INTERNET RESEARCH FOR BUSINESS

DEPARTMENT OF OFFICE ADMINISTRATION

PHILIPPINE COLLEGE FOUNDATION

Chapter 1. Introduction to the Internet.

LEARNING OBJECTIVES
At the end of the chapter, the students will be able to:
1.Define internet and its uses.
2.Identify the advantages and limitations of the internet.
3.Appreciate the transformative impact of the internet on modern society.
4.Demonstrate responsibility in using the internet ethically and securely.
5. Utilize various forms of internet communication such as email, online messaging, and social media
platforms.
6. Navigate and use web browsers proficiently to access and search for information online.

INTERNET
The Internet is a global system of interconnected computer networks that use the standard Internet protocol
suite (TCP/ IP) to serve billions of users worldwide. It is a network of networks that consists of millions of
private, public, academic, business, and government networks, of local to global scope,that are linked by a
broad array of electronic, wireless and optical networking technologies. The Internet carries a vast range of
information resources and services, such as the interlinked hypertext documents of the World Wide Web
(WWW) and the infrastructure to support electronic mail.

Uses of Internet
Internet has been the most useful technology of the modern times which helps us not only in our daily lives,
but also our personal and professional lives developments. The internet helps us achieve this in several
different ways. For the students and educational purposes the internet is widely used to gather information
so as to do the research or add to the knowledge of various subjects. Even the business professionals and
the professionals like doctors, access the
internet to filter the necessary information for their use. The internet is therefore the largest encyclopedia
for everyone, in all age categories. The internet has served to be more useful in maintaining contacts with
friends and relatives who live abroad permanently.

Advantages of Internet

1. E-mail: Email is now an essential communication tools in business. With e-mail you can send and
receive instant electronic messages, which works like writing letters. Your messages are delivered instantly
to people anywhere in the world, unlike traditional mail that takes a lot of time. Email is free, fast and very
cheap when compared to telephone, fax and postal services.

2. 24 hours a day - 7 days a week: Internet is available, 24x7 days for usage.


3. Information: Information is probably the biggest advantage internet is offering. There is a huge amount
of information available on the internet for just about every subject, ranging from government law and
services, trade fairs and conferences, market information, new ideas and technical support. You can almost
find any type of data on almost any kind of subject that you are looking for by using search engines like
google, yahoo, msn, etc.

A. Online Chat: You can access many ‘chat rooms’ on the web that can be used to meet new
people, make new friends, as well as to stay in touch with old friends. You can chat in MSN and yahoo
websites.

B. Services: Many services are provided on the internet like net banking, job searching, purchasing
tickets, hotel reservations, guidance services on array of topics engulfing every aspect of life.

C. Communities: Communities of all types have sprung up on the internet. Its a great way to meet
up with people of similar interest and discuss common issues.

D. E-commerce: Along with getting information on the Internet, you can also shop online. There are
many online stores and sites that can be used to look for products as well as buy them using your credit
card. You do not need to leave your house and can do all your shopping from the convenience of your
home. It has got a real amazing and wide range of products from household needs, electronics to
entertainment.

 E. Entertainment: Internet provides facility to access wide range of Audio/Video songs, plays films.
Many of which can be downloaded. One such popular website is YouTube.

F. Software Downloads: You can freely download innumerable, softwares like utilities, games,
music, videos, movies, etc from the Internet.

Limitations of Internet

1. Theft of Personal information: Electronic messages sent over the Internet can be easily snooped and
tracked, revealing who is talking to whom and what they are talking about. If you use the Internet, your
personal information such as your name, address, credit card, bank details and other information can be
accessed by unauthorized persons. If you use a credit card or internet banking for online shopping, then
your details can also be ‘stolen’.

2. Negative effects on family communication: It is generally observed that due to more time spent on
Internet, there is a decrease in communication and feeling of togetherness among the family
members.Internet addiction: There is some controversy over whether it is possible to actually be addicted
to the Internet or not. Some researchers, claim that it is simply people trying to escape their problems in an
online world.

3. Children using the Internet has become a big concern. Most parents do not realize the dangers
involved when their children log onto the Internet. When children talk to others online, they do not realize
they could actually be talking to
a harmful person. Moreover, pornography is also a very serious issue concerning the Internet, especially
when it comes to young children. There are thousands of
pornographic sites on the Internet that can be easily found and can be a detriment to letting children use
the Internet.

4. Virus threat: Today, not only are humans getting viruses, but computers are also. Computers are mainly
getting these viruses from the Internet. Virus is is a program which disrupts the normal functioning of your
computer systems. Computers attached to internet are more prone to virus attacks and they can end up
into crashing your whole hard disk.

5. Spamming: It is often viewed as the act of sending unsolicited email. This multiple or vast emailing is
often compared to mass junk mailings. It needlessly obstruct the entire system. Most spam is commercial
advertising, often for dubious products, get-rich-quick schemes, or quasi-legal services. Spam costs the
sender very little to send — most of the costs are paid for by the recipient or
the carriers rather than by the sender

SERVICES OF INTERNET -E-mail, FTP, Telnet

Email, discussion groups, long-distance computing, and file transfers are some of the important services
provided by the Internet.

1. E-Mail (Electronic Mail)

E-mail or Electronic mail is a paperless method of sending messages, notes or letters from one person to
another or even many people at the same time via Internet. E-mail is very fast compared to the normal
post. E-mail messages usually take only few seconds to arrive at their destination.

Features of E-mail:
1. One-to-one or one-to-many communicationS.
2. Instant communications.
3. Physical presence of recipient is not required.
4. Most inexpensive mail services, 24-hours a day and
seven days a week

2. FTP (File Transfer Protocol)
File Transfer Protocol, is an Internet utility software used to uploaded and download files. It gives access to
directories or folders on remote computers and allows software, data and text files to be transferred
between different kinds of computers.

Objectives of FTP :
1. Provide flexibility and promote sharing of computer programs, files and data.
2. Transfer data reliably and more efficiently over network.
3. Encourage implicit or indirect use of remote computers using Internet.
4. Shield a user from variations in storage systems among hosts.

3. Telnet (Remote Computing)

Telnet or remote computing is telecommunication utility software, which uses available telecommunication
facility and allows you to become a user on a remote computer. Once you gain access to remote computer,
you can use it for the intended purpose. The TELNET works in a very step by step procedure.
The commands typed on the client computer are sent to the local Internet Service Provider (ISP), and then
from the ISP to the remote computer that you have gained access. Most of the ISP provides facility to
TELENET into your own account from another city and check your e-mail while you are travelling or
away on business.

Types of Internet service

The type of Internet service you choose will largely depend on which Internet service providers (ISPs)
serve your area, along with the types of service they offer. Here are some common types of Internet
service.

 Dial-up: This is generally the slowest type of Internet connection, and you should probably avoid it
unless it is the only service available in your area. Dial-up Internet uses your phone line, so unless
you have multiple phone lines you will not be able to use your landline and the Internet at the same
time.
 DSL: DSL service uses a broadband connection, which makes it much faster than dial-up. DSL
connects to the Internet via a phone line but does not require you to have a landline at home. And
unlike dial-up, you'll be able to use the Internet and your phone line at the same time.
 Cable: Cable service connects to the Internet via cable TV, although you do not necessarily need
to have cable TV in order to get it. It uses a broadband connection and can be faster than both dial-
up and DSL service; however, it is only available where cable TV is available.
 Satellite: A satellite connection uses broadband but does not require cable or phone lines; it
connects to the Internet through satellites orbiting the Earth. As a result, it can be used almost
anywhere in the world, but the connection may be affected by weather patterns. Satellite
connections are also usually slower than DSL or cable.
 3G and 4G: 3G and 4G service is most commonly used with mobile phones, and it
connects wirelessly through your ISP's network. However, these types of connections aren't
always as fast as DSL or cable. They will also limit the amount of data you can use each month,
which isn't the case with most broadband plans.

What is the Web?

The World Wide Web—usually called the Web for short—is a collection of different websites you can
access through the Internet. A website is made up of related text, images, and other resources. Websites
can resemble other forms of media—like newspaper articles or television programs—or they can be
interactive in a way that's unique to computers.

