IT430- E-Commerce (Session - 3) (Part 2 of 2)

FINAL TERM EXAMINATION

Spring 2010

IT430- E-Commerce (Session - 3)

Question No: 23 ( Marks: 1 ) - Please choose one

Downstream activities relate to distribution and sale of goods to distributors/customers

► True P:155

Supply chain can be broken into three parts, that is, upstream activities, internal activities and downstream activities.

· Upstream activities relate to materials/services or the input from suppliers

· Internal activities relate to manufacturing and packaging of goods

· Downstream activities relate to distribution and sale of goods to distributors/customers

► False

Question No: 24 ( Marks: 1 ) - Please choose one

Online banking is a substitute of tradition banking. Is it?

► True

► False

Question No: 25 ( Marks: 1 ) - Please choose one

-------------means services in relation to the transformation of contents of an electronic

Document from its original form to one that cannot be understood or decoded by any unauthorized person

► Cryptography services P:163

“‘Cryptography services’ means services in relation to the transformation of contents of an electronic document from its original form to one that cannot be understood or decoded by any unauthorized person”.

► Accredited Certification Service Provider’

► Originator

► Addressee

Question No: 26 ( Marks: 1 ) - Please choose one

Law is broadly divided into two classes on the basis of nature of wrong, namely, ------------ and ---------------

► Civil law and criminal law P:176

Law is broadly divided into two classes on the basis of nature of wrong, namely, civil law and criminal law. Civil law deals with the private rights of the parties, whereas the object of criminal law is to punish the wrong-doer. Civil wrongs such as breach of contract are deemed to violate only the rights of individuals and not the society in general.

► ETO and criminal law

► Supreme and Civil Law

► None

Question No: 27 ( Marks: 1 ) - Please choose one

Each layer except ………… has got a header.

► Physical layer P:05

Header is a piece of information which is attached to the data at its beginning by each layer except the physical layer. The process of moving the data down the OSI Protocol.

► Datalink layer

► Session layer

► Network layer

Question No: 28 ( Marks: 1 ) - Please choose one

Symmetric algorithms are faster than asymmetric?

► true P:105

The advantage of using symmetric key is that since symmetric algorithms are faster as compared to asymmetric, therefore, the encryption of a message with the symmetric key takes place quickly.

► false

Question No: 29 ( Marks: 1 ) - Please choose one

SET was developed in _____.

► 1996

► 1997 P:122

Secure Electronic Transaction (SET)

The drawback in SSL that the credit card/debit card information remains with the merchant led to the development of a more sophisticated protocol called SET. It was developed in 1997 jointly by Visa, MasterCard, Netscape and Microsoft.

► 1998

► 1999

Question No: 30 ( Marks: 1 ) - Please choose one

LDA stands for _______

► Lahore Development Authority P:165

A statutory body is a body/organization established under some statute/law. For example, the Lahore Development Authority (LDA) is a statutory body established under the Lahore Development Act, 1975 (a provincial statute).

► Lahore Development Act

Question No: 31 ( Marks: 2 )

What is Data Mining? P: 140

Data Mining

Data Mining can be defined as the task of discovering interesting patterns from large amounts of data, where the data can be stored in databases, data warehouses, or other information repositories. Data mining has a lot of business application in today’s world. We can identify the behavior of our customers and can effectively target them with personalized messages using data mining techniques.

Assume that there is a shopping store where the data/information about customers has been recorded /stored over a period of time. Using a data mining technique on the customers’ data, certain pattern can be generated that can provide useful information. For example,

this pattern may tell us that people having a certain demographic profile (age over 20 years and sex male) coming from a particular location have shown inclination to buy computer related items. It is an interesting clue for the marketers.

Question No: 32 http://vustudents.ning.com (Marks: 2 )

What is the purpose of FRAMESET tag? P: 31

and are the two basic tags. This concept uses two different types of pages –

Frameset page and content pages. Frameset page divides the browser window into a set of frames and defines the size of each frame. It also specifies which content pages are displayed in which frame. It has nobody section (no body tag). Content pages are just regular HTML pages.

Question No: 33 (Marks: 2 )

What do we mean by "Free-Trial" promotion technique? P: 133

Promotions

E-business promotions can attract visitors to your site and induce them to purchase. Promotional messages can be sent both online and offline.

Free-trials

Customers can sign up for a free service. For example, they can be allowed to download software for certain days free of cost on trial basis before buying it.

Question No: 34 (Marks: 2 )

What is UNCITRAL?

Most of the countries have, by now, made laws providing recognition to electronic documents an electronic signature. They have basically followed a model law on e-commerce proposed by a U.N. body called UNCITRAL (United Nations Commission on International Trade Law) in 1996.

On analysis, appears that ETO has certain deficiencies. For instance, difference between an electronic signature and an advanced electronic signature is not clear. Sections dealing with the offences of violation of information a privacy and damage to information /informational systems are too broadly worded, which may lead to confusion. International aspects of e-commerce such as recognition of the foreign certificates and electronic signatures etc. are missing.

Question No: 35 (Marks: 3 )

Write precisely about the 4^th stage of planning cycle? P:159

Strategic Planning Cycle

E-business competitive strategy is normally formed and implemented according to a planning cycle which is called strategic planning cycle.

There are four stages in this planning cycle

1. Industry and Competitive Analysis Strategy

2. Formulation

3. Implementation

4. Performance Assessment or Strategy Reassessment

The 4^th stage is Performance Assessment or Strategy Reassessment

Strategy assessment:

Results of implementation plan are monitored and assessed so that any corrective measures or expansion plan can take place. Basically, you want to assess whether your strategy has delivered what it was supposed to deliver; whether your strategy is still viable/workable in the ever changing environment. In strategy assessment phase, you can learn from your mistakes and do your future planning. In case your EC project has been a failure, you can identity the problems and try to remove them. Some of the corrective measures can be to property train your web team, establish or review your security or privacy policy, review or reassess your web design content, reconsider your marketing plan etc. For the strategy assessment, you can conduct surveys, collect information and receive feedback from different groups of people so that you have solid input from people coming from a variety of background. Sometimes, you have to entirety give up a particular strategy you followed and formulate a new strategy or set of strategies in light of the company’s main objective or its mission.

Question No: 36 (Marks: 3 )

Discuss the role and responsibilities of “Transport layer” in OSI model?

Transport layer

TCP (Transmission Control Protocol) or UDP (User Datagram Protocol) operate at this layer. It has two functions. It converts the data into data packets. Secondly, it is responsible for flow control of data. TCP is more reliable as it is acknowledgment based as opposed to UDP which does not use any system of acknowledgment for the delivery of data packets.

Question No: 37 (Marks: 3 )

How lack of trust barrier can be overcome or minimized? Discuss it briefly

Lack of Trust

It is very important for online businesses to establish trusting relationships with their customers like in the physical world where companies ensure that customers know who they are. However, it is difficult to build trust because a kind of anonymity exists for companies trying to establish web presence.

Lack of trust barrier can be overcome or minimized:

· A plan for establishing credibility of an online business is extremely crucial for its success.

· In this behalf, attention to the needs of the site visitors is very important while designing the web site, since it can be helpful in building trust with customers. For instance, there should be easy to find web pages that answer questions of the visitors.

· Note that companies with established brands can build trust for online business more quickly as compared to a new company/business without reputation, since a brand conveys expectations about how the online business would behave. For example, how the seller online business would react to a claim of refund by the customer.

Question No: 38 (Marks: 3 )

Write the names of companies who were helper in developing Secure Electronic Transaction.

Secure Electronic Transaction. (SET)

It was developed in 1997 jointly by Visa, MasterCard, Netscape and Microsoft.

Question No: 39 (Marks: 5 )

Differentiate between Cyber squatting and concurrent use with example. P: 181

Cyber squatting

The act of intentionally registering domain names containing trademarks/trade names of prominent companies to later blackmail or demand ransom from those companies is called cyber squatting.

Example:

Assume there is a firm ‘Glory Enterprise’ and it wants to have its web site. It also wants to have the word ‘glory’ as a part of its domain name because for years it has been recognized in the physical world through this word. However, at the time of registration of its domain name it finds that a person Mr. ‘A’ who has nothing to do with the business of the firm or the word ‘glory’ has already registered a domain name containing this word as a part of it. Since there cannot be two similar domain names, the firm is forced to request Mr. ‘A’ to transfer that domain name to it. In response, if Mr. ‘A’ blackmails or claims ransom from the said firm, he would be said to have committed cyber squatting.

Concurrent use

This problem arises when two organizations have apparently legitimate claim to use the same domain name but cannot do so due to the uniqueness of domain names.

Example:

Suppose, there is a company manufacturing electronic goods and another company selling French fries. Under the traditional trade mark law both these companies can have the same trade mark/trade name such as ‘frys’. The problem

arises when both apply for the registration of a domain name containing the word ‘frys’. Here, both are legitimate claimants of this domain name but due to the element of uniqueness of domain names only

one of them can be assigned the desired domain name.

Question No: 40 (Marks: 5 )

Explain ‘Confidence’ and ‘Support’ as two measures of Association? P: 144

CONFIDENCE AND SUPPORT

There are two terms/measures used in association, that is, support and confidence. Confidence’ is a measure of how often the relationship holds true e.g, what percentage of time did people who bought milk also bought eggs. Support means what is the percentage of two items occurring together overall.

Mathematically, they can be expressed as follows if we take the example of eggs and milk:

Confidence = Transactions (eggs + milk)

Transactions (eggs or milk or both)

In case no. of transactions involving eggs and milk are 25 and those involving eggs or milk or both are 75

then confidence is 25/75*100=33.3%

Support = Transactions (eggs + milk)

Total no. of transactions

In case no. of transactions involving eggs and milk are 10 and total no. of transactions in a day is 50 then

support is 10/50*100 = 20%

Suppose if confidence is 90% but the support is 5%., then we can gather from this that the two items have very strong affinity or relationship with each other such that when an item is sold the other is sold together, However, the chance of this pair being purchased out of the total no. of transactions is very slim, just 5%.

One can adjust these measures to discover items having corresponding level of association and accordingly set marketing strategy. So, if I feed the data to the association mining tool and specify the percentage of confidence and support, it will list down the items that have association corresponding to these percentages. Results of association mining are shown with the help of double arrows as indicated below:

Bread Å----Æ Butter

Computer Å----Æ Furniture

Clothes Å----Æ Shoes

Using the result of association mining, a marketer can take a number of useful steps to set or modify marketing strategy. For example, items that have closeness/affinity with each other can be shelved together to improve customer service. Certain promotional schemes can be introduced in view of the association mining result etc.