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BCOS 184
E-COMMERCE
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 Bachelor of Commerce Online
BCOMOL

BCOS – 184: E-COMMERCE

ASSIGNMENT
2022-2023

Valid from 1st January 2023 to 31st December 2023

Fourth Semester

School of Management Studies

Indira Gandhi National Open University

Maidan Garhi, New Delhi -110068

 BACHELOR OF COMMERCE ONLINE
BCOS – 184: E-COMMERCE

ASSIGNMENT: 2022-23

Dear Students,

As explained in the Programme Guide, you have to do one Tutor Marked Assignment in this
Course. The assignment has been divided into three sections. Section A Consists of long answer questions
for 10 marks each, Section B consists of medium answer questions for 6 marks each and Section C
consists of short answer questions for 5 marks each.

Assignment is given 30% weightage in the final assessment. To be eligible to appear in the Term-end
examination, it is compulsory for you to submit the assignment as per the schedule. Before attempting the
assignments, you should carefully read the instructions given in the Programme Guide.

1. Those students who are appearing in December 2023 Term End Examination they have to
submit latest by in 15th October 2023.

2. Those students who are appearing in June 2023 exams. They have to submit the same latest
by 15th March 2023.

You have to submit the assignment of all the courses to the Coordinator of your Study Centre.
 TUTOR MARKED ASSIGNMENT
COURSE CODE : BCOS – 184
COURSE TITLE : E-COMMERCE
ASSIGNMENT CODE : BCOS – 184/TMA/2022-23
COVERAGE : ALL BLOCKS
Maximum Marks: 100

Note: Attempt all the questions.

Section – A
Q.1 What is the significance of virtual communities and web portals? (10)
Q.2 What are e-Commerce revenue models? Explain their various types. (10)
Q.3 Describe various types of biometric and non-biometric security measures. (10)
Q.4 What is a virtual currency? What are the features of a virtual currency? Why do (10)
you think crypto currency was banned by RBI?
Q.5 State the various phases of the website development process. (10)

Section – B

Q.6 Why is customer engagement and retention an important tool for an E- (6)
commerce business?
Q.7 What is Cyber Security? State its importance in the today’s digitally connected (6)
world.
Q.8 What are the facilities that Artificial Intelligence is providing to E-commerce? (6)
Q.9 Explain the process of encryption in Digital Signatures. (6)
Q.10 What do you mean by the financial and technical feasibility of the plan? (6)
Section – C

Q.11 Give the brief of E-tailing trends in India. (5)

Q.12 What are the three main vision areas of Digital India Programme (DIP)? (5)
Q.13 Differentiate between web server and application server. (5)
Q.14 What are the merits of E-payment system? (5)
Note: Attempt all the questions.

Section – A

Q.1 What is the significance of virtual communities and web portals?

ANS - 2 / 2

Virtual communities and web portals have significant importance in today's digital world. Here are
some of their significances:

1. Virtual Communities:

Virtual communities are online groups of people who share common interests or goals. They provide
a platform for people to interact with each other, share information, and collaborate on projects.
Virtual communities have the following significance:

 Knowledge sharing: Virtual communities allow people to share knowledge and expertise on
specific topics. This can be especially useful for professionals who need to stay up-to-date
with the latest industry trends and practices.

 Social interaction: Virtual communities provide a platform for people to connect with others
who share similar interests. This can help to reduce social isolation and provide a sense of
belonging.

 Marketing: Virtual communities can be used for marketing purposes, such as promoting
products or services to a specific target audience.

 Innovation: Virtual communities can facilitate innovation by bringing together people with
diverse backgrounds and expertise.

2. Web Portals:

Web portals are websites that provide a single point of access to a wide range of information and
services. They have the following significance:

 Convenience: Web portals provide a convenient way for people to access information and
services from a single location.

 Customization: Web portals can be customized to meet the specific needs of users. For
example, users can choose which information and services they want to see on their
dashboard.

 Integration: Web portals can integrate with other systems and platforms, such as social
media and e-commerce sites, to provide a seamless user experience.

 Efficiency: Web portals can improve efficiency by automating routine tasks and reducing the
need for manual intervention.

 Cost savings: Web portals can help to reduce costs by eliminating the need for paper-based
processes and reducing the workload of administrative staff.