The purpose of a website can be almost anything: a news platform, an advertisement, an online library, a
forum for sharing images, or an educational site like us.

Web browser
A web browser is a software program software that searches for, retrieves, and presentations material
which includes Web pages, photos, videos, and different files. The browser sends a request to the
Webserver, which then transmits the statistics returned to the browser, which presentations the findings
at the laptop. Example – Mozilla Firefox, Microsoft Edge, Google Chrome, Safari etc.
Webpage
An internet web page (additionally called a web page) is a report that may be regarded in an internet
browser at the World Wide Web. HTML (HyperText Markup Language) and CSS (Cascading Style Sheet)
are used to generate the primary shape of an internet web page. An internet web page is generally a
segment of an internet site that carries statistics in plenty of formats, which includes textual content
inside the shape of paragraphs, lists, tables, and so on.
The home web page is the beginning or first web page of an internet site. It gives trendy statistics and
connections to all the internet pages which are associated. Every internet web page has its personal deal
with. This may be visible withinside the deal with the bar. As a result, if we need to get admission to a
selected internet web page, the deal needs to be placed inside the browser’s deal with bar.
Website
An internet site, in trendy, is a group of statistics approximately statistics prepared into many internet
pages. An internet site is probably made for a sure motive, subject matter, or to provide a service. An
internet site (abbreviated as “website” or “site”) is a group of online pages connected collectively through
links and saved on an internet server. By clicking on links, a tourist can pass from one web page to the
next. An internet site’s pages also are connected below one area call and proportion a not unusual place
subject matter and template.
Search Engine
Search engines are websites that search on the internet on behalf of users and show a listing of results.
More than actually written may be discovered on seek engines. You can be capable of looking for
different online content material which includes photographs, video content material, books, and news, in
addition to gadgets and offerings, relying on the seek engine you are the use of.
To make use of the Internet, you do not always want to recognize the deal with an internet site. It is
crucial to recognize the way to do a look for statistics. Using a seek engine is one of the only methods to
seek. A seek engine can help you in finding what you are looking for. You also can appearance up net
maps and instructions to help you to plot your adventure from one factor to some other. Example:
Google, Bing, DuckDuckGo, yahoo, etc.

Class Discussion Participation: Use a participation rubric to assess students' engagement and
contributions during the class discussion
 Needs
Criteria Excellent (4) Good (3) Fair (2)
Improvement (1)
Comments are
Comments are always Comments are Comments are
occasionally relevant
Relevance of relevant and contribute mostly relevant and rarely relevant and
and somewhat
Comments significantly to the contribute to the do not contribute to
contribute to the
discussion. discussion. the discussion.
discussion.
Demonstrates a deep
Demonstrates a good Demonstrates a basic Demonstrates little
understanding of the
Depth of understanding of the understanding of the understanding of the
topic, providing
Understanding topic, providing topic, with some topic, with superficial
insightful and thorough
thoughtful analysis. analysis. analysis.
analysis.
Consistently makes
Connections to strong connections to Often makes good Occasionally makes Rarely makes
Real-World real-world examples, connections to real- connections to real- connections to real-
Examples enhancing the world examples. world examples. world examples.
discussion.
Participates Participates
Participates frequently, Participates regularly,
occasionally, infrequently,
Frequency of contributing multiple contributing several
contributing a few contributing rarely
Participation times during the times during the
times during the during the
discussion. discussion.
discussion. discussion.

RESEARCH PROJECT
Activity: Assign a research project where students must use web browsers to find and compile current
trends in social media.
Task: Students will search for articles, reports, and data on social media trends, then present their findings,
highlighting how businesses can leverage these trends.

Needs Improvement
Criteria Excellent (4) Good (3) Fair (2)
(1)
Clear, engaging
introduction that Clear introduction that Introduction
captures the audience's outlines the outlines objectives Introduction is unclear or
Introduction
attention and outlines presentation's but lacks missing.
the presentation's objectives. engagement.
objectives.
Thorough, accurate, and Accurate and well- Content covers
Content is incomplete,
well-organized content organized content that some key points but
Content inaccurate, or poorly
that covers all key covers most key lacks depth or
organized.
points. points. organization.
In-depth analysis with Good analysis with Basic analysis with
Little to no analysis with
insightful connections relevant connections some connections
Analysis unclear connections or
and implications for and implications for and implications for
implications.
businesses. businesses. businesses.
Data is accurately Data is presented Data is presented
Data is inaccurately
Data presented with clear, accurately with visual but visual aids are
presented or visual aids
Presentation effective visual aids that aids that support unclear or not very
are missing/ineffective.
enhance understanding. understanding. effective.
Visual aids are Visual aids are
Visual aids are
professional, relevant, Visual aids are somewhat relevant
irrelevant,
Visual Aids and enhance the relevant and support but do not enhance
unprofessional, or
presentation the presentation. the presentation
missing.
significantly. much.
 Needs Improvement
Criteria Excellent (4) Good (3) Fair (2)
(1)
Presenter engages Presenter engages
Presenter engages the
the audience and the audience Presenter does not
audience effectively,
Engagement maintains interest for somewhat but engage the audience or
maintaining interest
most of the struggles to maintain interest.
throughout.
presentation. maintain interest.
Strong, clear conclusion
Clear conclusion that Conclusion is
that summarizes key Conclusion is unclear or
Conclusion summarizes key present but weak or
points and provides a missing.
points. lacks clarity.
compelling closing.
Confident, clear, and Clear and well-paced Delivery is unclear,
Delivery is clear but
well-paced delivery with delivery with good eye poorly paced, or lacks
Delivery lacks confidence or
excellent eye contact contact and body eye contact/body
good pacing.
and body language. language. language.

Chapter 2. Ethical Business Research

LEARNING OBJECTIVES:
At the end of the chapter, the students will be able to:
1. Analyze key ethical principles and guidelines relevant to conducting business research, such as
informed consent, confidentiality, and the avoidance of conflicts of interest.
2. Develop an appreciation for the importance of ethical conduct in business research, expressing a
commitment to upholding high ethical standards in their own research practices.
3. Practice implementing ethical procedures in simulated business research scenarios, such as obtaining
informed consent and ensuring data privacy, to reinforce the application of ethical guidelines in real-world
settings..

Introduction to Ethical Business Research

As our lives become more and more virtual, the amount of personal data we create dramatically increases.
While this personal data can be an incredible tool for businesses, it’s essential to remember that each data
point is actually a person or a person’s choice. When doing business research, you must do so in an ethical
manner.

What are Ethics?

Ethics are norms or standards of behavior that guide moral choices about our behavior and our relationship
with others. As in other aspects of business, all parties in research should exhibit ethical behavior. The goal
of ethics in research is to ensure that no one is harmed or suffered adverse consequences from research
activities.

Ethical Research
Today’s advances in technology allow for collection of data, information and analysis of that information to
depths and breadths like never before. As the technological world has changed, the business world has
too. Business research and the ethical considerations in the collection, research and use of the results are
now more important than ever. As the market calls for business to be conducted with more transparency
and social responsibility, customers expect business research to be conducted ethically. This also means
that if unethical research is used, technology makes it easier to discover and expose online which in turn
diminishes social trust and may even decrease customer sales and retention for that business.
The world is now more connected than ever and even though a business may be in the United States,
many customers or business partners may reside in countries all over the world. This increases the need to
conduct ethical business research with this wider world connection in mind. Ethical research is one of the
foundational components of business ethics to be aware of and to practice in order to create a competitive
and sustainable business in today’s world.

Ethical Research Principles

As a manager, part of your responsibility to a company and its employees is to ensure ethical research
principles are understood and used when conducting research. It’s important to know if those principles are
clearly defined and stated within the company. If not, there are many resources to assist in defining ethical
business research for you and your team.
Over time, various organizations have developed research principles as research guidelines for social,
scientific, educational, and business research. Ethical research is important for fostering a trusting,
relational connection between all parties connected with the research. So, what is the essence of these
business research principles?
Ethical research principles include:
 Respect for Persons and Their Autonomy. A person’s rights and decisions are respected.
 Beneficence and Nonmaleficence. Everyone involved is safe, considered and research ethically
conducted.
 Fidelity and Integrity. Research is well designed, planned, process, outcomes, clear to everyone.
 Justice. Making sure the research is fair and inclusive.

You still may be asking yourself why the need to conduct ethical business research? What is so important
about following ethical standards? To answer those questions read through these next points and think
through your own specific business scenario and how it benefits from conducting ethical business
research.
It’s important to follow ethical business research guidelines because they:
 Promote research to be truthful, inclusive, and minimize error or misrepresentation.
 Promote guiding standards of conduct for all people involved in the research.
 Promote accountability to businesses, customers, clients, and parties connected to the research.
 Promote public trust which can lead to public support of business.
 Promote compliance to laws, social responsibility, moral and ethical values, public health, etc..
In today’s world, billions of pieces of information are easily searched for online, but search engines do not
determine what information is correct, useful, accurate, valuable, etc. Online searches return organized
online data and information when search terms match the information, but search engines do not qualify
that information. It is up to the researcher to validate and reference the source of the information being
used.
How does a business researcher conduct ethical online research?
 Double checks information and sources used in business to account for its accuracy.
 Correctly attributes and sites data sources, reports, information, etc.
 Understands the copyright and fair use of images, content, audio, etc.
 Avoids plagiarism and taking credit for someone else’s ideas
With all of the information available on the internet, it is especially important for business to maintain their
ethical standards and not rely on incorrect information or misuse another business or person’s work without
the correct siting or payment for using images, ideas, audio, etc.

Non-Ethical Research Consequences

What if a business fostered an environment where its research was not conducted with guiding ethical
standards? Can you think of a few examples? Here are a few ways businesses use unethical activities with
research:
 misrepresent research results;
 break respondent confidentiality;
 violate non-disclosure agreements;
 avoid legal liability;
 plagiarism;
 manipulate research data or participants for favorable outcomes.

CITATION STYLE

1. APA (American Psychological Association) Style:

 In-Text Citation: (Author's Last Name, Year)

o Example: (Smith, 2020)
o For direct quotes, include the page number: (Smith, 2020, p. 15)
 Reference List:

o Books:

 Format: Author's Last Name, First Initial(s). (Year). Title of the book.
Publisher.
 Example: Smith, J. A. (2020). Understanding psychology. Academic Press.

o Journal Articles:
 Format: Author's Last Name, First Initial(s). (Year). Title of the article. Title of
the Journal, Volume(Issue), Page Range. DOI (if available)
 Example: Smith, J. A. (2020). The role of cognitive dissonance in learning.
Journal of Psychology, 45(2), 123-145. https://doi.org/10.1037/rev0000123

2. MLA (Modern Language Association) Style:

 In-Text Citation: (Author's Last Name Page Number)

o Example: (Smith 15)

  Works Cited:

o Books:

 Format: Author's Last Name, First Name. Title of the Book. Publisher, Year.
 Example: Smith, John A. Understanding Psychology. Academic Press, 2020.

o Journal Articles:
 Format: Author's Last Name, First Name. "Title of the Article." Title of the
Journal, vol. Volume, no. Issue, Year, pp. Page Range.
 Example: Smith, John A. "The Role of Cognitive Dissonance in Learning."
Journal of Psychology, vol. 45, no. 2, 2020, pp. 123-145.

3. Chicago Style:

In-Text Citation:

o There are two systems:

 Notes and Bibliography: Uses footnotes or endnotes for citations.

 Example (Footnote): ¹John A. Smith, Understanding Psychology (New

York: Academic Press, 2020), 15.

 Author-Date: (Author's Last Name Year, Page Number)

 Example: (Smith 2020, 15)

Bibliography:

o Books:
 Format: Author's Last Name, First Name. Title of the Book. Place of
Publication: Publisher, Year.
 Example: Smith, John A. Understanding Psychology. New York: Academic
Press, 2020.
o Journal Articles:

 Format: Author's Last Name, First Name. "Title of the Article." Title of the
Journal Volume, no. Issue (Year): Page Range.
 Example: Smith, John A. "The Role of Cognitive Dissonance in Learning."
Journal of Psychology 45, no. 2 (2020): 123-145.

4. Harvard Style:

 In-Text Citation: (Author's Last Name, Year, Page Number if applicable)

o Example: (Smith, 2020, p. 15)

 Reference List:

o Books:
 Format: Author's Last Name, First Initial(s). (Year) Title of the Book. Edition (if
applicable). Place of Publication: Publisher.
 Example: Smith, J.A. (2020) Understanding psychology. 2nd edn. New York:
Academic Press.
o Journal Articles:
  Format: Author's Last Name, First Initial(s). (Year) 'Title of the Article', Title of
the Journal, Volume(Issue), Page Range.
 Example: Smith, J.A. (2020) 'The role of cognitive dissonance in learning',
Journal of Psychology, 45(2), pp. 123-145

Rules for in-text citations in various citation styles, including how to handle different scenarios like
multiple authors, direct quotes, and paraphrasing.

1. APA (American Psychological Association) Style:

 Basic Format: (Author's Last Name, Year)

o Example: (Smith, 2020)
 Direct Quote: Include the page number after the year.

o Example: (Smith, 2020, p. 15)

 Multiple Authors:

o Two Authors: (Smith & Johnson, 2020)

o Three or More Authors: (Smith et al., 2020)

 No Author: Use the title of the work (shortened if necessary).

o Example: (Understanding Psychology, 2020)

 Multiple Works: Separate works by different authors with semicolons.

o Example: (Smith, 2020; Johnson, 2019)

2. MLA (Modern Language Association) Style:

 Basic Format: (Author's Last Name Page Number)

o Example: (Smith 15)

 Direct Quote: Page number only (no "p." before the page number).

o Example: (Smith 15)

 Multiple Authors:

o Two Authors: (Smith and Johnson 15)

o Three or More Authors: (Smith et al. 15)

 No Author: Use the title of the work (shortened if necessary).

o Example: (Understanding Psychology 15)

 Multiple Works: Separate with a semicolon.

o Example: (Smith 15; Johnson 45)

3. Chicago Style:

 Notes and Bibliography System:

 o Basic Format: Citation in a footnote or endnote.

 Example: ¹John A. Smith, Understanding Psychology (New York: Academic

Press, 2020), 15.

 Author-Date System:

o Basic Format: (Author's Last Name Year, Page Number)

 Example: (Smith 2020, 15)

 Multiple Authors:

o Two Authors: (Smith and Johnson 2020, 15)

o Three or More Authors: (Smith et al. 2020, 15)

 No Author: Use a shortened title and year.

o Example: (Understanding Psychology 2020, 15)

4. Harvard Style:

 Basic Format: (Author's Last Name, Year, Page Number if applicable)

o Example: (Smith, 2020, p. 15)

 Direct Quote: Include the page number.

o Example: (Smith, 2020, p. 15)

 Multiple Authors:

o Two Authors: (Smith and Johnson, 2020)

o Three or More Authors: (Smith et al., 2020)

 No Author: Use the title (shortened if necessary).

o Example: (Understanding Psychology, 2020)

 Multiple Works: Separate with semicolons.

o Example: (Smith, 2020; Johnson, 2019)

General Rules for In-Text Citations:

 Paraphrasing: Always cite the original source even when you paraphrase. You can omit
the page number if paraphrasing, but including it is often encouraged, especially in APA.
 No Date: Use "n.d." (no date) if the publication date is not available.
o Example: (Smith, n.d.)

