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Transcription of this question: 5.NetShopsNetShops began as a business to customers (B2C) e-commerce company in 2002. Founded byDoug Nielson, it began with a single online “store” and now owns and operates over 200 online storesselling a wide range Of products targeted at various niche markets.One Of the reasons that the firm has grown so quickly is its “NetShops Afflliate Program”,which allows Other businesses to place links on their own web sites to the NetShops’ website.When a customer purchases a product from NetShops as a result Of following one Of theseaffiliate links, the afflliate company earns a commission on this sale.NetShops is able to quickly launch additional online stores in niche markets for which traditionalchannels Of distribution do not exist. NO single online store accounts for more than 5% Of the totalsales Of NetShops.NetShops maintains an online database of all purchasers. The company uses software to obtain selectpersonal data (e-mail and regular post addresses, for example) and to record purchases in their shops.NetShops also knows which Of its sites and products customers have viewed. The firm can identifycustomers’ interests and purchasing trends, from which it can develop consumer profiles.(a)(b)(c)(d)Define the term e-comme’te.(i) Explain the difference between internal and external growth.(ii) Comment on the nature Of NetShops ‘ growth _Examine the usefulness Of consumer profiles to NetShops.Discuss the costs and benefits to consumers Of NetShops ‘approach.e-commerce[2 marks][2 marks][4 marks][5 marks][7 marks]

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