A

PROJECT REPORT
ON
E-COMMERCE
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF
BACHERLE OF BUSINESS ADMINISTRATION
SUBMITTED TO: SUBMITTED BY:
Mr. YATIN GOEL SUNIL KUMAR
BBA 6
TH
SEM
VAISH INSTITUTE OF
MANAGEMENT TECHNOLOGY!
ROHTAK
CONTENTS
SR. NO. PARTICULARS PAGE NO.
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Business has been looking for ways to increase their profits and market share. The
search for more efficient ways of doing business has been driving another revolution in
the conduct of business .This revolution is known as electronic commerce which is any
purchasing or selling through an electronic communications medium. Business planners in
institutions and organizations now see technology not only as a supportive cofactor, but as
a key strategic tool. They see electronic commerce as a wave of future.
Information technology has revolutionized and digitalized economic activity, and
made it a truly global phenomenon .ne of the most visible icons of the IT !evolution is
the internet " the world wise web. #hich is a gigantic anarchic network of computers
world wide, which is essentially used for communicating, interaction, interactive long
distance computing and e$change of information giving rise to a host of applications from
military and government to business, education and entertainment%
&'commerce e$ists because of internet. It has been born on the net and is growing
with the net. It involves carrying business on and through the net.
&'commerce is a product of the digital economy. It is a source of a paradigm shift, in
redefining technology, individual and global societies as well as national and global
economies.
&lectronic commerce is a symbolic integration of communications, data
management, and security capabilities to allow business applications within different
organizations to automatically e$change information related to the sale if goods and
services. (ommunication services support the transfer of information from the originator
to the recipient. )ata management services define the e$change format of the
information. *ecurity mechanisms authenticate the source of information, guarantee the
integrity of the information received, prevent disclosure of information to inappropriate
users, and document that the information was received by the intended recipient.
+rior to the development of e'commerce, the process of marketing and selling
goods was a mass'marketing and sales'force driven process. (ustomers were viewed as
passive targets of advertising campaigns .*elling was conducted in well'insulated
channels .(onsumers were trapped by geographical and social boundaries, unable to
search widely for the best price and ,uality.
&'commerce has challenged much of this traditional business thinking.
E-C%44-r(- D-/)#-&:
The use of internet and the #&B to transact business. -ore formally, digitally enabled
commercial transactions between and among organizations and individuals.
&lectronic commerce is commerce via any electronic media, such as T., fa$, and online
networks. Internet'based commerce makes use of any Internet facility and service. #eb'
based commerce focuses on the opportunity of the #orld #ide #eb apparatus, in
particular, its ubi,uity and its ease of use.
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&lectronic commerce increases the speed, accuracy, and efficiency of business and
personal transactions. The benefits of &'commerce include the following/
0 U?)@')$7: &'commerce is ubi,uitous, meaning that it is available 1ust about
everywhere, at all times. It liberates the market from being restricted to a physical
space and makes it possible to shop from your desktop, at home, at work, or even
from your car using mobile commerce .2rom customer point of view, ubi,uity
reduces transaction costs " the costs of participating in a market. To transact it is
no longer necessary to spend time and money traveling to market. 3t a broader
level, the ubi,uity of e'commerce lowers the cognitive energy re,uired to transact
in a marketplace. (ognitive energy refers to the mental effort re,uired to complete
a task.
0 G0%?20 R-2(,: &'commerce technology permits commercial transactions to cross
cultural and national boundaries far more conveniently and cost effectively than is
true in traditional commerce. 3s a result, the potential market size for e'commerce
merchants is roughly e,ual to the size of the world4s online population. The total
number of users or customers an e'commerce business can obtain is a measure of
its reach.
0 U#)8-r.20 S$2#&2r&.: The technical standards for conducting e'commerce are
universal standards " they are shared by all nations around the world. The
universal technical standards of e'commerce greatly lower the market entry costs '
the cost merchants must pay 1ust to bring their goods to market. 3t the same time,
for consumers, universal standards reduce search cost " the effort re,uired to find
a suitable products.
0 R)(,#-..: Information richness refers to the comple$ity and content of a message.
0 I#$-r2($)8)$7: &'commerce technologies are interactive, meaning they allow for
two'way communication between merchant and consumer .It allows an online
merchant to engage a consumer in ways similar to a face'to face e$perience , but
on a much more massive , global scale.