ETHICAL PROCEDURES
Create a survey questionnaire with the letter of consent - preferred social media platforms for business
advertisement
 Needs
Criteria Excellent (4) Good (3) Satisfactory (2)
Improvement (1)
Questions are clear, Questions are mostly Questions are
Questions are
concise, and relevant; clear and relevant; somewhat clear;
unclear or irrelevant;
well-structured; good structure; minor structure is present
Survey Design poorly structured;
logically organized; improvements but may be confusing;
many important
covers all necessary needed; covers most some important
aspects missing.
aspects. necessary aspects. aspects covered.
Appropriate mix of
Limited mix of Poor mix of question
question types (e.g., Good mix of question
question types; types; does not elicit
multiple choice, Likert types; mostly elicits
Question Types somewhat elicits valuable data; major
scale, open-ended); valuable data; minor
valuable data; several adjustments
effectively elicits adjustments needed.
adjustments needed. needed.
valuable data.
All questions are
directly relevant to the Most questions are Some questions are
Few questions are
Relevance to topic of preferred relevant to the topic; a relevant to the topic;
relevant to the topic;
Topic social media platforms few may be slightly several may be off-
many are off-topic.
for business off-topic. topic.
advertisement.
Consent letter is Consent letter is
Consent letter is clear,
mostly clear; minor somewhat clear; Consent letter is
concise, and easy to
improvements several improvements unclear or
Consent Letter understand; all key
needed in clarity or needed in clarity or incomplete; many
Clarity elements included
completeness; most completeness; some key elements
(purpose, procedure,
key elements key elements missing.
risks, benefits).
included. included.
Professional and
Mostly professional Tone is somewhat Unprofessional tone;
respectful tone;
tone; adequately professional; partially fails to adequately
Consent Letter addresses participant
addresses participant addresses participant address participant
Tone rights and
rights and rights and rights and
confidentiality
confidentiality. confidentiality. confidentiality.
effectively.
Clear and
Instructions are
comprehensive Clear instructions with Instructions are
somewhat clear; may
Instructions instructions for minor omissions; unclear or missing;
be confusing or
completing the survey; mostly easy to follow. difficult to follow.
incomplete in parts.
easy to follow.
Survey and consent
Some presentation Poorly presented;
letter are well- Well-presented with
Overall issues; several errors; numerous errors;
presented; free from minor errors; visually
Presentation somewhat visually not visually
errors; visually appealing.
appealing. appealing.
appealing.
Thoroughly addresses
Addresses most
ethical considerations Partially addresses
ethical considerations Fails to adequately
Ethical (e.g., voluntary ethical considerations;
adequately; minor address ethical
Considerations participation, several improvements
improvements considerations.
confidentiality, right to needed.
needed.
withdraw).
Survey and consent
Completion and Mostly complete; Partially complete; Incomplete;
letter are complete
Submission submitted on time. submitted on time. submitted late.
and submitted on time.

Scoring Guide:

 Excellent (4): Demonstrates exceptional quality and thoroughness. Exceeds expectations.

 Good (3): Meets expectations with minor areas for improvement.
 Satisfactory (2): Meets basic requirements but needs significant improvement.
 Needs Improvement (1): Falls short of requirements and needs substantial improvement.
 Chapter 3. E-COMMERCE
At the end of the chapter, the students will be able to:

1.Explain the fundamental concepts and terminologies of e-commerce, including B2B, B2C, C2C, and
payment gateways.
2.Demonstrate an appreciation for the role of e-commerce in the global economy by participating in
discussions and reflecting on its societal impacts.
3. Set up and conduct a live sale event on Facebook Live, demonstrating skills in product presentation,
customer interaction, and real-time sales management.

INTRODUCTION
In the past few years, enterprises across the globe have experienced significant changes in their business
information system. Huge investments were made in enterprise resource planning system implementations
but still they struggle to get timely information that is needed to make effective business decision and to
ensure continuous growth of enterprises. Placing "e" in front of any process or function seemed to be the
magic prescription for never ending story of success and rapid returns for enterprises. Ebusiness, e-
procurement, e-sales, e-payment, e-banking, e-CRM, e-CAD, e-delivery are
just a few. Internet, for example is becoming one of the most popular medium in transmitting various data.
Users can find any kind of information within a shorter time compared with conventional method that
consumes more time.

The emergence of the Internet through out the world has been contributing such a variety medium in doing
business as well as people lifestyle. In fact, Internet is the essential prerequisite for the existence of E-
commerce. Electronic commerce or e-commerce has been defined as the ability to perform transactions
involving the exchange of goods or services between two or more parties using electronic tools and
technique. The explosion of E-commerce has created new phenomena in our lifestyle especially in
shopping activities. Consumers can easily buy products or services like magazines and airlines tickets via
Internet.

DEFINITION

The word commerce is the basic concept for electronic commerce, pertaining to buying and selling of
goods while ‘commercial’ denotes business practice and activities intended to make profits. Electronic
commerce, like any other business, deals with the exchange of money for soft or hard goods and services.

Kalakota and Whintons in 1997 defined the term E-commerce from different perspectives. These
perspectives are:

• Communication
• Business Process
• Service
• Online

Communication Perspective

According to this perspective, E-commerce is the delivery of information, product/services or payments

over tele-communication channels, computer networks or any other electronic mode of communication.

Business Process Perspective

This says that E-commerce is the application of technology towards the automation of business
transactions and work flow.

Service Perspective

E-commerce is defines as a tool that addresses the desire of firms, consumers and management to cut
service cost while improving the quality of goods/services and increasing the speed of service delivery.

Online Perspective

F-commerce provides the capability of buying and selling products and information on the internet and
other online services.

The term commerce is treated as transaction between business partners. Therefore, the term e-commerce
seems to fairly narrow to people. Thus some time we use the term ebusiness. It is a broader definition of e-
commerce. There is confusion among the consultants and the academicians over the use of this term.
Some think that e-commerce encompasses all world of electronically based organizational activities that
support a firm’s market exchanges – including a firm’s entire information system’s infrastructure.

On the other hand, some argue that e-business encompasses the entire world of internal and external
electronically based activities including e-commerce. “E-commerce has the potential to unleash enormous
savings and business efficiencies, but the practicalities remain elusive. How will e-commerce change the
global planning and purchasing of transport and logistics in the supply chain? Logistics has been described
as the key enabler for e-business – but how can individual logistics and transport companies ensure that
they benefit from, rather than perish in, the e-commerce revolution?”

Electronic Commerce (e-commerce) is electronic business. It’s using the power of computers, the Internet
and shared software to send and receive product specifications and drawings; bids, purchase orders and
invoices; and any other type of data that needs to be communicated to customers, suppliers, employees or
the public.

E-commerce is the new, profitable way to conduct business which goes beyond the simple movement of
information and expands electronic transactions from point-of-sale requirements, determination and
production scheduling, right through to invoicing, payment and receipt. E-commerce uses key standards
and technologies including Electronic Data Interchange (EDI), Technical Data Interchange (TDI), Hypertext
Markup Language (HTML), Extensible Mark-up Language (XML), and the Standard for Exchange of
Product model data (STEP). E-commerce is made possible through the expanded technologies of the
Internet, the World Wide Web, and Value-Added Networks.

SEVEN UNIQUE FEATURES OF E-COMMERCE TECHNOLOGY

Dimension of E-commerce Technology Dimension of E-commerce Technology
Ubiquity The marketplace is extended beyond
Internet/Web technology is available traditional boundaries and is removed from a
every where: at work, at home, and temporal and geographic location.
elsewhere via mobile devices, anytime. “Marketspace” is created; shopping can take
place anywhere. Customer convenience is
enhanced, and shopping costs are reduced.
Global Reach Commerce is enabled across cultural and
The technology reaches across national national boundaries seamlessly and without
boundaries, around the earth. modification. “Marketspace” includes potentially
billions of consumers and millions of businesses
worldwide.
Universal Standards There is one set of technical media standards
There is one set of technology standards, across the globe.
namely internet standards.
Richness Video, audio, and text marketing messages are
Video, audio, and text messages are integrated into a single marketing message and
possible consuming experience.
Interactivity Consumers are engaged in a dialog that
The technology works through dynamically adjusts the experience to the
interaction with the users. individual, and makes the consumer a
coparticipant in the process of delivering
goods to the market.
Information Density Information processing, storage, and
The technology reduces information costs communication costs drop dramatically,
and raises quality. while currency, accuracy, and timeliness
improve greatly. Information becomes
plentiful, cheap, and accurate.
Personalization / Customization Personalization of marketing messages and
The technology allows personalized customization of products and services are
messages to be delivered to individuals as based on individual characteristics.
well as groups.

NEED FOR E-COMMERCE

The global business environment is moving faster than ever before. Increased competition at home and
abroad means quality as well as profitability must be preserved by corporate houses. This pressure has led
to a reappraisal of the accepted existing business practice in the search for greater efficiently. Traditionally,
the response in the face of competitive threat has been to reduce costs by L rationalizing production,
shedding labour and restructuring business, coupled with investments in .technology to improve
productivity and generate profit.
Whether business to business (B2B) or business to customer (B2C) there are benefits to all parties,
customers or suppliers. A reduction in acquisition times and costs, lower prices for goods and services, an
expanded number and quality of suppliers, an increase in buyer productivity. Better management
information and better inventory control is possible. A Reduction time to market is also achievable giving
improved operating efficiencies and improved product quality at reduced cost. The payment process can
also be improved and finally and most importantly a greatly expanded customers base. B2B e-commerce
was born out of an attempt to solve an administrative problem. It developed a new computer standard to
handle these needs, which became known as EDI, Electronic Data Interchange. Today its descendant,
XML, a lighter, simpler data interchange standard is used by B2B sites. Simple e-commerce sites first
appeared in 1992. The early e-commerce sites were virtual catalogues, simply listing products for sale.
Ordering was off-line, through e-mail, phone or fax. By 1996 the technology had advanced greatly to
produce virtual stores with shopping carts, client accounts and, with the development of protocols such as
Secure Socket Layer (SSL), enabled customers to order and pay for their purchase on-line directly by credit
card. E-commerce quickly became popular with consumers and suppliers. For customers, it was fast, easy
and efficient, allowing them to compare products, price and service before purchase. For suppliers, it
allowed them to reach an unlimited international audience, 24 hours a day, 7 days a week at reduced costs.
Today e-commerce is widely used and growing fast. B2B is the largest, fastest growing and most profitable
market. According to IDC, this year, it is expected to account for two thirds of world wide e-commerce. B2C
is also expected to grow, boosted by Broadband (high-speed) Internet access to more online households.
Future advances include digital money and e-wallets, and 'personal agents' that help users find what they
are looking for. Sites can work with fulfilment centres providing customers with excellent service and
suppliers with information, and can support the newest trend for human interaction in E-commerce
customer service. The Internet is creating unprecedented and seeming infinite opportunities for both
customers and businesses. Yet it one of its major problems is that it is changing so fast that both parties
are overwhelmed by the speed of change and the sheer number of choices available to them. In addition
web businesses win by following rules quite different than those which traditional businesses may follow.

E-commerce appears to be exempt from the kinds of constraints that have limited companies historically.
An e-commerce environment handled in a proper manner, with the right customisation of products and
services, in innovative ways, can lead to win-win situations. The customers can get the right product at the
right time and for the right price, companies can set new standards in efficiency and profitability.

INTERDISCIPLINARY NATURE OF E-COMMERCE

Electronic commerce, being a new field, is just developing its theoretical or scientific
foundations. Ii is based on several disciplines. The major disciplines of E-Commerce with
some samples of issues with which they are concerned follow:

Marketing
Many issues of marketing offline are relevant to online E-Commerce - for example, cost benefits of
advel1isements and advertisement strategies. Other issues are unique to ECommerce, ranging from online
marketing strategy to interactive kiosks.

Computer sciences
Many of the issues in the infrastructure of E-commerce, such as languages, multimedia, and networks, fall
into the discipline of computer sciences. Intelligent agents play a major role in E-Commerce as well.

Consumer behavior and Psychology

Consumer behavior is the key to the success of B2C trade, but so is the behavior of the sellers. The
relationship between cultures and consumer attitude in electronic market is an example of a research issue
in the field.

Finance
The financial markets and banks are one of the major participants in E-Commerce. Also, financing
arrangements are part of many online transactions. Issues such as using the Internet as a substitute for a
stock exchange and fraud in online stock transactions are a sample of the many topics of the filed.

Economics
Electronic commerce is influenced by economic forces and has a major impact on world and country
economies. Also, theories of micro and macro-economics need to be considered in E-Commerce planning,
as well as the economic impacts of E-Commerce on firms.
Management Information Systems (MIS)
The information systems department is usually responsible for the deployment of ECommerce. This
discipline covers issues ranging from systems analysis to system integration, not to mention planning,
implementation, security, and payment systems, among others.

Accounting and Auditing

The back-office operations of electronic transactions are similar to other transactions in some respects, but
different in others. For example, auditing electronic transactions presents a challenge for the accounting
profession; so does the development of methodologies for .cost-benefit justification.

Management
Electronic commerce efforts need to be managed properly, and because of the interdisciplinary nature of E-
Commerce, its management may require new approaches and theories.

Business Law and Ethics

Legal and ethical issues are extremely important in E-Commerce, especially in a global market. A large
number of legislative bills are pending, and many ethical issues are interrelated with legal ones, such as
privacy and intellectual property.

Others
Several other disciplines are involved in various aspects of E-Commerce to a lesser extent- for example,
linguistics (translation in international trades), robotics and sensory systems, operations research /
management science, statistics, and public policy and administration. Also, E-Commerce is of Interest to
engineering, health care, communication, and entertainment publishing.

LEVELS OF E-COMMERCE
Electronic commerce is the process of conducting commercial transactions electronically over the Internet.
This process is carried out primarily in five levels, and the main aspect of e-commerce is a merchant selling
products or service to the consumers.

There are five major segments under the broader category of e-business. However, the
following are some popular e-commerce models used by companies engaged in ecommerce:-
 Business to business e-commerce (B2B)
 Business to consumers e-commerce (B2C)
 Consumers to consumers e-commerce (C2C}
 Business to employees e-commerce (B2E) and
 Consumer to business e-commerce (C2B)
 Business to Business E-commerce (B2B)

E-business is the process of conducting business on the Internet. Its scope includes not only buying and
selling but also services, fulfilling the needs of customers and collaborating with business partners.

Business to business e-commerce is smart business. The opportunity for business to business e-
commerce is even greater. A wholesaler may sell products to the retailer. There are advanced e-commerce
software which support multi-tier pricing. This helps to set up online stores to offer preferred pricing to some
vendors and shared price to others. This includes internet-enabled initiatives of an enterprise to form
commercial linkages with another enterprise, dealer, warehouse or manufacturer. In this form of e-
commerce, e paperwork and time-to-market get vastly reduced. Throughout the world, this ecommerce
mode is the biggest.

In a B2B transaction, the interaction is between businesses. For example, a website that is catching for the
steel industry might have facility for buyers and sellers to list their requirements and post their products. It
helps them in quickly closing the transactions and the buyer can get quality, material and can choose from
different suppliers.

B2B commerce is a growing business in the e-commerce arena- with the increasing use of the internet,
more and more business are realizing the commercial advantage of giving business clients a streamlined
and easy manner to order products or service online. It facilitates access to the ordering process to only
those with whom a concern has a commercial relationship.
Business to Business e-commerce provides small and medium enterprises (SMES) with an excellent
opportunity to access new markets, improve customer service and reduce costs. And while hurdles exist,
they should be viewed more as speed breakers rather than road barriers. As a medium of information
storage and dissemination, the internet has and is emerging a clear winner. Its rate of penetration has far
outpaced the growth of other popular media such as newspaper, radio and television.

B2B transactions are however relatively high value in nature and organisations are slow to change their
traditional systems for the supply chain management. The reasons for the growth in B2B e-commerce are
many. In an increasing competitive scenario, e-commerce offers highly attractive cost saving options. The
shift to this process is often driven by the needs of buyers.

Innovative methods of enhancing B2B and B2C levels of e-commerce include:

 CD-ROM catalogues that are linked to the user's online catalogue, enabling him to browse offline and
order online.
 Kiosks placed at physical store locations or in shopping malls to introduce users to the easy online
ordering options.
 Extranets to link businesses together that conduct regular business to .business transactions and
 Affiliate programmes to drive business to your commerce site from other content related sites.

B2B e-commerce is expected to be the largest mode of transacting e-business and is a global
phenomenon. It involves taking internet enabled initiatives to form commercial links with other enterprises,
dealers or manufacturers. In this form of e-commerce, a business firm places orders for supplies with
another business firms directly over the Internet. Paperwork and time required for processing the order and
delivery of the goods are thus reduced to a great extent.

