UNIVERSITY EXAMINATIONS: 2018/2019
EXAMINATION FOR THE DIPLOMA IN INFORMATION
TECHNOLOGY
DIT502 E-COMMERCE
DATE: APRIL 2019 TIME: 2 HOURS
INSTRUCTIONS: ATTEMPT QUESTION ONE AND ANY OTHER TWO QUESTIONS.
QUESTION ONE
a) E- commerce has brought about benefits to all aspects of life, advantages to the individual,
organization as well as the society as a whole. In your own words explain FIVE benefits
to the society. [5 Marks]
b) Using examples ccompare brick-and-mortar and click-and-mortar organizations. [4 Marks]
c) Limitations of E- Commerce can be classified as being technological or the nontechnological. Which ones can easily be overcome in Kenya? Explain why.
[5 Marks]
d) Distinguish the following terms:
i. Intranet and extranet. [2 Marks]
ii. Guided media and unguided media. [2 Marks]
e) An E-market place is an online market in which buyers and sellers exchange goods and
services. Outline FIVE advantages that e- market spaces have brought to consumers.
[5 Marks]
f) The success and security of E-commerce depends on the confidentiality, integrity and
availability of information and the business website. Elaborate. [6 Marks]
g) Define E- commerce. [1 Mark]
QUESTION TWO
a) Web advertising has enabled marketers and advertisers to interact directly with customers.
With examples explain FIVE reasons why web advertising has become popular than the
traditional static advertising methods. [5 Marks]
b) Define the following internet advertising terminologies. [5 Marks]
i. Ad views
ii. Click through
iii. CPM
iv. Hit
v. Visit
c) Explain the following internet security terms. [5 Marks]
i. Non- repudiation
ii. Salami slicing
iii. Denial of service attack
iv. Identity theft
v. Ransomware
d) You are the web administrator in your firm. Explain controls that can help counter the
above threats. [5 Marks]
QUESTION THREE
a) Personalization refers to matching of services, products and advertising content to
individuals and preferences also referred to as user profile. Explain FIVE major strategies
marketers use to compile user profiles. [5 Marks]
b) Explain the advantages that companies derive from having loyal customers. [5 Marks]
c) Describe how trust can be increased as far as online business is concerned. [5 Marks]
d) Explain the challenges of stopping e- commerce crimes. [5 Marks]
QUESTION FOUR
a) A number of factors come to play in determining whether a particular mode of e-payment
achieves critical mass. Explain any FIVE crucial factors according to Schmalensee.
[5 Marks]
b) Briefly describe the following payment cards. [6 Marks]
i. Credit cards
ii. Charge cards
iii. Debit cards
c) Explain the key players in processing card payments. [5 Marks]
d) Explain the term ethics and expound on FOUR ethical computer behaviors in the office.
[4 Marks]
QUESTION FIVE
a) Describe FOUR benefits of Electronic data interchange (EDI) in a business. [4 Marks]
b) Explain SIX drivers of E-Commerce in a society. [6 Marks]
c) Identify FIVE advantages of E- banking over traditional banking. [5 Marks]
d) Explain FIVE factors you would consider while designing a commercial website.
[4 Marks]
