1.5.2 Technology and Business Flashcards
(13 cards)
E-commerce Benefits to a Business
-Sell products 24/7
-Reduced costs of retail premises
-Market can be expanded
-Quality improved due to online comparisons to try be the best
-Speedy and efficient services
-Data recording and analysis easily achieved
-E-tailors can locate in less expensive areas
E-commerce Negatives to a Business
-No personal contacts with employees
-ICT systems have to be established, maintained and updated which adds costs
-Distribution costs can increase
-Increased competition
-Not all customers have internet access
-Providing good customer service can be expensive
E-commerce Benefits to Customers
-Convenience
-Cheaper prices and better quality due to competition
-Availability can be checked so no need to check in the shop
-Choice is increased
-Product details and reviews are available
-No hard sell from employees
E-commerce Negatives to Customers
-Customers can’t see or try goods before purchasing them
-Possibility of personal details being used for fraud or unwanted advertising
-Delays in delivery
-Customers without internet access may lose out on choice
E-commerce Benefits to Communities
-Growth of new job opportunities
-Increased sales in associated industries
-Local and national economic benefits from businesses who are successful
E-commerce Negatives to Communities
-Loss of traditional retailers due to an increase in competition
-Increase in products from other countries resulting in the loss of direct and indirect jobs in the economy
Digital Communication Advantages
-Cheap to operate
-Widely used
-Saves cost of storage as can be stored electronically
-Possible to produce translated versions
-Teleconferencing and videoconferencing saves costs and time
-High quality advertising and marketing messages are possible
Digital Communication Negatives
-May be unreliable and no guarantee messages are recieved and accessed
-Can lead to communication overload
-Equipment may not work and not all places will be connected
-Environmental and health concerns over electronic transmission
-Lack of leisure time
-Constant training requirement for staff
Payment Systems Benefits
-Lower costs
-Quicker receipt of money
-Happy customers who find it convenient
-No need for cash to be kept or used
Payment Systems Negatives
-Cost of buying and using payment systems
-Customers resistant to use of payment systems
-Not all customers may have access to required technology
-Risk of fraud
Impacts to Sales of Technology
-Reach a wider audience however need to work harder to get these sales
-Consumers can research reviews and compare competitors with ease
Impacts to Costs of Technology
-Cost savings can be made using technology
-Increase costs to buy and maintain equipment
Impact to Marketing Mix of Technology
-Price- firms need to be more competitive
-Product- constantly changing and developing products
-Place- easier to sell directly to customers
-Promotion- target market segments more easily