Business to Consumers E-commerce (B2C)

It is for the customers to buy stores from the web. The problem to be recognized in this is to secure
payment, using encryption, transaction integrity, quick response, time and reliability. B2C e-commerce
involves selling of goods and services to consumers or end users. It allows them to browse the product
catalogue, select products or services and complete the order online. In a B2C transaction, the interaction
is between a consumer and the preferred business.

In this category of e-commerce, businesses use the internet to offer to consumers sales and services
around the world 24 hours a day, seven days a week and 365 days a year, The sites Amazon, Rediff and
Uphar are among those belonging to this category. These websites are meant for selling goods directly to
consumers through the internet. The twoway accessibility of the internet enables operating companies to
directly ascertain customer preference and buying trends. Businesses are using these consumer insights to
formulate marketing strategies and offer to the customers what they want and when they want. E-business
in this mode significantly reduces the costs associated with intermediaries, service centres and mass
marketing campaigns. Since e-commerce makes just in time delivery possible, the supplier does not have
to store the goods. He can procure them from the suppliers as and when he gets the order from the buyer
through the internet.

B2C is the most popular form of e-commerce, wherein the individuals are directly involved in B2C e-
commerce, and businesses use the internet for offering their products or services 24 hours a day through
global access. The sites Amazon.com and Rediff are among these. These websites spell goods directly to
consumers over the Internet. The two way accessibility feature of the internet enables operating companies
to ascertain consumer preferences and buying trends directly.

Consumer to Consumer E-commerce (C2C)

Here interaction is between consumer to consumer. For example, in sites like e-Buy Bid or Buy.com,
Baazi.com which are auction sites, one can virtually sell and buy any goods (either used or new ones).

This form of e-commerce is nothing but the cyber version of the good old auction houses. If anyone wants
to sell anything, all one has to do is post a message on the site, giving details of the product and the
expected price and wait for an interested customer to turn up and buy it. The buyer gets in touch with the
seller through the Internet and the deal is crossed once the amount is finalised. Online message boards
and barters are also examples of C2C e-commerce.
Consumer-to-Business E-commerce (C2B)
E-commerce, by empowering the customer, has been strategically redefining business. An example of C2B
model of e-commerce is the site Price line.Com, which allows prospective airline travellers, tourists in need
of hotel reservations etc. to visit its websites and indicate their preferred price for travel between any two
cities. If an airline is willing to issue a ticket on the customers offered price, the consumer can then travel to
the mentioned destination at his terms.

Business to Employees E-commerce (B2E)

This is concerned more with marketing a corporation's internal processes more efficiently. Customer care
and support activities also hold ground. The requirement is that are all self-service with applications on the
web that the employees can use themselves.

THE BENEFITS OF E-COMMERCE

Few innovations in human history encompass as many potential benefits as E-Commerce does. The global
nature of the technology, low cost, opportunity to reach hundreds of millions of people, interactive nature,
variety of possibilities, and resourcefulness and growth of the supporting infrastructure (especially the web)
result in many potential benefits to organisations, individuals, and society. These benefits are just starting
to materialize, but they will increase significantly as E-Commerce expands. It is not surprising that some
maintain that the E-Commerce revolution is just 'as pro- found as the change that came with the industrial
revolution.

Benefits to Organizations
The benefits to organizations are as follows:
• Electronic commerce expands the market lace to national and international market with minimal capital
outlay, a company can easily and quickly locate more customers, the best suppliers, and the most suitable
business partners worldwide.

• Electronic commerce decreases the cost of creating, processing, distributing, storing, and retrieving
paper-based information. For example, by introducing an electronic procurement system, companies can
cut the purchasing administrative costs by as much as 85 percent.

• Ability for creating highly specialized businesses. For example, dog toys which can be purchased only in
pet shops or department and discounts stores in the physical world are sold now in a specialized
www.dogtoys.com (also see www.cattoys.com).

• Electronic commerce allows reduced inventories and overhead by facilitating “pull” type supply chain
management. In a pull-type system the process starts from customer orders and uses just-in-time
manufacturing.

• The pull-type processing enables expensive customization of products and services which provides
competitive advantage to its implementers.

• Electronic commerce reduces the time between the outlay of capital and the receipt of products and
services.

• Electronic commerce initiates business processes reengineering projects By changing processes,

productivity of salespeople, knowledge workers, and administrators can increase by 100 percent or more.

• Electronic commerce lowers telecommunication cost the internet is much cheaper than value added
networks.

• Other benefits include improved image, improved customer service, new found business partners,
simplified processes, compressed cycle and delivery time, increased productivity, eliminating paper,
expediting access to information, reduced transportation costs, and increased flexibility.

Benefits to Consumers
The benefits of E-Commerce to consumers are as follows:
• Electronic commerce enables customers to shop or do other transactions 24 hours a day, all year round,
from almost any location.

• Electronic commerce provides customer with more choices; they can select from many vendors and from
many more products.

• Electronic commerce frequently provides customers with less expensive products and services by
allowing them to shop in many places and conduct quick comparisons.

• In some cases, especially with digitized products, E-Commerce allows quick delivery.

• Customers can receive relevant and detailed information in seconds, rather than days or weeks.

• Electronic commerce makes it possible to participate ate in virtual auctions.

• Electronic commerce allow customers to interact with other customers in electronic communities and
exchange ideas as well as compare experiences.

• E-commerce facilitates competition, which results in substantial discounts.

.
Benefits to Society
The benefits of E-Commerce to society are as follows:
• Electronic commerce enables more individuals to work at home and to do less traveling for shopping,
resulting in less traffic on the roads and lower air pollution.

• Electronic commerce allows some merchandise to be sold at lowest prices, so less affluent people can
buy more and increase their standard of living.

• Electronic commerce enables people in third world countries and rural areas to enjoy products and
services that otherwise are not available to them.

• Electronic commerce facilitates delivery of public services, such as health care, education, and distribution
of government social services at a reduced cost and/or improved quality. Health care services, e.g., can
reach patients in rural areas.

THE LIMITATIONS OF E-COMMERCE

The limitations of E-Commerce can be grouped into two categories which are:
• Technical limitations and
• Non-technical limitations

Technical Limitations of E-COMMERCE

The technical limitations of E-Commerce are as follows:
• There is a lack of s stem security, reliability, standards and communication protocols.
• There is insufficient telecommunication bandwidth.
• The software e development tools are still evolving and changing rapidly.
• It is difficult to integrate the Internet and E-Commerce software with some existing applications and
databases.
• Vendors may need special Web servers and other infrastructures in addition to the network servers.
• Some E-Commerce software might not fit with some hardware or may be incompatible with some
operating systems or other components.
• As time passes, these limitations will lessen or be overcome; appropriate planning can minimize their
impact.

Non-technical Limitations
Of the many non-technical limitations that slow the spread of E-Commerce, the following
are the major ones:

 Lack of Awareness
 Lack of Infrastructure
 Lack of Confidence
 Skeptic Attitude
 Credit Cards Frauds
 Absence of Tax Laws
 Cyber Laws
 Stock Dilemma
 Lack of True Strength
 Lack of Skills and Expertise
 Absence of Cyber Brand Image
 Inadequate Government Role
 Cyber Competition
 Internet for Small Business

A generic e–commerce framework can be explained in two basic parts;

1. The E–Commerce core consisting of basic infrastructure which will enable the ecommerce activities, and
2. A five–corner web of basic issues that will ultimately shape all e–commerce
efforts.

