:
Consumers can make comparison shopping. There are several online
services that allow customers to browse multiple ecommerce merchants
and find the best prices.
• Time compression: Online stores can be open 24/7; people can
communicate as their schedules permit; time zones disappear for
managers collaborating with partners on other continents.
• Quick Delivery of Digitized Products/Services: E-Commerce allows
quick delivery in the case of digitized products such as music, software.

DISADVANTAGES OF ELECTRONIC COMMERCE

• Ecommerce Lacks That Personal Touch: Not that all physical retailers
have a personal approach.
• System and data integrity: To create cost effective response to the varied
technical and human threats to website security.
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• E-Commerce Delays Goods: Ecommerce websites deliver to take a lot
longer to get the goods into consumer hands. Ecommerce might actually
be faster than purchasing goods from a physical store.
• System scalability: It means regular up graduation of the website is
required when the number of website users increase over period of time
or during busy seasons.
• Dependent on internet: E-Commerce is dependent on internet.
• Many Goods Cannot Be Purchased Online: Despite its many
conveniences, there are goods that consumer cannot buy online.
• Products people won’t buy online: There are various products which the
customers would like to first touch and feel and then buy it.
• Ecommerce Does Not Allow Experiencing the Product before Purchase:
It cannot touch the fabric of the garment when consumers wants to buy
and check
• Loyal customers: Great amount of effort is put on building a customer
relationship by the organizations and retaining them is rather a bigger job.
• Shopping is Social Experience: People love to shop in the mall because it
gives them an opportunity to have fun with friends and family.
• Too Many Competitors: If there are thousands of online stores selling
similar products.
• Security: prone to card fraud, or worse, identity theft.

2. Briefly explain the salient features of E- commerce. 2018,2017

• Ubiquity: Ubiquity of E-Commerce means E-Commerce
technological features are available anywhere and, we can connect to
the Internet at any time, because they are web-based.
• Global reach: Technologies within ecommerce seamlessly stretch
across traditional cultural and national boundaries and enable
worldwide access.
• Universal Standards: Individuals, businesses and governments use
one set of technological, media and Internet standards to use
ecommerce features.
• Information Richness: Information provided on the web can be made
rich, by adding color to the textual information, and adding audio
and video clips. Users can access and utilize text messages and
visual and audio components to send and receive the information.
• Interactivity: E-Commerce technologies are interactive means it
allow for two way communication between the merchant and the
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customer. Technologies used in ecommerce require consumer
interactions in order to make an individual feel as though he is an
active participant in the transaction process.
• Information Density: Information density means the total amount
and quality of information available to all the market participants,
consumers and merchants alike.
• Personalization / Customization: Technologies within E-Commerce
allow for the personalization and customization of marketing
messages groups or individuals receives.

3. Briefly explain the basic component of E-commerce 2015

• Warehouse operations: A decent store with its own warehouse
operations has thousands of products at any time on its inventory,
employs at least a couple of dozens of people to store products,
pick and pack, and prepare for delivery. That’s why so many large
companies choose to outsource their fulfilment operations to “third
party logistics” suppliers such as Anchor 3PL or the ever-growing
Fulfilment by Amazon so they can focus on what they do best.
• Suppliers and supply chain management: In an increasing
competitive market there is a lot to come up with a great idea,
drive good traffic and convert it to sales but can’t do that without
the right products, delivered at the right time, with a price the
market is willing to pay. Suppliers meant a whole lot when
ecommerce was not around. Now – even more so. When it comes
to ecommerce, suppliers can provide you with the right
merchandise but they can also take the stocks burden off your
shoulders. Amazon, for example, relies heavily on its marketplace
partners to increase listed products number, without buying stocks
for those products.
• Shipping and returns: Shipping is usually an outsourced
service. The best thing to do, unless you’re swimming in cash and
you want to start competing the likes of FedEx and DHL,is employ
one of the shipping providers and negotiate your way to a
marketable shipping cost. Such a cost is likely to be, in the future,
one you will be paying yourself – so pay attention. Once you’ve
contracted these shipping providers integrate their system with
yours so you can streamline packaging and delivery but your store
has to handle all the communication.
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• Client Relationship Management (CRM) – CRM or Customer
Relationship Management is a strategy for managing an
organisation's relationships and interactions with customers and
potential customers. A CRM system helps companies stay
connected to customers, streamline processes, and improve
profitability.
• Showroom and offline purchases: Ecommerce is a complicated and
highly competitive business. That’s why it need great
tech. Shopify is one of the best companies out there in the market
of ecommerce solutions for small to midsized online retailers.
• Marketing and loyalty programs: there is an increasing number of
marketing solutions can use to market the products and store but
not all are alike. Not all are as efficient. Focus on:
 Search engine optimization and paid searchresults
 Email marketing
 Social media
 Branding
• Loyalty is really hard to acquire these days. Especially when it
comes to ecommerce. Most users will be searching for the lowest
price and buy from whomever the seller is. But can fight the trend
with loyalty programs such as:
 Rewarding purchases – reward your users with points
they can spend on store. It’s really effective in keeping
your customers tied to the brand, as well as making
them feel great about it
 social shopping – make your customer feel like a king
when he can give out discounts and freebies to its peers
and friends
 Reward social media – most online users have some
kind of influence in their micro community of friends.
Encourage them to take part in your story, share your
products and reward them with freebies and discounts.
• Ecommerce catalogue and product display:
 Make sure you don’t over-design your store – your products
are the most important items. Make them shine.
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 Analyze and predict: predictive analytics is the practice of
analyzing user’s behaviour and predicting what they would
rather buy at any given time.
 Search, search and let’s not forget search: most of your
customers will be using a search engine to navigate to your
store.
 Make sure your store is optimized. Once there, when in
doubt, they will want to search for products.
 Make sure your site search works. Finally – when their
order was shipped they will want to search for its location.
 Show them.

4. What are virtual communities? Discuss the importance of virtual
communities. 2016

The term is originally attributed to Howard Rheingold’s book "The
Virtual Community," which was published in 1993. A virtual community
is a group of people who share common interests, feelings or ideas, or
pursue similar goals over the Internet or over any collaborative network.
Social media is the most common vehicle for this sharing and interaction,
which can potentially transcend geographical boundaries, race, culture,
political views and religion when people are connected by another
common interest or agenda.
Importance of Virtual community
• Instant information exchange that is not possible in a real-life
community.
• Interaction allows people to engage in many activities from their
home, such as: shopping, paying bills, and searching for specific
information.
• Users of online communities also have access to thousands of specific
discussion groups where they can form specialized relationships and
access information in such categories as: politics, technical assistance,
social activities, health (see above) and recreational pleasures.
• Virtual communities provide an ideal medium for different types of
relationships because information can easily be posted and response
times can be very fast.
• Communities can give users a feeling of membership and belonging.
• Users can give and receive support, and it is simple and cheap to use.
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