1. What is e-commerce?

Discuss B2B2C and C2B2C model giving proper examples.

E-commerce refers to the buying and selling of goods and services over the internet. In the
**B2B2C** model, a business sells its products or services to another business, which then sells
them to consumers. An example of this is a manufacturer selling products to a retailer who
then sells them to individual customers.
C2B2C** model, consumers sell products or services to other consumers through a business
platform. For instance, individuals selling handmade crafts through an online marketplace like
Etsy. These models showcase the diverse ways in which e-commerce facilitates transactions
between businesses and consumers in the digital realm.
2. Define Electronic Data Interchange. What are the components of Electronic Data
Interchange?
Electronic Data Interchange (EDI) is the computer-to-computer exchange of business documents in a
standard electronic format between trading partners. The components of EDI include a trade
agreement, standard document format, EDI translation management software, communications
software, modem, VAN (Value Added Network), and Point-to-Point communication.

3. Explain how SSL protocol is used for secure transaction. Explain the advantages of e-
commerce.
The SSL protocol is used for secure transactions in e-commerce by combining the Hypertext Transfer
Protocol (HTTP) with SSL/TLS encryption to provide secure identification of servers. The advantages of e-
commerce include cost-effectiveness, reduction in data entry errors, shorter processing cycles,
automated data entry, expedited transmission, and standardized communication.

4. What role does SCM play in Business to Business model i.e. B2B e-Commerce?

Supply Chain Management (SCM) plays a crucial role in Business to Business (B2B) e-commerce by
optimizing the flow of goods, services, and information between businesses. It ensures efficient
procurement, production, and distribution processes, enhancing collaboration and reducing costs in the
supply chain.

5. Discuss e-governance. Explain the Business to Administration model.

E-governance involves the use of electronic communications technologies to improve government
services and processes. In the Business to Administration (B2A) model, businesses interact with
government agencies for services like licensing, permits, and tax filings electronically, streamlining
administrative processes.

6. Discuss in brief virtual auction.Explain the differences between virtual auction and reverse auction.

Virtual auctions are online platforms where goods or services are auctioned to the highest bidder. The
key difference between virtual auctions and reverse auctions is that in virtual auctions, buyers bid to
purchase items, while in reverse auctions, sellers compete to win business from buyers by offering the
lowest price.

7. What is Firewall?State the function of Firewall in e-commerce.

Firewall is a security system that monitors and controls incoming and outgoing network traffic based on
predetermined security rules. In e-commerce, firewalls protect sensitive data, prevent unauthorized
access, and ensure secure transactions by acting as a barrier between internal systems and external
threats.

Based on the provided sources, here are the answers to the questions related to e-commerce:

1. **Difference between traditional commerce and e-commerce**:

- Traditional commerce involves physical transactions in a brick-and-mortar store, while e-commerce is

the buying and selling of goods and services over the internet.

2. **Different divisions of e-commerce**:

- Business-to-Consumer (B2C), Business-to-Business (B2B), Consumer-to-Consumer (C2C), Consumer-

to-Business (C2B), Business-to-Government (B2G).

3. **Advantages and disadvantages of e-commerce**:

- Advantages include reduced overhead costs, global marketing reach, lower operating costs,
convenience, scalability. Disadvantages may involve initial setup costs, security risks, and potential
technical issues.

4. **Different applications of e-commerce**:

- E-commerce applications include online retailing, electronic payments, online auctions, internet
banking, online ticketing, and digital downloads.

5. **Infrastructure of e-commerce**:

- The infrastructure of e-commerce includes websites, secure payment gateways, databases, servers,
internet connectivity, and logistics for product delivery.

6. **Different services of e-commerce**:

- E-commerce services encompass online shopping, electronic payments, customer support, order
tracking, digital marketing, and secure transactions.
7. **Meaning of e-commerce**:

- E-commerce refers to the buying and selling of goods and services over the internet, involving online
transactions and digital platforms.

8. **Explanation of e-commerce**:

- E-commerce is the process of conducting business transactions electronically, utilizing technology

and digital platforms for buying and selling goods and services.

9. **E-commerce challenges in the present era**:

- Challenges in e-commerce today include

 cybersecurity threats,
 competition,
 data privacy concerns,
 logistics
 Supply chain issues,
 adapting to rapidly evolving technology.

10. Benefits of e-commerce:

- E-commerce provides benefits such as

 global reach,
 reduced operating costs,
 convenience, scalability,
 increased selection,
 Easier management of customer data and sales processes.

Based on the provided sources, here are the answers to the questions related to Electronic Data
Interchange (EDI):

1. **What do you mean by Electronic Data Interchange?**

- Electronic Data Interchange (EDI) is the secure, automated exchange of electronic documents
between trading partners using a standardized format. It enables the direct flow of electronic
documents between computer systems, reducing the need for manual intervention in the
exchange of business data.

2. **Explain the concept of EDI:**

 - EDI is a technology used for sending structured business documents between organizations
electronically. It involves the exchange of digital documents in a standardized format, allowing
data to be quickly and accurately transmitted from one computer system to another.

3. **Features of EDI:**
- Some key features of EDI include increased efficiency through automation, improved
accuracy by eliminating manual errors, enhanced communication with standardized formats,
real-time inventory updates, improved order fulfillment, cost savings by reducing manual
processing, and competitive advantage through operational efficiency.

4. **What do you mean by e-banking?**

- E-banking refers to the provision of banking services through electronic channels like the
internet, mobile devices, or ATMs. It allows customers to conduct various banking transactions
online, such as fund transfers, bill payments, account management, and more.

5. **EDI Benefits in detail:**

- EDI offers benefits such as lower operating costs, improved business cycle speeds, reduced
human errors, increased business efficiency, enhanced transaction security, paperless
transactions, environmental friendliness, and improved customer and partner relationships.

6. **Different uses of EDI:**

- Some common uses of EDI include automating processes to eliminate manual intervention,
improving planning processes for better efficiency, reducing paperwork by automating data
exchange, enhancing data accuracy and speed, receiving real-time information, cutting costs,
improving data exchange, and enhancing transaction security by securely sharing data across
networks.

Based on the provided sources, here are the answers to the questions related to Electronic Data
Interchange (EDI), e-banking, and electronic payment systems:

7. **What do you mean by EDI Software?**

- EDI Software refers to specialized software applications that facilitate the electronic
exchange of business documents between trading partners. It enables the translation of data
into a standardized format for seamless communication and data interchange.

8. **What do you mean by EDI components?**

- EDI components include the software systems that enable data translation, mapping, and
communication protocols necessary for the secure exchange of electronic documents. These
components ensure that data is accurately formatted and transmitted between different
systems.

9. **Different services provided by e-banking:**

 - E-banking services include online fund transfers, bill payments, account management, loan
applications, investment services, mobile banking, electronic statements, customer support, and
financial planning tools.

10. **Explain different electronic payment systems:**

- Electronic payment systems encompass various methods like credit/debit card payments,
internet banking, digital wallets, direct debits, and buy now, pay later (BNPL) options. Each
system offers unique features and benefits for processing online transactions securely and
efficiently.

11. Explain the process of EPS with its types:

- Electronic Payment Systems (EPS) involve the secure transfer of funds electronically. Types of
EPS include credit/debit card payments, internet banking transfers, digital wallets, crypto
currencies, and other innovative methods. The process typically involves authentication,
authorization, and settlement of transactions to facilitate online payments securely and
efficiently.

a) The various components of electronic commerce applications include users (individuals or

organizations using the platform), e-commerce vendors, technology infrastructure,
internet/network, web portal, and payment gateway. These components play crucial roles in
ensuring effective and efficient transactions within e-commerce platforms.

b) Just-In-Time (JIT) delivery is important in B2B e-commerce as it enables businesses to receive

goods only when they are needed, reducing inventory costs, improving efficiency, and
streamlining supply chain operations by ensuring that products arrive exactly when they are
required, minimizing storage and excess inventory costs[5].

c) The characteristics of internet-based EDI include lower operating costs, improved business
cycle speeds, reduced human errors, enhanced business efficiency, enhanced transaction
security, paperless transactions, environmental friendliness, and improved customer and
partner relationships[5].

d) The classifications of the e-commerce field by the nature of transactions include Business-to-
Business (B2B), Business-to-Consumer (B2C), and Consumer-to-Consumer (C2C). Each
classification represents different types of transactions and target audiences within the e-
commerce landscape.

e) Companies usually choose to implement SAP (Systems, Applications, and Products) for its
comprehensive enterprise resource planning (ERP) software that integrates various business
functions, streamlines processes, enhances data visibility, improves decision-making, and
provides a scalable solution for business growth and efficiency.

f) The need for collaborative computing arises from the requirement for real-time collaboration,
communication, and information sharing among individuals or teams within an organization. It
facilitates teamwork, enhances productivity, fosters innovation, and enables efficient decision-
making processes by leveraging technology for seamless collaboration[3].

g) The three different types of transitions and mobility within a wireless network include
Business to Business (B2B), Business to Consumer (B2C), and Consumer to Consumer (C2C).
These types represent different transactional relationships and interactions within the e-
commerce environment[3].

h) The Supply Chain Execution Framework refers to the set of processes, technologies, and
systems that manage and optimize the flow of goods, information, and finances across the
supply chain. It encompasses activities like order fulfillment, inventory management, warehouse
management, transportation management, and distribution to ensure efficient supply chain
operations[5].

i) The major methods used for advertisement include digital marketing strategies like SEO, social
commerce, content marketing, and personalized interactions with customers on websites. These
methods help businesses grow their online presence, attract visitors, and convert potential
customers into buyers[3].

j) Data Encryption Standard (DES) is a symmetric-key algorithm used for encrypting and
decrypting electronic data. It ensures data security by converting plaintext data into ciphertext,
making it unreadable without the appropriate decryption key. DES is a widely used encryption
standard for securing sensitive information during electronic transactions and
communications[5].

**DISTINCTION BETWEEN E-COMMERCE AND E-BUSINESS:**

E-commerce refers to online commercial transactions, while e-business encompasses all

business activities conducted using the web. E-commerce is a subset of e-business, focusing on
buying and selling products online, whereas e-business includes a wider range of processes like
supply chain management and customer relationship management[1][3][4][5].

**TERMS IN E-BUSINESS:**

i. **Brick and Mortar Organizations:** Traditional physical businesses that operate offline.
ii. **Virtual Organizations:** Businesses that operate entirely online without physical locations.
iii. **Click and Mortar Organizations:** Businesses that combine online and offline operations.

**FRAMEWORK FOR E-COMMERCE:**

- **E-commerce Applications:** Examples include online retail platforms like Amazon and
Flipkart.
- **E-commerce Support Services:** Services like online payment gateways and customer
support systems.
- **E-commerce Infrastructure:** Includes internet connectivity, servers, and security protocols.

**TECHNOLOGIES IN THE SECOND WAVE OF E-COMMERCE:**

1. Mobile Commerce (M-Commerce)

2. Internet of Things (IoT)
3. Cloud Computing
4. Artificial Intelligence (AI)

**ADVANTAGES AND DISADVANTAGES OF E-COMMERCE:**

Advantages:
1. Increased reach and accessibility to a global market.
2. Lower operational costs due to reduced need for physical infrastructure.

Disadvantages:
1. Security risks like data breaches and fraud.
2. Lack of personal interaction leading to potential customer trust issues.

**SECURITY AND TRANSACTION THREATS IN E-COMMERCE:**

1. **Security Threats:** Phishing attacks, malware, and data breaches.

2. **Transaction Threats:** Payment fraud, identity theft, and non-delivery of goods.

