Alone In my own World: CSC 289I: E - COMMERCE THEORY AND APPLICATIONS

DIPLOMA IN BUSINESS ADMINISTRATION 

CSC 289I: E - COMMERCE THEORY AND APPLICATIONS 

AUGUST2011 

ASSIGNMENT 1

INDIVIDUAL ASSIGNMENT (10%)

Aims

In lectures, we have been exposed to various concepts of e-commerce. In this assignment you will, firstly, examine your own personal views and experience in regards to e-commerce.

Secondly, you will do a case study.

Instructions

1 Self reflection

Have you ever participated in an online auction, purchased something online or any form of commerce related activities online?

If YES

Describe any 1-2 online experiences in detail. Your description must include the website visited, the activities you performed there and the outcome.
The online activities you performed above, can you do them offline? Why do you choose to do the activities online in the first place? How frequent?
Do you have a pleasant experience? Any unpleasant experience? Benefits? Drawbacks? Problems?
Would you consider repeating the online experience above in near future?

If NO

List all your online activities. The rate the top 3 activities.
The online activities you performed above, can you do them offline? Why do you choose to do the activities online in the first place?
Do you have a pleasant experience? Any unpleasant experience? Benefits? Drawbacks? Problems?
Reflect: I do not engage in commerce related online because I prefer to do so in the real world and there is no need OR I have real concerns with such activities being done online.
Will you participate in e-commerce in future? Compile findings in report.

2 Case study on B2C e-commerce

Visit an e-commerce website of your choice. Then critically evaluate the

website based on the following criteria:

Prepare questions to find information on the following areas:

a) Business models, e-commerce type or e-marketplace

b) Website design and experience. Use any theory you have learned. Discuss any weakness and strength.

c) Payment method- what payment methods are used? Why? How does the online payment method work?

d) Conclusion and recommendation – is this e-commerce website a successful one? Any suggestion for improvement?

You are encouraged to compare your selected website with other e-commerce websites and use e-commerce theories in your discussion.

Compile findings in report.

Introduction

In this assignment I will, firstly, examine my own personal views and experience in regards to e-commerce and secondly I will do a case study related to e-commerce website according to what I ask to explain. I get all the information from internet and references book so that I can accomplish on time.

In the first question, I discuss about either yes or no that have I ever participated in an online auction, purchased something online or any form of commerce related activities online. In my personal view, I never participated an online auction, purchased something online or any form of commerce related activities online. If I don’t participated with any online e-commerce, what is the top 3 online website activities that I use to go when online. In this, I explain either my online activities can do in offline or why I choose it in the first place. Lastly I am being asked to explain any benefit, drawbacks and problem on that website.

In second question, I being ask to go choose any two e-commerce website that I think it good and will be trust by the customer and evaluate the criteria that have been made. I explain the business models, e-commerce type or e-marketplace. I also explain the website design and experience and use se any theory I have learned and discuss any weakness and strength of that website. The most important thing, what is payment method that there use, why and how does the online payment method work. In conclusion, I being ask to compare both of that website and make any suggestion for improvement.

Question 1:

No, I never participated in an online auction, purchased something online or any form of commerce related activities online. There are 3 top online activities that I always go through went online such as Yahoo, Blogger, and Facebook.

In Yahoo, I always open my yahoo Mail account to check and update any news or email from my friend or my lecture. Yahoo Updates keep my informed about whatever I choose to share. By requesting Updates from people or inviting them to connect, I automatically can get any Updates that they share publicly. My friends can also use Updates to keep me informed when they change their contact information, post new photos on Flickr, share reviews and videos. Moreover, I can do these activities offline if I don’t want to be disturbed by other who wants to chat with me because at that time I can focus on sending or read my email and playing games. Even though yahoo mail gives much benefit but I still concern on the security and privacy. We cannot control our privacy and security of our emails and profile data. Sometime I receive unwanted emails (spam) even I don't provide my email addresses to a third party but many free email services sell their email addresses to various marketing companies. Therefore we can't believe on the guarantees of these free emails service providers.

