ROLE OF E-COMMERCE IN REDUCING OPERATIONAL COST

Submitted in partial fulfillment of the requirement for the reward of

Bachelor Of commerce
By

SANJAY K

39740205

DEPARTMENT OF BACHELOR OF COMMERCE

SCHOOL OF MANAGEMENT STUDIES

SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with Grade “A” by NAAC I 12B Status by UGC I Approved by AICTE
Jeppiaar Nagar, RAJIV GANDHI SALAI, CHENNAI – 600 119

May 2021

1
 SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with “A” grade by NAAC I 12B Status by
UGC I Approved by AICTE
Jeppiaar Nagar, Rajiv Gandhi Salai, Chennai – 600 119
www.sathyabama.ac.in

SCHOOL OF BUSINESS ADMINISTRATION

BONAFIDE CERTIFICATE

This is to certify that this Project Report is the bonafide work of SANJAY K (39740205)
who has done the Project work entitled “Role of E-commerce in reducing
Operational costs” under my supervision from December 2020 to February 2021.

DR. JOHN PAUL M

Internal Guide External Guide

Dr. BHUVANESWARI G.

Dean, School of Business Administration

Submitted for Viva-voce Examination held on

Internal Examiner External Examiner

2
 DECLARATION

Sanjay. K (39740205). Hereby declare that the Project report entitled “A Role of E-
Commerce in reducing Operational Cost” was done by me under the guidance of
Dr. JOHNPAUL. M, MBA, MHRM, M.PHIL, TN-SET, Ph.D. School of Business
Administration is submitted in partial fulfillment of the requirements for a Bachelor of
Commerce degree award.

Date: SANJAY K

Place: (39740205)

3
 ACKNOWLEDGEMENT

I am pleased to acknowledge my sincere thanks to the Board of Management of

SATHYABAMA for their kind encouragement in doing this project and for completing
it successfully. I am grateful to them.

I convey my thanks to Dr. BHUVANESWARI .G DEAN OF MANAGEMENT OF

STUDIES and Dr. A. Palani, M.COM, M.PHIL , M.BA ,PH.D, Head, School Of
Management Studies for providing me necessary support and details at the right time
during the progressive reviews.

I would like to express my sincere and deep sense of gratitude to my Project Guide
DR. JOHN PAUL. M MBA , MHRM MPHIL TN-SET,PH.D ASSISTANT
PROFESSOR OF SCHOOL OF MANAGEMENT STUDIES for his valuable guidance,
suggestions, and constant encouragement paved the way for successful completion
of my project work.

I wish to express my thanks to all Teaching and Non-teaching staff members of the
School Of business administration who were helpful in many ways for the completion
of the training.

4
CHAPTER TITLE PAGE
NO NO
TABLE OF CONTENT

LIST OF TABLE

LIST OF CHARTS x

ABSTRACT VII

1. INTRODUCTION

1.1 Introduction 1

1.2 Statement of a study 1

1.3 Objectives of the study 2

1.4 Need for the study 2

1.5 Scope of the study 2

2. REVIEW OF LITERATURE 3

3. RESEARCH METHODOLOGY 4

3.1 Research Methodology 4

3.2 Research Process 4

3.3 Type of Research 4

3.4 Data collection 5

3.5 Questionnaire Preparation 5

5
 3.6 piolet study 5

3.7 Sample size 6

3.8 Period of study 6

3.9Analyticaltoo 6

4. DATA ANALYSIS AND

INTERPRETATION
4.1 percentage analysis 7

5. FINDINGS, SUGGESTIONS, AND

CONCLUSION
5.1Findingsofthestudy

5.2Suggestions

5.3Conclusions

REFERENCES

APPENDIX-I(Questionnaire)

6
 ABSTRACT

E-Commerce is the process of conducting business electronically among various

entities to Original objectives. A key ingredient of E-Commerce, sometimes referred to
as electronic trading, is the advertisement and procurement of goods and services over
the Internet (Rhodes & Carter, 1998). The success and volume of E-Commerce on the
web have been widely reported. With success in establishing an environment in which
E-Commerce can grow and flourish, every computer can become a window open to
every business, large and small, around the globe. Internet-based E-Commerce has
been embraced as a means of reducing operational costs and as a high potential
means of generating revenue. Hence this study proves the role of e-commerce in
reducing operational costs.

