DIT502 ECOMMERCE.

UNIVERSITY EXAMINATIONS: 2017/2018
EXAMINATION FOR THE DIPLOMA IN INFORMATION
TECHNOLOGY/DIPLOMA IN BUSINESS INFORMATION TECHNOLOGY
DIT502 ECOMMERCE
FULLTIME/PARTTIME
DATE: AUGUST 2018 TIME: 1
1
/2 HOURS
INSTRUCTIONS: ATTEMPT ANY OTHER THREE QUESTIONS.

QUESTION ONE
a) Define the following terms. [5 Marks]
i. Brick and mortar businesses
ii. Pure play
iii. Click and mortar
iv. E- commerce
v. EDI
b) Intranets enhance existing communication between employees and provide a common
knowledge base and storage area for everyone in the business. Explain the contents of an
intranet. [5 Marks]
c) Differentiate between physical market places and E- market spaces. [10 Marks]
QUESTION TWO
a) Electronic auctions also called online auction business model is one in which participants bid for
products and services over the Internet. In your own words discuss why e- auctions are gaining
popularity. [5 Marks]
b) A portal is an information gateway it attempts to address information overload by enabling
people to search and access relevant information from disparate IT systems and the Internet.
Explain FIVE types of portals. [5 Marks]
c) A broker is a company that facilitates transactions between buyers and sellers. Explain FIVE
different types of brokers. [5 Marks]
d) Personalization refers to the matching of services, products, and advertising content to individuals
and their preferences. The matching process is based on what a company knows about the
individual user. Profiles can be generated in several ways. Explain the major strategies used to
compile user profiles. [5 Marks]
QUESTION THREE
a) Explain why E-crime has contributed to the slow growth of E-commerce. [5 Marks]
b) Organizations use different techniques to secure their networks from attack. Explain how
organizations can do this. [5 Marks]
c) Outline limitations of online market research. [5 Marks]
d) Define the following terms. [5 Marks]
i. CPM
ii. Click
iii. Advertising banner
iv. Ad views
v. Click through ratio
QUESTION FOUR
a) M-Pesa is a popular form of e- payment in Kenya. Explain why it has continued to be the
preferred mode of payment. [5 Marks]
b) Explain how a company can minimize and safeguard exposure to risk on criminal or civil charges.
[5 Marks]
c) List the major characteristics of web advertising. [5 Marks]
d) Explain why an organization may prefer Web advertising to traditional advertising media.
[5 Marks]
QUESTION FIVE
a) Describe the limitations of online market research. [5 Marks]
b) Describe the issue of trust in EC and how to increase it. [5 Marks]
c) Explain methods of conducting market research online. [5 Marks]
d) Define. [5 Marks]
i. Non-repudiation
ii. Encryption
iii. Spyware
iv. Identity theft
v. Salami slicing

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