Chapter – 4 Introduction to E-Commerce

E-commerce can also be defined as buyingand selling ofproducts, services and informationusing electronic media like Internet.
Sellingthe products through websites is the fastest growing method of trading worldwide. Many different types of products and services such as books, electronic gadgets, cars, holiday packages and many more are traded online.
Electronic newspaper :- An electronic newspaper also known as E-newspaper is a newspaper that exists on the Internet indigital form.

Online Auctions :- An auction is the process of buying and selling products or services by offering the customers to bid the price and selling the product to the highest bidder.Some popular websites for online auctions are listed below :

  • www.ebay.com
  • www.onlineauction.com
  • www.mybids.in
  • www.ubid.com

Advantages of E-commerce

  • Conduct business 24×7
  • Lower cost
  • No boundaries or geographical limitations
  • Improved and better customer service
  • Teamwork
  • Eliminate Travel Time and Cost
  • Speed

Limitations of E-commerce

  • Resistance to change
  • Initial Cost
  • Security
  • Privacy
  • Lack of trust
  • Time for delivery of products

E-commerce Business Models

  • Business to Consumer (B2C)
  • Business to Business (B2B)
  • Consumer to Consumer (C2C)
  • Consumer to Business (C2B)

Multiple Choice Question

(1) Which of the following is an example for online bookstore ?
(a) Amazon
(b) irctc
(c) Gmail
(d) yahoo

(2) Which of the following is newspaper that exists on the Internet in digital form ?
(a) l-newspaper
(b) Internet-newspaper
(c) www-newspaper
(d) E-newspaper

(3) Which of the following is the process of buying and selling products by offering the customers to bid the price ?
(a) Marketing
(b) Auction
(c) Bookshop
(d) Booking

(4) Which of the following is known as the process of conducting the banking transactions over the Internet ?
(a) Auction
(b) Bidding
(c) Net banking
(d) www-banking

(5) Which of the following is a feature of traditional commerce ?
(a) Operates within a certain period of time or during business hours.
(b) Advertising of the product is done electronically.
(c) E-payments systems are used for receiving payment.
(d) Customers can browse through products and offers.

6 Which of the following is a feature of E-commerce ?
(a) Operates within a certain period of time or during business hours.
(b) No sharing of information with competitors.
(c) Location renting or purchasing.
(d) Advertising of the product is done electronically

(7) Which of the following is not an advantage of E-commerce ?
(a) Lower cost
(b) Conduct business 24×7
(c) Security
(d) No geographical limitations

(8) Which of the following is a disadvantage of E-commerce ?
(a) Privacy
(b) Improved customer service
(c) Speed
(d) Conduct business 24×7

(9) Which of the following E-commerce business model refers to business and organizations that sell products or services to consumers over the Internet using websites?
(a) Business to Consumer (B2C)
(b) Business to Business (B2B)
(c) Consumer to Business (C2B)
(d) Government to Business (G2B)

(10) Which of the following E-commerce business model refers to activities between different business partners ?
(a) Government to Business (G2B)
(b) Consumer to Business (C2B)
(c) Business to Business (B2B)
(d) Business to Consumer (B2C)

(11) Which of the following is a good example of C2C model ?
(a) Auction sites
(b) E-newspaper
(c) Online purchasing
(d) Information services

(12) Which of the following E-commerce business model refers to E-commerce activities involving transactions between and among the consumers ?
(a) Government to Business (G2B)
(b) Consumer to Consumer (C2C)
(C) Business to Business (B2B)
(d) Business to Consumer (B2C)

(13) Which of the following E-commerce business model involves reverse auctions where the conşumers determine the prices of the products or services ?
(a) Consumer to Business (C2B)
(b) Business to Business (B2B)
(c) Consumer to Consumer (C2C)
(d) Government to Business (G2B)

(14) Which of the following e-commerce business model is also a part of E-governance ?
(a) Business to Business (B2B)
(b) Consumer to Business (C2B)
(c) Consumer to Consumer (C2C)
(d) Government to Citizen (G2C)

(15) Which of the following E-commerce business model refers to online non-commercial communication between the Government agencies, organizations and departments with other Government agencies, organizations and departments ?
(a) Business to Business (B2B)
(b) Consumer to Business (C2B)
(c) Government to Government (G2G)
(d) Consumer to Consumer (C2C)