7
 LIST OF TABLES
TABLENO PARTICULARS PAGENO

4.1 Age of respondent 7

4.2 Gender of respondent 8

4.3 Education qualification 9

4.4 Where are you working 11

4.5 Is your Organization/Institution/Shops use E- 12

Commerce
4.6 Is E-Commerce reduces Operational costs 13

4.7 Do you measure the effectiveness of E-Commerce 14

4.8 What is the role of E-commerce in reducing 15

operational costs in an organization
4.9 Is E-commerce giving more profit by reducing 16
operational costs

4.10 At what percent does the profit increase by reducing 17

operational costs
4.11 List out the operational costs reduces by E- 18
Commerce

8
 CHAPTER-1

1.1 INTRODUCTION

E-commerce (electronic commerce) is the activity of electronically buying or selling of

products on online services or over the Internet. E-commerce draws on technologies
such as mobile commerce, electronic funds transfer, supply chain management,
Internet marketing, online transaction processing, electronic data interchange (EDI),
inventory management systems, and automated data collection systems. E-commerce
is in turn driven by the technological advances of the semiconductor industry, and is
the largest sector of the electronics industry.

E-COMMERCE:

E-Commerce is the process of conducting business electronically among various

entities in order to satisfy an organizational or individual objective. A key ingredient of
E-Commerce, sometimes referred to as electronic trading, is the advertisement and
procurement of goods and services over the Internet (Rhodes & Carter, 1998). The
success and volume of E-Commerce on the web has been widely reported. With
success in establishing an environment in which E-Commerce can grow and flourish,
every computer can become a window open to every business, large and small, around
the globe.

 E-commerce (electronic commerce) is the activity of electronically buying or

selling of products on online services or over the Internet.
 Online shopping for retail sales direct to consumers via web sites and mobile
apps, and conversational commerce via live chat, chat bots, and voice
assistants.
 E-commerce is in turn by the technological advances of the semiconductor
industry, and is the largest sector of the electronics industry.

9
OPERATIONAL COST:

 Operating costs are associated with the maintenance and administration of a

business on a day-to-day basis. Operating costs include direct costs of goods
sand other operating expense often called selling, general, and administrative
which include rent, payroll, and other overhead costs, as well as raw materials
and maintenance expenses.
 Operating costs are the ongoing expenses incurred from the normal day-to-day
of running a business or foreign currency translation.
 Operating costs exclude non-operating expenses related to financing, such as
interest, investment
 Operating costs include both costs of goods sold (COGS) and other operating
expenses often called selling, general, and administrative (SG&A) expenses.
 Types of Operating Costs while operating costs generally do not include capital
outlays, they can include many components of operating expenses, such as:
Accounting and legal fees bank charges sales and marketing costs travel
expenses.
 Entertainment costs non capitalized research and development expenses office
supply costs and maintenance costs utility expenses salary and wage expenses
Operant repeating costs will also include the cost of goods sold, which are the
expenses directly tied to the production of goods and services.
 Some of the costs include Direct material costs Direct labor rent of the plant or
production facility.
 Benefits and wages for the production workers repair costs of equipment Utility
costs and taxes of the production facilities business’s operating costs are
comprised of two components, fixed costs and variable costs, which differ in
important ways.

The electronic medium we call the Internet has the potential to reduce actual
transaction time, processing time, and operational cost dramatically, while at the same
10
time making information available globally. Internet-based E-Commerce has been
embraced to reduce operational costs and as a high potential means of generating
revenue (Levis, 1996). The ubiquity of the web and the availability of browsers across
different platforms provide a common base upon which E-Commerce applications can
be built, especially in the enterprise. This common platform has reduced operational
costs.

1.2 STATEMENT OF THE PROBLEM

Electronic commerce is a popular topic in business management, mass media, and

informatics circles. Perhaps its impact is most visible in the areas of financial services
and retail. Many E-Commerce initiatives have risen in a short period of time. Those
initiatives include innovative smart cards to facilitate E-Commerce, remote payments,
and electronic checking, online trading of stocks, bonds, and related financial
instruments, online banking, and online retailing (e-tailing). However, its effect on the
reduction of operational cost of an organization has been examined in a number of
ways comparatively to brick and mortar organizations for instance the money received
for every transaction will pay for the item; it will also contribute to the salesperson’s
salary, credit card fees, the lease on storefront, electricity, telephone, heating/cooling,
taxes, displays, repairs, and maintenance to the building. However, the money received
for an E-Commerce transaction pays for the item, web hosting, shopping cart software,
distribution, and little else. The cost overall of maintaining a virtual store is far less than
that of a brick and mortar store.

Furthermore, when offline stores calculate operational costs, they have to factor in
countless business expenditures along with the actual number of transactions. When
there are fewer transactions, the cost of per transaction is higher. On the flipside,
transactions arriving in high quantity can overwhelm the personnel and distributors. In
an E-Commerce business, the operational cost is the same across the board, whether
one order or thousands come in.

11
1.3 OBJECTIVES OF THE STUDY

 The following are the objectives of this study:

 To examine the role of E-commerce in reducing operational costs in the

business.

 To check whether E-Business can help manage operating costs in many areas,
thereby reducing the cost of individual transactions.

 To evaluate how e-commerce aids the reduction of functional costs by making a

comparative analysis.

 This study will cover the benefits of E-commerce with a special focus on its
influence as regards operational cost reduction in business.

1.4 NEED FOR THE STUDY

 The outcome of this study will educate business people and the general public
on the role of E-commerce in reducing operational costs.

 This study also to know the differences in operating costs in Offline vs online
businesses.

12
1.5 SCOPE OF THE STUDY

 This study will cover the benefits of E-commerce with a special focus on its
influence as regards operational cost reduction in business organizations.

 E-commerce has improved the availability of information, reduced

processing errors, reduced response times, lowered costs of services, and
has effectively raised customer satisfaction and the level of service that
customers expect to receive.

 An E-Commerce business is able to reduce labor and other costs in many

areas, including document preparation, reconciliation, mail preparation,
telephone calls, data entry, overtime, and supervision expenses.

 E-Business can help manage operating costs in many areas, thereby

reducing the cost of individual transactions

13
 CHAPTER-2

2.1 REVIEW OF LITERATURE

Bartell, R.L. Blackwood, N.A. Eggenschwiler, D. Nguyen, M. Schnidrig, C.

Yatchman, M.J. (1999) The MediaXactt system – a framework for personalised
electronic commerce services, Bell Labs Technical Journal 4 (2) 153–173.

Levis, K. (1996) Electronic commerce, British Telecommunications Engineering 14 (4)

281–285.

Turban, E. Lee, J. King, D. Chung, H.M. Electronic Commerce: A Managerial

Perspective, Prentice-Hall International (UK) Limited, London, 2000.

Rhodes, E. Carter, R. Electronic commerce technologies and changing product

distribution, International Journal of Technology Management 15 (1/2) (1998) 31–4

Moscove, Crowing Shield –“Cost accounting with managerial applications” , fifth

edition – 1985.
ROBBINS, JOENS, DON," E-COMMERCE FOR DUMMIES", NEW YORK , 2000.
STEPHEN.
Horngren, Charles T.& Foster, George & Datar, Srikant M., "Cost Accounting
Managerial Emphasis ". 8th
ed., prentice- hall International, Inc. ,1994.
Dhillon, B.S, Engineering and Technology Management tools and Application, Artech
House, 2002.
Chase, Richard B. Jacobs, F. Robert & Aquilano, Nicholas J., Operations
management for Competitive
Advantage, 10th ed McGraw Hill, 2004.
Technical section, Engineering Division, Division of high ways, Value Engineering
Manual, West Virginia
Moscove, Crowing Shield –“Cost accounting with managerial applications” , fifth
edition – 1985.
14
ROBBINS, JOENS, DON," E-COMMERCE FOR DUMMIES", NEW YORK , 2000.
STEPHEN.
Horngren, Charles T.& Foster, George & Datar, Srikant M., "Cost Accounting
Managerial Emphasis ". 8th
ed. ,prentice- hall International, Inc. ,1994.
Dhillon, B.S, Engineering and Technology Management tools and Application, Artech
House, 2002.

15
 CHAPTER–3

3.1 RESEARCH METHODOLOGY:

Research is the process of the Role of E-Commerce in reducing operational costs,

subject or any area of investing action backed by collection, compilation, presentation,
and interpretation of relevant data in detail.

3.2 RESEARCH PROCESS:

o In the research process, the first and foremost step is defining and selecting are
search problem.

o A Researcher should first find the problem.

o Then he should formulate it so that it becomes susceptible to research.

o For a systematic presentation, the process of research may be classified under

three stages-primary stages, the secondary stage, and the tertiary stage.

16
The primary stage of data collection The secondary stage of data collection

Observation Project planning

Interest Data collection

Formulating research problems Questionnaire preparation

Documentation Analysis of data

Research designs Testing of hypothesis, Interpretation,

Questionnaire preparation.

3.3 TYPE OF RESEARCH:

DESCRIPTIVE RESEARCH:

Descriptive research has been used, it involves survey and fact-finding inquiries of
different kinds, the purpose of descriptive research is the descriptive the stage of
affairs, as it exists at present.

PROJECT PLANNING:

Project planning is the first step in actually conducting & direct Research projects. It
is one of the most important tasks of a researcher. This includes the formulation of
the researcher’s objectives & goals and determining ways of achieving them.

17
3.3 DATA COLLECTION:

Data collection is one of the most important aspects of research. The information
research methodology must be accurate and relevant, The data collection method can
be classified into two methods.

PRIMARY DATA:

The questionnaire method has been used as a tool for data collection in this research.

SECONDARY DATA:

Secondary data means data that are already available i.e., they refer to data that has
already been collected and analyzed by someone else. The secondary data for the
study was collected from the google scholar websites and magazines.

3.5 QUESTIONNAIRE PREPARATION:

The basic requirement of any research study is the appropriate data that can be
collected with the help of a schedule or questionnaire. With the help of a questionnaire,
it is easy to determine the involvement level of so many employees in the organization.

18
3.6 PIOLET SURVEY:

Before collecting the relevant data to test the hypothesis, it is essential to ascertain the
applicability of the instrument to the population being studied. Hence, a pilot
studywasundertakenwithanobjectivetoevaluatethetoolspreparedforthe study and to
find whether they are providing the information required.

3.7 SAMPLE SIZE:

The sample size for this survey is75.

3.8 PERIOD OF STUDY

The period of study is from December to March which is four months of study.

3.9 ANALYTICAL TOOL

CHI-SQUARE

A Chi-square statistic is one way to show a relationship between two categorical

variables. In statistics, there are two types of variables: numerical (countable) variables
and non-numerical (categorical) variables.

19
 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

The following consist of the data analysis and interpretation of my questionnaire

PERCENTAGE ANALYSIS

Survey analysis of data

4.1 Age of respondent

AGE PERCENTAGE OF
RESPONDENTS
18 TO 25 10%

25 TO 30 35%

30 TO 40 40%

Above 45 20%

20
 Age of respondent
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

18 TO 25 25 TO 30 30 TO 40 Above 45

INTERPRETATION:

From the above table interpreted that 10% of respondents are in the age group between
18 to 25.35% are between 25-30 age, 40% are between 30-40 and above, majority of
20% of respondents are between the age of above 45.