THE E–COMMERCE CORE

Following a bottom-up approach, e-commerce core can be described as a three–layer
hierarchical architecture where each subsequent layer is based upon the lower layers. The
three layers, starting from the lowest layer are:

Content Development Deployment and Distribution Infrastructure

This layer will include all hardware and network infrastructure that will act as physical
infrastructure to enable e–commerce transactions. This will include:

Content Development Infrastructure

• Multimedia Publishing Infrastructure (to create multimedia contents for business applications)
• Multimedia Storage Infrastructure (to provide for efficient and organized storage facilities for efficient and
quick retrieval and deployment of multimedia contents)
• Multimedia Deployment Infrastructure (to search and retrieve multimedia contents from their storage
locations)

Distribution Infrastructure
• Network Access Device Infrastructure (independent and internally controlled by merchants and
consumers)
• Infrastructure installed by Network Service Providers (includes Local-on-ramp service providers, National
Data and Information Carriers, Third-party Value Added Networks and other Network Service Providers)
• Global Information Delivery Networks (includes sub-marine cables, Intercontinental optic fiber networks,
satellite networks and other such networks forming backbone of global communication networks)

Services Enabling Infrastructure

This layer will include all vendors and other parties engaged in the business activities which facilitate e-
commerce transactions in any fashion. The list of such business activities may include following:
1. Securing Business Transactions by providing hardware and software solutions to counter both physical
and logical security threats (this includes development of encryption technology and standards,
development of standards and technology for restricting physical access to the e-commerce equipments).
2. Development of secure Electronic Payments Fund Transfer systems
3. Third-party verification and authentication services
4. Developing standards and formats for content creation, distribution and deployment (this includes
development of multimedia formats, conversion software, software development kits, development of
standards and protocols for data transmission, and other such infrastructure)
5. Development and deployment of technologies enabling convergence of different media (this includes
convergence of content, transmission technologies and information access devices.
6. Offline Support Services provided by traditional ‘brick-and-mortar’ support service providers (this
includes services like distribution and logistics etc

ELECTRONIC COMMERCE BUILDING BLOCKS: OBJECTS AND OBJECT CLASSES

The activities and functions of electronic commerce need certain basic building blocks, namely,
 unstructured information (reports and freeform text, voice, and video);
 structured information (EDI messages, electronic forms, contracts and contact rules, design
specifications);
 accounts, account databases, and accounting rules;
 transactions;
 records;
 agents and brokers (information filters, translators, trusted third parties);
 objects for sale (movies/videos, software objects, contracts, information, documents); and
 decision support models and simulations.

These building blocks are likely to become the standard digital objects of commerce; over time, they will
probably become increasingly comprehensive and refined.

BUSINESS APPLICATIONS
This layer corresponds to the real business transactions that take place using the digital
messaging technologies. A few of the common business applications that can be offered
online can be listed as below:
• Online Education and Learning (Education-on-Demand, Distance e-Learning, Virtual Classrooms, CBT,
etc.)
• Online Marketing Communication and Promotion
• Online Shopping
• E-procurement and e-purchasing
• Online Gaming
• Online news and bulletin boards.
• Online Customer Feedback and Satisfaction Surveys
• Online Research
• Online Retailing and Sales
• Online After Sales and Complaint Redressal
• E-Auctions
• Online Stock Trading and Brokering
• Online Entertainment
• Digital Video and Animation
• Online Banking Services (including ATM networks)
• E-Publishing
• Supply Chain Management
• Online Catalogues and Directories
• Remote Inventory Management
• Online knowledge and information processing

ISSUES INVOLVED IN E–COMMERCE

Financial Issues
• Customs and Taxation
• Electronic Payments and Fund Transfers
• Legal and Regulatory Issues
• Uniform Commercial Code
• Intellectual Property Protection
• Privacy
• Security, Confidentiality and Integrity
• Protection of Consumer Rights and Interests
• Content Liability
• Dispute Resolution and Jurisdiction
• Market Related Issues
• Market Development Stage
• Competition
• Customer Orientation
• Trust and Reliability
• Network Protocols and Technical Standards
• Transmission Protocols and Standards
• Multimedia Formats
• Hardware Standards
• Interoperability
• Backward and Forward Integration of Hardware and Software
• Documentation Specifications
• Compatibility
• Acceptability of Standards
• Socio-cultural Issues
• Perceived Economic Appeal
• Attitude towards e–commerce
• Usability (will define the default navigation patterns)
• Lifestyle
• Demographics of Target Market
• Purchase potential
• Social and Religious Dynamics
PERFORMANCE TASK : LIVE SELLING ACTIVITY
Students plan a live sale event on Facebook Live, including selecting products, scripting presentations, and
preparing marketing materials.

RUBRICS FOR LIVE SELLING ACTIVITY

Criteria Excellent (4) Good (3) Satisfactory (2) Needs Improvement (1)
Highly engaging and Clear and professional Adequate presentation; Poor presentation; fails
professional; effectively presentation; highlights highlights some features to effectively highlight
Product
highlights features and features and benefits and benefits; lacks features and benefits;
Presentation
benefits; excellent well, with minor engagement or clarity in unprofessional or
demonstration. improvements needed. parts. unclear.
Highly interactive; Good interaction; Some interaction;
Limited interaction; slow
responds promptly and responds to most responses to questions
Customer or unhelpful responses
thoughtfully to customer questions promptly; are delayed or less
Interaction to questions; negative
questions; creates a creates a mostly positive thoughtful; customer
customer experience.
positive experience. experience. experience is basic.
Smooth and professional; Generally smooth; minor Some technical issues; Significant technical
Technical no technical issues; technical issues; good basic use of tools and issues; poor use of tools
Execution excellent use of tools and use of tools and equipment; requires and equipment; impacts
equipment. equipment. adjustments. the event negatively.
Good management of
Excellent management of Basic management of Poor management of
sales process; handles
Sales sales process; effective sales process; handles sales process; frequent
transactions and
Management handling of transactions transactions and inquiries issues with transactions
inquiries well with minor
and customer inquiries. with several issues. and inquiries.
issues.
Highly confident and
Confident and articulate; Somewhat confident;
articulate; maintains Lacks confidence and
Presentation maintains clarity with clarity or presence may
strong presence and clarity; poor presence
Skills minor improvements vary throughout the
clarity throughout the throughout the event.
needed. event.
event.
Creates high Limited audience Fails to engage the
Engages with the
engagement with the engagement; minimal audience; no
Audience audience; encourages
audience; actively encouragement for encouragement for
Engagement some participation and
encourages participation participation and participation or
feedback.
and feedback. feedback. feedback.
Highly effective Good marketing and Ineffective marketing
Basic marketing and
Marketing and marketing and promotion; promotion; attracts and and promotion; fails to
promotion; attracts a
Promotion attracts and retains a retains a moderate attract or retain an
limited audience.
large audience. audience. audience.
Exceptional overall Positive overall impact; Moderate overall impact; Poor overall impact;
impact; highly successful successful event with event is somewhat unsuccessful event with
Overall Impact
event with positive good feedback and successful with mixed negative feedback and
feedback and high sales. moderate sales. feedback and sales. low sales.

Scoring Guide:
 Excellent (4): Demonstrates exceptional quality and effectiveness. Exceeds expectations.
  Good (3): Meets expectations with minor areas for improvement.
 Satisfactory (2): Meets basic requirements but needs significant improvement.
 Needs Improvement (1): Falls short of requirements and needs substantial improvement.

Chapter 4. Digital Marketing

At the end of the chapter, the students will be able to:

1.Describe the fundamental concepts and components of digital marketing, including its role and
significance in modern business practices.
2.Identify and differentiate various digital marketing channels such as social media, email marketing, SEO,
and content marketing, and explain their unique functions and benefits.
3.Recognize and value the transformative impact of digital marketing on business operations and customer
engagement.
4.Develop a commitment to ethical practices in digital marketing by understanding the importance of
transparency and customer privacy.
5.Create a simple digital marketing campaign using one or more channels, such as setting up a social
media post or an email marketing campaign.
6.Demonstrate the ability to use fundamental digital marketing tools and platforms.

Any marketing that uses electronic devices and can be used by marketing specialists to convey
promotional messaging and measure its impact through your customer journey. In practice, digital
marketing typically refers to marketing campaigns that appear on a computer, phone, tablet, or other
device. It can take many forms, including online video, display ads, search engine marketing, paid social
ads and social media posts. Digital marketing is often compared to “traditional marketing” such as
magazine ads, billboards, and direct mail. Oddly, television is usually lumped in with traditional marketing.

What is digital marketing?

Digital marketing, also called online marketing, is the promotion of brands to connect with potential
customers using the internet and other forms of digital communication. This includes not only email, social
media, and web-based advertising, but also text and multimedia messages as a marketing channel.

