ASSIGNMENT DRIVE SPRING DRIVE 2014
PROGRAM BACHELOR OF BUSINESS ADMINISTRATION (BBA)
SEMESTER IV
SUBJECT CODE & NAME - BBA401- E-COMMERCE
BK ID B1712 CREDIT 4 MARKS 60
Q.No 1 a. eBay is The World's Online Marketplace, enabling trade on a local, national and
international basis. With a diverse and passionate community of individuals and small
businesses, eBay offers an online platform where millions of items are traded each day.
Mention and explain the various opportunities offered by ecommerce for businesses.
b. What are the advantages and disadvantages of eCommerce?
( a. Listing the opportunities and explaining b. Listing the main advantages Listing the disadvantages)
3+3+4=10
Answer:
a) E-Commerce Opportunities for Businesses:
1. Tourism and Travel Sector: This sector has updated its system with ecommerce services.
Consumers can make online reservations of hotels, motels, air tickets, railway tickets, etc.
2. Banking Sector: Most banks have changed their working style by making their services available
online through their respective websites.
3. Health Care Sector: This sector is large and uses a major part of government expenses. So, most
health care companies communicate or exchange their services with each other.
4. Stock Sector: In the stock exchange sector, e-commerce services provide demat account facilities for
customers who can do an overall analysis of the status of the stock areas and do their respective
transactions.
5. Financial Sector: In India, the financial sector has adopted e-commerce services and the users make
maximum use of the same.
Advantages of E-Commerce:
1. All-time processing: Customers can use the marketplace at all times with the use of e-commerce
services.
2. Better service: Customers are fully satisfied and receive better service.
3. No mediators: Customers can directly contact the suppliers and remove all mediators.
4. Data on consumer performance: Using the e-commerce services, one can understand consumer
behaviour, for example, websites, products, schemes and modes of payment which are preferred by the
customer.
5. Time saving: Customers can save time because they can purchase anything through the merchant
websites.
Other Advantages:
E-commerce reduces the cost of the product.
It reduces paperwork as the entire work is done electronically.
Improved customer relationship is achieved by fast dissipation of information.
E-commerce minimizes the time taken from order to delivery.
Provides better, faster and effective linkage with clients
E-commerce helps people work together.
E-commerce is a 24 × 7 operation and has a global reach.
Disadvantages of E-Commerce:
1. Lack of customer awareness: People who have no knowledge about electronic communication like
the Internet, and computers find it difficult to transact electronically.
2. Not for small business: Small businessmen do not want to take any extra burden because they have
no knowledge of e-commerce functions.
3. Does not support all types of businesses: Some types of businesses are not fit for e-commerce
services.
4. Legal formalities: Before implementing e-commerce services in the business, it is necessary to
complete certain legal formalities like authorization and authentication.
Other Disadvantages
High risk for Internet startup organization
Security problems
Customer relation problems
Data integrity problems
Customer satisfaction problems
2 a. The TCP/IP reference model is the network model used in the current Internet
architecture. This model is derived from the OSI model and they are relatively same in
nature. Explain the different characteristics of Gateways in the TCP/IP reference model
with a neat diagram
b. Write short note on Hyper Text Markup Language (HTML) with example
(a. Diagram Characteristics b. Explanation on HTML Example )3+3+3+1=10
Answer: a)
Characteristics of Gateways
Gateway routers are used to connect dissimilar LANs and perform all the functions of bridges and routers.
It operates as all seven layers of the OSI Reference Model.
Gateways provide full protocol conversion from one proprietary LAN technology to another.
Gateway uses higher layers of the OSI model, perhaps through layer 7, the application layer.
1. Application------------------------------- Represents data to the user plus encoding and dialog control.
2. Transport -------------------------------- Support communication between diverse devices across
diverse networks (using TCP/IP).
3. Internet----------------------------------- Determines the best path through the Network ( using
gateway).
4. Network Layer ------------------------- Controls the hardware devices and media that make up the
network .
Figure 2.5 TCP/IP Reference Model for Communication
b) Hyper
Text Markup Language (HTML)
HTML is a method where ordinary text can be converted into hypertext. It is a set of special
codes included to control the layout and appearance of the text.