4.2 Gender of respondents:

Male 76%

Female 23%

Prefer not to say 1%

21
 80% 76%

70%
60%
50%
40%
30% 23%
20%
10%
1%
0%
Male Female Prefer not to say

INTERPRETATION:

The above table is interpreted that 76% of respondents are male 23% of respondents
are female and 1% of people preferred to not say their gender.

4.3 Educational qualification

Educational qualification PERCENTAGE OF

RESPONDENTS

High School 29%

Undergraduate 48%

Postgraduate 23%

22
 Educational qualification
60%

48%
50%

40%
29%
30%
23%
20%

10%

0%

High School Undergraduate Postgraduate

INTERPRETATION:

The above table interpreted that 29% of respondents are in high school, 48% of
respondents are undergraduates and 23% of respondents are postgraduates. The
majority 48% of respondents are undergraduates.

4.4 Are you working in an:

Organizations 23%

Institutions 18%

Shops 50%

Others 9%

23
 60%

50%

40%

30%

20%

10%

0%
1

Organizations Institutions Shops Others

INTERPRETATION:

The above table interpreted that 23% of respondents are working in an organization,
18% of respondents are working in an Institution 50% of respondents are working in
Shops, and 9% of respondents selected others. The majority of 50%of respondents are
working in shops.

4.5 Is your Organization/Institution/Shops use E-Commerce:

Yes 63

No 24

Maybe 13

24
 Chart Title
70
63
60

50

Yes
40
No
30
24 Maybe

20
13
10

INTERPRETATION:

The above table interpreted that 63% of respondents said Yes, 24% of respondents
said No and 13% of respondents said Maybe. The majority 63% of respondents are
Yes

4.6 Is E-Commerce reduces Operational costs:

Yes 82

No 16

Maybe 12

25
 90
82
80

70

60

50

40

30

20 16
12
10

0
1

INTERPRETATION:

The above table interpreted that 82% of respondents said Yes, 16% of respondents
said No and 2% of respondents said Maybe. The majority 82% of respondents are Yes.

4.7 Do you measure the effectiveness of E-Commerce:

Yes 52

No 37

Maybe 11

26
 60

50 52

40

37
30

20

10
11

0
1

INTERPRETATION:

The above table interpreted that 52% of respondents said they measured the
effectiveness of E-commerce Yes, 37% of respondents said they don’t measure the
effectiveness of E-commerce No and 11% of respondents said Maybe. The majority
52% of respondents are Yes.

4.8 Is E-commerce cost is beneficial:

Yes 73

No 24

Maybe 12

27
 11%

Yes
22%
No
Maybe
67%

INTERPRETATION:

The above table interpreted that 73% of respondents said Yes, 24% of respondents
said they don’t measure the effectiveness of E-commerce No and 3% of respondents
said Maybe. The majority 73% of respondents are Yes.

28
4.9 Are the role of e-commerce in reducing operational costs by
reducing labor and another cost in many areas?

Strongly disagree 1

Disagree 5

Neutral 20

Agree 46

Strongly agree 28

50

45
46
40

35

30

25 28

20
20
15

10

5
1 5
0
1

29
INTERPRETATION:

The above table interpreted that 1% of respondents said strongly agree, 5% of

respondents said Disagree 20% of respondents said neutral, 46% of respondents said
Agree and 28% of respondents said strongly agree.

4.10 E-businesses can help manage operating costs in many areas

thereby reducing the cost of individual transactions:

Strongly disagree 6

Disagree 11

Neutral 28

Agree 12

Strongly agree 28

30
 6%
11% Strongly disagree
Disagree
43%
Neutral

28% Agree
Strongly agree
12%

INTERPRETATION:

The above table interpreted that 6% of respondents said strongly agree, 11% of
respondents said Disagree 28% of respondents said neutral, 12% of respondents said
Agree, and 43% of respondents said strongly agree.

