4.8 E-Commerce

Question 1

The costs and benefits of e-commerce to firms and consumers (AO3)

Answer 1

Question 2

Features of E-commerce (AO1)

Answer 2

Global availability:
- Can buy easily from other countries
Ubiquity:
- Can buy and sell 24/7
Personalized marketing and segmentation:
- Google Ads
More reliant on consumer involvement:
- Online reviews

Question 3

The effects of changing technology and e-commerce on the marketing mix (AO2)

Answer 3

Product
* Transformed certain markets
Price
* Firms don’t need a shop so have lower expenses
* But, need to pay for delivery costs
Increased price transparency
Promotion
* Can now use the internet to advertise, rather than TV, magazines etc.
* Increasing reliance on social media
Place
* Businesses are generally reducing the number of their retails outlets and focusing online
* Increased need for good logistics

Question 4

B2C
B2B
C2C

Answer 4

B2C
- Business to Consumer

B2B
- Business to Business (corporate banking, advertising agencies, engine producers)

C2C
- Consumer to Consumer (Ebay)