0 I#/%r42$)%# D-#.)$7: the internet and the #eb vastly increase information
density "the total amount and ,uality of information available to all market
participants, consumers, and merchants alike. &'commerce technologies reduce
information collection, storage, processing, and communication costs .3t the sale
time5 these technologies increase greatly, the accuracy and timeliness of
information'making information more useful and important than ever. 3s a result
information becomes more plentiful, cheaper and of higher ,uality.
0 P-r.%#20)32$)%#>C'.$%4)32$)%#: &'commerce technologies permit
personalization " merchants can target their marketing messages to specific
individuals by ad1usting the message to a person4s name, interests, and past
purchases. The technology also permits customization changing the delivered
product or service based on a user4s preference or prior behavior. 6iven the
interactive nature of e'commerce technology, a great deal of information about the
consumer can be gathered in the marketplace at the moment of purchase. #ith the
increase in information density, a great deal of information about the consumer4s
past purchases and behavior can be stored and used by online merchants. The
result is increase in the level of personalization and customization.
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There are different types of e'commerce and many different ways to characterize these
types.
The five ma1or types of e'commerce are/
7. B8(
8. B8B
9. (8(
:. +8+
;. -'(ommerce
B*C: <Business'to'(onsumer=
The most commonly discussed type of e'commerce is Business'to'(onsumer <B8(= e'
commerce, in which online business attempt to reach individual consumers is done .It has
grown e$ponentially since 7>>;, and is the type of e'commerce that most consumers are
likely to encounter . #ithin the B8( category there are many different types of business
models/ portals, online retailers, content providers, transaction brokers, market creators ,
service providers , and community providers.
B*B: <Business'to'Business=
In this type of e'commerce, one business focuses on selling to other business .It is the
largest form of e'commerce. The ultimate size of B8B e'commerce could be huge . 3t
first, B8B e'commerce primarily involved inter'business e$changes, but a number of other
B8B business models have developed, including e'distribution, B8B service providers,
matchmakers, and info'mediaries that are widening the use of e'commerce.
C*C: (onsumer'to'(onsumer
(8( e'commerce provides a way for consumers to sell to each other, with the help of an
online market maker such as the auction site .In (8( e'commerce, the consumer prepares
the product for market, places the product for auction or sale, and relies on the market
maker to provide catalog, search engine, and transaction clearing capabilities so that
products can be easily displayed, discovered, and paid for.
P*P: BP--r-$%-P--rC
+eer'to'+eer technology enables Internet users to share files and computer resources
directly without having to go through a central #eb server. In peer'to'peer4s purest form,
no intermediary is re,uired. &ntrepreneurs and venture capitalists have attempted to adapt
various aspects of peer'to'peer <+8+= e'commerce.
&.g. ?apster.com established to aid internet users in finding and sharing music files <mp9
files=. It is partially peer'to'peer because it relies on a central database to show which
users are sharing music files.
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-obile commerce or m'commerce refers to the use of wireless digital devices to enable
transactions on the #eb. These devices utilize wireless networks to connect cell phones
and handheld devices to the #eb. nce connected, mobile consumers can conduct many
types of transactions, including stock trades, banking, travel reservations, and more.
B*G: B'.)#-.. $% G%8-r#4-#$
&'(ommerce Business -odels/
3 business model is a set of planned activities <sometimes referred to as business process=
designed to result in a profit in a marketplace. The business model is at the center of the
business plan.
3 business plan is a document that describes a firm4s business model.
3n e'commerce business model aims to use and leverage the uni,ue ,ualities of the
internet and the #orld #ide #eb.
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7. V20'- Ar%A%.)$)%#: It defines how a company4s product or service fulfils the
needs of the customers. To develop and@or analyze a proposition, the following
,uestions need to be answered /
' #hy will customers choose to business with your firm instead of another
company%
' #hat will your firm provide that other firms do not and cannot%
2rom the consumer point of view, successful e'commerce value propositions include/
personalization and customization of product offerings, reduction of product search costs,
reduction of price discovery costs, and facilitation of transactions by managing product
delivery.
8. R-8-#'- 4%&-0:
The firm4s revenue model describes how the firm will earn revenue, generate profits, and
produce a superior return on invested capital. The function of business organizations is
both to generate profits and to produce returns on invested capital that e$ceed alternative
investments.
A The advertising model/
3 website that offers its users content, services, and@or products also provides a forum for
advertisements and receives fees from advertisers. Those websites that are able to attract
the greatest viewer ship and are able to retain user attention are able to charge higher
advertising rates.
A *ubscription !evenue -odel/
In the subscription revenue model, a #eb site that offers its users content or services
charges a subscription fee for access to some or all of its offerings.
