FOURTH SEMESTER DEGREE EXAMINATION, APRIL 2018 

(CUCBCSS—UG)

E-COMMERCE

PART A (Each Question carries 1 Mark)

1. TCP/IP stands for ___________ .
Ans: Transmission Control Protocol / Internet Protocol

2. ___________ means the network within an organisation.
Ans:

3. ___________ is an internet enabled system that allows the user to buy and sell shares on the exchange directly.
Ans:

4. ___________ are used to verify the authenticity of the message and to verify message integrity.
Ans:

5. ISP stands for ___________ .
Ans: Internet Service Provider

6. Gaining unauthorized access to a computer network for profit, criminal mischief or personal pleasure :
Ans: Hacker

7. Online business attempts to reach other business units :
Ans:

8. Markets in which prices are variable and based on the competition among participant are called ___________ .
Ans:

9. A network ___________ is a secure gate between your organisation’s data and the Internet.
Ans:

10. How many standard codes are there in ASCII ?
Ans: 256

PART B (Each Question carries 2 Mark)

11. What is Internet ?
Ans: Internet is d world largest computer network the word internet was coined from the word inter connection and network the internet is a network or more precisely in the network of wonders of connecting networks made up of different type of computers all over the world then can share messages and information with one another.
12. Define E-Commerce ?
Ans: E-Commerce is short for electronic commerce . It has becomes synonymous with buying and selling over the internet E-Commerce includes all business transactions that use electronic communications and digital information processing technology.

13. What is http ?
Ans: HTTP is an internet standard or set of rules that’s all of the the exchange of information on the world wide web. Web pages are constructed according to to a standard method called hypertext markup languages (HTML) . An HTML page is transmitted over the web in a standard way and format known as hypertext transfer protocol (HTTP).

14. What is e-advertising ?
Ans: Internet advertising for advertising is the new advertising medium. Electronic advertising is an attempt to to release information on the the internet in order to establish a relationship among vendors and buyers. Internet advertising also aim at strengthening preposition of a specific brand in the market or attempt to evoke director response from consumers.

15. What is Cyber stalking ?
Ans: Cyber stalking is the use of the Internet or other electronic means to stalk or harass an individual, group, or organization. (Source from internet)

16. What is IPR ?
Ans:

17. What is OTP ?
Ans: OTP means one time password . It’s is also known as dynamic password or one time pin

18. What is online stock trading ?
Ans: Online trading is simply buying and selling assets through a brokerage’s internet-based proprietary trading platforms. … Stocks, bonds, mutual funds, ETFs, options, futures, and currencies can all be traded online. (Source from internet)

19. What is mobile commerce ?
Ans: Mobile commerce is commonly known as m commerce mobile commerce refers to the business transaction that are carried out with the help of an device like cell phone. M commerce is the buying and selling of goods and services (PDAs)

20. What is meant by ‘wireless spectrum’ ?
Ans: All wireless communications signals travel over the air via radio frequency, otherwise known as spectrum . The TV broadcast you watch, radio program you listen to , GPS device that helps get you where you are going comma and the wireless phone service used to make phone calls and check Facebook from your smartphone-old use invisible airwaves to transmit bits of data through the air. Spectrum is the range of electronic magnetic radio frequencies used to transmit sound , data, and video across the country.

PART C (Each Question carries 4 Mark)

21. Explain the advantages of E-Commerce.
Ans: Advantages of e-commerce
(a) International Market: This is not restricted by any geographical boundaries . In traditional business environment is avoided in e-commerce.
(b) Operational cost savings: The cost of creating processing, distributing, storing and retrieving paper- based has decreased.
(c) Reduced inventories and overheads: E-commerce firms need not stock large inventory. This is because of online collecting the customer order and then delivering through JIT (just in time) manufacturing.
(d) mass customization: The customers buy goods and service. In The E-Commerce environment firms are able to customize their products and services to the customer requirements
(e) digitization of product and processes: digitization of products and processes particularly in the case of software and music or video products, which can be downloaded or e-mailed directly to customers Via the internet in digital or electronic format with 24 hour time.

22. State about the e-commerce enabling technologies of the WWW.
Ans: The power of internet, as a global access , was felt with the introduction of the WORLD WIDE WEB (WWW) in 1994. Global network good make it easy to have business relations with a company on the other side of globe. Never in the history of mankind as a popular innovations spread as fast as internet. Is predicted that , in the near future the digital economy will overtake the traditional economy of all developed countries.

23. Explain the different types of network topologies.
Ans:

24. Explain the features and advantages of e-branding.
Ans: Branded is an important marketing strategy for creating new market and securing repeat customer . The quality of the product is not the main reasons for customers purchase, it is the “brand name “. Branding east creation and development of communication strategies specifically for have meaning and context on the web.
Advantages of branding :
(a) Good Advertising Asset
(b) Acknowledgement
(c) Reputation
(d) Familiarity and Loyalty
(e) Successful Market Strategy
(f) Expand customer Relationship

25. Illustrate the legal and ethical issues related to e-security.
Ans: The implementation of e-commerce involves many legal issues. These legal issues can be classified in several ways, including topics such as validity of contracts , jurisdiction over trades, encryption policies, and internet gambling. On other hand, ethical issues deal with what is the considered to be right and wrong.
In general, many ethical and global issues of information technology apply to business as well.
* Web spoofing
* Cyber- Squatting
* Web tracking
* Identity Theft

26. Write a note on online financial services in India.
Ans: It has also come up as a platform for save and invest. To differentiate there services and gain advantage over the rising competition , the financial services provider trying to provide their services in delighting manner to the customer. Service sector contributes 57% in the GDP , the growth rate of 7 % every year.
There are many ways in in which internet has affected financial services in India :
1. Internet banking
2. Bill payment
3. E-Brokerage
4.E-Delivery of financial services

27. Write a note on digital signature.
Ans: Digital Signature is a process that guarantees that the contents of a message have not been altered in transit. A digital signature is a mathematical scheme for demonstrating the authenticity of a digital document. A valid digital signature gives the reciplentreaso to believe that the message was created by a known sender in a way that they cannot deny sending it and that the message was not altered in transit. A digital signature is basically a way to ensure that an electronic document like e-mail, spreadsheet, text file, etc. is authentic.
Benefits :
1. Authentication
2.Non repudiation
3. Integrity

28. Explain the different generations in wireless communication.
Ans: GENERATIONS IN WIRELESS COMMUNICATION :
There are several kinds of wireless technologies. Some offer connectivity over a small area while others can cover a medium-sized office space. On the other hand, the most familiar wireless network, the mobile phone, covers whole continents. Wireless technology can offer businesses more flexible and inexpensive ways to send and receive data. Therefore generation of wireless communication is classified on the basis of various technology used
1. ZERO GENERATION (0G)
2. FIRST GENERATION (1G)
3. SECOND GENERATION(2G)
4. THIRD GENERATION(3G)
5 FOURTH GENERATION(4G)
6 FIFTH GENERATION. (5G)

PART D (Each Question carries 15 Mark)

29. Explain the various threats to e-commerce. What are the protection measures ?
Ans: Threat to E-Commerce
E-Commerce refers to the activity of buying and selling things over the internet. Simply, it refers to the commercial transactions which are conducted online. E-commerce can be drawn on many technologies such as mobile commerce, Internet marketing, online transaction processing, electronic funds transfer, supply chain management, electronic data interchange (EDI), inventory management systems, and automated data collection systems.
E-commerce threat is occurring by using the internet for unfair means with the intention of stealing, fraud and security breach. There are various types of e-commerce threats. Some are accidental, some are purposeful, and some of them are due to human error. The most common security threats are an electronic payments system, e-cash, data misuse, credit/debit card frauds, etc.
Ecommerce Security Solutions
1)Switch to HTTPS. Using outdated HTTP protocols makes you vulnerable to attacks.
2)Secure Your Servers and Admin Panels.
3)Payment Gateway Security.
4)Antivirus and Anti-Malware Software.
5)Use Firewalls.
6)Secure your website with SSL certificate.
(From internet )

