Free Solved Question Paper of BCS-062 : E-COMMERCE (June 2023)

1. (a) Define the term e-Commerce. What are the key drivers for e-Commerce? Also explain its attributes. (10 marks)

Answer :

Definition of e-Commerce: Electronic Commerce (e-Commerce) is the process of buying, selling, transferring, or exchanging products, services, and information through computer networks, including the Internet. It encompasses all business conducted electronically between various entities.

Key Drivers of e-Commerce:

• Technological Advancement:
  • Improved internet connectivity and speed
  • Mobile device proliferation
  • Cloud computing capabilities
  • Advanced payment technologies
• Market Forces:
  • Growing digital literacy
  • Changing consumer behavior
  • Global market access
  • Cost reduction opportunities
• Business Innovation:
  • Digital transformation initiatives
  • New business models
  • Personalization capabilities
  • Supply chain optimization

Attributes of e-Commerce:

1. Ubiquity: Available everywhere at any time
2. Global Reach: Crosses geographical boundaries
3. Universal Standards: Shared technical standards worldwide
4. Richness: Interactive and multimedia capabilities
5. Interactivity: Two-way communication between businesses and consumers
6. Information Density: Increased availability and quality of information
7. Personalization: Customized user experiences
8. Social Technology: User-generated content and social connections

Attribute Relationships Diagram:

1. (b) Explain transplanted real world business models and native internet business models. (10 marks)

Answer :

1. Transplanted Real World Business Models:

These are traditional business models that have been adapted for the internet, maintaining their core characteristics while leveraging digital capabilities.

• Examples:
  • Online retail stores (e.g., Walmart.com)
  • Digital banking services
  • Online travel agencies
  • Digital newspapers and magazines
• Characteristics:
  • Based on existing business processes
  • Enhanced by digital capabilities
  • Hybrid operational model
  • Traditional revenue streams with digital extensions

2. Native Internet Business Models:

These are business models that exist purely because of the internet and would not be possible in the traditional business world.

• Examples:
  • Search engines (e.g., Google)
  • Social media platforms
  • Cloud service providers
  • Digital marketplaces (e.g., Amazon)
• Characteristics:
  • Born-digital operations
  • Network effect-based growth
  • Data-driven decision making
  • Innovative revenue models

Comparison Diagram:

2. (a) How did the shopping experience change with the advent of e-Commerce? Give an example. (5 marks)

Answer :

Changes in Shopping Experience:

1. 24/7 Availability: Shopping possible at any time without store hours limitations
2. Global Access: Access to products from around the world
3. Price Comparison: Easy comparison of prices across multiple sellers
4. Product Information: Detailed specifications and customer reviews available
5. Personalization: Customized recommendations based on browsing history

Example: Online Electronics Shopping

Traditional Experience:

• Visit physical stores during business hours
• Limited product selection
• Rely on salesperson's knowledge
• No easy price comparison

e-Commerce Experience:

• Browse multiple stores 24/7
• Compare prices instantly
• Read customer reviews
• Access detailed specifications
• Virtual product demonstrations

2. (b) Define the term 'EDI'. Explain its architecture with the help of a diagram. (5 marks)

Answer :

EDI (Electronic Data Interchange): A standardized method for transferring data between different computer systems or networks in a structured, machine-readable format.

EDI Architecture Components:

1. Application Interface: Converts internal data to EDI format
2. EDI Standards: Rules for formatting documents (e.g., ANSI X12)
3. Communication Protocol: Handles data transmission
4. Translation Software: Converts EDI format to readable data

Architecture Diagram:

3. (a) What are the various payment methods available to buy goods online? Compare them. Which is the best method among them? (5 marks)

Answer :

Online Payment Methods:

1. Credit/Debit Cards:
   • Pros: Widely accepted, secure, buyer protection
   • Cons: Risk of data theft, transaction fees
2. Digital Wallets (PayPal, Google Pay):
   • Pros: Convenient, fast, extra security layer
   • Cons: May have fees, not universally accepted
3. UPI (Unified Payments Interface):
   • Pros: Instant, low cost, highly secure
   • Cons: Limited to certain regions
4. Net Banking:
   • Pros: Direct bank transfer, secure
   • Cons: Multiple steps, potential timeout issues

Best Method: Digital Wallets are generally considered the best option due to:

• Balance of security and convenience
• Additional buyer protection
• Easy dispute resolution
• Multiple funding sources

3. (b) What is cyber crime? What are the different categories of cyber crimes? (5 marks)

Answer :

Cyber Crime Definition: Criminal activities carried out using computers or the Internet, targeting computer systems or using them to commit crimes.

Categories of Cyber Crimes:

1. Financial Crimes:
   • Credit card fraud
   • Online banking fraud
   • Investment scams
2. Cyberstalking:
   • Online harassment
   • Identity theft
   • Social media stalking
3. Hacking:
   • System intrusion
   • Data theft
   • Malware distribution
4. Cyber Terrorism:
   • Critical infrastructure attacks
   • Political hacking
   • Information warfare

Categories Diagram:

4. (a) List any five security concerns in m-Commerce. (5 marks)

Answer :

Top 5 Security Concerns in m-Commerce:

1. Device Security:
   • Loss or theft of mobile devices
   • Unauthorized access to stored data
   • Malware infections
2. Network Vulnerabilities:
   • Unsecured Wi-Fi connections
   • Man-in-the-middle attacks
   • Data interception risks
3. Authentication Issues:
   • Weak password protection
   • Session hijacking
   • Identity theft risks
4. Payment Security:
   • Transaction data theft
   • Fraudulent payments
   • Payment gateway vulnerabilities
5. Application Vulnerabilities:
   • Insecure data storage
   • App permission abuse
   • Code injection attacks

4. (b) What is a digital signature? How is it verified? (5 marks)

Answer :

Digital Signature: A mathematical technique used to validate the authenticity and integrity of a digital message or document.

Components:

• Private key (for signing)
• Public key (for verification)
• Hash function
• Digital certificate

Verification Process:

1. Sender creates message hash
2. Hash is encrypted with private key
3. Receiver decrypts with public key
4. New hash is compared with original

Verification Diagram:

5. (a) What is SSL? Explain its working with the help of a diagram. (6 marks)

Answer :

SSL (Secure Sockets Layer): A cryptographic protocol designed to provide secure communication over a computer network.

Working Process:

1. Client sends hello message with supported cipher suites
2. Server responds with certificate and selected cipher
3. Client verifies certificate and sends session key
4. Server acknowledges and begins encrypted communication

SSL Handshake Diagram:

Key Features:

• Data encryption
• Server authentication
• Message integrity
• Secure key exchange

5. (b) Describe the characteristics of B2B, B2C, C2B and C2C models of e-Commerce. (4 marks)

Answer :

1. B2B (Business-to-Business):

• Large volume transactions
• Long-term relationships
• Complex pricing structures
• Integration with business systems

2. B2C (Business-to-Consumer):

• Retail transactions
• Fixed pricing
• Shopping cart model
• Customer service focus

3. C2B (Consumer-to-Business):

• Reverse auction model
• Consumer-set pricing
• Service bidding
• Freelance platforms

4. C2C (Consumer-to-Consumer):

• Peer-to-peer transactions
• Auction platforms
• Direct consumer interaction
• Platform-based trust systems

Models Comparison: