chapter 16

Question 1

benefit of advertising on social media sites

Answer 1

1.cheap
2.speed in response to market change
3.targets a specific demographic group

Question 2

disadvantages of advertising on social media sites

Answer 2

1.adverts may be annoying
2.advert will not reach customers who don’t have access to internet
3.may be used in a bad way to give the business bad publicity

Question 3

benefits of advertising on the business’s website

Answer 3

1.no extra cost if website is already set up
2.more control over advertising
3.can be quickly updated with new prices

Question 4

disadvantage of advertising on the business’s website

Answer 4

1.relies on customer finding the website
2.design cost may be high

Question 5

define e-commerce

Answer 5

online buying and selling of goods and services using computer systems

Question 6

opportunities of e-commerce to business

Answer 6

1.access to wider market->can sell worldwide
2.reduced costs->less labour cost and rent
3.detailed info->customers can see all features
4.easier to implement dynamic pricing->level of demand can be measured

Question 7

threats of e-commerce to business

Answer 7

1.increased competition->can force the business to charge lower prices to compete in online market
2.website design->must be very clear and easy to use, this can be expensive
3.no face to face contact->business doesn’t receive useful market research feedback
4.transport costs

Question 8

opportunities of e-commerce to consumers

Answer 8

1.convenience->consumers can order from the comfort of their home
2.wider choice->access to products from businesses located abroad
3.payment by credit card
4.access to lower price and offers->no middleman, and more competition

Question 9

threats of e-commerce to consumers

Answer 9

1.consumers need access to internet
2.fraud->untrusted websites can take customer’s money and not deliver goods
3.no face to face contact->consumer may have questions
4.returns are inconvenient