BIT403 · TU past paper
E-Commerce 2080 question paper
The complete TU 2080 exam paper for E-Commerce (BIT403), all 12 questions with solved model answers written to the mark scheme.
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- 110 marksDual signature generation and applicationHideAnswer
What is a dual signature? How is the dual signature generated? Describe the payment authorization in SET.[10]
A dual signature is a cryptographic mechanism used in the Secure Electronic Transaction (SET) protocol to link two separate messages (the order information and payment information) while maintaining the privacy of each party involved. Sp...
- 210 marksKey elements of e-commerce business modelsHideAnswer
What is E-commerce? Discuss the key elements of the E-commerce Business Model.[10]
E-commerce: Definition and Key Business Model Elements
Definition of E-commerce
E-commerce (Electronic Commerce) refers to the conduct of business transactions, including buying and selling of goods and services, over electronic networks, primarily the Internet. It encompasses all digitally enabled commercial transactions between organizations, businesses, and consumers.
E-commerce involves the exchange of value (money, information, or services) through digital channels and includes activities such as:
- Online retail sales
- Digital service delivery
- Business-to-business (B2B) transactions
- Business-to-consumer (B2C) transactions
- Consumer-to-consumer (C2C) transactions
Key Elements of E-commerce Business Model
1. Value Proposition
- Clearly defines what unique value the e-commerce business offers to customers
- May include convenience, lower prices, wider selection, personalization, or faster delivery
- Must differentiate the business from competitors
2. Revenue Model
- Specifies how the business generates income
- Common models include:
- Direct sales (product/service sales)
- Subscription-based services
- Commission/marketplace fees
- Advertising revenue
- Freemium models
3. Market Segment
- Identifies the target customer base
- Defines customer demographics, behaviors, and needs
- Determines marketing and product strategies
4. Value Chain
- Encompasses all activities required to deliver the value proposition:
- Product sourcing/development
- Inventory management
- Order processing
- Payment processing
- Logistics and delivery
- Customer support
5. Competitive Advantage
- Identifies what makes the business unique
- May be based on technology, brand, cost leadership, or customer service
- Provides sustainable differentiation in the market
6. Technology Infrastructure
- Website/mobile application platform
- Payment gateway and security systems
- Database management systems
- Customer relationship management (CRM) tools
- Supply chain management systems
7. Customer Relationships
- Mechanisms for customer engagement and retention
- Personalization and recommendation systems
- Customer service channels (chat, email, phone)
- Loyalty programs
8. Partnerships and Alliances
- Relationships with suppliers, logistics providers, payment processors
- Strategic partnerships for market expansion
- Integration with third-party services
Conclusion
A successful e-commerce business model integrates these elements cohesively to create a sustainable, scalable operation that delivers value to customers while generating profitable returns for the business.
- 310 marksSocial local and mobile marketing definitiHideAnswer
Define social, mobile and local marketing. How are the completion rate and skip rate used in video ad marketing?[10]
Model Answer: Social, Mobile, and Local Marketing; Video Ad Metrics
Definitions
Social Marketing
Social marketing is the application of marketing principles and techniques to promote social causes, ideas, or behaviors that benefit society. It aims to influence attitudes and behaviors for social good (such as public health campaigns, environmental awareness, or safety initiatives) rather than primarily for commercial profit. Social marketing uses traditional marketing tools (segmentation, positioning, messaging) but directs them toward achieving social objectives.
Mobile Marketing
Mobile marketing refers to marketing activities and communications delivered to consumers through mobile devices such as smartphones, tablets, and wearable devices. It includes SMS marketing, mobile apps, mobile-optimized websites, location-based services, and in-app advertising. Mobile marketing leverages the ubiquity and personal nature of mobile devices to reach consumers anytime and anywhere, often using real-time, personalized, and location-aware messaging.
Local Marketing
Local marketing is a strategy that targets customers within a specific geographic area or locality. It focuses on promoting products, services, or brands to consumers in a particular city, neighborhood, or region. Local marketing uses location-specific messaging, local partnerships, community events, and geographically targeted advertising to build relevance and drive foot traffic or local engagement.
Video Ad Marketing Metrics
Completion Rate
The completion rate is the percentage of viewers who watch a video advertisement in its entirety (or to a defined completion point, typically 100% or the final frame). It is calculated as:
$$\text{Completion Rate} = \frac{\text{Number of completed views}}{\text{Total number of video ad impressions}} \times 100%$$
A high completion rate indicates that the video content is engaging, relevant, and holds viewer attention. It is a key performance indicator (KPI) for measuring ad effectiveness and viewer interest.
Skip Rate
The skip rate is the percentage of viewers who skip or abandon a video advertisement before it completes. It is calculated as:
$$\text{Skip Rate} = \frac{\text{Number of skipped views}}{\text{Total number of video ad impressions}} \times 100%$$
A high skip rate suggests that viewers find the ad unengaging, irrelevant, or intrusive. It indicates poor ad performance and reduced message delivery.
Relationship and Usage
- Inverse relationship: Completion rate and skip rate are inversely related; together they typically account for most viewer interactions with skippable video ads.
- Performance analysis: Marketers use both metrics to evaluate video ad quality, creative effectiveness, and audience targeting accuracy.
- Optimization: Low completion rates and high skip rates signal the need to revise ad creative, messaging, targeting, or placement strategy.
- 45 marksHistory of e-commerce innovation and consoHideAnswer
Discuss E-commerce history with respect to innovation, consolidation and reinvention. [5]
E-commerce has evolved through three distinct phases that reflect broader technological and business cycles: - Emergence of pioneering platforms like Amazon (1994), eBay (1995), and Alibaba (1999) - Introduction of foundational technolog...
- 55 marksCapital raising approaches for business moHideAnswer
How can capital be raised for a business model? Explain. [5]
Capital refers to financial resources required to establish, operate, and expand a business. Raising capital is essential for converting a business idea into reality and sustaining operations. - Raising funds by selling ownership shares ...
- 65 marksIntegrity and data protectionHideAnswer
Describe integrity, nonrepudiation and confidentiality in E-commerce security. [5]
Integrity ensures that data transmitted in e-commerce transactions remains accurate, complete, and unaltered during transmission and storage. - Data should not be modified, deleted, or corrupted by unauthorized parties - Achieved through...
- 75 marksSecurity threats in e-commerceHideAnswer
Discuss the security threats in E-commerce. [5]
E-commerce security threats are risks that compromise the confidentiality, integrity, and availability of online transactions and customer data. The major threats include: - Attackers gain illegal access to customer accounts, databases, ...
- 85 marksOnline credit card transaction processHideAnswer
Explain the process of E-payment using online credit card transactions. [5]
E-payment via online credit card transactions involves the following steps: - Customer selects items/services and proceeds to checkout on the merchant's website - Customer enters payment details: credit card number, expiry date, CVV, and...
- 95 marksOpen source CMS for e-commerce developmentHideAnswer
How can you use open source CMS for developing E-commerce applications? [5]
Open source Content Management Systems (CMS) can be effectively leveraged to develop e-commerce applications by providing a foundation for managing both content and commercial transactions. - Choose CMS platforms with strong e-commerce c...
- 105 marksPinterest marketing tools and strategiesHideAnswer
Discuss the Pinterest marketing tools. [5]
Pinterest is a visual discovery and bookmarking platform that serves as a powerful marketing channel for businesses. The following are the key marketing tools available on Pinterest: - Paid advertising format that allows businesses to pr...
- 115 marksRecommendation system definition and signiHideAnswer
What is a recommendation system? Differentiate collaborative filtering from content based filtering. [5]
Model Answer: Recommendation Systems
What is a Recommendation System? (2 marks)
A recommendation system is a software tool or algorithm that predicts and suggests items (products, movies, songs, articles, etc.) that a user may be interested in, based on their past behavior, preferences, or similarity to other users. It aims to personalize the user experience and help users discover relevant content from a large pool of options.
Key purposes:
- Reduce information overload
- Increase user engagement and satisfaction
- Improve sales/usage metrics
Collaborative Filtering vs Content-Based Filtering (3 marks)
Aspect Collaborative Filtering Content-Based Filtering Core Principle Recommends items based on preferences of similar users Recommends items based on features/attributes of items the user already likes Data Used User-item interaction matrix (ratings, clicks, purchases) Item metadata (genre, keywords, attributes, descriptions) How it Works Finds users with similar taste patterns and recommends what similar users liked Analyzes characteristics of items user rated highly and recommends similar items Example "Users who liked Movie A also liked Movie B" "You liked Action movies with Tom Cruise; here are similar movies" Advantages Can discover unexpected items; no need for item metadata Works well with new items; transparent reasoning; no cold-start problem for items Disadvantages Cold-start problem (new users/items); requires large user base; less transparent Limited to item similarity; may create filter bubbles; requires good metadata Sparsity Issue Suffers from sparse rating matrices Less affected by sparsity
Note: This answer is based on standard recommendation system theory. Your course notes were not provided; verify terminology and examples against your textbook.
- 125 marksPage rank concept and calculationHideAnswer
What is a page rank? How can you do search engine optimization to improve page rank? [5]
Page Rank is an algorithm used by search engines (notably Google) to determine the importance and relevance of web pages. It assigns a numerical score to each page based on the quality and quantity of links pointing to it. Key principles...