A Transaction fee revenue model/
In this model a company receives a fee for enabling or e$ecuting a transaction. <e.g.
nline auction websites taking some commission from buyer as well as the seller=.
A 3ffiliate !evenue model/
In the affiliate revenue model, sites that steer business to an affiliate receive a referral
fee or percentage of the revenue from any resulting sales.
1. M2r9-$ OAA%r$'#)$7:
The term market opportunity refers to the company4s intended marketplace and the overall
potential financial opportunities available to the firm in that marketplace. The market
opportunity is usually divided into smaller market niches. The realistic market opportunity
is defined by the revenue potential in each of the market niches.
5. C%4A-$)$)8- E#8)r%#4-#$:
The firm4s competitive environment refers to the other companies operating in the same
marketplace selling similar products. The competitive environment for a company is
influenced by several factors/ how many competitors are active, how large their operations
are, what the market share of each competitor is, how profitable these firms are, and how
they price their products.
6. C%4A-$)$)8- A&82#$2+-:
2irms achieve a competitive advantage when they can produce a superior product a
superior product and@or bring the product to market at lower than most, or all, of their
competitors. 2irms also compete on scope .*ome firms can develop global markets while
other firms can only develop a national or regional market .2irms that can provide
superior products at lowest cost on global basis are truly advantaged.
6. M2r9-$ .$r2$-+7:
-arket strategy is the plan the company put together that details e$actly how the company
intend to enter the market and attract new customers.
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)escribes how the company will organize the work that needs to be accomplished.
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&mployees of the company responsible for making the business model work.
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There are a number of different models being used in the B8( e'commerce arena. The
ma1or models include the following/
0 P%r$20/'ffers powerful search tools plus an integrated package of content
services5 typically utilizes a combined subscription@advertising revenue@transaction
fee model may be general or specialized.
0 E-$2)0-r: ' nline version of traditional retailer5 includes virtual merchants <online
retail stores=, clicks and mortar e'tailers <online distribution channel for a company
that also has a physical store=5 catalog merchants <online version of direct mail
catalog=5 online malls <online version of mall=5 manufacturers selling directly over
the #eb.
0 C%#$-#$ Pr%8)&-r/ ' Information and entertainment companies that provide digital
content over the #eb5 typically utilizes an advertising, subscription, or affiliate
referral fee revenue model.
0 Tr2#.2($)%# ?r%9-r: ' +rocess online sales transactions5 typically utilizes a
transaction fee revenue model.
0 M2r9-$ (r-2$%r: ' Bses Internet technology to create markets that brings buyers
and sellers together5 typically utilize a transaction fee revenue model.
0 S-r8)(- Ar%8)&-r: ' ffers services online.
0 C%44'#)$7 Ar%8)&-r/ ' +rovides an online community of like'minded individuals
for networking and information sharing5 revenue is generated by referral fees,
advertising, and subscription.
M2D%r B*B ?'.)#-.. 4%&-0.:
The ma1or business models used to date in B8B arena include/
0 Cub, also known as marketplace@e$change " electronic market place where
suppliers and commercial purchasers can conduct transactions5 may be general <a
horizontal marketplace= or specialized <a vertical marketplace=.
0 E-&).$r)?'$%r/ ' *upplies products directly to individual businesses.
0 B*B .-r8)(- Ar%8)&-r/ ' *ells business services to other firms.
0 M2$(,429-r/ ' Dink business together, changes transaction on usage fees.
0 I#/%4-&)2r7/ ' 6athers information and sells it to business.
M2D%r C*C ?'.)#-.. 4%&-0.:
3 variety of business models can be found in the customer'to'customer e'commerce, peer'
to'peer e'commerce, and m'commerce areas/
0 (8( business models connect consumers with other consumers .The most
successful has been the market creator business model used by eBay.com.
0 +8+ business models enable consumers to share files and services via #eb without
common servers. 3 challenge has been finding a revenue model that works.
0 -'commerce business models take traditional e'commerce models and leverage
emerging wireless technologies to permit mobile access to the #eb.
0 &'commerce enablers business models focus on providing the infrastructure
necessary for e'commerce companies to e$ist, grow, and prosper.
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0 Industry structure / The nature of players in an industry and their relative
bargaining power " by changing the basis of competition among rivals , the
barriers to entry , the threat of new substitute products , the strength of suppliers ,
and the bargaining power of buyers.
