Q1. What is e-commerce? Discuss its nature and scope.

Give a
diagrammatic presentation of the process of E-commerce.

E-Commerce, or electronic commerce, means buying and selling goods online. It involves
using the internet to complete transactions, share information, and exchange money.
Types of E-Commerce

1. E-Commerce can be divided into four main types based on who is involved in the
transactions:
2. Business to Business (B2B): This involves transactions between businesses. For
example, manufacturers selling products to wholesalers or retailers. The final
consumer is not involved.

3. Business to Consumer (B2C): Companies sell their products or services directly to

consumers. Consumers can browse websites, read reviews, place orders, and get
products delivered to them. Examples include Amazon and Flipkart.

4. Consumer to Consumer (C2C): Consumers sell goods directly to other consumers. No

company is involved in these transactions. Commonly traded items include cars,
bikes, and electronics. Examples include OLX and Quikr.

5. Consumer to Business (C2B): This is the reverse of B2C. Consumers offer goods or
services to businesses. For example, a freelancer selling software to a company.

Q2. How is pure online different from Brick and Click.

Pure online businesses operate only online, without physical stores. Examples include
Amazon and Netflix. Brick-and-click businesses have both physical stores and an online
presence, like Walmart and Target.

Q3. Write a note on Middleware and various middleware used in online

business enterprises.

Middleware acts as a bridge that helps different software applications communicate and work
together, even if they are in different formats and languages.
For example, when you book a flight on a travel website, the website needs to check various
airlines for availability and prices. Middleware converts your request into a format each
airline system can understand, gathers their responses, and presents the results in one place.
When you select a flight, middleware sends your booking details back to the airline to
finalize the reservation.
There are many types of middleware, each serving specific functions. Common types include:
1. Messaging Middleware: Facilitates communication between distributed applications and
services.
2. Object Middleware (ORB): Enables software components or objects to interact across
distributed systems.
3. Remote Procedure Call (RPC) Middleware: Allows a program to request services from
another program on a different computer or network.
4. Data/Database Middleware: Provides direct access to and interaction with databases, often
including SQL database software.
5. Transaction Middleware: Ensures smooth transitions between transaction phases through
process monitoring.
6. Content-Centric Middleware: Handles client requests for specific content and delivers it.
7. Embedded Middleware: Supports communication and integration between embedded
applications and real-time operating systems.
8. API Middleware: Helps developers create, manage, and sometimes monetize APIs.
9. Asynchronous Data Streaming Middleware: Facilitates data sharing between applications.

Q4. Explain e-money and its properties. What are the various types of e-
money?
Electronic money, also known as e-money or digital currency, is a type of cash that exists
electronically. It's used for making payments and transfers without needing physical cash or
checks.
Here are the main types of electronic money:

1. Cryptocurrencies: These are digital currencies like Bitcoin, Ethereum, and Litecoin. They
use special technology to secure transactions and control the creation of new units.
2. Central Bank Digital Currencies (CBDCs): These are digital currencies issued and
regulated by central banks. They have the same value as regular currencies and are meant
to combine the benefits of digital transactions with the trust of government regulation.
3. E-wallets and Mobile Payment Systems: These are apps or platforms that store electronic
money and help with transactions. Users link their bank accounts or cards to these wallets
and make payments using their phones or computers. Examples include PayPal, Apple
Pay, and Google Pay.
4. Prepaid Cards: These are cards, physical or virtual, loaded with a specific amount of
electronic money. They're used for purchases at certain stores or for withdrawing cash
from ATMs. They're often reloadable and are a handy option for people without bank
accounts.
5. Online Payment Systems: These systems help with online transactions by securely
processing payments between buyers and sellers. They're managed by third-party service
providers like PayPal, Stripe, and Square.

Q5. What do you understand by Payment Gateways? How does it function?

A payment gateway is like a bridge that helps your customers send money to you. It's similar
to the card machines you see at stores. When someone buys something from you, the
payment gateway checks if their card has enough money to pay.
Functions:
A merchant account is a special bank account for businesses to receive payments. When a
customer pays, the money goes into this account before it goes to the business's main bank
account. Both a payment gateway and a merchant account are needed to take payments
online.
A payment processor is a service that checks if a customer has enough money in their account
to pay for a purchase. If they do, the payment is authorized and sent to the business. If not,
the transaction is declined.
Here's how online payments work with a payment gateway:
1. Set up your website and connect it to a payment gateway.
2. A customer buys something by entering their card details.
3. The payment gateway securely sends the order and card details.
4. It checks if the customer has enough money and prevents fraud.
5. The payment gateway asks the customer's bank to send the money.
6. The transaction status is sent to the merchant, and the money is deposited into the merchant
account, usually in real time.