In conclusion, virtual communities and web portals are significant in today's digital world as they
provide a platform for people to interact, collaborate, access information and services, and improve
efficiency. They are likely to continue to grow in importance as technology continues to evolve.
Q.2 What are e-Commerce revenue models? Explain their various types.

ANS - E-commerce revenue models refer to the ways in which online businesses generate revenue.
Here are the various types of e-commerce revenue models:

1. Sales-based Revenue Model: This model generates revenue by selling goods or services
online. This is the most traditional e-commerce model, where the business earns revenue by
selling products to customers. Examples of sales-based revenue models are Amazon,
Flipkart, and eBay.

2. Subscription-based Revenue Model: This model generates revenue by charging customers a

subscription fee for accessing a product or service. It works well for businesses that offer
ongoing services or products that customers use on a regular basis. Examples of
subscription-based revenue models are Netflix, Spotify, and Amazon Prime.

3. Advertising-based Revenue Model: This model generates revenue by showing ads to users
on a website or platform. It works well for businesses that have a large user base or a high
volume of traffic. Examples of advertising-based revenue models are Google, Facebook, and
Instagram.
4. Affiliate-based Revenue Model: This model generates revenue by earning a commission on
sales made through affiliate links. It works well for businesses that promote other
companies' products or services. Examples of affiliate-based revenue models are Amazon
Associates, Commission Junction, and ShareASale.

5. Transaction-based Revenue Model: This model generates revenue by charging a fee for each
transaction made through the platform. It works well for businesses that facilitate
transactions between buyers and sellers. Examples of transaction-based revenue models are
PayPal, Stripe, and Paytm.

6. Commission-based Revenue Model: This model generates revenue by taking a commission

on sales made through the platform. It works well for businesses that connect buyers and
sellers, but don't actually facilitate transactions. Examples of commission-based revenue
models are Uber, Ola, and Airbnb.

Q.3 Describe various types of biometric and non-biometric security measures.

ANS - Biometric security measures use physical or behavioral characteristics of individuals to verify
their identity. Non-biometric security measures use other forms of authentication such as
passwords, PINs, and security tokens. Here are some examples of biometric and non-biometric
security measures:

1. Biometric Security Measures:

 Fingerprint recognition: This is the most common form of biometric security. The system
matches a person's fingerprints with those in the database to verify their identity.

 Face recognition: This system identifies a person by analyzing facial features such as the
distance between the eyes and the shape of the jawline.

 Iris recognition: This system uses unique features of a person's iris to verify their identity. It
is considered to be one of the most secure forms of biometric security.
  Voice recognition: This system analyzes a person's voice patterns to verify their identity. It is
commonly used in call centers and banking applications.

2. Non-biometric Security Measures:

 Passwords: This is the most common form of non-biometric security. Users are required to
create a unique password to access a system or account.

 PINs: This is similar to passwords but typically involves a shorter numerical code.

 Security tokens: These are physical devices that generate one-time passwords or codes to
authenticate a user's identity.

 Smart cards: These contain a chip that stores user information and require a PIN for access.
 Captcha: This is a program that generates and verifies that a response is not generated by a
computer, but by a human.

Q.4 What is a virtual currency? What are the features of a virtual currency? Why do you think
crypto currency was banned by RBI?

ANS - A virtual currency is a digital form of currency that is not backed by any government or central
authority. It is decentralized, meaning it is not controlled by any financial institution or government.

The features of virtual currency include:

1. Digital nature: Virtual currencies exist entirely online and are not physical like traditional
currency.

2. Decentralized: Virtual currencies are not controlled by any central authority.

3. Anonymity: Virtual currencies allow users to make transactions without revealing their
identity.

4. Encryption: Virtual currencies use complex encryption techniques to secure transactions and
prevent fraud.

5. Limited supply: Virtual currencies often have a limited supply, which helps to maintain their
value.

Crypto currency, a type of virtual currency, was banned by RBI in India due to the following reasons:

1. Lack of regulation: The RBI was concerned about the lack of regulation and oversight for
cryptocurrencies, which could lead to money laundering and other illegal activities.

2. Security risks: Cryptocurrencies are vulnerable to cyber attacks and other security breaches,
which could result in the loss of funds.