In blogger, I hosting my own blog and give me a lot more freedom regarding the design with this I can share the information to everyone including my blogger friend. I do not to worry about the security effect, because when hosting my own blog on website, I can have more control over the security, and will be better able to protect my own blog rather relying on someone else to do it. Moreover, I can do these activities offline if I don’t want to be disturbed by other because at that time I can focus on create information to post in my blogger account to share with other. Even though blogger give me a freedom in share and design the pages, but it is not reliable, means that my data may be deleted at any time due to server problems and in security features and control are highly lacking. A webmaster desires has much control over the website as its possible, and free web hosting plans are badly prepared to provide.

In Facebook, it lets me to connect with my family, friends and relatives. The popularity of the Facebook website let a lot of people registering and becoming users of the application. Because of this, the website has become a common ground for people which results to finding my old friends, relatives and family members. This makes it easier for me to interact with them, and coordinate with them. I can also post anything on my wall, this help me to tell my friends how I feel, and they are free to react with my wall post by commenting on it. It also not only can post written content, but I can also put some videos, pictures and music on my wall. At the same time, all changes in my profile will not only display on my wall but also on my friend wall as well. Moreover, I can do these activities offline if I don’t want to be disturbed by other who want to chat with me because at that time I can focus on sending or read my email, comment to my friend wall or post something in my wall playing games. Even though facebook give me a lot of benefit, but I still worry the threat of viruses that discover a storming through most of the page. There is no surprise to believe that Facebook involves several hackers who actually steal other peoples account and send viruses that will cost me a lot of money to repair my computer depending on how badly damaged it may be.

I do not engage in commerce related online because I prefer to do so in the real world and there is no need or I have real concerns with such activities being done online. The reason why I prefer not to do online because sometime maybe went we order the item or product but went delivery get wrong product and we need returning back an incorrect item.

Even when online shoppers do not make mistakes during the ordering process, it still possible for the consumer to receive the wrong product. This often occurs when the orders are filled by hand and a mistake is made in the online retailer's warehouse. A warehouse worker may ship the wrong item completely or may ship the correct item in the wrong size or color. Again the consumer will likely not know a mistake was made until the product arrives. Usually, the online retailer will likely take responsibility for returning the incorrect item and will ship the correct item as soon as possible. However, in some cases, this may not completely correct the problem. For example, a consumer who purchased an item for a specific event or as a gift may not receive the replacement item in time.

In situations where the online shopper orders the wrong item as well as situations where the online retailer mistakenly ships the wrong item, there may still be a need to return something. Although this may not seem to be a big problem, it can be particularly irritating for some consumers. Online shoppers who choose to do their shopping online specifically because they work odd hours may have a great deal of difficulty returning products. The usual process of shipping the item back to the online retailer will generally involve taking the item to a post office. Depending on the hours you work, it may be difficult to get to a post office during regular business hours and may require taking time off from work to return the product to the retailer.

Yes, maybe in future I will participate in e-commerce if the problem nowadays can be fixing, so in the future the same problem will not happen again.

Question 2: Case study on B2C e-commerce

Beli4u online fashion boutique

For e-commerce website I choose beli4u online fashion boutique. This is because this online shopping is the one of the most popular online fashion boutique in Malaysia. There offer a wide range of fashionable ladies wear like Korea, Japan and Taiwan fashion, sexy lingerie, shoe, bags and accessories. It also offer fashionable men wear like wallet and designer bag. At this website, we can also find some online coach bags and online shopping bags. The aim of this website is to become top of the online fashion shopping mall. Their company goal is to make you experience the best possible experience it can be. We strive to carry what products you want at the lowest prices you deserve.

This online shopping called Business-to-Consumer (B2C). Business to consumer is electronic commerce from business to the consumer. This is commonly known as B2C throughout the internet. Ecommerce business models are the fundamental methods that show how an e-business makes money online. These are called all sorts of things by many different people on all kinds of web sites. In fact there is a lot of confusion around these online business models.

