Comments

The performance of the candidates in question (3a) was very good.  But in 93b), candidates’ performance was very poor.  The expected answers include:

          3(b)    Advantages of e-commerce:

1. Global market - customers are spread over the entire world.
2. Lower transaction cost – It reduces cost of doing business substantially.
3. Quick delivery – Because there is a quick exchange of information

concerning the transaction, payments and delivery can be made quickly.

1. Saving of time and effort – It saves a lot of time and energy in receiving orders and executing the order.

1. No closing hours – The internet is opened 24 hours a day.  A customer can do his shopping anytime.
2. Wider choice – The consumer can access many shops at the same time and compare products and prices.
3. Convenience – A customer can do his shopping at home or in the office.

                   Disadvantages of e-commerce:

1. High start up cost – Getting hard-wares, connection costs to the internet and maintenance
2. High risk – A business may run the risk of internet fraudsters.
3. Training and maintenance – The need to train staff to maintain the internet facilities and web pages may be expensive for small business.
4. Lack of personal contact – It is not suitable for personalized services since there is not personal interaction with the seller.
5. Security: Fear of theft of credit card numbers and other personal details affects buyers.
6. Vulnerability – The availability of product details, prices and other information about the business through its websites make it vulnerable to access by its competitors.
7. System and data integrity – Data protection and integrity of the system are of concern because of viruses.
8. Unemployment:-  Because firms require fewer number of employees, it may increase the level of unemployment.