These points provide a comprehensive overview of the distinctions between e-commerce and e-
business, key terms in e-business, components of an e-commerce framework, technologies
driving e-commerce evolution, advantages and disadvantages of e-commerce, and security
threats in electronic commerce systems.

**REGULATORY AND LEGAL ISSUES OF ELECTRONIC COMMERCE:**

Regulatory and legal issues in electronic commerce are crucial for ensuring fair and secure
online transactions. Some key issues include:

1. **Data Privacy:** Regulations like GDPR govern how businesses collect, store, and use
customer data to protect privacy.
2. **Consumer Protection:** Laws ensure fair practices, accurate product information, and
transparent pricing to safeguard consumer rights.
3. **Cybersecurity:** Regulations mandate measures to protect sensitive data from cyber
threats and ensure secure online transactions.
4. **Intellectual Property Rights:** Laws protect trademarks, copyrights, and patents,
preventing infringement and piracy in e-commerce.
These regulatory and legal issues play a vital role in maintaining trust, security, and fairness in
the digital marketplace[1][3][5].

**E-COMMERCE BUSINESS MODELS:**

1. **Business-to-Consumer (B2C):** Direct selling of products or services to individual

consumers.
2. **Business-to-Business (B2B):** Companies selling products or services to other businesses.
3. **Consumer-to-Consumer (C2C):** Individuals selling products or services to other
individuals.
4. **Consumer-to-Business (C2B):** Consumers offer products or services to businesses.

**E-COMMERCE REVENUE MODELS:**

1. **Subscription Model:** Customers pay a recurring fee for access to products or services.
2. **Advertising Model:** Revenue generated through displaying ads on the platform.
3. **Transaction Fee Model:** Charging a fee for each transaction conducted on the platform.
4. **Freemium Model:** Offering basic services for free and charging for premium features.

**REVENUE STRATEGY ISSUES IN E-COMMERCE:**

1. **Pricing Strategy:** Balancing competitive pricing with profitability and customer value.
2. **Customer Acquisition Costs:** Managing costs associated with acquiring new customers
while ensuring profitability.

**FUNDAMENTAL TECHNOLOGIES FOR E-COMMERCE SYSTEMS:**

1. **Secure Payment Gateways:** Ensuring safe and encrypted online transactions.

2. **Customer Relationship Management (CRM) Systems:** Managing customer interactions
and data effectively.
3. **Inventory Management Systems:** Tracking and managing product stock levels.
4. **Data Analytics Tools:** Analyzing customer behavior and trends to make informed business
decisions.

**DATABASE-DRIVEN E-COMMERCE WEBSITES:**

These websites use databases to dynamically generate content based on user interactions,
ensuring personalized and real-time experiences for customers.

**CREATING AN EFFECTIVE BUSINESS PRESENCE ON THE WEB:**

1. **Responsive Website Design:** Ensuring compatibility across devices for a seamless user
experience.
2. **Search Engine Optimization (SEO):** Optimizing content to improve visibility and ranking
on search engines.
3. **Social Media Integration:** Leveraging social platforms to engage with customers and drive
traffic.
4. **Content Marketing:** Providing valuable and relevant content to attract and retain
customers.

**DIFFICULTIES IN MEASURING WEBSITE AND SOCIAL MEDIA CAMPAIGN USAGE:**

Challenges include tracking accurate metrics, attributing conversions to specific campaigns,

dealing with data privacy regulations, and interpreting social media engagement
effectively[4][5].
a) It is important to identify which business processes can be streamlined using
ecommerce technologies. It is equally important to realize that some processes make
effective use of traditional commerce and can’t be improved upon using technology.
DISCUSS 2 (two) examples of each of the following;
i. Business processes that are well-suited for electronic commerce:
ii. Business processes that are well-suited to traditional commerce:
iii. Business processes that are well suited to a combination of e-commerce and
traditional
**BUSINESS PROCESSES SUITED FOR E-COMMERCE:**

1. **Order Processing:** E-commerce excels in automating order processing, from accepting

orders to deploying products to customers, creating invoices, and requesting reviews.
Automation tools like Zapier streamline these tasks efficiently[1].
2. **Digital Product Sales:** Selling digital products like e-books, software, or subscriptions is
well-suited for e-commerce due to the ease of delivery and scalability without physical
inventory constraints[2].

**BUSINESS PROCESSES SUITED FOR TRADITIONAL COMMERCE:**

1. **High-Touch Customer Service:** Complex customer interactions requiring personalized

service and face-to-face interactions are better suited for traditional commerce settings where
human touch is crucial.
2. **Customized Product Assembly:** Processes that involve intricate customization or
assembly of products based on specific customer requirements may be more efficiently handled
in traditional brick-and-mortar stores where physical presence is essential for customization.

**BUSINESS PROCESSES SUITED FOR A COMBINATION OF E-COMMERCE AND TRADITIONAL

COMMERCE:**

1. **Omnichannel Sales:** Leveraging both online and offline channels to provide customers
with a seamless shopping experience, allowing them to research online and purchase in-store or
vice versa.
2. **Inventory Management:** Integrating e-commerce platforms with physical stores for real-
time inventory updates and order fulfillment, combining the convenience of online shopping
with immediate product availability in physical stores.

**E-COMMERCE MARKETING STRATEGIES:**

1. **Invest in SEO:** Enhance online visibility and organic traffic by optimizing product pages for
search engines.
2. **Run Influencer Marketing Campaigns:** Collaborate with influencers to reach a wider
audience and drive sales.
3. **Sell on Marketplaces:** Expand reach by listing products on popular online marketplaces
like Amazon or eBay.
4. **Create a TikTok Marketing Strategy:** Utilize TikTok's engaging platform to showcase
products and connect with a younger demographic.

EXPLAIN 2 (two) techniques and strategies that will influence ecommerce

trends in the near future?