30. Write an essay about Electronic Payment Systems.
Ans: Electronic Payment is defined as a financial exchange that takes place online between buyers and sellers. The content of this exchange is usually some form of digital financial instrument such as encrypted credit card numbers, electronic cheque or digital cash that is backed by a bank or an intermediary, or by a legal tender.
The Internet payment processing system
1. The customer: Customer in the e-commerce may be an individual or organisation who buy products or services on line and hold a payment card such as a credit card or debit card from an issuer.
2. The issuer: The issuer means a financial institution, such as a bank, that provides the customer with a payment card. The issuer is responsible for the cardholder’s debt payment.
3. The merchant: The person or organization that sells goods or services to the cardholder via a Web site is the merchant. The merchant that accepts payment cards must have an internet Merchant Account with an acquirer.
4. The acquirer: Acquirer is a financial institution that establishes an account with a merchant and processes payment card authorizations and payments. The acquirer provides authorization to the merchant within customer’s credit limit. The acquirer also provides electronic transfer of payments to the merchant’s account, and is then reimbursed by the issuer via the transfer of electronic funds over a payment network.
4. The payment gateway: This function operated by a third-party provider, processes merchant payments by providing an interface between the merchant and the acquirer’s financial processing system. A payment gateway is an e-commerce application service provider service that authorizes payments for e-businesses, online Shopping, etc.
5. The processor: The processor is a large data centre that processes credit card transactions and settle funds to merchants, connected to the merchant on behalf of an acquirer via a payment gateway.

31. Explain with suitable examples the various business models of e-commerce ?
Ans: BUSINESS MODEL FOR E-COMMERCE
Timmers defines a business model is “a set of planned activities designed to result in a profit in a marketplace”. The business models at the center of the business plan. A business plan is a document that describes a firm’s business model .
1. Value Proposition
A value proposition defines how a company’s product or service fulfils the needs of customers. From the consumer point of view. Successful ecommerce value propositions include. personalization and customization of products, reduction of product search costs and facilitation of transactions by managing product delivery. Convenience and time saving are very important elements in value proposition to customers.
2. Revenue Model
The firm will earn revenue, make profits and produce a better return on invested capital. The function of business organizations is both to make profils and to produce returns on invested capital that exceed other investments.
a. Advertising revenue model :
In addition to offer products or services on a web site provides a place for advertisements and receives fees from advertisers. Generally web sites that are able to attract greater audience are able to charge higher advertising rates.
b. Subscription revenue model :
if they pay a subscription fee.
c. Transaction fee revenue model :
In the transaction fee revenue model, a company receives a fee for enabling or executing a transaction.
d. Sales revenue model
Companies derive revenue by selling goods , information or services to customers
3 . Market Opportunity
The company ‘ s proposed market space and the overall potential financial opportunities available to the firm in that market space . The market opportunity is usually divided into smaller market niches .
4 . Competitive Environment
A firm ‘ s competitive environment refers to a state where other companies selling similar products and operating in the same market space . It also refers to the presence of substitute , products , potential new entrants to the market
5 . Competitive Advantage
Firms achieve a competitive advantage when they can produce a superior product and bring the products to market at lower price then there competitors . some forms can develop global markets while other firms can only develop and national or regional market
6. Organizational development
All firms need an organisation to efficiently implement their business plan and strategies. Many E-Commerce firms and many traditional forms who attempt and e-commerce strategy have failed because they lacked the organisational structures and supportive cultural values required to support new forms of commerce.
7.Market strategy
Marketing strategy and execution are also very important. The best business concept, or Idea will fail it is not properly marketed potential customers full stop the market strategy is the plant that details exactly how we can enter a new market and attract new customer
8. Management Team
A strong management team gives a model instant credibility to outside investors , immediate market – specific knowledge , and experience in implementing business plans . A strong management team may not be able to save a weak business model , but they should be able to change the model and redefine the business as it becomes necessary . The challenge is to find people who have both the experience and the ability to apply that experience to new situations .