2.1 Technology

Question 1

What are the advantages of E-commerce for a business?

Answer 1

Attracts customers across the globe
Sell/ buy 24/7
Give/ recieve money immediately
Reduced maintenance costs compared to a physical shop

Question 2

What are the disadvantages of E-commerce for a business?

Answer 2

More competitors across the globe
Employees may need new skills e.g. website maintenanene
Procedures required for products/services being delivered
Tenchnology is expensive

Question 3

How may a business use social media?

Answer 3

Sales and marketing (advertisment)
Interacting with customers
Communicating with stakeholders

Question 4

Why might a business use social media for sales and marketing?

Answer 4

Cheap way to advertise
To gain loyalty by encouraging people to ‘follow’ them

Question 5

Why might a business use social media to interact with customers?

Answer 5

To recieve feedback and answer questions

Question 6

Why might a business use social media to communicate with stakeholders?

Answer 6

To gain an insight on which stakeholders are interested in their business

Question 7

What is digital communication?

Answer 7

Sending and recieving information electronically

Question 8

Name some digital communication tools

Answer 8

Email
Mobile phones
Social media
Websites

Question 9

What is the impact of digital communication systems on a business’ sales activity?

Answer 9

If a business is easy to contact, the customer is more likely to trust the business and make a purchase

Question 10

What are the positive impacts of social media on a business’ sales activity?

Answer 10

Can build customer relationships which would help increase sales

Question 11

What is the negative impact of social media on a business’ sales activity?

Answer 11

Poor responses to social media posts or reviews can quickly be shared and can damage the business’ reputation

Question 12

What is the impact of payment methodd on a business’ sales activity?

Answer 12

Easy and convenient for customers to pay for products/ services
More likely to make a ourchase

Question 13

What is the impact of digital communication systems on a business’ costs?

Answer 13

Reduces office costs - Enables more employees to work from home
Communication done elctromically instead of printing and posting
Video conferencing instead of meeting face-to-face

Question 14

What are the positive impacts of E-commerce on a business’ costs?

Answer 14

Fewer sale staff
Avoids high rent from popular areas

Question 15

What are the negative impacts of E-commerce on a business’ costs?

Answer 15

Costs to host a website
Fees for handling online payments
Distribution of the goods costs money

Question 16

What is the impact of social media on a business’ costs?

Answer 16

Minimal cost to communicate and interact with customers

Question 17

What is the impact of payment methods on a business’ costs?

Answer 17

Payments received immediately
Business has to pay transaction fees