CONFIDENTIAL, BM/DEC 2015/MGT547/546/545/MKT533 ze UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE : ECOMMERCE / E-BUSINESS COURSE CODE : MGT547/546/545/MKTS533 EXAMINATION : DECEMBER 2015 TIME : 3HOURS INSTRUCTIONS TO CANDIDATES 4. This question paper consists of two (2) parts PART A (4 Questions) PART B (3 Questions) 2. Answer ALL questions in the Answer Booklet. Start each answer on a new page. 3. Do not bring any material into the examination room unless permission is given by the invigilator. 4. Please check to make sure that this examination pack consists of i) the Question Paper ji) an Anewer Booklet — provided by the Faculty 5 Answer ALL questions in English, DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 4 printed pages © Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL, 2 BMIDEC 2015/MGT547/546/545/MKTS33 PART A E-Commerce Advantages and Drawbacks Electronic Commerce or e-commerce is the trade of products and services by means of the Internet or other computer networks, E-commerce follows the same basic principles as traditional commerce where buyers and sellers come together to swap commodities for money. But rather than conducting business in the traditional way such as in shopping stores or through mail order catalogs and telephone operators - in e-commerce buyers and sellers transact business online, {t is worth mentioning that e-commerce today is very different from when it started out and this is largely due to advancement of technology. What is even more fascinating is that, more and more people are connected by virtue of their mobile devices. Long gone are the days when a desktop or a laptop is the be-all and end-all to be connected online anymore. The prominent rise of social networks in today's age has also created a new type of e« commerce, namely; social e-commerce and the meteoric rise uf mobile devices has now given birth to mobile commerce. Then there is also local commerce. Aside from that, the More traditional types of e-commerce are still alive and kicking such as B2C, B2B and C2C. The success of e-commerce has been attributed to it by some due to the unique features that it encompasses and provides. These unique features would among others include ubiquity, global reach, universal standards, social technology, personalization/customization, information density, interactivity and richness. One would only need to look at Amazon to witness all these key features in action These unique features are what make e-commerce unique and priceless at the same time As a matter of fact, the whole world has become a large marketplace. E-commerce also affords buyers maximum convenience, They can visit the web sites of multiple vendors Found the clock a day to compare prices and make purchases, without having to leave their homes or offices from around the globe. In some cases, consumers can immediately obtain 3 product or service, such ae an clectronic book, a music file, or computer software, by downloading it over the Internet. For sellers, e-commerce offers a way to cut costs and expand their markets. They do not need to build, staff, or maintain a physical store or print and distribute mail order catalogs. Automated order tracking and billing systems cut additional labor costs, and if the product or service can be downloaded then e-commerce firms have no distribution costs involved. Because the products can be sold over the internet, sellers have the potential to market their Products or services globally and ere not limited by the physical location of their store. Intemet technologies also permit sellers to track the interests and preferences of their customers with the customer's permission and then use this information to oulld an ongoing relationship with the customer by customizing products and services to meet the customer's needs, (© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL,CONFIDENTIAL 3 BM/DEC 2015/MGT547/546/545/MKT533 E-commerce however has some drawbacks and is not without fault. Studies have shown that consumers are hesitant to buy certain products online. Online furniture businesses, for example, have failed for the most part because customers want to test the comfort of an expensive item such as a sofa before they purchase it. Many people also consider shopping a social experience. For instance, they may enjoy going to a store or a shopping mall with friends or family, an experience that they cannot duplicate online. Consumers also need to be reassured that credit card transactions are secure and that their privacy is respected. Despite the existence of these few disadvantages, the advantages of e-commerce far outweighs them. Businesses or individuals should not let these few disadvantages dishearten them as e-commerce brings so much benefit upon those that know how to manage and harness its ability. Source: Adapted from W. King. (2015) What is E-commerce advantages and drawbacks. QUESTION 4 Describe any five (5) unique features of e-commerce. (10 marks) QUESTION 2 Discuss five (5) advantages of e-commerce to business owners. (10 marks) QUESTION 3 Determine any four (4) drawbacks of e-commerce from a consumers’ point of view. (10 marks) QUESTION 4 Explain with examples any four (4) types of e-commerce. (10 marks) (© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL