BIT 1302 BUSS 208 BSD 2105 BAC 2105 BISF 2105 E-COMMERCE.

UNIVERSITY EXAMINATIONS: 2020/2021
EXAMINATION FOR THE DEGREE OF BACHELORS OF SCIENCE
IN INFORMATION TECHNOLOGY/BACHELOROF BUSINESS
INFORMATION TECHNOLOGY/BACHELOR OF SCIENCE IN
APPLIED COMPUTNG/BACHELOR OF SCIENCE IN SOFTWARE
DEVELOPMENT/BACHELOR OF SCENCE IN INFORMATION
SECURITY AND FORENSICS
BIT 1302/ BUSS 208/ BSD 2105/ BAC 2105/ BISF 2105: E-COMMERCE
DAY/EVENING/DISTANCE LEARNING
DATE: DECEMABER 2021 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.

QUESTION ONE [Compulsory][20 Marks]
a) E-Solutions owns a number of shops that sell large electrical goods. Each shop has machines
for display purposes only. When a customer makes a purchase the item is ordered from the
manufacturer. If these are in stock in the manufacturer’s warehouse the item is delivered to the
chain of shops delivery centre. It is then taken to the customer within two days of receipt at the
delivery centre. There is no Information System but the owner receives daily sales reports from
each shop manager, regular financial statements from his accountant, and from trade journals,
news of new hardware developments. The owner of these shops believes that customers
purchase goods from this chain of shops because they have the lowest prices and for no other
reason. There is no regular customer base but only people looking for a low priced bargain. A
SWOT analysis revealed the following:-
Weakness
Customer relations are almost non-existent. Internet sales provide almost the same level of
service and larger retail chains may undercut the prices charged.
Opportunities
It is claimed that a good Information System can give an organization a competitive advantage.
The shop could retain its customer base and add value to sales by increasing sales to these
customers.
You are asked to persuade the E-solutions CEO to invest in a computerized Information System
and a commercial website
a) Define the term commercial website. As an E-Commerce professional, how would you
advice the company to implement the use of a commercial website. [5 Marks]
b) Give three ways that the company might use a Customer Relations Management (CRM)
system. [3 Marks]
c) Explain what is meant by an Enterprise Resource Planning and the benefits that this
chain of shops might derive from such a system. [4 Marks]
d) The security requirement of the company is as follows: • Network security against
outside intrusions • Secure and safe e-transactions. Discuss the possible network
security threats for this company. [3 Marks]
e) Explain Five reosons why E-crime are are hard to stop [5 Marks]
QUESTION TWO [15 Marks]
a) Discus FOUR technical infrastructures (hardware and software) necessary to support Ecommerce [4
Marks]
b) With the aid of examples,explain any three E-commerce business models. [6 Marks]
c) List and explain FIVE characteristics of a good e-payment method. [5
Marks]
QUESTION THREE [15 Marks]
a) Discuss E-Commerce technology benefits to:-
(i) A Kenyan citizen
(ii) An organization in the country
(iii) Kenyan society [9
Marks]
b) With the aid of examples distinguish technical and non technical challenges that
have hindered the uptake of e-commerce in Kenya. [2 Marks]
c) Explain the following terms as used in E-Commerce:- [4 Marks]
(i) Personalization
(ii) Loyalty
(iii)Integrity
(iv)Non-Repudiation
QUESTION FOUR [15 Marks]
a) Discuss three possible solutions for secure methods of selling goods and services on the
web. [6 Marks]
a) Discuss three factors that you would consider while sourcing for an Internet Service
Provider to host an organization E-commerce website [6 Marks]
C) Explain THREE legal, social or ethical issues to address while using Electronic
commerce.
[3 Marks]

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