The business model that this website using are:

Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, catalog distribution, promotional letters, and outdoor advertising.

This is because they are an evolution of the more conventional brick and mortar business models.These companies are Electronic store that belong to electronic distributors that serves as middleman between the sellers and the buyers. Some specialized electronic distributors sell one or a few groups of product.

Full cyber marketing is companies that sell their product and services only through internet. The organization depends on a pure Internet consumer strategy for communicating with current and prospective customers to drive business results. Full cyber marketing companies are new one born in the e-business era.

Specialized e-mails focus only special types of items. These companies only focus on ladies wear like Korea, Japan and Taiwan fashion, sexy lingerie, shoe, and accessories. It also offer fashionable men wear like wallet and designer bag.

Mudah.my

The second e-commerce website I choose are Mudah.my. Mudah.my is a Malaysia's Largest Marketplace. It is a simple idea where the customer can buy and sell everything and find cars, houses, mobile phones, computer, jobs, cloth and services in there region conveniently. Mostly the product that being sell to the customer are secondhand product that still can be use and sell it in low price. Mudah.my aims are to evolve as the platform of choice of users for local content in Malaysia. The service allows anyone to buy and sell in his or her region conveniently in a very simple manner. Mudah.my connects buyers and sellers in Malaysia and delivers remarkable user experience. This online shopping called Business-to-Consumer (B2C). Business to consumer is electronic commerce from business to the consumer.

The business model that this website using are:

Electronic distributor belong to electronic distributors, it serves as the middleman between the sellers and the buyers. Some specialized electronic distributor sells one or a few groups of product.

Indirect Marketing is the distribution of a particular product through a channel that includes one or more re sellers It not necessary to sell their own product only in the internet but also allows the customer to resell their product as long it still good and can be use. However, if the direct invisibility for the company, the product can be displayed as well-known 3rd party e-mails. Indirect Marketing includes the branding of a company, sustainability, long term orientation to customers and quick problem-solutions, chances, linked processes, a cherish association with the employees, valuable networks.

Full cyber-marketing is companies that sell their product and services only through internet. The organization depends on a pure Internet consumer strategy for communicating with current and prospective customers to drive business results. Full cyber-marketing companies are new one born in the e-business era.

Generalized e-mails deal with various categories of items and the supply item is very wide. These companies only sell secondhand product like cars, car accessories, house, land, clothing, apartment, motorcycle, mobile phone and gadgets, computer and laptop accessories.

Website design and experience. Use any theory you have learned. Discuss any weakness and strength.

Beli4u online fashion boutique

Strength

Convenience

It enables customer to shop, do order or transactions anywhere. It allows consumer to shop at the convenience of their own home, and to save travelling stores and spend their time on other important tasks and hobbies.

Able to compare product price

With the online tools that enable product comparison, consumer can compare product prices and features to make a better decision with less effort so there can be sure what items there want to purchase and it the exact item you want.

No need for vendors and no pressure to buy

Online shopping benefits both the society as a whole and individuals. The society can save human resources when consumers help themselves by browsing freely online instead of asking for assistance from vendors. In addition, consumers are freed from the pressure to buy from the vendors and can spend more time to make wise purchase decision.

Research capabilities

Online merchants can publish much more information about their product on a website than they could affordably publish in a print catalog. And online stores give you the ability to share information and reviews with other shoppers who have firsthand experience with a product or retailer. As Internet connection speeds continue to increase for larger segments of the population, these types of interactive features will become even more important

Environmental Benefits

The shopping online leads to reduced fuel consumption and air pollution, because so much of our car travel is dedicated to shopping. Plus, shopping online reduces the need for print catalogs and excess packaging. And downloadable items purchased online eliminate the need for any kind of material goods at all.

weakness

Limited time

The order and transaction will not be in 24 hour access. The customer needs to do their payment or transaction before 12am; the item will be delivering on the day itself. Otherwise it will be process on next working day.

Enjoyment of retail lost

When the customer enjoys shopping in traditional store, they can go together with their family and friends. It is often a good way to make social connection. When shopping independently online, the enjoyment is lost.

Product category risk

Product category risk is related to functional products such as appeal and electronics, which have function that cannot fully be experienced online. Apparels in particular had negative rating in online shopping because of it is difficult to feel and see the texture of color online that is incomparable to going to a retail store, even with magnifying tool online. Also, online shopper cannot try on clothing before buying it online, so it would be very inconvenient if the size did not fit the person and there had to return it back.

Ordering the Wrong Item

When shopping in traditional brick and mortar stores, it is quite difficult to accidentally purchase the wrong item because the sales process typically involves you physically carrying the item up to the sales counter and paying for it. In online shopping, where the consumer never physically handles the item before the process is complete and the item delivered, it is certainly possible to purchase the wrong product. Most often this occurs when the customer uses the website to make the purchase and clicks on the wrong item or when the consumer contacts customer service to make the buy and provides a different product number or code than the one for the product they really want. Other times, the consumer clicks on the correct product and provides an accurate product number but he may still make a mistake if there are size options or different colors to choose from. This problem can be rather troubling because the consumer will be disappointed when the wrong product shows up.

The Wrong Product

Was Delivered Even when online shoppers do not make mistakes during the ordering process; it is still possible for the consumer to receive the wrong product. This often occurs when the orders are filled by hand and a mistake is made in the online retailer's warehouse. A warehouse worker may ship the wrong item completely or may ship the correct item in the wrong size or color. Again the consumer will likely not know a mistake was made until the product arrives. Usually, the online retailer will likely take responsibility for returning the incorrect item and will ship the correct item as soon as possible.

Mudah.my

Strength

No need for vendors and no pressure to buy

Infinite shelf space available

Consumer desires a variety of product that will fully satisfy them. There is infinite variety of product available online because online shopping allows consumers to browse through product that are made in specific country without geographical boundaries

Ability to avoid the holiday rush

The consumer has ability to avoid the holiday rush, the waiting in line, the weather elements, traffic, and having to carry all of the shopping bags around. It should, often times shopping within a mall or department store can become such a hassle that it is not as fun as it once was. Online shopping makes it fun again, depending on what you are looking for you have many options in your selection.

Variety

The choices consumer can get for products are amazing. One can get several brands and products from different sellers at one place. There also can get in on the latest international trends without spending money on airfare. When shop online, the consumer can shop from retailers in other parts of the country without being limited by geographic area. These stores offer a far greater selection of colors and sizes than you will find locally

Buying Old or unused Stuff at low prices

Online Shops make it possible for the consumer to buy old or unused stuff at rock bottom prices. If the consumer wants to buy antiques there is no better options than online stores.

Environmental Benefits

Weakness

Privacy and security issues

Privacy is the number one reason that non-online shopper do not shop online. The privacy is the top concern of customers while security ranked bottom. This proves that many customer do not trust the privacy of the internet and there concerned with their credit card funds, unwanted solicitation, and use of their information for other purposes.

Product category risk

Product category risk is related to functional products such as appeal and electronics, which have function that cannot fully be experienced online. Especially the items is secondhand product, the seller can simply sell the product even though the product is not good and cannot be use any anymore. These types of seller will think on their own benefit without thinking other. Online shoppers are worried that the product will not be what they have expected by viewing online. Apparels in particular had negative rating in online shopping because of it is difficult to feel and see the texture of color online that is incomparable to going to a retail store, even with magnifying tool online.

Insufficient information

The sellers provide the information about their product but it not details. Before sell the product online, they must provide the same quality and completeness of information so that the consumer will believe their product.

No human touch

For conventional shopping, there are always sales assistants whom we can ask for advice or for help. But, for online store, customer will have to help themselves. When customer purchases something, there need some human touch and it is better to get it from the conventional stores. But if the customer confident which product their wish to buy, then should go for online shopping.

Long wait for delivery & lost items

Depending on customer location and the type of the delivery service you are paying, the waiting time can be quite frustrating. Some items can be lost as well.

No warranty

The company does not guarantee continuous, uninterrupted or secure access to the services, and operation of the site may be interfered with by numerous factors outside the company's control. The site and the services are provided "as is" and as and when available, without any warranty of any kind whether express or implied including but not limited to warranties of merchant-ability fitness for purpose, title or non-infringement. To the extent permissible by law the company excludes all implied warranties, conditions or other terms, whether implied by statute or otherwise, including without limitation any terms as to skill and care or timeliness of performance.

Payment method- what payment methods are used? Why? How does the online payment method work?

The payment method of Beli4u online fashion boutique is through major bank in Malaysia. Inter-bank funds transfer can be made via ATM machines or Internet Banking. Their accept payment from Maybank, CIMB Bank, Public Bank, Hong Leong bank and RHB bank. The delivery service only applies on Monday to Friday. The customer can make payment before 12am; item will be delivering on the day itself. Otherwise will be process on next working day. There will not provide delivery service on Saturday, Sunday and public holiday. Other method payment, the customer can pay via online though VISA, online payment Gateway, and MasterCard. The customer must inform them via MSN, email or SMS after the transaction. Otherwise, merchants will not be sending out on time. The customer must provide their name, address, contact number, date of payment and payment amount, which bank the customer use to pay, mode of Payment either via ATM, Online-Banking and Interbank Transfer, and order number. The online transfer method will only valid for 3 days that way the customer must inform to them immediately after transaction. This is because there want keep all of their purchasers informed in respect of the lapse of grace period. If not after order shall be automatically being cancelled in the event payments still remain unpaid. There also accept credit card payment via ipay88 for all orders. For Mobile88 payment there will be notified of the customer payment from ipay88 directly. The customer can find more information by visit their website “www.ipay88.com.”

The payment method uses by Mudah.my are through credit card, online transaction and PayPal. Mudah.my is partner PayPal where is safe online payment. It one of Malaysia base online trading marketplace starts to use PayPal a most trusted payment method internationally for an option in online payment among consumers who used their platform to trade. These safe options could draw a lot of traffic to their website to advertise and shopping online. Selling and buying can now conduct transactions through PayPal which ensures rigorous safety screening and follow-up services are put in place.

All payments for purchase of any Premium Service shall be made either by PayPal, Credit Card and Maybank2U Bank Transfer only. This Premium Service Option can be purchased during insertion of advertisement or at 'Manage Ad' option after the advertisement has been approved and published on the Website. Payments shall be made at the time of submission of the individual User's advertisement listing for review, together with the "Insert Ad" form. Users are fully liable of checking the lifespan of their advertisements in advance prior to purchasing premium services as the premium services lifespan does not increase the lifespan of the published advertisement. The Company bears no responsibility of compensation in event the lifespan of the advertisement is shorter than the premium service purchased. The Company reserves the right the revoke published advertisements including advertisements that have purchased premium services if deemed and proved to violate the Company's Rules for Advertising.

Conclusion

In conclusion, we know that Beli4u online fashion boutique website is better than Mudah.my. This is because it very simple and easy to understand by the customer. It also has good quality of information about their product to advertise and promote to the customer. The navigation features is very user friendly, colorful, complete, very detail and convenience. It enables customer to shop, do order or transactions anywhere. It allows consumer to shop at the convenience of their own home, and to save travelling. The payment method also gives customer variety of choose which bank their want to use to pay the order transaction. This is because; the payment method is through major bank in Malaysia including Inter-bank funds transfer can be made via ATM machines or Internet Banking. Their accept payment from Maybank, CIMB Bank, Public Bank, Hong Leong bank and RHB bank.