Technically, HTML is not a programming language. It combines instruction within data to tell a
display program called browser, how to render the data that the document contains.
The following is the structure of HTML:
<html>
<head> about authors </head>
<title> First Page </title>
<body>
<h1> Hello this my Home page!
</body>
</html>
< HTML>: This tag defines the top most elements, identifying it as an HTML document.
<Head>: This tag contains information about your HTML file.
<Title>: This tag is nested within the head tag. It identifies your page to the rest of the world.
Output of tag is displayed on your browser’s title bar but does not appear as part of the page.
<body>:This is a body part of your HTML web page. Within this tag all the various tag is used.
Every tag has prespecified attributes and there possible values.
Levels of Heading: Six different levels up to <h1>,<h2>,<h3>,<h4>,
<h5>,<h6>
Adding a comments:<! - - and ends with — >
Creating List: There are two types of list : ordered list and unordered list.
Ordered List:
<ol>
<li> MS-Windows
<li> MS-Excel
<li> MS-Word
</ol>
Unordered List:
<ul>
<li> MS-Windows
<li> MS-Excel
<li> MS-Word
</ol>
Creating Definition Lists:
A glossary consists of three tag elements:
<dl>: Define the List
<dt>: Define term
<dd>: Define the definition
Inserting Images:
To insert images in your page use <img> tag as follows:
<img src=”flower.gif” height=”100" width=”100" border=”1">
Linking the HTML page:
To link one HTML to another use anchor tag as follows:
<a href = “first.html” > Click me </a>
Setting font size:
We can set font of text by using font tag as follows:
<font face=”Arial” size=”4" color=”red”>
Marquee tag:
This tag offers some movement from up, down, left, right of given text:
<marquee direction=”up” bgColor=”red” behavior=”scroll”> MY Moving Text
is displayed here </marquee>
Table tag:
Page layout on the web has to be set by using tables because HTML has no
method to set margin or columns.
Example:
<table border=”1" cellspacing=”6" cellpadding=”6"
width=”80%”>
<tr> <th> Roll no </th>
<th> Name </th>
</tr>
<tr> <td> 34 </td>
<td> Pooja </td>
</tr>
<tr> <td> 35 </td>
<td> Priya </td>
</tr>
</table>
3 Hanson websites are built to work for your business and are built on the concept of
intelligent website. An intelligent website is more than just a brochure on the web. It
allows you to edit the website yourself through a Content Management System (CMS).
What is the need for an intelligent website?
(Listing the steps Explanation) 4 +6 = 10
Answer:
Step 1: Basic Web traffic analysis
Before starting any Web activity, one first needs to analyse the Web traffic. This type of data provides a
record of the entry and exit points into a website, pages that were visited, links that were followed, the
duration for which a person viewed a particular page, the precise day and time of visit, the browser type,
visitor’s IP address and other information.
Step 2: Customer interaction analysis
This step is used to collect more information about the customer’s interactions with the website. The
registered users are people who have had to register for site usage, generally by filling out a survey form.
As you know, in any site (even a free site) the user has to fill a registration form in which there are various
types of questions related to profession, education, age, gender, leisure activities, merchandise
purchasing, etc. Through this registration process, the site is able to get information related to both the
demographics and preference. This type of data is used to help inform personalization engines to serve the
contents according to the visitor’s interests.
Step 3: Real-time personalization
Personalization is the ultimate realization of the one-to-one marketing dream. Customers are recognized
when they come in; they can tailor the way they interact with the merchant; and receive promotions and
marketing programmes that perfectly fit their personal requirements and preferences.
The following are four ways of personalization:
(a)Greetings (b) Customization (c) Narrowcasting (d) Recommendation
Step 4: Getting to fine-grained segmentation
Fine-grained segmentation
is
used
to
enhance
the site’s
marketing
power
by
using
an e-
commerce intelligence system performing customer segmentation. You can start with products that are at
hand’s reach through coarse segmentation, and then continue to fine-grained segmentation. This step also
uses artificial intelligence to conduct knowledge discovery. That is, it can look for patterns in large data
sets and identify common elements.
Step 5: Going through the streams of clicks
The click-stream data contains details on customer behaviour that are richer than what can be achieved in
traditional channels. Click-stream information is the recording of every page request from every visitor by
the website owners. This information is stored into massive log files.
Step 6: Enrich content with external data
Once a customer performs a number of purchases, the website is able to further enhance the customer’s
profile. Demographic data from third party providers may be added to the profile to provide a richer view
of the customer base. Analysing the enriched data might show, for instance, that a customer who buys
history books falls into a demographic segment which is also inclined to buy classical music.
Step 7: Reaching optimal intelligence
A company can reach optimal intelligence once it is able to combine historical transaction records,
observed behaviour via click-stream data and preferences expressed in online surveys.
4. When a data is sent across the network it is encrypted and arranged in a way that even if
there is a diversion in the flow of data should not leak the data. At the reception it is
decrypted and actual data is obtained. Explain the different methods of encryption
technique.
(Listing, Explanation each of them, Diagram for each of them) 1+5+4=10
Answer: There are three types of cryptography or methods of encryption:
Secret key or private key or symmetric key cryptography
Public key or asymmetric key cryptography
Hash function
1. Secret key or symmetic key cryptography
In this scheme, both the sender and the recipient possess the same key to encrypt and decrypt the data.
Figure 8.1 shows how secret or private key cryptography works.
Original
Encrypted
Message
Message
Secret Key
Encrypt
Internet
Encrypted
Original
Message
Message
Secret Key
Decrypt
Figure 8.1 Schematic Diagram of Secret Key Cryptography
Data Encryption Standard
Data Encryption Standard (DES) is an example of secret key cryptography. It was developed by IBM. DES
is block cipher-based scheme which encrypts a64-bit data block using a 56-bit key. The block is
transformed in such a way that it involves sixteen iterations. This done by using the security key.
To take an example, suppose, A encrypts a message with a secret key and e-mails it to B, who on
receiving it, checks the header to identify the sender. B then has to take the duplicate of the secret key to
decrypt the message.
2. Triple Encryption
As discussed, the DES is a block cipher and employs shared secret encryption. But, nowadays DES is
considered unsafe for various applications primarily due to the 56-bit key size which is too small. Triple
DES is considered as an improved version to overcome many of the shortcomings of DES. The triple
encryption technology is based on DES and is sometimes referred as Triple DES or 3DES. The event
follows an Encrypt-Decrypt-Encrypt (EDE) sequence.
Triple DES mode of operation takes three 64-bit keys for an overall key length of 192 bits. In
Private Key Encryption, the user can just type in the complete 192-bit (24 character) key rather than
entering each of the three keys individually. The procedure for encryption is exactly the same as regular
DES, but it is repeated three times. The data is encrypted with the first key, decrypted with the second key
and finally encrypted again with the third key
3. Public key cryptography
This scheme operates on a double key, called pair key, one of which is used to encrypt the message and the
other is used to decrypt it. This can be viewed as two parts; one part of the key pair, the private key, is
known only by the designated owner. The other part, the public key, is published widely but is still
associated with the owner of the private key. Figure 8.3 shows how public key encryption works.
5. Explain the different categories of electronic payment system in detail
(Listing the types and sub types, Explanation) 3 +7 =10
Answer: There are three main categories of EPS.
1. Banking and Financial Payments
Large-scale or whole payment (e.g., bank-to-bank transaction)
Small-scale or retail payment (e.g., ATM)
Home banking (e.g., bill payment)
2. Retail Payments
Credit cards (VISA or Master cards)
Private label credit/debit cards (e.g., JC Penny cards)
Charges cards (e.g., American Express)
3.Online e-commerce Payments
(i)Electronic token-based payment system
Electronic cash (e.g., DigiCash)
Electronic cheques (e.g., NetCheque)
Smart cards or debit cards (e.g., Mondex e-currency cards)
(ii)Credit card-based payment systems
Encrypted credit cards (www form-based encryption)
Third-party authorization number (e.g., First Virtual)
Electronic Token-based Payment System
Now a days, ‘electronic token’ (e-token) in the form of electronic cash/cheque has been developed. It is
recognized as equivalent to cash and is backed by banks.