**TECHNIQUES AND STRATEGIES INFLUENCING E-COMMERCE TRENDS:**

1. Increased Adoption of AI and Machine Learning:

- Personalized Shopping Experiences:** AI and ML technologies are revolutionizing e-
commerce by enabling personalized shopping experiences based on customer behavior,
demographics, and psychographics. By analyzing data, businesses can tailor product
recommendations, marketing messages, and offers to enhance customer engagement and
loyalty. This level of personalization not only improves the shopping experience but also boosts
conversions and drives customer retention.
- Predictive Analytics and Inventory Management: AI-powered predictive analytics help
businesses forecast demand, optimize inventory levels, and improve supply chain efficiency. By
leveraging AI for inventory management, e-commerce companies can ensure product
availability, reduce stock outs, and enhance operational efficiency.

2. Rise of Mobile Shopping and Progressive Web Apps (PWAs):

- Mobile-First Approach: ** With mobile devices becoming the preferred shopping medium,
the future of e-commerce lies in mobile commerce. Businesses are increasingly focusing on
optimizing their platforms for mobile devices to provide fast, engaging, and app-like
experiences. Progressive Web Apps (PWAs) are gaining prominence as they offer a web
experience that mimics native apps, allowing customers to shop seamlessly without the need to
download a separate application. This approach enhances user experience, increases
accessibility, and drives mobile sales.
 - Voice Commerce Optimization: Voice commerce is on the rise, with voice assistants like Alexa
and Google Assistant becoming integral to consumers' daily lives. Optimizing e-commerce
platforms for voice search can significantly enhance user experiences and capture new
opportunities in the growing voice commerce market. By integrating voice search capabilities,
businesses can cater to tech-savvy consumers who prefer hands-free interactions and
streamline the shopping process.

a) LIST 4 (four) types of e-Commerce Payment systems.

The four types of e-commerce payment systems are:

 Credit Card
 Debit Card
 Smart Card
 E-Wallet

b) What is a block chain in the context of electronic money?

In the context of electronic money, a block chain is a decentralized, distributed digital ledger
that records transactions across multiple computers. It is a technology that enables secure and
transparent transactions without the need for a central authority like a bank. Each transaction is
recorded in a block, which is linked to the previous block using cryptography, creating a chain of
blocks. This system ensures the integrity and security of transactions by making them tamper-
proof and transparent.

c) Explain the use of a block chain in Bitcoin. Why is it required?

In Bitcoin, a block chain is used to record all transactions made with the crypto currency. It
serves as a public ledger that tracks the flow of Bitcoin from one user to another. The block
chain in Bitcoin is essential because it ensures the security, transparency, and decentralization
of the crypto currency. By recording every transaction in a block that is linked to the previous
one, the block chain prevents double-spending, fraud, and manipulation of transaction records.
It is required to maintain the trust and integrity of the Bitcoin network.

d) Discuss whether Bitcoin is a currency

Bitcoin is often referred to as a crypto currency, which is a type of digital or virtual currency. So
yes it’s a currency since it’s an asset or commodity due to its volatile nature.

c) Describe the following terms as they are applied in the e-commerce environment
 i) Teleworking
ii) Industry value chain
iii) Shipping profile
iv) Electronic markets

**Teleworking in E-commerce:**
Teleworking in the e-commerce environment refers to the practice of working remotely using
digital technologies to perform tasks related to online business operations. It allows employees
to work from locations outside the traditional office setting, leveraging communication tools
and internet connectivity to collaborate with colleagues, manage orders, handle customer
inquiries, and oversee various aspects of the e-commerce value chain[1][3].

**Industry Value Chain in E-commerce:**

The industry value chain in e-commerce represents the interconnected activities and processes
involved in creating and delivering products or services to customers in the online marketplace.
It encompasses stages such as product development, sourcing, marketing, sales, order
fulfillment, and customer service. In e-commerce, the value chain is crucial for optimizing
efficiency, enhancing customer experience, and ensuring seamless operations from product
inception to delivery[2][4].

**Shipping Profile in E-commerce:**

The shipping profile in e-commerce refers to the detailed information and preferences related
to shipping methods, costs, and timelines associated with fulfilling customer orders. It includes
data on shipping carriers, delivery options, shipping fees, estimated delivery times, and tracking
services. Managing the shipping profile effectively is essential for e-commerce businesses to
provide accurate shipping information to customers, optimize logistics operations, and ensure
timely and reliable order deliveries[1][4].

**Electronic Markets in E-commerce:**

Electronic markets in e-commerce are virtual platforms where buyers and sellers interact to
conduct online transactions. These markets leverage digital technologies to facilitate the
exchange of goods and services, enabling businesses to reach a global audience and consumers
to access a wide range of products. Electronic markets play a vital role in shaping the e-
commerce landscape by providing a digital marketplace for businesses to showcase their
offerings, connect with customers, and streamline the buying and selling process[3][5].

**Key Pillars Supporting E-commerce Infrastructure:**

1. **Digital Connectivity:** A robust digital infrastructure, including high-speed internet access
and reliable communication networks, is essential for supporting e-commerce operations.
Seamless connectivity enables businesses to engage with customers, process online
transactions, and manage digital platforms effectively.
2. **Cybersecurity Measures:** Ensuring data security and protecting sensitive information are
critical pillars of e-commerce infrastructure. Implementing robust cybersecurity measures, such
as encryption, secure payment gateways, and data protection protocols, is vital to safeguarding
customer data, maintaining trust, and preventing cyber threats.

**E-governance Models:**
1. **Transactional Model:** This model focuses on providing online services to citizens,
businesses, and government entities, enabling transactions such as tax payments, license
renewals, and permit applications to be conducted electronically.
2. **Participatory Model:** In this model, e-governance emphasizes citizen engagement and
participation in decision-making processes through digital platforms, social media, and online
forums, fostering transparency, accountability, and collaboration between the government and
the public.
3. Transformative Model: The transformative model aims to leverage digital technologies to
transform governance structures, policies, and service delivery mechanisms. It involves
innovative approaches to enhance efficiency, responsiveness, and inclusivity in government
operations and public service delivery.

**Distinguishing Between Terms:**

**i) Personalization and Customization:**

- **Personalization:** Personalization involves tailoring products, services, or content to meet
individual customer preferences or needs. It uses data and algorithms to create unique
experiences for each customer based on their behavior, demographics, or past interactions.
- **Customization:** Customization allows customers to modify or create products according to
their specific requirements or preferences. It gives customers the freedom to choose features,
colors, sizes, or other options to create a personalized product.

**ii) Firm and Industry:**

- **Firm:** A firm refers to an individual business entity or organization engaged in economic
activities to produce goods or services for profit. It operates independently and has its own
management, resources, and strategic objectives.
- **Industry:** An industry comprises a group of firms that produce similar goods or services
and compete within the same market. Industries consist of multiple firms operating in the same
sector, sharing common characteristics and facing similar market dynamics.

**iii) EFT and EDI:**

- **EFT (Electronic Funds Transfer):** EFT is a digital payment method that allows the electronic
transfer of money from one bank account to another. It facilitates secure and efficient financial
transactions without the need for physical checks or cash.
- **EDI (Electronic Data Interchange):** EDI is a system for exchanging business documents
electronically between trading partners. It enables the automated transfer of structured data
such as orders, invoices, and inventory information in a standardized format.

**Management Issues in Digital Business Strategy:**

- **Technological Integration:** Ensuring seamless integration of digital technologies into
existing business processes and systems.
- **Data Security:** Addressing cybersecurity risks and protecting sensitive information from
breaches or unauthorized access.
- **Talent Acquisition:** Recruiting and retaining skilled professionals with expertise in digital
technologies and e-commerce.
- **Customer Engagement:** Developing strategies to engage customers effectively through
digital channels and personalized experiences.

**Factors to Consider in E-commerce Site Design:**

1. **User Experience (UX):** Designing an intuitive and user-friendly interface to enhance
navigation and usability.
2. **Mobile Responsiveness:** Ensuring the site is optimized for mobile devices to cater to the
growing number of mobile users.
3. **Security Features:** Implementing robust security measures such as SSL encryption, secure
payment gateways, and data protection protocols.
4. **Search Engine Optimization (SEO):** Optimizing the site for search engines to improve
visibility and attract organic traffic.
5. **Scalability and Performance:** Building a site that can handle increased traffic,
transactions, and content without compromising speed or functionality.

**a) Web Application Servers and Four Examples:**

**Definition:** Web application servers are software frameworks or platforms that provide an
environment for hosting, managing, and executing web applications. They handle the processing
of dynamic content, manage user requests, and interact with databases to deliver web-based
services.

**Four Web Application Servers:**

1. **Apache Tomcat:** An open-source Java servlet container that supports Java-based web
applications.
2. **Microsoft Internet Information Services (IIS):** A web server created by Microsoft for
hosting websites and web applications on Windows servers.
3. **NGINX:** A high-performance web server known for its scalability and efficiency in
handling web traffic.
4. **Node.js:** An open-source, cross-platform JavaScript runtime environment that executes
JavaScript code server-side, commonly used for building real-time web applications.

**b) Common Uses of Cookies on a Website:**

1. **Session Management:** Cookies are used to track user sessions, allowing websites to
remember user preferences and maintain login status.
2. **Personalization:** Cookies store user preferences and browsing history to personalize
content and recommendations based on past interactions.
3. **Analytics:** Cookies collect data on user behavior, such as page views and click patterns, to
analyze website performance and improve user experience.
4. **Advertising:** Cookies track user activity to deliver targeted ads based on interests and
browsing habits, enhancing ad relevance and effectiveness.

**c) SLEPT Analysis and Its Five Factors:**

**SLEPT Analysis:** SLEPT analysis is a strategic framework that evaluates the external macro-
environmental factors influencing an organization. It considers five key factors: Social, Legal,
Economic, Political, and Technological. By examining these factors, businesses can identify
opportunities and threats, enabling informed decision-making and strategic planning.

**Factors in SLEPT Analysis:**

1. **Social Factors:** These include demographics, cultural trends, lifestyle changes, and
consumer behavior. Understanding social factors helps businesses adapt to evolving customer
preferences and societal norms.
2. **Legal Factors:** Legal considerations encompass laws, regulations, and compliance
requirements that impact business operations. Businesses must navigate legal frameworks
related to areas such as data privacy, consumer rights, and intellectual property.
3. **Economic Factors:** Economic factors involve aspects like inflation rates, economic
growth, exchange rates, and market trends. Businesses analyze economic conditions to
anticipate market fluctuations and adjust strategies accordingly.
4. **Political Factors:** Political factors pertain to government policies, stability, trade
regulations, and geopolitical influences. Businesses assess political landscapes to mitigate risks
associated with policy changes and geopolitical events.
5. **Technological Factors:** Technological factors cover advancements, innovation, digital
trends, and infrastructure developments. Businesses monitor technological shifts to leverage
opportunities for digital transformation, automation, and competitive advantage.

By conducting a SLEPT analysis, organizations gain a comprehensive understanding of the

external environment, enabling them to proactively respond to market dynamics, capitalize on
opportunities, and mitigate potential threats.

a) E-commerce refers to the process of buying and selling goods and services over the internet.
It involves online transactions, electronic funds transfers, and payment gateway integration,
catering to various business models like B2B, B2C, C2C, and C2B[1][4].

b) The advantages of using emails in e-commerce include:

- Customer notification and confirmation: Emails provide a quick and efficient way to notify
customers about their orders, confirm purchases, and provide updates on delivery status.
- Marketing activities: Emails are a powerful tool for marketing, allowing businesses to reach out
to customers with promotional offers, new product launches, and personalized
recommendations. They help in building customer relationships and increasing brand loyalty.
c) Three critical factors to consider when implementing payment systems in e-commerce are:
- Security: Ensuring secure payment processing to protect sensitive customer information.
- User-friendliness: Designing a seamless payment experience for customers to enhance
convenience and trust.
- Compatibility: Ensuring that the payment system integrates smoothly with the e-commerce
platform and meets the needs of the business and its customers.

d) The unique benefits of the internet in conducting business include:

- Global reach: The internet allows businesses to reach a vast international audience, expanding
market opportunities.
- Cost-effectiveness: Conducting business online reduces overhead costs associated with
physical stores.
- Automation and efficiency: Internet tools enable streamlined processes, quick communication,
and data analytics for informed decision-making.

e) In E-commerce applications:
i. Search engines: Used for optimizing product visibility and attracting traffic to e-commerce
websites through search engine optimization (SEO).
ii. E-mail: Utilized for customer communication, marketing campaigns, order notifications, and
personalized promotions.
iii. Shopping cart: Enables customers to select and store items for purchase, facilitating a smooth
checkout process and enhancing user experience.