3. Volatility: Cryptocurrencies are highly volatile, and their value can fluctuate rapidly. This
makes them a risky investment and can lead to financial losses for investors.

4. Unregulated nature: Cryptocurrencies are not backed by any government or central

authority, making them unpredictable and potentially unstable.
Overall, the RBI's decision to ban crypto currency was based on the potential risks and lack of
regulation associated with this type of virtual currency.

Q.5 State the various phases of the website development process.

ANS - The website development process typically consists of several phases, including:

1. Planning: This phase involves identifying the goals and objectives of the website, as well as
the target audience, content requirements, and technical specifications.

2. Design: During this phase, the website's layout, color scheme, typography, and other visual
elements are created. This phase may involve the use of wireframes, mockups, and
prototypes to visualize the design.

3. Content creation: In this phase, the website's content is created, including text, images,
videos, and other multimedia elements. This content should be tailored to the target
audience and optimized for search engines.

4. Development: This phase involves the actual coding and development of the website. The
website's functionality and interactivity are implemented during this phase, using
programming languages such as HTML, CSS, JavaScript, and PHP.

5. Testing: Once the website has been developed, it must be thoroughly tested to ensure that
it is functioning correctly and that there are no bugs or technical issues. This phase may
involve manual testing, automated testing, and user testing.

6. Launch: Once the website has been tested and all issues have been resolved, it can be
launched to the public. This phase involves deploying the website to a web server and
making it accessible to users.

7. Maintenance: After the website has been launched, it will require ongoing maintenance to
ensure that it remains up-to-date and secure. This may involve updating content, fixing bugs,
and implementing new features as needed.

Overall, the website development process is a complex and iterative process that requires careful
planning, design, development, and testing to create a high-quality website that meets the needs of
the target audience.

Section – B

Q.6 Why is customer engagement and retention an important tool for an Ecommerce business?

ANS - Customer engagement and retention are critical tools for any eCommerce business because
they can help to build customer loyalty and drive long-term growth. Here are some reasons why:

1. Increased customer lifetime value: When customers feel engaged with your brand, they are
more likely to make repeat purchases and remain loyal to your business. This can lead to
increased customer lifetime value, which refers to the total revenue that a customer
generates for your business over the course of their relationship with you.
 2. Positive word-of-mouth: Engaged customers are more likely to recommend your business to
their friends and family, which can help to attract new customers and drive sales.

3. Lower customer acquisition costs: Retaining existing customers is often less expensive than
acquiring new ones. By investing in customer engagement and retention, you can reduce
your customer acquisition costs and improve your bottom line.

4. Increased customer satisfaction: Engaged customers are typically more satisfied with their
shopping experience and are more likely to leave positive reviews and feedback. This can
help to improve your reputation and attract new customers to your business.

5. Competitive advantage: In a crowded eCommerce market, customer engagement and

retention can help you to differentiate your business from the competition. By offering a
personalized and engaging shopping experience, you can build a loyal customer base and
stand out in a crowded market.

Q.7 What is Cyber Security? State its importance in the today’s digitally connected world.
ANS - Cybersecurity refers to the practice of protecting computer systems, networks, and sensitive
information from unauthorized access, use, theft, or damage. It is a crucial aspect of modern-day
technology and plays a vital role in safeguarding businesses, organizations, and individuals from
cyber-attacks.

In today's digitally connected world, cyber security is of utmost importance. Here are some reasons
why:

1. Protects sensitive information: Cyber security helps protect sensitive information such as
personal data, financial information, intellectual property, and trade secrets from
cybercriminals.

2. Maintains business continuity: Cyber attacks can cause significant disruptions to businesses
and organizations, resulting in financial losses, damage to reputation, and loss of customer
trust. Cyber security helps prevent such disruptions by ensuring business continuity.

3. Complies with regulations: Many industries are required to comply with regulations and
standards related to cyber security, such as HIPAA for healthcare organizations and PCI DSS
for payment card processing. Non-compliance can result in significant fines and legal
penalties.

4. Prevents identity theft: Cyber security measures such as strong passwords, two-factor
authentication, and encryption can help prevent identity theft and protect personal
information.
5. Supports national security: Cyber attacks can pose a threat to national security, and cyber
security measures are necessary to protect critical infrastructure such as power grids, water
supply systems, and communication networks.

Q.8 What are the facilities that Artificial Intelligence is providing to E-commerce?

ANS - Artificial Intelligence (AI) is providing a wide range of facilities to e-commerce, including:
 1. Personalized recommendations: AI algorithms can analyze customer data and browsing
behavior to provide personalized product recommendations, increasing the chances of a
purchase.

2. Chatbots: AI-powered chatbots can provide instant customer support, answering queries
and resolving issues in real-time.

3. Image recognition: AI algorithms can recognize and analyze product images, enabling
customers to search for products using images.

4. Predictive analytics: AI can analyze customer data and predict future trends, helping
businesses make informed decisions about inventory, pricing, and marketing.

5. Fraud detection: AI algorithms can detect and prevent fraudulent transactions, reducing the
risk of financial losses for businesses.

6. Voice assistants: AI-powered voice assistants such as Amazon's Alexa and Google Assistant
can be integrated into e-commerce platforms, allowing customers to place orders using
voice commands.
7. Dynamic pricing: AI can analyze market data and adjust prices in real-time, helping
businesses optimize pricing strategies.
8. Supply chain optimization: AI algorithms can optimize supply chain operations, reducing
costs and improving efficiency.

Q.9 Explain the process of encryption in Digital Signatures.

ANS - Digital signatures use encryption to ensure the authenticity, integrity, and non-repudiation of
electronic documents. Encryption is the process of converting plain text into a cipher text to protect
the confidentiality of the message.

The process of encryption in digital signatures involves the following steps:

1. Hashing: The message is first hashed using a hash function to generate a fixed-length
message digest. The hash function is a one-way function that takes a variable-length input
and generates a fixed-length output. The message digest is unique to the message and
cannot be reversed to obtain the original message.

2. Private key encryption: The message digest is then encrypted using the sender's private key.
This creates a digital signature that can be attached to the electronic document.

3. Transmission: The electronic document along with the digital signature is transmitted to the
recipient.

4. Verification: The recipient can verify the authenticity and integrity of the electronic
document using the digital signature. The recipient performs the following steps:

a. Hashing: The electronic document is hashed using the same hash function used by the sender.

b. Public key decryption: The digital signature is decrypted using the sender's public key.
c. Comparison: The decrypted message digest is compared with the message digest generated by
hashing the electronic document. If the two message digests match, the electronic document is
authentic and has not been tampered with.

Q.10 What do you mean by the financial and technical feasibility of the plan?

ANS - Financial feasibility refers to the ability of a plan to be financially viable and sustainable. This
involves assessing whether the costs of the plan can be covered by the expected revenues or funding
sources, and whether the plan is financially feasible in the long-term. A financial feasibility analysis
may involve conducting a cost-benefit analysis, creating financial projections, assessing the
availability of funding sources, and identifying potential financial risks.

Technical feasibility refers to the ability of a plan to be implemented using available technology and
resources. This involves assessing whether the necessary technology, equipment, and expertise are
available to implement the plan effectively. A technical feasibility analysis may involve conducting a
technology assessment, identifying potential technical challenges or limitations, and assessing the
availability of resources required for implementation.
Overall, a plan that is both financially and technically feasible is one that is not only financially viable
but also implementable using available technology and resources. This helps to ensure that the plan
can be successfully executed and achieve its intended goals.

Section – C

Q.11 Give the brief of E-tailing trends in India.

ANS - E-tailing, or electronic retailing, refers to the process of selling goods and services online. In
India, e-tailing has seen significant growth in recent years, driven by factors such as increasing
internet penetration, rising consumer demand for convenience, and the availability of affordable
smartphones and data plans. Here are some of the current e-tailing trends in India:

1. Mobile shopping: With over 500 million smartphone users in the country, mobile shopping
has become a popular trend in India. E-commerce companies are investing in mobile apps
and mobile-friendly websites to cater to this growing segment of consumers.

2. Personalization: E-tailers are increasingly using data analytics and artificial intelligence (AI) to
personalize the shopping experience for consumers. This includes personalized product
recommendations, customized offers and promotions, and personalized communication.

3. Social commerce: Social media platforms such as Facebook, Instagram, and WhatsApp are
increasingly being used as e-commerce platforms in India. E-tailers are leveraging social
media to reach a wider audience, engage with customers, and drive sales.

4. Voice commerce: With the growing popularity of voice assistants such as Amazon Alexa and
Google Assistant, voice commerce is emerging as a trend in India. E-tailers are exploring
ways to leverage voice technology to enable customers to shop through voice commands.

5. Cross-border e-commerce: With the rise of global marketplaces such as Amazon and
Alibaba, cross-border e-commerce is becoming increasingly popular in India. Consumers are
able to access a wider range of products at competitive prices from international sellers.
Q.12 What are the three main vision areas of Digital India Programme (DIP)?

ANS - The Digital India Programme (DIP) is an initiative launched by the Government of India in 2015
with the aim of transforming India into a digitally empowered society and knowledge economy. The
programme has three main vision areas, which are:

1. Digital infrastructure as a core utility to every citizen: This vision area aims to provide high-
speed internet connectivity to all citizens and create a digital infrastructure that can support
the delivery of e-governance services, education, healthcare, and financial services. The goal
is to create a digital infrastructure that can be easily accessible and affordable to all citizens,
including those living in remote and rural areas.
2. Governance and services on demand: This vision area aims to use technology to provide
government services to citizens in a transparent, efficient, and effective manner. The goal is
to reduce the need for physical visits to government offices and make government services
available to citizens anytime, anywhere. This includes initiatives such as e-governance
portals, digital lockers, and e-signatures.

3. Digital empowerment of citizens: This vision area aims to promote digital literacy and digital
skills among citizens, especially in rural and remote areas. The goal is to create a digitally
literate society where all citizens can participate in the digital economy and take advantage
of the opportunities provided by technology. This includes initiatives such as digital literacy
camps, digital skill training programmes, and the promotion of entrepreneurship and
innovation in the digital sector.

Q.13 Differentiate between web server and application server.

ANS - A web server and an application server are both types of servers used in the delivery of web-
based applications, but they have different roles and functions.

1. Web Server: A web server is a server that delivers static content, such as HTML pages,
images, and other types of files, to web browsers over the internet. A web server simply
receives requests from web browsers and responds by sending the requested content back
to the browser. It is primarily responsible for handling HTTP requests and responses, and
delivering static content to web browsers. Examples of popular web servers include Apache
HTTP Server, Nginx, and Microsoft IIS.
2. Application Server: An application server, on the other hand, is a server that is designed to
handle dynamic content and serve web-based applications. An application server typically
includes a runtime environment, a database server, and web server functionalities. It is
responsible for handling more complex requests from clients, executing application code,
accessing databases, and returning dynamic content to clients. Examples of popular
application servers include IBM WebSphere, Oracle WebLogic, and JBoss.

In summary, the main differences between a web server and an application server are:

 Web servers are responsible for delivering static content, while application servers are
designed to handle dynamic content and serve web-based applications.
  Web servers are typically simpler in terms of functionality and architecture, while
application servers are more complex and include additional components such as a runtime
environment and a database server.

 Web servers do not execute application code, while application servers execute application
code to produce dynamic content.

Q.14 What are the merits of E-payment system?

ANS - E-payment systems, which allow users to make electronic transactions over the internet, offer
a number of benefits over traditional payment methods. Here are some of the key merits of e-
payment systems:

1. Convenience: E-payment systems offer users the convenience of making transactions from
anywhere and at any time, as long as they have an internet connection. Users can make
payments without having to physically visit a bank or other financial institution.

2. Speed: E-payment systems are generally faster than traditional payment methods, as
transactions can be completed in real-time or near-real-time. This is particularly useful for
businesses that need to make payments quickly, such as in the case of urgent supplier
payments.

3. Cost savings: E-payment systems can be more cost-effective than traditional payment
methods, as they eliminate the need for paper-based transactions and manual processing.
This can result in cost savings for businesses and individuals alike.

4. Security: E-payment systems offer a high level of security, as they use encryption and other
security measures to protect user data and prevent fraud. This can help to reduce the risk of
identity theft and other forms of financial crime.

5. Accessibility: E-payment systems can be accessed by anyone with an internet connection,

regardless of their location. This makes it easier for people in remote or underdeveloped
areas to access financial services and make transactions.