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IT 204

E-Commerce

TU BBM · Semester 7 · BBM curriculum effective from 2021

Requirement
elective
Credits
3
Questions
30 questions

Chapter-wise questions

30 past questions across 8 units

Open a chapter to study questions grouped by unit and syllabus topic, with step-by-step solutions.

chapter-wise questions loaded.

Unit 1: Unit 1: Introduction

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  1. Asked on 2018 Exam[5 marks]2018 paper

    How business to business commerce differs from business to government commerce? Explain.

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    Differentiation: Business-to-Business (B2B) vs. Business-to-Government (B2G) E-Commerce

    While both models involve non-consumer, high-value institutional transactions, they operate under fundamentally different commercial, legal, and operational environments:

    Comparison Parameter Business-to-Business (B2B) Business-to-Government (B2G / Public Procurement)
    Definition Commercial e-commerce transactions conducted between two private business enterprises (e.g., manufacturers and wholesalers). Commercial e-commerce transactions conducted between private business enterprises and government departments/public agencies.
    Transaction Dynamics Driven by private contractual negotiations, volume discounts, long-term commercial relationships, and credit terms. Governed strictly by formal statutory public procurement laws, competitive tendering, and public bidding.
    Bidding & Selection Flexible vendor selection based on strategic fit, proprietary trust, and collaborative capabilities. Highly formalized e-GP (electronic Government Procurement) portals; contracts mandatorily awarded to the lowest responsive bidder.
    Order Volumes & Value Recurring operational purchases, raw material replenishment, wholesale inventories. Large-scale national infrastructure projects, office stationery tenders, military hardware, civil construction supplies.
    Payment Terms Trade credit (Net 30, Net 60, Net 90), letters of credit (LC), bank guarantees. Public treasury disbursements via formal government budget accounting systems (PPMO / Bolpatra portal in Nepal).
    Regulatory Scrutiny Private audit compliance and corporate governance. High public accountability, subject to state audits (e.g., Auditor General - OAG in Nepal) and anti-corruption oversight (CIAA).
  2. Asked on 2018 Exam[5 marks]2018 paper

    Differentiate between traditional commerce and electronic commerce.

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    Detailed Comparison: Traditional Commerce vs. Electronic Commerce

    Evaluation Dimension Traditional Commerce Electronic Commerce (E-Commerce)
    Operational Definition Exchange of goods and services through physical retail stores requiring direct, face-to-face personal interaction. Commercial transactions conducted digitally over telecommunication networks, internet platforms, and mobile apps.
    Geographical Reach Confined strictly to local geographic boundaries, neighborhoods, or regional foot-traffic catchments. Global reach; a single e-commerce website can sell to international consumers across multiple continents.
    Operating Hours Limited to standard business operating hours (e.g., 9:00 AM to 8:00 PM, closed on holidays). 24/7/365 uninterrupted availability; customers can browse and place orders at any time.
    Establishment & Overhead Costs High capital expenditure in prime commercial real estate, interior showroom decor, utility bills, and large sales staff. Substantially lower physical overheads; relies on centralized fulfillment warehouses and cloud hosting infrastructure.
    Customer Inspection Physical “touch, feel, and try” experience; buyers can touch fabrics, inspect build quality, and test items. Relies on digital photographs, product specifications, video reviews, and user ratings; physical inspection occurs upon delivery.
    Transaction Processing Predominantly manual cash, physical paper cheques, or point-of-sale card swipes. Automated electronic payment gateways (digital wallets, internet banking, mobile QR codes, online credit cards).
    Scalability & Catalog Size Constrained by physical retail shelf space and floor square-footage. Virtually unlimited digital catalog; thousands of product variants displayed without physical showroom congestion.
  3. Asked on 2025 Exam[2 marks]2025 paper

    Mention any one difference between partial and pure E-Commerce with example of each.

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    Difference: Pure vs. Partial E-Commerce

    According to Choi, Stahl, and Whinston’s e-commerce framework (evaluating Product, Process, and Delivery Agent):

    • Pure E-Commerce: All three dimensions—the product, the ordering/payment process, and the delivery fulfillment—are 100% digital.
      • Example: Purchasing, paying for, and downloading a digital e-book, software license, or music track on Steam or Kindle.
    • Partial E-Commerce: At least one of the three dimensions is tangible/physical—typically involving ordering and paying digitally, but relying on physical delivery via courier.
      • Example: Ordering a physical smartphone or clothing item online from Daraz and having it shipped to your home.
  4. Asked on 2025 Exam[6 marks]2025 paper

    Define any three features of E-commerce.

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    Unique Features of E-Commerce Technology (Laudon & Traver Model)

    E-commerce possesses distinctive technological features that differentiate it fundamentally from traditional commerce:

    1. Ubiquity (Available Everywhere, All the Time):

    • E-commerce technology is accessible virtually everywhere at all times via the Internet and mobile smartphones.
    • Impact: Creates a “marketspace” that liberates commerce from temporal and geographic boundaries, allowing consumers to shop from their homes, offices, or while commuting 24/7/365, dramatically lowering consumer transaction search costs.

    2. Global Reach (Transnational Market Scope):

    • The technology spans national boundaries, seamlessly connecting buyers and sellers across the globe.
    • Impact: Enables small and medium-sized enterprises (SMEs) to access billions of potential international consumers without establishing expensive overseas physical branch networks.

    3. Interactivity (Two-Way Real-Time Communication):

    • E-commerce technologies allow dynamic two-way dialogue between merchant and consumer.
    • Impact: Consumers can configure custom product options, read real-time peer reviews, chat with automated support agents, and receive tailored responses, simulating a personalized face-to-face shopping experience at digital scale.