Even though, it enables customer to shop, do order or transactions anywhere but the design in mudah.my is very old, never improve. It will not attract new customer to purchases or buy product from this website. It also doesn’t have warranty of non-quality product, and the customer easy to be cheated. Especially the items is secondhand product, the seller can simply sell the product even though the product is not good and cannot be use any anymore. These types of seller will think on their own benefit without thinking other. The company does not guarantee continuous, uninterrupted or secure access to the services, and operation of the site may be interfered with by numerous factors outside the company's control.

Recommendation

In my suggestion, the apparel online shopping must be improved. Although it is not yet widely used, there should created are developing 3D technologies to use for online shopping. There can also developed customized fitting room for many types of clothing as possible, try on application that will allow their customer to apply multiple layers of clothes. Moreover, the most important issues on the privacy and security issues. Consumer who perceives fewer risks or concern toward online shopping are expected to make more online purchases than more risk-laden consumer (Miyazaki & Fernandez, 2001, p.31). Although it is possible to involve one privacy online, no significant amount of statistical result relating to the victim who has been invaded, has been found. Many are simply concerned and mistrust online stores. What online stores need is the mechanism that signals security of financial transactions on the web. One possible solution is to require website makers to provide a third party seal approval that signal privacy on their websites. Thus when consumer see the seal, they can trust the website and not worry about invasion of their privacy. Moreover, all companies will desire to keep frauds away in order to build company reputation and to survive in the competitive online market. Once they build consumer trust, online shoppers will not be discouraged to shop on their website.

My advice to the Mudah.my website are they should provide clear and sufficient information so consumer can make an informed choice, take reasonable steps to ensure the consumer’s choice is informed and intentional to avoid mistakes and misunderstanding. The most important, they should publish privacy statement and protect personal information, and use secure e-commerce transaction system with fair, timely and affordable methods to resolve transaction problem. Moreover, they should offer third party references about safe use of e-commerce and exhibit terms and conditions (warranty, guarantee, currency used and quality) clearly. Meanwhile, The transaction such as delivery speed and providing tracking number can also significant condition that will be satisfy by the consumers (Limayem, Khalifa & Frini, 2000). This is because all the consumer expect to receive the product with high speed, and want to be able to track their purchased item to avoid any frauds while shipping.

References

10 benefit of hosting your own blog February 2, 2009

View on 10 October 2011

http://www.blogtrafficexchange.com/10-benefits-of-hosting-your-own-blog/

Diana, Benefit of facebook updated on September 5, 2011

View on 10 October 2011

http://benefitof.net/benefits-of-facebook/

View on 10 October 2011

http://factoidz.com/4-disadvantages-of-using-facebook/

Mudah.my Sdn Bhd

View on 10 October 2011

http://www.mudah.my

Beli4u online fashion boutique

View on 11 October 2011

http://www.beli4u.com/room/

WebDynamic, Business to Consumer (B2C)

View on 11 October 2011

http://www.webdynamic.com.au/internet-marketing/business-to-consumer-b2c.html

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View on 12 October 2011

http://en.wikipedia.org/wiki/Direct_marketing

Jin, 2005, Advantages/ disadvantages online shopping

View on 13 October 2011

http://www.ocf.berkeley.edu/~jinnie/advantage.html

Bruce Tognazzini, 2004, AskTog, Top 10 Reasons to Not Shop On Line

View on 14 October 2011

http://www.asktog.com/columns/062top10ReasonsToNotShop.html

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View on 15 October 2011

http://ezinearticles.com/?Benefits-of-Online-Shopping&id=300201

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http://anamikas.hubpages.com/hub/Online-shopping-sites-benefits

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http://ezinearticles.com/?Common-Problems-When-Online-Shopping&id=861979

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http://moneymagnet2.blogspot.com/2010/05/advantages-and-disadvantages-of-online.html

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http://www.ocf.berkeley.edu/~jinnie/solutions.html

Alone In my own World

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Sunday, April 14, 2013

CSC 289I: E - COMMERCE THEORY AND APPLICATIONS

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