0 Industry value chains/ The set of activities performed in an industry by suppliers,
manufacturers, transporters, distributors and retailers that transforms raw inputs
into final products and services " by reducing the cost of information and other
transaction costs.
0 2irm value chains/ The set of activities performed within an individual firm to
create final products from raw inputs " by increasing operational efficiency.
0 Business strategy/ 3 set of plans for achieving superior long'term returns on the
capital invested in a firm " by offering uni,ue ways to differentiate products,
obtain cost advantages, compete globally, or compete in a narrow market or
product segment.
E-C%44-r(- S-('r)$7 E#8)r%#4-#$
It is difficult to estimate the actual amount of e'commerce crime for a variety of reasons.
In many instances, e'commerce crimes are not reported because companies ear of losing
the trust of legitimate customers. 3nd even when crimes are reported, it may be hard to
,uantify the losses incurred .The most serious losses involved theft of proprietary
information and financial fraud. nline credit card fraud is perhaps the most high profile
form of e'commerce crime. In some cases, the criminals aim to 1ust deface, vandalize
and@or disrupt a #eb site, rather than steal goods or services. The cost of such an attack
includes not only the time and effort to make repairs to the site but also damage done to
the site4s reputation and image as well as revenues lost as a result of the attack. &stimates
of the overall cost of the various forms of cyber vandalism range into billions.
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#hat is a secure commercial transaction%
3nytime a user goes into a market place , he@she takes risks, including the loss of privacy
<information about what you purchased=.The prime risk as a customer is that you do not
get what you paid for. 3s a merchant in the market, you don4t get paid for what you sell,
Thieves take merchandise and then either walks off without paying anything, or pay you
with a fraudulent instrument, stolen credit card, or forged currency.
Burglary, breaking and entering, embezzlement, trespass, malicious destruction,
vandalism " all crimes in traditional commercial environment " is also present in e'
commerce. Cowever, reducing risks in e'commerce is a comple$ process that involves
new technologies, organizational policies and procedures, and new laws and industry
standards that empower law enforcement officials to investigate and prosecute offenders.
*ecurity Threats in the &'(ommerce &nvironment/
2rom the technology perspective, there are three key points of vulnerability when dealing
with e'commerce/ the client, the server and the communication pipeline.
M20)()%'. C%&-
It includes a variety of threats such as viruses, worms, Tro1an horses, and bad applets. 3
virus is a computer program that has the ability to replicate or make copies of it, and
spread to other files. In addition to the ability to replicate, most computer viruses deliver a
payload <destroying files, reformatting the computers hard drive or causing programs to
rum improperly.
3 Tro1an horse does something other than e$pected. The Tro1an horse is not itself a virus
because it does not replicate, but is often a way for viruses or other malicious code to be
introduced into a computer system.
Bad applets also referred to as malicious mobile code, are e$pected to become an
increasing problem as 1ava and 3ctive E controls become more commonplace.
-alicious code is a threat to the system4s integrity and continued operation, often
changing how a system functions or altering documents created on the system. In many
cases the user is unaware of the attack until it affects the system and the data on the
system.
H2(9)#+ 2#& C7?-r 82#&20).4:
3 hacker is an individual who intends to gain unauthorized access to a computer system .
#ithin the hacking community, the term cracker is typically used to denote a hacker with
criminal intent although in the public press, the terms hacker and cracker are used
interchangeably. Cackers and crackers get unauthorized access by finding weaknesses in
the security procedures of #eb sites and computer system , often taking advantages of
various features of internet that make it an open system that is easy to use.
(yber vandalism is intentionally disrupting, defacing, or even destroying the site.
6roup of hackers called as tiger teams are used by corporate security departments to test
their own security measures. By hiring hackers to break into the system from outside, the
company can identify weaknesses in the computer systems.
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There are si$ dimensions to e'commerce security/
7. Integrity
8. ?o repudiation
9. 3uthenticity
:. (onfidentiality
;. +rivacy
F. 3vailability
Integrity refers to the ability to ensure that information being displayed on a #eb site , or
transmitted or received over the internet , has not been altered in any way by an
unauthorized party.e.g. 3n unauthorized person intercepts and changes the contents of an
online communication, such as by redirecting a blank wire transfer into a different
account, the integrity of the message has been compromised because the communication
no longer represents what the original sender intended.
?on repudiation refers to the ability to ensure that e'commerce participants do not deny
<I.e. repudiate= their online actions.
3uthenticity refers to the ability to identify the identity of a person or entity with whom
you are dealing on the internet. Cow does the customer know that the #eb site operator is
who it claims to be% Cow can the merchant be assured that the customer is really who
he@she say he@she is% *omeone who claims to be someone they are not is spoofing or
misinterpreting themselves.
(onfidentiality refers to the ability to ensure that messages and data are available only to
those who are to view them. (onfidentiality is something confused with privacy, which
refers to the ability to control the use of information a customer provides about himself or
herself to an e'commerce merchant.
3vailability refers to the ability to ensure that an e'commerce site continues to function as
intended.
&'(ommerce security is designed to protect these si$ dimensions. #hen any one of them
is compromised, it is a security issue.
PAYMENT SYSTEM:
TG+&* 2 +3G-&?T *G*T&-
There are five main types of payment systems/
7. (ash
8. (hecking transfer
9. (redit cards
:. *tored value and
;. 3ccumulating balance.
C2.,
(ash, which is legal tender, defined by a national authority to represent value, is the most
common form of payment in terms of number of transactions.
The key feature of cash is that it is instantly convertible into other forms of value
without the intermediation of any other institution. 2or instance, free airline miles are not
cash because they are not instantly convertible into other forms of value' they re,uire
intermediation of by a third party <the airline= in order to be e$changed for value <an
airline ticket= . +rivate organizations sometimes create a form of private cash called scrip
that can be instantly redeemed by participating organizations for goods or cash. &$ample
includes 6reen *tamps and other forms of consumer loyalty currency.
C,-(9)#+ Tr2#./-r
(hecking Transfers which are transferred directly via a signed draft or check from a
consumer4s checking account to a merchant or other individual are the second most
common form of payments in terms of number of transactions and the most common in
terms of total amount spent.
(hecks can be used for both small and large transactions, although typically they are not
used for micro payments. (hecks have some float <it can take up to ten days for out'of'
state checks to clear= and the unspent balances can earn interest. (hecks are not
anonymous and re,uired third party institutions to work. (hecks also introduce security
risks for merchants. They can be forged more easily than cash5 hence authentication is
re,uired. 2or merchants, checks also present some additional risk compared to cash
because they can be cancelled before they clear the account or they may bounce if there is
not enough money in the account.
-oney orders, cashier checks, and traveler4s checks are ensured checks that address some
of the limitations of personal checks described above. &nsured checks reduced the security
risk of a personal check by re,uiring an up'front payment to a trusted third party " 3 bank
or money transferred company such as 3merican e$press, #ells 2argo, or #estern Bnion.
These trusted third parties then issue a guaranteed payment draft called money order that
is as good as cash, although less anonymous. -erchants are guaranteed the funds in an
any transaction with an ensured check. Trusted third parties make money by charging
consumers a fee and receiving interest on the money consumers deposited with them.
&nsured checks provide merchants with lower risk, but they add cost for the consumer. In
return, consumers have a payment instrument that is accepted almost everywhere and in
some cases is insured against loss.
Cr-&)$ (2r&
3 credit card represents an account that e$tends credit to consumer, permits consumers to
purchase items while deferring payment, and allows consumers to make payment to
multiple vendors at one time. (redit card association such as .isa and -aster(ard are
nonprofit associations that set standards for the issuing banks " such as (itibank' that
actually issue the credit cards and process transactions. ther third parties <called
processing centers or clearinghouses= usually handle verification of accounts and
balances. (redit card issuing banks act as financial intermediaries, minimizing the risk to
the transacting parties.
S$%r-& V20'-
3ccounts created by depositing funds in to an account and from which funds are paid out
or withdrawn as needed are stored'value payment systems. *tored value payment systems
are similar in respects to checking transfers " which also stored funds " but do not involve
writing a check. &$ample includes debit card, gift certificates, prepaid cards and smart
cards. )ebit cards look like credit cards, but rather than providing access to a line of
credit, they instead immediately debit a checking or other demand deposit account. 2or
many consumers, the use of debit card eliminates the need to write a paper check. Be
cause debit cards are dependent on funds being available in consumer4s bank account,
however, large purchases are still generally paid for by credit card.
A(('4'02$)#+ ?202#(-
3ccounts that accumulate e$penditure to which consumers make periodic payments are
3ccumulating balance payment systems. Traditional e$amples include utility, phone, and
credit card bills s, all of which accumulate balances, usually over a specified period
<typically a month=, and are paid in full at the end of the period.
)igital (hecking +ayment *ystems have many 2&82#$2+-.:
7. They do not re,uire consumers to reveal account information to other individuals
when settling an auction.
8. They do not re,uire consumers to continually send sensitive financial information
over the #&B.
