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exam paper of Oct/Nov 2015_ questions and answers
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Name the 3 major categories of e-commerce business models?
Name the 3 major categories of e-commerce business models?
1. business to business (B2B)
2. business to consumer (B2C)
3. consumer to consumer (C2C)
Name at least 4 benefits of e-commerce for the start-up?
Name at least 4 benefits of e-commerce for the start-up?
- e-commerce allows any business access to customers almost anywhere
- small firms do not need all the resources
- sales cycle is shortened/ compressed e.g. credit card sales
- one on one customer relationship possible through (e-CRM)
Discuss the scope of physical distribution (movement of products)
Discuss the scope of physical distribution (movement of products)
6 Aspects
(1) Transportation, which involves
● common carriers (available for hire to the general public)
● contract carriers (contracted to a specific supplier)
● private carriers (owned by the shipper of goods)
(2) Storage (warehousing)
(3) Materials handling (perishable or fragile products as opposed to solid unbreakable stock)
(4) Delivery terms, which involves
● determining who will pay the freight costs
● selecting the carriers
● bearing the risk of damage in transit
● selecting the modes of transport
● Logistics companies (they provide specialised trucking, packaging and warehousing
services)
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