1. Electronic Cash
Electronic cash (e-cash) is a form of electronic payment system based on encryption. This means it is a
secure payment system. Before a product is bought or services availed cash has to be obtained from a
currency server. The safety of e-cash is ensured by digital signature.
2. Electronic Cheques
Electronic cheque has all the same features as a paper cheque. It functions as a message to the sender’s
bank to transfer funds, the message is given to the receiver, who in turn, endorses the cheque and
presents it to the bank to obtain funds.
3. Smart Cards
Smart cards, containing microprocessors, are able to hold more information than cards based on the
traditional magnetic strips. They help the cardholder to perform operations, especially of financial nature.
Most of these methods are known as stored value cards or electronic purse system. Units of prepayment
or currency value are electronically stored on an IC (integrated circuit) chip embedded in these cards.
Credit Card-based Payment Systems
When a customer buys a product or avails a service, the details of the credit card is given to the seller of
goods or to the service providers involved. The credit card provider makes the payment.
The credit card transaction simply requires that the consumer has a legitimate credit card number
and expiration date while placing an order. This information has been provided through standard Internet
options like e-mail/SMS. Credit cards use personal information number (PIN).
Payment using encrypted credit card details
In this type of credit card system, the credit card data is encrypted and fed into a browser or any other ecommerce devices and safely sent through the network from the buyers to the sellers. This provides safety,
privacy and security as encrypted information is transferred over the public network.
Payment using third party verification
This credit card system uses a third party for security. An organization that gathers and allows payments
from one client to another is known as third party. After a lapse of sometime, the transaction of one credit
card for the whole accrued amount is completed.
6. We know that there are various internet services which help us to make the use of
network efficiently. Being a regular user of the various services without probably knowing
the technical aspects explain those services in details with an example.
(Listing the various services, Explanation, Examples) 2 +6 +2 = 10
Answer Services that are available on the Net:
World Wide Web
E-mail
File Transfer Protocol
Telnet
Web Chat
Online Service
Instant Messaging
World Wide Web
The World Wide Web is a system of interlinked hypertext documents accessed via the Internet. You can
use a Web browser to view texts, images, videos and multimedia on web pages and navigate between them
using hyperlinks. A majority of web pages are linked to other Web resources through hyperlinks.
Electronic Mail
E-mail is any method of digitally creating, transmitting or storing human communication that is primarily
textual.
The model on which a modern e-mail system works is the store-and-forward model. E-mails are
rarely transmitted directly from one user to another. E-mail computer server systems accept, store and
forward mail on behalf of users who connect up from their personal computers or any other networkenabled device. Transmission of any media is possible—including attachments consisting of audio and
video clips through email.
File Transfer Protocol
File Transfer Protocol (FTP) is a generic term for a cluster of programs used to transfer files or data from
one computer to another. It is a network protocol that allows an FTP client to connect to an FTP server
and manipulate files on that server. Therefore, this protocol can be used to exchange and manipulate files
across computers. FTP sites are normally used for uploading and downloading files to a central server
computer before they are distributed.
Telnet
Telnet (Telecommunication network) is a network protocol used on the Internet or in local area network
(LAN) connections. With Telnet, a user can get access to a command- line interface on a remote machine.
Telnet is software which implements the client part of the protocol. Telnet clients are available for
almost all platforms. However, because of security issues with Telnet, its usage has gone down
considerably.
Web Chat
Web chat allows users to communicate with one another in real time through Web interfaces. A Web
browser is the only requirement to be able to chat on the Web. Now days, technologies like Ajax and
Flash, are used for the new chat systems such as Buzzen Chat.
Online Services
The first commercial online services became available in 1979. Anyone who had a modem and
communicating software could chat and e-mail; or access news, financial and stock market information,
various forums, bulletin boards and other general information. These services used text-based interfaces
and menus. The problem with these services was that subscribers could exchange e-mails only with those
who subscribed to the same service.
Instant Messaging
Instant messaging (IM) is a form of real-time communication between two or more people based on typed
text. The text is conveyed via devices connected over a network such as the Internet. IM allows effective
and efficient communication, providing instant acknowledgment or reply. IM provides other additional
feature, such as use of webcams (to see the other participants) and free Internet telephony. IM allows a
user to save a conversation for later reference.