**QUESTION TW0**

a) Infrastructural Attacks:
i. Denial of Service (DoS): Denial of Service attacks aim to disrupt the normal functioning of a
network or system by overwhelming it with a flood of traffic, rendering it inaccessible to
legitimate users.
ii. Worms: Worms are self-replicating malware that spread across networks, exploiting
vulnerabilities to infect multiple devices and cause damage or steal data.

b) E-commerce Security Goals:

In e-commerce, security goals include confidentiality, integrity, authentication, and non-
repudiation. Confidentiality ensures that sensitive information is protected, integrity guarantees
data accuracy and consistency, authentication verifies the identity of users, and non-repudiation
prevents parties from denying their actions.

c) Factors Limiting E-commerce Implementation:

Four factors limiting the implementation of e-commerce are:
- Security Concerns: Risks of data breaches and cyber-attacks.
- Lack of Trust: Building trust with customers for online transactions.
- Logistical Challenges: Managing inventory, shipping, and returns.
- Regulatory Compliance: Adhering to legal requirements and standards.
d) Online Payment Systems:
Online payment systems facilitate electronic transactions over the internet, allowing
customers to make purchases securely. They include methods like credit/debit cards, digital
wallets, bank transfers, and payment gateways, ensuring convenient and safe transactions for e-
commerce businesses.

QESTION THREE

a) Standards for E-payments:

i. SSL (Secure Sockets Layer): Ensures secure data transmission over the internet.
ii. SET (Secure Electronic Transaction): Protocol for secure credit card transactions online.
iii. Digital Signatures: Provide authentication and integrity for electronic documents.
iv. Digital Certificates: Verify the identity of parties in online transactions.

b) Ways of Advertising Online:

Four ways of advertising online include search engine optimization marketing, social media
advertising, display advertising, and influencer marketing, enabling businesses to reach targeted
audiences effectively.

c) Impacts of E-commerce to Society:

Three impacts of e-commerce on society are:
- Job Creation: Generating employment opportunities in online retail and related sectors.
- Globalization: Facilitating international trade and market expansion.
- Consumer Behavior Changes: Shifting shopping habits towards online purchases and digital
transactions.

**QUESTION FOUR**

a) Models of E-commerce:
i. B2G (Business-to-Government): Involves businesses providing goods or services to
government entities.
ii. B2C (Business-to-Consumer): Direct sales from businesses to individual consumers.
iii. C2C (Consumer-to-Consumer): Transactions between individual consumers through online
platforms.

b) Differences Between E-commerce and Traditional Commerce:

Three key differences are the global reach, cost structure, and customer interaction methods
in e-commerce compared to traditional commerce.

c) Technical Infrastructure Supporting E-commerce:

Three types of technical infrastructure supporting e-commerce are:
 secure payment gateways,
 robust server hosting,
  efficient inventory management systems,
 Ensuring smooth online transactions and operations.

Question 1

Measurement of Impact and Effectiveness of e-Commerce or m-

Commerce in Companies
To measure the impact and effectiveness of e-Commerce or m-Commerce in companies, key
metrics can be utilized. These include:
- **Sales and Revenue Growth**: Tracking the increase in sales and revenue generated through
online channels.
- **Customer Acquisition and Retention**: Monitoring the number of new customers acquired
and the rate of customer retention.
- **Conversion Rates**: Analyzing the percentage of website visitors who make a purchase.
- **Customer Satisfaction**: Gathering feedback through surveys or reviews to assess customer
satisfaction levels.
- **Website Traffic**: Monitoring the number of visitors to the website and analyzing user
behavior.
- **Return on Investment (ROI)**: Calculating the return on investment from e-Commerce
initiatives.

Overcoming EC Limitations in Kenya

In Kenya, overcoming non-technological limitations in e-Commerce might be easier than
technological limitations due to factors such as:
- Regulatory Framework: Addressing legal and policy challenges can be more manageable
through effective governance and policy reforms.
- Consumer Trust: Building trust and confidence in online transactions can be improved through
education and awareness campaigns.
- Logistics and Infrastructure: Enhancing transportation and delivery systems can be achieved
with strategic investments and partnerships.

[UNCTAD][3]

E-Learning as EC
E-Learning is considered a form of e-Commerce due to:
- Digital Transactions: E-Learning involves the online exchange of educational materials and
services for a fee.
- Global Reach: E-Learning platforms can cater to a global audience, transcending geographical
boundaries.

[LinkedIn][2]

Roles of Intermediaries in E-Markets

Intermediaries in e-markets play crucial roles such as:
1. Facilitating Transactions: Intermediaries provide a platform for buyers and sellers to
engage in transactions securely.
2. Value Addition: They enhance the efficiency of e-markets by offering services like
payment processing, logistics, and dispute resolution.
3. Providing Information: About buyers, sellers, and goods or services.
4. Economies of Scale and Scope: They can leverage their large scale to negotiate better
prices or offer a wider range of products.

