BIT 1303 ECOMMERCE KCA Past Paper

UNIVERSITY EXAMINATIONS: 2013/2014
ORDINARY EXAMINATION FOR THE BACHELOR OF SCIENCE
IN INFORMATION TECHNOLOGY
BIT 1303 ECOMMERCE
DATE: APRIL, 2014 TIME: 2 HOURS
INSTRUCTIONS: Answer Question ONE and any other TWO

QUESTION ONE
a) Differentiate between e-commerce and e-business [2 Marks]
b) The impact of e-commerce to organizations can be specifically seen along the
following lines among others. Explain: [12 Marks]
i) Industry structure
ii) Business strategy
iii) Value chains
c) State and explain any three (3) e-commerce business models. Give suitable examples
in each case. [6 Marks]
d) Differentiate between “value chain” and “value systems”. [4 Marks]
e) By differentiating between VPNs and VANs, outline some four reasons why some
business organizations opt to use VANs over direct Internet communications.
[6 Marks]
QUESTION TWO
a) Define the term digital economy. [2 Marks]
b) i). Explain the term electronic marketplace and outline its main components.
[9 Marks]
ii). Explain the three main functions of e-markets. [3 Marks]
c) Describe each of the following standards for e-payments:
i) Secure socket layer (SSL
ii) Transport Layer Security (TLS)
iii) Secure Electronic Transaction (SET)
[6 Marks]
QUESTION THREE
a) Explain the four (4) parties usually involved in e-payments. [8 Marks]
b)
i) Define the term e-marketing. [2 Marks]
ii) Outline any three characteristics of marketing communications that take place
via the Internet. [6 Marks]
c) Outline any two (2) tangible benefits of EDI. [4 Marks]
QUESTION FOUR
a) Differentiate between the following sets of terms: [6 Marks]
i) Spot buying and strategic buying
ii) Brick-and-mortar and click-and-mortar
iii) Direct materials and indirect materials
b) By defining collaborative commerce, outline any two reasons why it is moving on
fairly slowly, i.e. what are the barriers to collaborative commerce. [4 Marks]
c) Using a well-labeled diagram, discuss the 3-tier architecture for developing ecommerce infrastructure. [10 Marks]
QUESTION FIVE
a) i). Evolution of e-commerce can be said to follow this kind of linear chain:
Intranet>Web site>E-commerce. Explain. [7 Marks]
ii). Outline any two benefits and any two limitations of e-commerce [4 Marks]
b) Explain each of the following security issues:
i) Authorization
ii) Authentication
iii) Auditing
iv) Confidentiality (privacy)
v) Integrity
vi) Non-repudiation
[9 Marks]

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