Q6. Explain the concept of segmentation, targeting and positioning in e-

marketing management with the help of an example.
Q7. Describe the nature and importance of e-marketing. Highlight on the
challenges and opportunities for e-marketing.
E-Marketing, or Electronic Marketing, is all about promoting products or services using the
internet. It includes advertising on websites, social media, and even emails. E-Marketing
helps businesses connect with customers using various online tools. It's an important part of
marketing strategy for many companies nowadays.

 E-marketing is important because most transactions occur online, so marketers need to

connect with customers through the internet.
 It reaches audiences on devices like smartphones, tablets, and laptops.
 E-marketing is transparent and measurable, allowing marketers to adjust strategies based
on real-time performance.
 During the pandemic, online marketing is even more crucial as traditional offline
channels may not yield the best results.

Q8 . What is the process of launching an online business.? Define different

aspects of it.
Starting an online business in India can be a great opportunity. Here's a simple guide to help
you get started:

1. Pick Your Niche: Decide what products or services you want to sell. Find something
that people need but isn't easily available.
2. Do Market Research: Look at your competitors, understand your target customers,
and figure out the best prices. Use online tools and social media to see what customers
want.
3. Choose a Business Model: Decide if you want to sell physical items, digital products,
or offer services. Consider options like dropshipping, making your own products, or
selling on marketplaces.
4. Register Your Business: Choose a business type (like sole proprietorship, partnership,
or private limited company). Register it with the Registrar of Companies (ROC) and
get the needed permits and licenses.
5. Create Your Online Presence: Build a website or online store that shows off your
brand and products. Use social media to promote your business and interact with
customers.
6. Set Up Payment and Shipping: Pick a payment gateway that accepts various payment
methods. Arrange for cost-effective and reliable shipping and delivery options.
7. Follow Tax and Legal Rules: Make sure you follow tax rules like GST and Income
Tax. Draft necessary legal documents like terms and conditions and privacy policy.
8. Prioritize Customer Service:
a. Respond quickly to customer questions.
b. Resolve complaints effectively.
c. Ensure your products and services are high quality.

Q9 Briefly describe the different technical components, functions,

advantages, and disadvantages of E-Commerce.
E-Commerce, or electronic commerce, means buying and selling goods online. It involves
using the internet to complete transactions, share information, and exchange money.

Types of E-Commerce
E-Commerce can be divided into four main types based on who is involved in the
transactions:
1. Business to Business (B2B): This involves transactions between businesses. For
example, manufacturers selling products to wholesalers or retailers. The final consumer is not
involved.

2. Business to Consumer (B2C): Companies sell their products or services directly to

consumers. Consumers can browse websites, read reviews, place orders, and get products
delivered to them. Examples include Amazon and Flipkart.
3. Consumer to Consumer (C2C): Consumers sell goods directly to other consumers. No
company is involved in these transactions. Commonly traded items include cars, bikes, and
electronics. Examples include OLX and Quikr.

4. Consumer to Business (C2B): This is the reverse of B2C. Consumers offer goods or
services to businesses. For example, a freelancer selling software to a company.
Advantages of E-Commerce
 Sellers can reach buyers anywhere in the world without being limited by location.
 E-commerce reduces costs by eliminating the need for physical stores, leading to higher
profits for companies.
 Goods are delivered quickly, and customer complaints are resolved faster, saving time
and effort for everyone.
 Customers can shop anytime, 24/7, as websites are always open.
 Businesses and customers can communicate directly, without middlemen, leading to
faster and more personal transactions.
Disadvantages of E-Commerce
 Setting up and maintaining an e-commerce site is expensive.
 Many e-commerce businesses fail, making it a risky industry.
 Lacks the personal interaction needed for some products and services.
 Risks like credit card theft and identity theft concern customers.
 Issues with shipping and delivery can lead to customer dissatisfaction.

Q 10. What are the relevant provisions of the information technology act
2000 relating to E-Commerce.

In 1996, the United Nations suggested a model law for electronic commerce (e-commerce) to
make laws similar across countries. Following this, India passed the Information Technology
Act in 2000, becoming the 12th country to have a cyber law.
Originally drafted as the E-Commerce Act in 1998, it was later revised and passed as the
Information Technology Bill in May 2000.
Objectives of the Act:
1. Legal Recognition: Gives legal status to transactions done through electronic data
exchange or e-commerce, replacing paper-based methods.
2. Digital Signatures: Recognizes digital signatures for legal authentication of
information.
3. Electronic Filing: Facilitates filing documents electronically with government
agencies.
4. Data Storage: Supports electronic storage of data.
5. Electronic Funds Transfer: Allows legal electronic transfer of funds between banks
and financial institutions.
6. Bank Records: Grants legal recognition for banks to keep records electronically,
under the Evidence Act, 1891 and the Reserve Bank of India Act, 1934.
Q11 What is understood by E-marketing mix? How does E-marketing
enhances customer loyalty and satisfaction?

Traditionally, the Marketing Mix includes product, price, promotion, and place strategies for
items sold in stores. The internet has changed how we sell products and services. Consumers
now research and buy products online, so companies need online strategies to attract and
keep customers. The e-Marketing mix updates the traditional Marketing Mix for the online
marketplace.

Q 12 What are the different risk management options for e-payment

systems?
E-payment systems make paying online quick and easy, but they also have risks to watch out
for.
1. Fraud: Bad actors can steal your credit card info or trick you into giving it to them.
They might use this to make purchases without your permission.
2. Hacking: Hackers might break into the e-payment system and steal important info.
This can lead to money loss and harm the system's reputation.
3. Identity Theft: Hackers can use stolen info, like your social security number or bank
details, to pretend to be you and make unauthorized purchases.
4. Technical Problems: Sometimes the system might have issues, like crashing or
glitching. This can cause payments to fail or be delayed.
5. Security Breaches: If hackers get into the system, they can access sensitive info like
credit card numbers. This can cause money loss and harm the system's reputation.
6. Chargebacks: If you dispute a transaction, it can lead to the payment being reversed.
This can cause financial problems for businesses.

Q 13 Explain the different tools available for promoting websites?

Here's how you can use promotion tools for marketing in simple points:

1. Email Marketing: Send emails to many people at once to share product details and invite
them to buy. It helps build relationships with subscribers.
2. Social Media: Use platforms like Facebook and Instagram to introduce and sell products
to your target audience. Remember, each platform needs its own strategy.
3. Print Advertisements: Advertise in magazines, newspapers, or journals to reach people
without digital devices. It's affordable and ensures product visibility.
4. Search Engine Optimization (SEO): Make sure your products show up in online searches
by using keywords on your website. This boosts page ranking and increases website
traffic.
5. Paid Online Advertisements: Participate in real-time auctions to display ads on websites
or platforms. It's cost-effective and reaches a wide audience.
Q14 Describe the concept and role of internet marketing. Discuss the
functions and steps involved in search engine optimization.
Internet marketing, also called online marketing, promotes brands using digital platforms and
methods to target specific markets. While it's not the only way to generate interest and
awareness about a product, its main aim is to boost traffic to the advertiser's website through
various techniques.
Understanding SEO involves a few key functions:
1. Keyword Research and Analysis: Finding words and phrases people use to search online.
Experts pick high-traffic keywords to match user searches.
2. On-Page Optimization: Making web pages better for search engines. This includes
adjusting titles, descriptions, headers, and media to match what users are looking for.
3. Off-Page Optimization: Doing things outside the website to boost its search ranking. This
can include getting other websites to link to yours, using social media, and working with
influencers.
4. Technical SEO: Making sure the website is easy for search engines to understand. This
involves things like making the site load fast, work well on mobile devices, and be secure.

Q15 Write short notes.

(a) Digital signature certificate
A Digital Signature Certificate (DSC) is an electronic form of a signature that verifies the
identity of the sender and ensures a document hasn't been altered. Issued by a trusted
Certificate Authority (CA), it is used for secure online transactions and communications.

(b) Goal of E-commerce

 Enable convenient, anytime-anywhere shopping.
 Expand market reach globally.
 Reduce operational costs.
 Enhance customer service and engagement.
 Improve business efficiency and speed.

(c) Website design

Web designing is about making websites that work well, look good, and are easy for
people to use. It's all about planning, creating, and organizing the site so that visitors can
find what they need quickly and enjoyably.

(d) Difference between Internet, intranet and extranet.

Internet: The internet is a huge network made up of many computers connected. It has:
 People: People use and build the internet.
 Resources: Lots of stuff you can find online.
 Collaboration: It's used by researchers and educators worldwide.
Intranet: An intranet is a private network inside a company. It uses internet technology
and lets employees access company information.
 Extranet: This is like a special part of a company's intranet. It lets people from outside the
company access some of the company's information.

(e) Threats in E-Commerce

 Data Theft: Hackers steal customer info or payment details to sell or use for fake
purchases.
 Phishing: Scammers send fake emails pretending to be your company to steal personal
info.
 Spamming: Spammers post harmful links on your site that can infect your computer if
clicked.
 Malware: Bad software like viruses can get into your system and steal data.
 Bad Bots: Competitors use bots to check your prices and inventory, or hackers use them
to buy and resell your products at higher prices.

(f) M-Commerce
M-commerce (mobile commerce) is buying and selling goods and services using
smartphones and tablets. It is a type of e-commerce that lets people shop online without
needing a desktop computer.

(g) Difference between credit card and debit card

Debit cards are connected to your bank account and you can only spend the money you
have in there. Credit cards let you borrow money up to a certain limit and pay it back
later. If you don't pay back the borrowed money within a set time, you have to pay
interest.

(h) Smart Card

A smart card is a plastic card with a small chip that stores and changes information. It
works independently without connecting to databases and is popular in many industries.

(i) Social Media marketing

Social media marketing uses social media platforms to promote a company's brand, boost
sales, and increase website traffic.