### Question 2

Advantages of the Electronic Job Market to Candidates

The electronic job market offers candidates benefits like:
- **Wider Job Opportunities**: Access to a broader range of job openings across different
industries and locations.
- **Convenience**: Candidates can apply for jobs online from anywhere, saving time and effort.
- **Real-Time Updates**: Instant notifications about job postings and application statuses.

b) Relate cookies, Web bugs, and spy ware to market research

Cookies, Web Bugs, and Spyware in Market Research
These tools are used in market research to:
- Track User Behavior: Cookies and web bugs collect data on user interactions with websites for
analysis.
- Targeted Advertising: Spyware can gather information on consumer preferences to tailor
advertising campaigns.

Web Advertising vs. Traditional Advertising Media

Organizations may prefer web advertising over traditional media due to factors like:
- **Cost-Effectiveness**: Web advertising can be more affordable and offer better ROI.
- **Targeted Marketing**: Online ads can be tailored to specific demographics, increasing
effectiveness.

Challenges of Stopping E-Crimes

E-Crimes are difficult to stop due to reasons like:
- Anonymity: Perpetrators can operate online anonymously, making it challenging to
trace and prosecute them.
 - Global Nature: E-Crimes can transcend borders, requiring international cooperation
for effective law enforcement.
- Rapid Technological Advancements: The pace of technological change often
outstrips the ability of law enforcement and legislation to keep up. Cybercriminals
can exploit new technologies before defenses can be put in place.
- Lack of Awareness: Many users lack awareness about the risks of cybercrime and
how to protect themselves online. This makes them easy targets for cybercriminals.
- Sophistication of Attacks: Cyber-attacks have become increasingly sophisticated,
with cybercriminals using advanced techniques to bypass security measures.
Question 3
a) Explain how a company can minimize and safeguard exposure to risk in e-commerce
Minimizing and Safeguarding Exposure to Risk in E-Commerce
Companies can minimize risk in e-Commerce by:
 Data Encryption: Implementing robust encryption methods to protect sensitive
information.
 Regular Security Audits: Conducting frequent security audits to identify
vulnerabilities and address them promptly.
 Privacy Policies: Clearly communicate privacy policies to customers. This
includes how their data is collected, stored, and used.
 Fraud Detection Systems: Implement fraud detection systems to identify and
prevent fraudulent transactions. This can help in minimizing financial losses.

b) Explain why Mpesa has become a very common form of e-payment in Kenya (5 Marks)

The popularity of M-Pesa as an e-payment method in Kenya stems from its convenience and
role in promoting financial inclusion:

Convenience
M-Pesa offers a straightforward and user-friendly way for individuals to conduct transactions
using their mobile phones. This ease of use has contributed significantly to its widespread
adoption in Kenya. Users can make payments, transfer money, and access various financial
services conveniently through the M-Pesa platform.

Financial Inclusion
One of the key drivers of M-Pesa's popularity is its role in promoting financial inclusion. By
providing a platform for the unbanked population to engage in financial transactions, M-Pesa
has empowered individuals who previously had limited access to traditional banking services.
This inclusion of the unbanked population has been instrumental in bridging the gap and
allowing more people to participate in the digital economy.

Security: Safaricom, the company that developed M-Pesa, invested heavily in security and
privacy.
 Support for Business: M-Pesa services have been integrated into businesses, with many shops
offering M-Pesa services.

a) Jumia online-store, selling from electronics, fashion clothes, shoes, food, travel agency for
online tickets, houses, motor vehicles and providing logistics for their own deliveries to their
consumers. This ensures goods have been delivered to the customers within their stipulated
time with no delay. Jumia is in 23 countries within Africa, launched in Kenya 2012, is an
online company within the marketplaces and classified websites. Jumia generates about $
234 million revenue which stands for 265% growth from 2014. As from 2016 Jumia is doing
90% of African GDP and about 50% million customers. Jumia has become the continent first
icon being valued over 1 billion USD, as of 2017..

i) You have been hired to come up with a proposal procurement document to purchase
accounting software, write short notes on the contents of the document (5 Marks)

1. Introduction: Jumia, being a large online marketplace operating in 23 countries, needs

an accounting software to manage its vast financial operations. The procurement
document serves as a formal request for proposals from potential vendors.
2. Requirements Specification: Jumia would list out its specific needs like tracking sales
revenue, managing invoices, handling tax calculations across different countries, etc.
3. Vendor Information: Jumia would ask for details about the software vendors, their track
record, and the kind of post-sales support they offer.
4. Budget and Pricing Structure: Jumia would disclose its budget for this purchase. It
would also ask vendors to provide a detailed breakdown of costs, ensuring there are no
hidden charges.
5. Evaluation Criteria: Jumia would set clear criteria for evaluating the proposals. This
could be based on the software’s ease of use, scalability, integration with existing
systems, etc.
6. Proposal Submission Details: Vendors would be given a deadline and a mode of
submission for their proposals.
7. Terms and Conditions: Jumia would include any legal terms and conditions that the
vendor must agree to. This could include clauses about data security, software
customization, etc.

ii) “Jumia generates about $ 234 million revenue which stands for 265% growth from
2014” describe how Jumia has achieved this
- Market Expansion: By operating in multiple African countries, Jumia has
tapped into diverse markets, increasing its reach and potential customer
base.
- Diversification of Offerings: Jumia's wide range of products, from
electronics to fashion, food, and travel services, has attracted a broad
audience, contributing to revenue growth.
 - Efficient Logistics: Jumia's emphasis on timely deliveries and efficient
logistics has enhanced customer satisfaction, leading to repeat business
and increased revenue.
- Innovative Marketing: Jumia's marketing strategies, including advertising
services and value-added services, have helped attract sellers and
consumers, boosting revenue.
- Strategic Partnerships: Collaborations with companies like Reckitt
Benckiser to offer affordable hygiene products have expanded Jumia's
product offerings and customer base.