4.11 Is E-commerce gives more profit by reducing operational costs:

Yes 84

No 9

Maybe 12

31
 84

9 7

YES NO MAYBE

INTERPRETATION:

The above table interpreted that 84% of respondents said Yes, 9% of respondents said
No and 7% of respondents said Maybe. The majority 82% of respondents are Yes.

4.12 Which is the best way to reduce operational cost:

Evaluate financial expenditure 16

Outsource your business functions 39

Improve your marketing efforts 21

All the above 28

32
 39

28
21
16

EVALUATE OUTSOURCE IMPROVE ALL THE

FINANCIAL YOUR YOUR ABOVE
EXPENDITURE BUSINESS MARKETING
FUNCTIONS EFFORTS

INTERPRETATION:

The above table interpreted that 16% of respondents said evaluate financial
expenditure, 39% of respondents said outsource your business functions 21% of
respondents said to improve your marketing efforts, and 28% of respondents said All
the above.

4.12 At what percentage does the profit increase by reducing

operational costs:

5% - 15% 17

15% - 25% 28

25% - 50% 33

More than 50% 46

33
 50

45
46
40

35

30

25 28

20

15 19

10

5 7
0
5% - 15% 15% - 25% 25% - 50% More than 50%

INTERPRETATION:

The above table interpreted that 7% of respondents said 5% - 15% 19% of respondents
said 15% - 25% and 28% of respondents said 25% - 50% and 46% of respondents said
more than 50%The majority 46% of respondents aid more than 50%.

34
 CHAPTER 5

FINDINGS, SUGGESTIONS, & CONCLUSION

Based on the analysis and discussion of primary data in the previous chapter findings,
suggestions, and conclusions of the study in a logical manner.

5.1 FINDINGS:

From the questionnaire, the following points are found and noted:

The majority of 20% of respondents are between the age of above 45.
The majority of 76% of respondents are male.
The majority 48%of respondents are undergraduates.
The majority of 50%of respondents are working in shops.
The majority of 63% of respondents are using e-commerce in their
Organization/Institution/Shops.
The majority 82% of respondents said yes to e-commerce reducing operational
costs.
The majority 52% of respondents said yes that they measured the effectiveness
of e-commerce in reducing operational costs.
The majority 73% of respondents said yes that e-commerce cost is beneficial.

The majority 46% of respondents are agreed with the role of e-commerce in
reducing operational costs by reducing labor and another cost in many areas.
The majority 43% of respondents strongly agreed that e-businesses can help
manage operating costs in many areas thereby reducing the cost of individual
transactions.
The majority 84% of respondents said yes for E-commerce gives more profit by
reducing operational costs.
The majority 39% of respondents said Outsourcing your business functions is
the best way to reduce operational costs.

35
 The majority 46% of respondents said more than 50 percent the profit increase
by reducing operational costs.

5.2 SUGGESTIONS:

In particular, e-commerce has improved the availability of information, reduced

processing errors, reduced response times, lowered costs of services, and has
effectively raised customer satisfaction and the level of service that customers expect
to receive. The research revealed, that many businesses are making the transition to
integrated e‐commerce business operations. This is being done with the expectations
of lowering operational costs and also significantly improving the level of their service
offerings.

5.3 CONCLUSIONS:

Showed the results of statistical analysis on the variable costs of storage and
distribution that the company is seeking to benefit from the advantages of using e-
commerce to reduce the stock of the company and the salaries and wages of
employees stores and reduce the costs of traveling to the and lower insurance
expenses on stores and expenses stationery and consumption of machinery and
equipment used in the stores. It also showed that the co any is interested and
allow the exchange of experiences and views with customers through the use of
electronic commerce and access to any inquiry or consulted by them. It also showed
that the company is interested through the use of electronic commerce to meet the
needs and requirements of customers and achieve the highest degree of satisfaction
to have. It also showed the results of statistical analysis on the variable salary costs
that the company studied is seeking through the use of electronic commerce in
marketing their products to reduce the costs of salaries and wages and reward
staff and employees in the Department of Advertising and reduce the cost of training
programs and courses that are held in the Department of Advertising and the rest of
the sections.
36
REFERENCES:

Moscove, Crowing Shield –“Cost accounting with managerial applications” , fifth edition
– 1985. ROBBINS, JOENS, DON," E-COMMERCE FOR DUMMIES", NEW YORK ,
2000. STEPHEN. Horngren, Charles T.& Foster, George & Datar, Srikant M.,
"Cost Accounting Managerial Emphasis ". 8th ed. ,prentice- hall International, Inc.
,1994. Dhillon, B.S, Engineering and Technology Management tools and Application,
Artech House, 2002. Chase, Richard B. Jacobs, F. Robert & Aquilano, Nicholas
J., Operations management for Competitive Advantage, 10th ed McGraw Hill, 2004.
Technical section, Engineering Division, Division of high ways, Value Engineering
Manual, West Virginia Department of Transportation, WVDDOH Office Service
Division., January 1, 2004. Zhai CJ (2010), Reseatch on post-adoption behaviour of
B2B e-marketplace in China, Business Administration and Institutional innovation in
China. Abdul Rahman, Ismail, "Gulf states are moving to the adoption of a uniform
law of electronic commerce," Kuwait.2009 . Anati, Mohammed Radwan, "cost
accounting concepts ttabiqat principles." Edition. First, Serenity House for
Publication and Distribution: Oman.2000 . Stapes, Ali Khalaf Salman, "a three
elements of internal control in reducing the costs of control. Qualitative." Master
Thesis, Faculty of Management and Economics, University of Mustansiriya .2004 .
Horngern, and Charles Foster, George and Datar, Srikant, "Cost Accounting -
Administrative entrance," the first part, translation d. Hamid Ahmed Haggag, Dar Mars:
Riyadh, 1996 . Keywords, d. Bashir Abbas, "internet marketing". First Edition, a
parchment Alo for publishing and distribution: Jordan 2002.

37
 APPEXURE

THE ROLE OF E-COMMERCE IN REDUCING OPERATIONAL

COSTS:

What is your name?

Age of the respondent?
a. 18 to 25
b. 25 to 30
c. 30 to 40
d. Above 40

Gender of the respondent?

a. Male
b. Female
c. Prefer not to say

E-mail I'd or Contact number of a respondent

Educational qualification of a respondent

a. High school
b. Undergraduate
c. Postgraduate
d. Others
Are you working in a/an?
a. Organizations
b. Institutions
c. Shops

38
d. Other

Is your organization/ Institution/ Shops using E-commerce?

a. Yes
b. No
c. Maybe

Do you measure the effectiveness of E-commerce?

a. Yes
b. No
c. Maybe
Is E-commerce reduces operational cost.
a. Strongly disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly agree
Is E-commerce cost is beneficial.
a. Yes
b. No
c. May be
Are the role of e-commerce in reducing operational costs by reducing labor
and another cost in many areas.
a. Strongly disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly agree
E-business can help manage operating costs in many areas thereby reducing
the cost of individual transactions.
a. Strongly disagree

39
b. Disagree
c. Neutral
d. Agree
e. Strongly agree
Which is the best way to reduce operational cost.
a. Evaluate financial expenditure
b. Outsource your business functions
c. Improve your marketing efforts
d. All the above
Is E-commerce gives more profit by reducing operational cost *
a. strongly disagree
b. Disagree
c. Neutral
d. Agree
e. Strongly agree
At what percentage does the profit increase by reducing operational cost
a. 5%-15%
b. 15%-25%
c. 25%-50%
d. More than 50%

40
41