4.8 E-Commerce: Exam Practice Question
1. Define the term e-commerce.
E-commerce is the buying and selling of goods or services through the internet.
2. Explain two factors that might have led to the rise in the number of consumers
shopping online.
The convenience in shopping online is a reason as to why more consumers are
shopping online. They can have any products they purchase just by ordering through
their gadgets and have them delivered the next day.
Shopping online allows customers to buy products from any place. Due to this
feature, consumers may be more willing to shop online to purchase an imported
good without having to travel overseas.
3. Analyze two ways in which a high street retailer may be able to compete
effectively with online retailers.
High street retailers have a competitive advantage when it comes to providing
consumers the opportunity to see the product physically before purchasing. Because
of this, they may improve the quality of their stores and service to provide a better
experience for their consumers. This way, consumers will be more willing to visit the
store instead of shopping online.
Another way is to provide discounts or benefits to the consumers if they were to go
to a physical store. By doing this, it will make consumers choose going to physical
store over shopping online. Examples of discounts or benefits include offering an
extra discount if they purchase it through a physical store, or a buy 1 get 1 offering.
4. Discuss the advantages and disadvantages to retailers of selling their products
online.
E-commerce is the buying and selling of goods or services through the internet. As
technology advances, the number of retailers shifting to e-tailing had increased
rapidly. However, shifting to e-tailing can be both beneficial and not for the business.
Thus, the advantages and disadvantages to retailers of selling their products online
will be discussed below.
One advantage to retailers for selling their products online is that it will allow them
to gain more exposure to a wider customer base in a short time. By using the
internet, retailers can expose their business to more people, even those overseas,
which in turn increases possible sales. Due to the increased exposure, it can be said
that the costs for promotion online is relatively low when compared to the ratio of
cost and number of consumers reached. This, in turn, can be seen as beneficial for
retailers as they have the opportunity to increase their market share.
Another advantage to retailers would be the ability to keep accurate records
regarding consumer preferences or to get an insight to the success rate of their
website. When using the internet, retailers can easily obtain information regarding
1. Define the term e-commerce.
E-commerce is the buying and selling of goods or services through the internet.
2. Explain two factors that might have led to the rise in the number of consumers
shopping online.
The convenience in shopping online is a reason as to why more consumers are
shopping online. They can have any products they purchase just by ordering through
their gadgets and have them delivered the next day.
Shopping online allows customers to buy products from any place. Due to this
feature, consumers may be more willing to shop online to purchase an imported
good without having to travel overseas.
3. Analyze two ways in which a high street retailer may be able to compete
effectively with online retailers.
High street retailers have a competitive advantage when it comes to providing
consumers the opportunity to see the product physically before purchasing. Because
of this, they may improve the quality of their stores and service to provide a better
experience for their consumers. This way, consumers will be more willing to visit the
store instead of shopping online.
Another way is to provide discounts or benefits to the consumers if they were to go
to a physical store. By doing this, it will make consumers choose going to physical
store over shopping online. Examples of discounts or benefits include offering an
extra discount if they purchase it through a physical store, or a buy 1 get 1 offering.
4. Discuss the advantages and disadvantages to retailers of selling their products
online.
E-commerce is the buying and selling of goods or services through the internet. As
technology advances, the number of retailers shifting to e-tailing had increased
rapidly. However, shifting to e-tailing can be both beneficial and not for the business.
Thus, the advantages and disadvantages to retailers of selling their products online
will be discussed below.
One advantage to retailers for selling their products online is that it will allow them
to gain more exposure to a wider customer base in a short time. By using the
internet, retailers can expose their business to more people, even those overseas,
which in turn increases possible sales. Due to the increased exposure, it can be said
that the costs for promotion online is relatively low when compared to the ratio of
cost and number of consumers reached. This, in turn, can be seen as beneficial for
retailers as they have the opportunity to increase their market share.
Another advantage to retailers would be the ability to keep accurate records
regarding consumer preferences or to get an insight to the success rate of their
website. When using the internet, retailers can easily obtain information regarding