QUESTION THREE (20 Marks) A major E-Commerce company was made aware that the contents
of its customer database had been compromised. This information was identified via an online
blog owned by a security researcher who felt the company’s ability to maintain their customers’
data in a secure manner was negligent. 7Safe experts attended the client site and identified that
their eCommerce website API was misconfigured and allowed malformed queries to be entered.
This meant it was possible to obtain other customer information including both personal and
data regarding purchases from the website. We also studied the company’s network and
identified a number of security flaws, including logging failures, and the ability to navigate the
network unhindered. We determined that collectively this would enable a hacker to gain
unfettered access to company and client data with the ability to track such access greatly
reduced.

i) “We also studied the company’s network and identified a number of security flaws,
including logging failures, and the ability to navigate the network unhindered” discuss
the causes of this statement (10 Marks)

The statement regarding the identification of security flaws in the company's network,
including logging failures and unhindered network navigation, can be attributed to
several causes:

1. Inadequate Logging Practices:

- Lack of proper logging mechanisms or failure to monitor and analyze logs can lead to
undetected security incidents.
- Absence of real-time monitoring and alerts for suspicious activities can contribute to
logging failures.

2. Weak Access Controls:

- Insufficient access control measures may allow unauthorized individuals to navigate
the network freely.
- Failure to implement proper authentication and authorization mechanisms can lead
to unauthorized access.

3. Poor Network Segmentation:

 - Inadequate network segmentation can enable attackers to move laterally within the
network once they gain initial access.
- Lack of segmentation between critical systems and less secure areas can exacerbate
the impact of a breach.

4. Lack of Intrusion Detection Systems (IDS):

- Absence of IDS or ineffective intrusion detection mechanisms can result in
undetected malicious activities within the network.
- Failure to promptly identify and respond to security incidents can exacerbate the
consequences of a breach.

5. Insufficient Employee Training:

- Lack of awareness among employees regarding security best practices can lead to
inadvertent actions that compromise network security.
- Inadequate training on recognizing and responding to security threats can contribute
to vulnerabilities in the network.

6. Outdated Software and Patch Management:

- Failure to regularly update software and apply security patches can leave systems
vulnerable to known exploits.
- Outdated software may contain unaddressed vulnerabilities that can be exploited by
attackers.
ii) Discuss the impact of the above statement?. (10 Marks

Impact of Identified Security Flaws

The impact of the identified security flaws in the company's network, including logging failures
and unhindered network navigation, can be significant:

1. Data Breach Risk:

- Increased likelihood of unauthorized access to sensitive customer and company data.
- Potential exposure of personal information, financial data, and purchase history to malicious
actors.

2. Reputation Damage:
- Loss of customer trust and confidence due to perceived negligence in safeguarding data.
- Negative publicity and public scrutiny can harm the company's brand reputation.

3. Financial Loss:
- Costs associated with investigating the breach, implementing security improvements, and
potential legal liabilities.
- Loss of revenue due to customer churn and decreased sales resulting from a damaged
reputation.
4. Regulatory Compliance Issues:
- Non-compliance with data protection regulations can lead to fines and legal consequences.
- Failure to protect customer data in accordance with industry standards can result in
regulatory penalties.

For China’s e-tailing market, the first and top company that has captured world-wide attention
is
the Al-ibaba Group. The company introduces itself on its homepage as follows: “Alibaba Group
was established in 1999 by 18 people led by Jack Ma, a former English teacher from Hangzhou,
China. From the outset, the company’s founders shared a belief that the Internet would level
the
playing field by enabling small enterprises to leverage innovation and technology to grow and
compete more effectively in the domestic and global economies. Since launching its first website
helping small Chinese exporters, manufacturers and entrepreneurs to sell internationally, the
Alibaba Group has grown into a global leader in online and mobile commerce. Today the
company and its related companies operate leading wholesale and retail online marketplaces as
well as Internet-based businesses offering advertising and marketing services, electronic
payment, cloud-based computing and network services and mobile solutions, among others.”
a) How has Electronic payment improved customer service for Alibaba
Company (10 Marks)
Electronic Payment's Impact on Customer Service for Alibaba Company
Electronic payment has significantly improved customer service for Alibaba Company in
the following ways:

Convenience and Speed:

Electronic payment methods offer quick and seamless transactions, enhancing the
overall shopping experience for customers on Alibaba's platforms.

Customers can make purchases efficiently without the need for physical cash,
leading to faster checkout processes.

Global Reach:
Electronic payment systems enable Alibaba to cater to a global customer base by
accepting various currencies and payment methods.

This accessibility enhances customer satisfaction and expands Alibaba's market

reach beyond geographical boundaries.

Security and Trust:

Secure electronic payment systems provide customers with a sense of trust and
confidence in conducting transactions on Alibaba's platforms.

Implementation of robust security measures protects sensitive financial

information, reducing the risk of fraud and enhancing customer trust.
 Transaction Tracking:
Electronic payment platforms allow both Alibaba and customers to track payment
statuses and order details in real-time.

This transparency improves communication between the company and customers,

leading to better service and resolving any payment-related issues promptly.

b) What are the reasons Alibaba would choose social media marketing (10 Marks)
Reasons for Alibaba's Social Media Marketing Strategy
Alibaba utilizes social media marketing for the following reasons:
Increases Brand Trust and Credibility:
Social media platforms provide a direct channel for Alibaba to engage with its audience, build
trust, and establish credibility.
By actively participating in social media conversations, Alibaba can humanize its brand and
connect with customers on a personal level.
Drives Website Traffic and Boosts Sales:
Social media marketing helps drive traffic to Alibaba's e-commerce platforms, increasing
visibility and attracting potential customers.
Engaging content and promotions on social media can lead to higher conversion rates and boost
sales for Alibaba.
Enhances Customer Engagement:
Social media allows Alibaba to interact with customers in real-time, respond to inquiries, and
provide personalized customer service.
By engaging with customers on social media, Alibaba can foster relationships, address concerns,
and create a loyal customer base.
Cost-Effective Marketing:
Social media marketing is a cost-effective way for Alibaba to