Fundamentals of Electronic Commerce Quiz

E-Commerce Terminology

• E-Commerce refers to the buying and selling of goods or services between a buyer and a seller through electronic means, typically over the internet.

Difference Between E-Commerce and E-Business

• E-Commerce focuses specifically on transactions involving the exchange of goods and services.
• E-Business encompasses a broader range of activities, including online transactions, supply chain management, customer service, and business processes that are digitized.

Advantages of E-Commerce

• Global Reach: Allows businesses to reach customers worldwide without geographical limitations.
• Lower Costs: Reduces operational costs such as rent and utilities associated with physical stores.
• Convenience: Enables 24/7 shopping, providing customers with the flexibility to shop anytime.
• Access to Data: Facilitates the collection and analysis of customer data for targeted marketing and personalized experiences.

Disadvantages of E-Commerce

• Security Risks: Vulnerability to cyber-attacks, fraud, and data breaches can compromise customer information.
• Dependence on Technology: Requires a stable internet connection and technical infrastructure, which can limit access in some areas.
• Lack of Personal Interaction: Reduces face-to-face customer service, potentially affecting customer satisfaction and loyalty.
• Complicated Returns and Refunds: Can complicate the process of returning products, leading to customer frustration.

Purpose of E-Commerce Models

• E-Commerce models are designed to streamline online business operations, cater to various customer needs, and optimize user experiences.
• They provide frameworks for different transaction types, such as B2C (business-to-consumer), B2B (business-to-business), C2C (consumer-to-consumer), and more.