Sample Paper
DCO11130
Question 1
XYZ Co. Ltd. has an agreement from all newsletter publishers that they can sell
subscriptions for single issues or for periods of up to three years. Peter, manager of the
company, does not want to allow subscribers to use their credit cards to purchase a
subscription that is less than two years in duration. But he finds that nearly 60 percent of
the first-time customers on his site prefer to order a sample issue before committing to a
subscription of a year or more. One single issue is only worth $10.
You are required:
a) To explain why Peter, manager of the company, does not want to allow
subscribers to use their credit cards to purchase a subscription that is less than two
years in duration. Your explanation should be confined in the issues of cost and
security of credit cards;
(10 Marks)
ANS: - The transaction cost is extremely high for small transaction amount by using
credit card because there is a minimum charge in addition to the normal commission (e.g.
2%-3% of the purchase price).
- Also, when the purchase amount is small, consumers are unwilling to type in
credit card numbers or wait for a standard credit card authorization.
- Some clients are reluctant to use credit cards because they fear of their credit card
information which might be accessed by unauthorized users.
b) Suppose you recommend to rebuild the e-commerce site. Can you give a brief
account on the factors that must be considered when building an e-commerce site.
(10 Marks)
ANS: After generating ideas, building a business plan and finding funding, prepare to:
a. Advertising and Marketing your Web site
b. Customer relationship management
c. Content management
d. Accepting online payments
e. Recognizing cultural differences and legal parameters
f. Providing security features
g. Manage distribution
h. Manage shipping
i. Enhance the user experience through Web design
j. Prepare for new technologies
k. Purchase supporting hardware and software
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Question 2
What is Wireless Application Protocol (WAP). Describe briefly how WAP relate with
HTML.
(20 Marks)
ANS:
WAP (Wireless Application Protocol) a relatively new protocol that can support
virtually any wireless network and is supported by every operating system
Currently, most cellular phones can access the Web at only 9.6 Kbps and display only
four lines of text, while most PDAs are limited to transmission speeds of up to 19.2 Kbps.
Two protocols are used to deliver Web pages to wireless users: WAP and iMode.
WAP (Wireless Application Protocol) is a relatively new protocol that enables PDA
users to access the Web. WAP can support virtually any wireless network and is
supported by every operating system. Information that is sent via WAP must be written in
Wireless Markup Language (WML). This means an existing Web site must rewrite its
HTML pages as WML pages. On the other hand, WAP was designed specifically for
small PDAs with small screens and no keyboard. Although WAP is a new technology, it
is supported by some major players in the wireless arena: Nokia, Ericsson, Motorola, and
wireless software developer Unwired Planet.
Question 3
Explain the following terms:
a) Firewall & Kerberos;
(8 Marks)
ANS:
Firewall
A firewall protects a local area network (LAN) from intruders outside the network.
For example, most companies have internal networks that allow employees to share files
and access company information. Each local area network is connected to the Internet
through a gateway which usually includes a firewall.
Kerberos
Kerberos is a freely available, open-source protocol developed at MIT. It employs
symmetric secret-key cryptography to authenticate users in a network and maintain the
integrity and privacy of network communications. Unlike a firewall, a Kerberos system
can also be used to protect company networks from internal attacks.
b) Digital envelope;
ANS:
Digital envelope - This method uses symmetric encryption to encrypt and decrypt the
document, but public key encryption to encrypt and send the symmetric key.
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(4 Marks)
c) Digital certificates and public key infrastructure.
ANS:
Digital Certificates and Public Key Infrastructure – This method relies on
certification authorities who issue, verify, and guarantee digital Certificates (a digital
document that contains the name of the subject or company, the subject’s public key, a
digital certificate serial number, an expiration date, an issuance date, the digital signature
of the certification authority and of the certification information).
(8 Marks)
Question 4
Identify the THREE major forms of on-line marketing communications.
(20 Marks)
ANS:
The three major forms of marketing communications, including:
1. Banner and rich media ads are promotional messages that users can respond to by
clicking on the banner and following the link to a product description or offering.
Variations include different size banners, buttons, skyscrapers, pop-ups, and pop-unders.
Rich media ads use Flash, DHTML, Java, and streaming audio and/or video and typically
seek to involve users more deeply than static banner ads.
",
2. Paid search engine inclusion and placement is a relatively recent phenomenon.
Firms now pay search engines for inclusion in the search engine index (formerly free and
based on “objective” criteria), receiving a guarantee that their firm will appear in the
results of relevant searches.
3. Direct e-mail marketing sends e-mail directly to interested users, and has proven to
be one of the most effective forms of marketing communications. The key to effective
direct e-mail marketing is "interested users”- Internet users who, at one time or another,
have expressed an Interest in receiving messages from the advertiser (people who have
"opted in").
Question 5
a)
Describe briefly any THREE major types of e-commerce.
(10 Marks)
b)
Identify any THREE unique features of e-commerce technology & their business
significance. Explain briefly the three features mentioned.
(10 Marks)
ANS:
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(a)
The three major types of e-commerce are:
1. B2C involves businesses selling to consumers and is the type of e-commerce that
most consumers are likely to encounter. In 2001; consumers will spend about $65
billion in B2C transactions.
2. B2B e-commerce involves businesses selling to other businesses and is the largest
form of e-commerce, with an estimated $700 billion in transactions occurring in 2001.
3. C2C is a means for consumers to sell to each other. In C2C e-commerce, the
consumer prepares the product for market, places the product for auction or sale, and
relies on the market maker to provide catalog, search engine) and transaction clearing
capabilities so that products can be easily displayed, discovered, and paid for.
(b)
There are a number of features of e-commerce technology that are unique to this medium.
E-commerce technology:
e.g.
1. is ubiquitous, meaning that is it available just about everywhere, at all times, making
it possible to shop from your desktop; at home, at work, or even from your car.
2. has global reach, permitting commercial transactions to cross cultural and national
boundaries far more conveniently and cost effectively than is true in traditional
commerce.
3. operates according to universal standards shared by an nations around the world. In
contrast, most traditional commerce technologies differ from one nation to the next.
4. provides information richness, which refers to the complexity and content of a
message. It enables an online merchant to deliver to an audience of millions marketing
messages with text, video, and audio, in a way not possible with traditional commerce
technologies such as radio, television, or magazines.
5. is interactive, meaning it allows for two-way communication between merchant and
consumer and enables the merchant to engage a consumer in ways similar to a face-toface experience, but on a much more massive, global scale.
6. increases information density (the total amount and quality of information available to
all market participants). The Internet reduces information collection, storage,
processing, and communication costs while increasing the currency, accuracy, and
timeliness of information.
7. permits personalization and customization: merchants can target their marketing
messages to specific individuals by adjusting the message to a person's name, interests,
and past purchases. Because of the increase in information density, a great deal of
information about the consumer's past purchases and behavior can be stored and used
by online merchants. The result is a level of personalization and customization
unthinkable with existing commerce technologies.
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