UNIVERSITY EXAMINATIONS: 2017/2018
EXAMINATION FOR THE DEGREES OF BACHELOR OF SCIENCE IN
INFORMATION TECHNOLOGY/ APPLIED COMPUTING/BUSINESS
INFORMATION TECHNOLOGY
BIT 1302A/ BUSS 208/ BAC 2105: E – COMMERCE
FULLTIME/ PART TIME
ORDINARY EXAMINATIONS
DATE: NOVEMBER, 2017 TIME: 2 HOURS
INSTRUCTIONS: Answer Question One & ANY OTHER TWO questions.
QUESTION ONE [30 MARKS]
a) How is electronic commerce changing the way that traditional business is conducted
among organizations? Briefly discuss (3 Marks)
b) Describe the following terms as they are applied in the e-commerce environment
i) Shipping profile
ii) JIT
iii) Payment gateway
iv) Value-to-weight ratio (8 Marks)
c) Identify FIVE considerations during the design of an electronic payment system (5 Marks)
d) E-cash is quickly gaining acceptance in Kenyan markets:
i) Identify FOUR characteristics of e-cash (4 Marks)
ii) Explain how e-cash processing is done. Also draw a diagram to illustrate this (4 Marks)
e) Describe the term “business processes” and outline FIVE business processes that a seller
using an e-commerce platform can engage in (6 Marks)
QUESTION TWO [20 MARKS]
a) Electronic data interchange (EDI) has been defined as the formal way through which
businesses exchange information:
i) Outline the FOUR key layers found in the architecture of EDI (4 Marks)
ii) Identify THREE business areas that make heavy use of EDI (3 Marks)
b) List any FIVE considerations when acquiring the merchant server software (5 Marks)
c) Identify and briefly discuss FOUR main categories of transactions which will lead to
information being processed for e-commerce. (8 Marks)
QUESTION THREE [20 MARKS]
a) Distinguish between “personalization” and “customization” with respect to electronic
trading (4 Marks)
b) Discuss the following electronic business models and cite examples of each:
i) B2C (2 Marks)
ii) C2C (2 Marks)
iii) G2C (2 Marks)
c) The number of requests submitted on a website is perhaps the most important factor
affecting the speed of a website. Identify any SIX factors that can be considered when
predicting website demand by customers (6 Marks)
d) Identify any FOUR circumstances in which e-commerce would not be an appropriate
trading choice (4 Marks)
QUESTION FOUR [20 MARKS]
a) To achieve data-centric computing, middleware services focus on three elements;
i) Transparency,
ii) Transaction security management and
iii) Distributed object management.
Provide an overview of each of these elements (6 Marks)
b) Explain THREE factors that have lead the financial institutions to make heavy use of
electronic payment systems. (6 Marks)
c) Use a case study example to describe the term “Trade cycle” and discuss any THREE
reasons that can cause variation in the trade cycle. (8 Marks)
QUESTION FIVE [20 MARKS]
a) ‘Interface and Support Services’ is an e-commerce logical layer that interfaces applications
such as interactive catalogs and directories. Clearly distinguish between an interactive
catalog and a directory and state the functions of each (6 Marks)
b) Identify FOUR infrastructures that are part of the e-commerce architecture (4 Marks)
c) Huduma Chapchap, a motorbike rental and selling company, is planning to move the
business to an electronic trading platform.
i) Critically discuss the suitability of this decision and justify your arguments (4 Marks)
ii) Discuss SIX non-technical limitations that Huduma Chapchap is likely to experience
as a result of this move (6 Marks)