9. They are less e$pensive than credit cards for merchants. 3nd
:. They are much faster than paper'based traditional checking.
)igital +ayment *ystems and the #ireless #eb/
#ireless device usage has e$ploded and is e$pected to continue as new products and
services are introduced .2rom cellular phones to pagers and personal digital assistants
<+)3s=, wireless devices have spurred the creation of new #eb sites to support them. ne
area in which there is substantial interest is in financial services, including stock trading
and money transfer.
B*B P274-#$ S7.$-4:
B8B payment systems pose special challenges and are much more comple$ than B8(
payments, in large part because of the comple$ity involved in business purchasing.
*ometimes a dozen of more documents may be needed to consummate the transaction,
including purchase order , invoice , bill of landing or shipping , insurance papers ,
financial documents , regulatory documents , credit verifications , service documents <if
any= , authentication , letters of credit <foreign transactions=, and payment methods or
instruments . In addition, B8B payment systems must link to e$isting &!+ <&nterprise
!esource +lanning= systems that integrate inventory, production, shipping, and other
corporate data , and into &)I <&lectronic )ata Interchange= systems which are systems
that replace paper'based purchase orders with electronic e,uivalents .
The B8B payment market is actually much larger than the B8( market because of the
larger size of transactions among businesses and the fre,uency of transactions
O#0)#- M2r9-$ R-.-2r(,:
-arket research involves gathering information that will help a firm identify
potential products and customers .There are two general types of market research .
+rimary research involves gathering first'hand information using techni,ues such as
surveys, personal interviews and focus groups. This type of research is typically used to
gain feedback on brands, products, or new marketing campaigns where no previous study
has been done.
*econdary research relies on e$isting, published information as the basis
for analyzing the market.
Both primary and secondary research can be completed online more efficiently,
less e$pensively, and more accurately than offline. In addition to two different approaches
to market research, there are two types of data to be studied. Huantitative data is data that
can be e$pressed as a number, such as percentage. Huantitative data can be analyzed using
statistical programs that identify relationship between certain variables, or factors that
affect how someone responds. Hualitative data is data that cannot be easily ,uantified,
such as opinions, survey ,uestions that yield ,ualitative responses are analyzed by
grouping responses into similar sub segments based on the answer given. ne type of
analysis is content analysis, which tries to identify the ma1or categories of responses
given.
Pr)42r7 R-.-2r(,:
*urveys and ,uestionnaires are the most popular and fre,uently used market
research tools. Bsing a survey instrument, which is a list of ,uestions, researchers can
approach groups of people to ask their views on virtually any imaginable topic.
nline surveys can be typically being administered more ,uickly and less e$pensively
than traditional mail or telephone surveys. (ompanies can hire an outside market research
firm to conduct the survey or create and administer their own.
nline surveys also make it possible to track respondents and follow up with those who
haven4t yet completed survey, which help to improve response rates, the percentage of
people who complete a survey. 3 low response rate can damage the validity, or
believability, of a survey4s results.
2eedback forms, which ask users to provide input regarding a site4s operations in a
set format, are another type of inline survey. !e,uesting regular input from site visitors
may provide more ,ualitative data, which is more difficult to analyze, but the resulting
information can assist in improving and enhancing site performance.
+ersonal interviews are another primary research tool. The interview is generally guided
by a set of ,uestions very similar to survey instrument. 3lthough it is more difficult to
incorporate personal interviews within #eb sites, it is possible to conduct research online
via live chat or e'mail, with trained researcher interacting with the study participant4s
.+ersonal interviews offer an opportunity to gather more in'depth information on a topic.
In some cases, personal interviews are used as second phase of a research pro1ect,
following initial information gathering by survey.
S-(%#&2r7 R-.-2r(,/
It involves gathering information using #&B sites as the information source.
The Iey to being efficient and effective as a researcher is identifying the #&B sites most
likely to provide answers to the ,uestions posed in the research .By establishing and
agreeing on the key ,uestion to be answered through market research , as well as why that
information will be useful , researchers can zero in on their information needs.
Bnderstanding how the information will impact other decisions also helps to further refine
information collection.
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Technologies that support nline -arketing/
0 #eb transaction logs/ !ecords that document user activity at the #eb site.
0 Transaction logs / (oupled with data from the registration forms and shopping
cart database, these represent a treasure trove of marketing information for both
individual sites and the online industry as a whole.
0 (ookies / 3 small te$t files that #eb sites place on visitors @client
computers every time they visit, and during the visit, as specific pages visited.
(ookies provide #eb marketers with a very ,uick means of identifying the
customer and understanding his or her prior behavior at the site.
0 #eb bugs / Tiny graphic files hidden in marketing e'mail messages and on
#eb sites. #eb bugs are used to automatically transmit information about the user
and the page being viewed to a monitoring server.
0 )atabases , data warehouses, data mining , and profiling /Technologies that
allow marketers to identify e$actly who the online customer is and what they
want , and then to present the customer with e$actly what they want, when they
want it, for the right price.
0 3dvertising networks/ best known for their ability to present users with banner
advertisements based on a database of user behavioral data. *pecialized ad servers
are used to store and send users the appropriate banner ad.
CRM .7.$-4.:
3 repository of customer information that records all of the contacts that a customer has
with a firm and generates a customer profile available to everyone in the firm who has a
need to know the customer.
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0 nline marketing techni,ues to online customers include permission marketing,
affiliate marketing, viral marketing, and brand leveraging.
0 nline techni,ues for strengthening customer relationships include one'to'one
marketing5 customization, transitive content5 and customer service <(!-s, 23Hs,
live chat, intelligent agents, and automated response system=.
0 nline pricing strategies include offering products and services for free,
versioning, bundling, and dynamic pricing.
0 *trategies to handle the possibility of channel conflict.
D)r-($ E-42)0 42r9-$)#+:
&'mail marketing messages sent directly to interested users <direct e'mail marketing= have
proven to be one of the most effective forms of marketing communications. The key to
effective direct e'mail marketing is interested users. )irect e'mail marketing is not
spam. *+3- involves sending unsolicited e'mail to a mass audience of Internet users who
have e$pressed no interest in the product. Instead, direct e'mail marketing messages are
sent to an opt in audience of Internet users who have e$pressed at one time or another
interest in receiving messages from the advertiser. By sending e'mail to an opt'in
audience, advertisers are targeting interested customers. Because of the comparatively
high response rates and low cost, direct e'mail marketing is the fastest growing form of
online marketing.
The primary cost of e'mail marketing is for the purchase of the list of names to which the
e'mail will be sent.
)ue to the cost savings possible with e'mail, the short time to market, and high response
rates, companies are e$pected to increasingly use e'mail to communicate directly with
customers.
nline -arketing -etrics/
7. Impression
8. (lick through !ate <(T!=
9. Cits
:. +age .iews
;. *tickiness <)uration=
F. Bni,ue visitors
J. Doyalty
K. !each
>. !egency
7L. 3c,uisition rate
77. (onversion rate
78. 3ttrition rate
79. 3bandonment rate
7:. !etention rate
7. Impressions are the number of times an ad is served.
8. (lick through rate <(T!= measures the percentage of people e$posed to an online
advertisement who actually click on the advertisement.
9. Cits are the number of http re,uests received by a firm4s server .Cits can be
misleading as a measure of site activity because a hit does not e,ual a page/ a
single page may account for several hits if the page contains multiple images or
graphics. 3 single site visitor can generate hundreds of hits.
:. +age views are the number of pages re,uested by visitors. 3 single page that has
three frames will generate three page views.
;. *tickiness <)uration= is the average length of time visitors remain at a site .The
longer amount of time a visitor spends at a site , the greater the probability of
purchase.
F. Bni,ue visitors count the number of distinct, uni,ue visitors to a site, regardless of
how many pages they view.
J. Doyalty measures the percentage of users who return in a year. This can be good
indicator of the trust shoppers place in site.
K. !each is typically a percentage of the total number of consumers in market who visit
a site.
>. !egency like loyalty measures the power of site to produce repeat visits and is
generally measured as the average number of days elapsed between shopper and customer
visits.
7L. 3c,uisition rate measures of the percentage of visitors who register or visit product
pages <indicating interest in the product=
77. (onversion rate measures the percentage of visitors who actually purchase
something.
78. 3ttrition rate measures the percentage of customers who purchase once , but never
return within a year.
79. 3bandonment rate measures the percentage of shoppers who begin a shopping cart
form but then fail to complete the form and leave the site.
7:. !etention rate indicates the percentage of e$isting customers who continue to buy
on a regular basis.
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It is the most common and familiar marketing communications tool .The
advantages of online marketing are the ability to target ads to narrow segments and to
track performance of advertisements in almost real time. nline advertisements also
provide greater opportunities for interactivity " two " way communication between
advertiser and the potential customer.