Essentially, if a marketing campaign involves digital communication, it's digital marketing.

Types of digital marketing

There are as many specializations within digital marketing as there are ways of interacting using digital
media. Here are a few key examples of types of digital marketing tactics.

Search engine optimization

Search engine optimization, or SEO, is technically a marketing tool rather than a form of marketing in
itself. The Balance defines it as “the art and science of making web pages attractive to search engines.”

The "art and science" part of SEO is what’s most important. SEO is a science because it requires you to
research and weigh different contributing factors to achieve the highest possible ranking on a serch engine
results page (SERP).

Today, the most important elements to consider when optimizing a web page for search engines include:
  Quality of content
 Level of user engagement
 Mobile-friendliness
 Number and quality of inbound links

Content marketing

Content marketing is a marketing strategy used to attract, engage, and retain an audience by creating and
sharing relevant articles, videos, podcasts, and other media. This approach establishes expertise,
promotes brand awareness, and keeps your business top of mind when it’s time to buy what you sell.

As in any marketing strategy, the goal of content marketing is to attract leads that ultimately convert into
customers. But it does so differently than traditional advertising. Instead of enticing prospects with potential
value from a product or service, it offers value for free in the form of written material, such as:

 Blog posts
 E-books
 Newsletters
 Video or audio transcripts
 Whitepapers
 Infographics

Social media marketing

Social media marketing means driving traffic and brand awareness by engaging people in discussion
online. You can use social media marketing to highlight your brand, products, services, culture, and more.

To create an effective social media marketing strategy, it’s crucial to follow best practices. Here are
a few of the most important social media marketing best practices:

 Craft high-quality and engaging content

 Reply to comments and questions in a professional manner
 Create a social media posting schedule
 Post at the right time
 Hire social media managers to support your marketing efforts
 Know your audience and which social media channels they’re most active on

Pay-per-click marketing
Pay-per-click, or PPC, is a form of digital marketing in which you pay a fee every time someone clicks on
your digital ads. So, instead of paying a set amount to constantly run targeted ads on online channels, you
only pay for the ads individuals interact with. How and when people see your ad is a bit more complicated.

One of the most common types of PPC is search engine advertising, and because Google is the most
popular search engine, many businesses use Google Ads for this purpose. When a spot is available on
a search engine results page, also known as a SERP, the engine fills the spot with what is essentially an
instant auction. An algorithm prioritizes each available ad based on a number of factors, including:

 Ad quality
 Keyword relevance
 Landing page quality
 Bid amount

Affiliate marketing

Affiliate marketing is a digital marketing tactic that lets someone make money by promoting another
person's business. You could be either the promoter or the business who works with the promoter, but the
process is the same in either case.
It works using a revenue sharing model. If you're the affiliate, you get a commission every time someone
purchases the item that you promote. If you're the merchant, you pay the affiliate for every sale they help
you make.

Some affiliate marketers choose to review the products of just 1 company, perhaps on a blog or other third-
party site. Others have relationships with multiple merchants.

Native advertising

Native advertising is digital marketing in disguise. Its goal is to blend in with its surrounding content so that
it’s less blatantly obvious as advertising.

Native advertising was created in reaction to the cynicism of today's consumers toward ads. Knowing that
the creator of an ad pays to run it, many consumers will conclude that the ad is biased and consequently
ignore it.

A native ad gets around this bias by offering information or entertainment before it gets to anything
promotional, downplaying the "ad" aspect.

It’s important to always label your native ads clearly. Use words like “promoted” or “sponsored.” If those
indicators are concealed, readers might end up spending significant time engaging with the content before
they realize that it's advertising.

When your consumers know exactly what they're getting, they'll feel better about your content and your
brand. Native ads are meant to be less obtrusive than traditional ads, but they’re not meant to be deceptive.

Influencer marketing

Like affiliate marketing, influencer marketing relies on working with an influencer–an individual with a large
following, such as a celebrity, industry expert, or content creator–in exchange for exposure. In many cases,
these influencers will endorse your products or services to their followers on several social media channels.

Influencer marketing works well for B2B and B2C companies who want to reach new audiences. However,
it’s important to partner with reputable influencers since they’re essentially representing your brand. The
wrong influencer can tarnish the trust consumers have with your business.

Marketing automation

Marketing automation uses software to power digital marketing campaigns, improving the efficiency and
relevance of advertising. As a result, you can focus on creating the strategy behind your digital marketing
efforts instead of cumbersome and time-consuming processes.

Email marketing

The concept of email marketing is simple—you send a promotional message and hope that your prospect
clicks on it. However, the execution is much more complex. First of all, you have to make sure that your
emails are wanted. This means having an opt-in list that does the following:

 Individualizes the content, both in the body and in the subject line
 States clearly what kind of emails the subscriber will get
 An email signature that offers a clear unsubscribe option
 Integrates both transactional and promotional emails

Mobile marketing

Mobile marketing is a digital marketing strategy that allows you to engage with your target audience on their
mobile devices, such as smartphones and tablets. This can be via SMS and MMS messages, social media
notifications, mobile app alerts, and more.
 The benefits of digital marketing

Digital marketing has become prominent largely because it reaches such a wide audience of people.
However, it also offers a number of other advantages that can boost your marketing efforts. These are a
few of the benefits of digital marketing.

 A broad geographic reach

 Cost efficiency
 Quantifiable results
 Easier personalization

Rubric for Digital Marketing Campaign Creation

The students will design a project and implement a simple digital marketing campaign using one or
more channels. They should plan, create content, and execute the campaign.
Needs
Satisfactory (2 Not Present
Criteria Excellent (4 points) Good (3 points) Improvement (1
points) (0 points)
point)
Clear, specific, and Objectives are
Objectives are clear Objectives are
Campaign measurable objectives unclear or not well- No objectives
and mostly aligned somewhat clear but
Objectives aligned with overall aligned with provided.
with strategy. lack specificity.
strategy. strategy.
Target audience is
Well-defined target Target audience is
defined but lacks Target audience is No target
Target audience with detailed defined with some
detailed vague or poorly audience
Audience segmentation and segmentation and
segmentation or defined. defined.
rationale. rationale.
rationale.
High-quality content Good quality content Content is adequate
Content is of poor
Content that is engaging, that is mostly but may lack No content
quality or not
Quality relevant, and tailored engaging and engagement or created.
relevant.
to the audience. relevant. relevance.
Strategic selection of Channels are
Channels are Channels are
Channel channels with clear selected with No channels
chosen but poorly chosen or
Selection justification for their reasonable selected.
justification is weak. not justified.
use. justification.
Professional and Execution and
Good execution and Poor execution and
Execution polished execution design are No execution
design with minor design with many
and Design with attention to acceptable but have or design.
issues. issues.
design and format. notable issues.
Campaign elements Integration and
Integration Campaign elements Poor integration No
are well-integrated cohesion are
and are mostly integrated and cohesion integration or
and cohesive across present but
Cohesion and cohesive. across channels. cohesion.
all selected channels. inconsistent.
Clear plan for tracking Plan for tracking and Basic plan for
Inadequate or
and measuring measuring tracking
Metrics and unclear plan for No plan for
campaign performance is performance but
Tracking tracking tracking.
performance with present but may lack lacks specific
performance.
appropriate metrics. detail. metrics or detail.
Creativity Highly creative and Creative and Some creativity or Limited creativity or No creativity
and innovative approach innovative approach innovation is evident innovation in the or innovation.
Innovation to the campaign with some effective but not fully realized. approach.
 Needs
Satisfactory (2 Not Present
Criteria Excellent (4 points) Good (3 points) Improvement (1
points) (0 points)
point)
elements and
elements.
strategy.

Total Points: __ / 28

Grading Scale:

 24-28 points: Excellent – The campaign is well-developed with clear objectives, high-
quality content, and effective use of channels.
 18-23 points: Good – The campaign is generally effective with some areas for
improvement in content, design, or execution.
 12-17 points: Satisfactory – The campaign meets basic requirements but has several
areas needing improvement.
 6-11 points: Needs Improvement – The campaign shows significant weaknesses in
multiple areas.
 0-5 points: Not Present – The campaign is missing or fails to meet basic requirements.