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Irungu Caroline Wanjiru

E-COMMERCE CAT

1. Describe any two types of e-marketplaces (4marks)

 Product Online Marketplace
This type is known as an ecommerce marketplace this is where people
buy and sell products. It brings together all types of sellers into a one-
stop-shop that is convenient for consumers to not only check prices for
the best deals but do so all under one electronic roof.
 Hyperlocal Marketplace
In this marketplace model the aim is to provide goods and services within the
shortest possible time from local vendors.
2. Clearly explain the meaning of the following terms as used in e-commerce
transactions. (6marks)
i) Authorization process of determining what the authenticated
entity is allowed to access and what operations it is allowed
to perform.
ii) Authentication the real identity of an entity which could be
an individual, computer, computer program, or EC Web site.
iii) Confidentiality. assurance of data privacy the data or
transmitted message is encrypted so that it is readable only
by the person for whom it is intended

3.Discuss four measures that an organization wanting to implement e-

commerce may have to put in place. (4marks)
 Your brand is your purpose.
 SEO brings in traffic.
 Customers love a great user experience
 Transparency builds trust.
4.Discuss three factors that hinder the successful implementation of e-
commerce in Kenya. (6marks) Lack of trust- With news of devastating data
breaches constantly in the headlines, many people are understandably wary of
giving their sensitive personal information to e-commerce websites.
Online payment fraud
the rise of mobile transactions and mechanisms for instant payment will be
major drivers behind the increase in fraud.
Cart abandonment
Convenience is one major reason that consumers prefer online shopping, but it
also comes with its downsides. For example, abandoning your shopping cart on
an e-commerce website is as simple as exiting the window.
5.Explain the meaning of the following: (6marks)
a. Brick and mortar business. used to refer to a company that
possesses or leases retail shops, factory production facilities, or
warehouses for its operations.
b. Electronic market. markets connected through modern
communications networks and powered by high-speed computers.
c. Pure play organization. company that focuses solely on one type of
product or service
6.Discuss any three legal or ethical issues in relation to electronic commerce.
(4marks)
 Web tracking. Every time someone visit the web, the website system
retains some trails of the users that can be refer later, this trails are
normal call logs.
 Liability and contractual information.
 Data protection and privacy.
 Managing fraud and securing electronic transactions.
 What are the e-commerce directive regulations?
 Understand your legal obligations.