)ifferent forms of online advertisements include/
0 Banner and rich media ads
0 +aid search engine illusion and placement
0 *ponsorships , and
0 3ffiliate relationships
0 )irect &'mail marketing
IT -#2?0-& .-r8)(-. /%r G%8-r#2#(-:
&'governance is an opportunity to re'think the business process following a logic that
places the user at the center of every task performed.
&'governance facilitates economic efficiency, transparency as a means of preventing
corruption and the importance of information in the analysis, articulation and acceptance
of policy choices.
&'governance involves transformation from being passive information and service
provider to active citizen involvement.
It includes the following dimensions/
7. *ingle source of information for user@customer
8. &,uality and easy of access
9. ptimizing resource of multiple organizations with the aid of inter'organizational
Information *ystem
:. Intergovernmental participation
;. +ublic relation
F. Involving various stakeholders
J. *imulating debates
K. &$changing views and information
>. Increasing participation by employees, customers in decision making
7L. +ublic information feedback
&'governance from the government point of view is smoothen interface between
government and citizens for *imple, -oral, 3ccountable, !esponsive and Transparent
<*-3!T= governance.
&'governance is people, process and policies associated with managing technology.
#hy &'governance/
The ma1or ob1ective of any business organization is to provide better services and at the
same time monitor the whole process. It facilitated the managers or role players to
perform the task easily. It enables/
7. -ore responsive and accessible to changing needs of the customers
8. +rovide high ,uality monitoring with lesser people
9. &conomic growth can be achieved by means of wealth creation
:. Bring efficiency by ,uality delivery services
;. Better transparency and integrity in dealing with customer and government.
F. 6reater synergy in decision making
J. &nable to create electronic@digital forums
K. Increased productivity and enhance the overall competitiveness
>. !eduction in duplication of information
7L. -onitoring of business transaction at lower cost
77. -arket e$pansion and contribute to the macro'economy of the state and country.
E-+%8-r#2#(- )# %r+2#)32$)%#:
In order to adopt change in the system one has to face challenges of different types. 3n
organization may have to deal with the following issues and develop strategies for the
same.
7. -indset of people
8. +ower of Inowledge
9. *tructure
:. Degal framework
;. Dabour and union
F. Inowledge -anagement
J. Danguage
K. +rocess !eengineering
>. Infrastructure
7L. (onnectivity
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2ollowing are the issues to be considered before an organization goes for implementing e'
governance/
7. Technology issues
8. (hange related issues
9. 2unding issues
:. Danguage
;. (ontent
T-(,#%0%+7 )..'-.: The organization has to decide about the technology infrastructure
re,uired to be a part of &'governance .This is as well an essential factor to provide
efficient services .The technology issues can be categorized into/
7. Cardware issues
8. *oftware issues
C,2#+- R-02$-& I..'-.: These can be grouped under
7. rganizational issues
8. +olitical issues
9. &mployee related issues
:. Danguage issues
F'#&)#+ )..'-.:
(ost is a critical factor to be considered irrespective of private or public sector
organizations .*ince huge investment is re,uired to introduce computers at different
working levels both in government and business organizations one can think of leasing
this activity to reduce cost involves in buying the computers.
L2#+'2+- )..'-.:
In India adoption of vernacular language poses a ma1or challenge in the electronic
environment .This will facilitate access to resources available in local languages.
C%#$-#$:
(ontent is the focus on &'6overnance. The challenge is to develop web content
into an integrated online e$perience that enhances the value of printed and online products
.(ontent convergence is an important issue as it has a ma1or relationship with
0 (ompute industry
0 Information industry
0 (ommunication networking
*hopping online/'
Cere we are taking a e$ample of purchase of recharge coupon online. 2or this purpose we
use the site www.rechargeitnow.com

TC& 2I!*T *T&+ I* T +&? TC& *IT& 3?) (DI(I ? !&6I*T&!
?ow fill the complete form and login with the id
?ow click on recharge option
n this page select the service which you want to get and fill all the information and click
on go.
?ow at this page fill the amount by which you want to recharge the mobile and click on
continue.
?ow select the method of payment as like debit card or credit card and select bank. 3nd
click on buy now.
3fter the click on buy now this page will open and this will direct you to the bank4s site
page for the payment.
Bank site will show this page. Cere fill all the information of card used for payment and
click on ne$t.
3t this page it will ask for the security password for the atm used. 2ill the password and
click on submit.
This page wll open while checking the balance in account and for payment.
2inally this page will open to give the confirmation of payment received and the
transaction id. The customer can take a print out of this.