E-Commerce - Code - 108 - BBA (G)

Course: Bachelor of Business Administration
Course Material
On
E-Commerce (BBA106) Semester
II (Credit: 4)
Page: 1
SYLLABUS
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Table of Contents
UNIT 1......................................................................................................................................................... 5
1.1 Introduction to E-Commerce:.............................................................................................................. 5
1.2 Meaning, Nature, and concepts: .......................................................................................................... 6
1.3 Traditional Commerce Vs. E-Commerce: ........................................................................................... 7
1.4 E-Business .......................................................................................................................................... 8
1.5 Advantages and Disadvantages of E-Commerce: ................................................................................ 9
1.6 Scope of E-Commerce: ..................................................................................................................... 11
1.7 Types of E-Commerce / E-Commerce Models: ................................................................................. 12
1.8 Functions of E-Commerce: ............................................................................................................... 15
1.9 Tools& Technologies for E-Commerce: ............................................................................................ 15
1.10 Framework of E-Commerce ............................................................................................................ 17
1.11 Challenges and Barriers in E-Commerce environment: ................................................................... 18
1.12 Indian readiness for E-Commerce: .................................................................................................. 21
1.13 E-Transaction challenges for Indian corporate: ............................................................................... 21
MCQ’s ................................................................................................................................................... 22
Long Answer Questions: ........................................................................................................................ 25
UNIT 2....................................................................................................................................................... 26
2.1 Introduction to HTML ...................................................................................................................... 26
2.2 HTML Tags ...................................................................................................................................... 27
2.3 Text Formatting Tags ....................................................................................................................... 28
2.4 The Anchor Tag and the href Attribute ............................................................................................. 29 2.5
IMG Tag ........................................................................................................................................... 29
2.6 Marquee Tag .................................................................................................................................... 30 2.7
DIV tag............................................................................................................................................. 30 2.8
HTML Tables ................................................................................................................................... 30
2.9 HTML LIST ..................................................................................................................................... 33
2.9 Adding audio & video files in HTML pages ..................................................................................... 34
2.10 HTML frames ................................................................................................................................. 35
2.11 HTML forms .................................................................................................................................. 36
Short Answers Questions ........................................................................................................................ 39
Long Answer Questions. ........................................................................................................................ 40
MCQ ...................................................................................................................................................... 43
UNIT-3 ...................................................................................................................................................... 48
3.1 Digital Payment Requirements ..................................................................................................... 48 3.2
Electronic Payment System .......................................................................................................... 50
3.4 Concept of e-money ..................................................................................................................... 52 3.5
Infrastructure issues and risks in EPS ........................................................................................... 53
3.6 Electronic Fund Transfer .............................................................................................................. 54
3.6 Security Issues in E-Commerce .................................................................................................... 56
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3.7 Electronic Commerce Security Environment ................................................................................ 57
3.9 Basics of Encryption and Decryption............................................................................................ 59
MCQ’s ................................................................................................................................................... 61
Short Answers Questions ........................................................................................................................ 65
Long Answers Questions ........................................................................................................................ 65
UNIT 4....................................................................................................................................................... 66
4. History of E Commerce !!!!!!!! ........................................................................................................... 66
4. 1-Ecommerce Applications-- ...............................................................................................................
66 4.1.1 E Commerce in banking .................................................................................................................
68
4.1.2 E Commerce In Insurance .............................................................................................................. 69
4.1.3 E Commerce in Travel Services ..................................................................................................... 69
4.1.4 E Commerce in Real Estate Industry .............................................................................................. 70
4.1.5 Online marketing ........................................................................................................................... 71
4.1.6 E- Tailing ...................................................................................................................................... 73
4.1.7 Financial services .......................................................................................................................... 73
4.1.8 Online Learning ............................................................................................................................. 75
4.2 Emerging Trends in Ecommerce-- .................................................................................................... 76
4.3 Economic impact on E Commerce: ................................................................................................... 77
4.3.1 OTHER ECONOMIC IMPACT ON E-COMMERCE ................................................................... 79
4.3.2 ROLE OF E COMMERCE IN THE INDIAN ECONOMY ........................................................... 80
4.3.3 Impact of E Commerce on Indian Economy
................................................................................... 80
4.3.4 Future prospects of E Commerce ................................................................................................... 81
4.4 Social Considerations Of E Commerce ............................................................................................. 81
4.5 Technological Consideration of E Commerce ................................................................................... 82
4.6 Regulatory legal and ethical considerations ....................................................................................... 83
4.6.1 Ethical Considerations to E Commerce: ......................................................................................... 85
4.6.3. LEGAL ISSUES ON INTERNET ................................................................................................ 86
4.6.4 Some more Legal considerations to E Commerce: ......................................................................... 86
MCQ QUESTIONS ................................................................................................................................ 88
Short And Long Answer Questions: ....................................................................................................... 91
References .............................................................................................................................................. 91
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UNIT 1
1.1 Introduction to E-Commerce:
Commerce is an economic activity involving trading or the buying and selling of goods.
For e.g. a customer enters a book shop, examines the books, selects a book, and pays for it. To fulfill the
customer requirement, the book shop needs to carry out other commercial transactions and business functions
such as managing the supply chain, providing logistic support, handling payments etc.
As we enter the electronic age, an obvious question is whether these commercial transactions and business
functions can be carried out electronically.
In general, this means that no paperwork is involved, nor is any physical contact necessary. This is often
referred to as electronic commerce (e-commerce).
• “E-Commerce or Electronic Commerce, a subset of E-Business, is the purchasing, selling and
exchanging of goods and services over computer networks (such as the Internet) through which
transactions are performed”.
• “E-Commerce can be defined as a modern business methodology that addresses the needs of
organizations, merchants and consumers to cut costs while improving the quality of goods and services
and increasing the speed of service delivery by using the Internet”.
• E-Commerce takes place between companies, between companies and their customers, or between
companies and public administration.
E-Commerce refers to electronic transactions such as buying, selling, information flow, and funds transfer
over the internet. E-commerce broadly encompasses all business activities taking place over the internet. It
consists of electronic retailing, electronic data interchange, and electronic fund transfer. The main goal of
ecommerce is:
• Reduce cost
• Lower product cycle time
• Faster customer response
• Improved service quality
Electronic commerce is an emerging concept describes the process of buying and selling or exchanging
products, services, and information via computer networks including the internet. E-Commerce is a modern
business methodology that addresses the needs of organization merchants and consumers to cut costs while
improving the quality of goods and services and increasing the speed of service delivery. E-commerce is
associated with buying and selling information products and services over the computer communication
network. E-Commerce refers to the paperless exchange of business information using electronic data
interchange, electronic mail, etc.
It can be defined as a technology-mediated exchange of digital information between various individuals and
organizations as well as the electronically based intra or inter-organizational activities that facilitate such
exchange over network channels.
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1.2 Meaning, Nature, and concepts:
E-Commerce or Electronics Commerce can be broadly defined as the process of buying or selling goods or
services using an electronic medium such as the Internet.
Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain
management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory
management systems, and automated data collection systems.
Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life
cycle, although it may also use other technologies such as e-mail.
Sharing business information, maintaining business relationships, and conducting business transactions using
computers connected to a telecommunication network is called E-Commerce.
E‐commerce is a composite of technological processes and business strategies that foster the instant exchange
of informatifon between organizations. E‐commerce strengthens the relationship with buyers make it easier
to attract new customer, improves customer responsiveness and open new markets on a global scale. E‐
commerce is the application of various communication technologies to provide the automated exchange of
business information with internal and external customers, suppliers, and financial institutions.
1.1. Nature of E-Commerce:

It has also been described as a “fusion of telecommunications and computing technology to conduct business.
That is the creation and management of relationships between buyers and sellers, facilitated by an interactive
and pervasive electronic medium”. Some of the main reasons for the increase in electronic trading are:
• The drive to reduce the costs
• Easy accessibility to the Internet
• The lack of regulation on the Internet
• Access to global markets for vendors
• Greater choice and potentially lower prices for purchasers
• Lower inventory costs for vendors
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• The ability to enter new markets more easily.
E-Commerce refers to the paperless exchange of business information using the following ways –
Electronic Data Exchange (EDI)
• Electronic Mail (e-mail)
• Electronic Bulletin Boards
• Electronic Fund Transfer (EFT)
• Other Network-based technologies
1.1.1. Example of E-Commerce: E-commerce can take on a variety of forms involving different transactional
relationships between businesses and consumers, as well as different objects being exchanged as part
of these transactions.
Retail: The sale of a product by a business directly to a customer without any intermediary.
Wholesale: The sale of products in bulk, often to a retailer that then sells them directly to consumers.
Dropshipping: The sale of a product, which is manufactured and shipped to the consumer by a third
party.
Crowdfunding: The collection of money from consumers in advance of a product being available in
order to raise the startup capital necessary to bring it to market.
Subscription: The automatic recurring purchase of a product or service on a regular basis until the
subscriber chooses to cancel.
Physical products: Any tangible good that requires inventory to be replenished and orders to be
physically shipped to customers as sales are made.
Digital products: Downloadable digital goods, templates, and courses, or media that must be
purchased for consumption or licensed for use.
Services: A skill or set of skills provided in exchange for compensation. The service provider’s time
can be purchased for a fee.
1.3 Traditional Commerce Vs. E-Commerce:

• E-Commerce is about the sale and purchase of goods or services by electronic means, particularly over
the internet. In a pure e-commerce system, transactions take place via electronic means. In this case,
you will access a cyber-bookstore and download a digital book from a server computer.
• In a physical or traditional commerce system, transactions take place via contact between humans
usually in a physical outlet such as a bookstore. For e.g. if you want to buy a book, you will go to a
physical bookstore and buy the physical book from a salesman.
• E-Commerce is more suitable for standard goods, intangible goods; whereas traditional commerce is
more suitable for nonstandard goods, perishable goods, and expensive goods.
• Complex products such as cars are better served by integrating e-commerce and physical commerce.
Basis for Traditional Commerce E-Commerce

comparison
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Meaning Traditional commerce is a branch of e-Commerce means
business that focuses on the exchange carrying out commercial
of products and services and includes transactions or exchange
all those activities which encourage of information,
exchange, in some way or the other. electronically on
the internet.
Processing of Manual Automatic
Transactions
Accessibility Limited Time 24×7×365
Physical Goods can be inspected physically Goods cannot be
inspection before purchase. inspected physically
before purchase.
Customer Face-to-face Screen-to-face
interaction
Scope of Limited to a particular area. Worldwide reach
business
Information No uniform platform for the exchange Provides a uniform
exchange of information. platform for information
exchange.
Resource focus Supply-side Demand-side
Business Linear End-to-end
Relationship
Marketing One way marketing One-to-one marketing
Payment Cash, cheque, credit card, etc. Credit card, fund
transfer, etc.
Delivery of Instantly Takes time
goods
1.4 E-Business
Ø “E-Business is the conduct of business on the Internet, not only buying and selling but also servicing
customers and collaborating with business partners”.
Ø E-Business means connecting critical business systems directly to customers, vendors, and suppliers-
via the Internet, Extranet and Intranets.
Ø Therefore it means using electronic information to boost performance and create value by forming new
relationships between and among businesses and customers.
Ø One of the first to use the term was IBM, in October 1997, when it launched a campaign built around e-
business.
E-Business enables organizations to accomplish the following goals:-

Reach new markets.
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• Create new products or services.
• Build customer loyalty
• Make the best use of existing and emerging technologies.
• Achieve market leadership and competitive advantage.
• Enrich human capital.
1.5 Advantages and Disadvantages of E-Commerce:

1.2. Advantages of E-Commerce: E-Commerce advantages can be broadly classified in three major
categories −
ü Advantages to Organizations
ü Advantages to Consumers
ü Advantages to Society
1.2.1. Advantages to Organization:
• Using e-commerce, organizations can expand their market to national and international
markets with minimum capital investment. An organization can easily locate more
customers, the best suppliers, and suitable business partners across the globe.
• E-commerce helps organizations to reduce the cost to create processes, distribute, retrieve
and manage paper-based information by digitizing the information.
• E-commerce improves the brand image of the company.
• E-commerce helps an organization to provide better customer services.
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• E-commerce helps to simplify business processes and makes them faster and efficient.
• E-commerce reduces the paperwork.
• E-commerce increases the productivity of organizations. It supports "pull" type supply
management. In "pull" type supply management, a business process starts when a request
comes from a customer and it uses a just-in-time manufacturing way.
• E-commerce decreases the cost of creating, processing, distributing, storing, and retrieving
paper-based information.
• E-commerce reduces the time
• Improved Image
• Improved customer service
• Newfound business partners.
1.2.2. Advantages to Customer:
• It provides 24x7 support. Customers can enquire about a product or service and place orders
anytime, anywhere from any location.
• The E-commerce application provides users with more options and quicker delivery of
products.
• The E-commerce application provides users with more options to compare and select the
cheaper and better options.
• A customer can put review comments about a product and can see what others are buying,
or see the review comments of other customers before making a final purchase.
• E-commerce provides options for virtual auctions.
• It provides readily available information. A customer can see the relevant detailed
information within seconds, rather than waiting for days or weeks.
• E-Commerce increases the competition among organizations and as a result, organizations
provide substantial discounts to customers.
• Customers can do transactions 24 hr a day
• It provides customers with more choices
• It allows quick delivery
• It provides customers with less expensive products and services.
• Customers can interact with another customer in electronic communication.
1.2.3. Advantages to Society:
• Customers need not travel to shop for a product, thus less traffic on the road and low air
pollution.
• E-commerce helps in reducing the cost of products, so less affluent people can also afford
the products.
• E-commerce has enabled rural areas to access services and products, which are otherwise not
available to them.
• E-commerce helps the government to deliver public services such as healthcare, education,
social services at a reduced cost and in an improved manner.
• It reduces the time for traveling for shopping.
• It allows some merchants to be sold at a low price
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• It enables people in rural areas to enjoy products and services
• It facilitates the delivery of public services, such as health care, etc.
1.3. Disadvantages of E-Commerce: The disadvantages of e-commerce can be broadly classified into
two major categories –
1.3.1. Technical disadvantages

• There can be a lack of system security, reliability, or standards owing to poor implementation
of e-commerce.
• The software development industry is still evolving and keeps changing rapidly.
• In many countries, network bandwidth might cause an issue.
• Special types of web servers or other software might be required by the vendor, setting the
ecommerce environment apart from network servers.
• Sometimes, it becomes difficult to integrate an e-commerce software or website with existing
applications or databases.
• There could be software/hardware compatibility issues, as some e-commerce software may
be incompatible with some operating system or any other component.
1.3.2. Non-Technical disadvantages
• Initial cost − The cost of creating/building an e-commerce application in-house may be very
high. There could be delays in launching an e-Commerce application due to mistakes, and
lack of experience.
• User resistance − Users may not trust the site being an unknown faceless seller. Such
mistrust makes it difficult to convince traditional users to switch from physical stores to
online/virtual stores.
• Security/ Privacy − It is difficult to ensure the security or privacy on online transactions.
Lack of touch or feel of products during online shopping is a drawback.
• E-commerce applications are still evolving and changing rapidly.
• Internet access is still not cheaper and is inconvenient to use for many potential customers,
for example, those living in remote villages.
1.6 Scope of E-Commerce:
• E-Commerce is a general concept covering any form of business transaction or information
exchange executed using information and communication technologies ((ICT’s). It
includes electronic trading of goods, services, and electronic material.
• It takes place between companies, between companies and their customers, or between
companies and public administrations.
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1.4. Electronic Markets:- An electronic market is the use of information and communication technology
to present a range of offerings available in a market segment so that the purchaser can compare the
prices of the offerings and make a purchase decision. e.g. Airline Booking System
1.5. Electronic Data Interchange:- It provides a standardized system for coding trade transactions so that
they can be communicated from one computer to another without the need for printed orders and
invoices & delays & errors in paper handling. It is used by organizations that make a large no.
of regular transactions. e.g. EDI is used in supermarket chains for transactions with their suppliers.
1.6. Internet Commerce:- Information and communications technologies can be used to advertise &
make sales of a wide range of goods & services. This application is both for business to business &
business to consumer transactions. e.g. The purchase of goods that are then delivered by post or the
booking of tickets that can be picked up by the clients
2. Reasons for transacting online:
Ø Payment: enabling credit card, smart card, e-money, and other payments along with electronic funds
transfer.
Ø Service Availability: It automates the conduct of business among enterprises, customers, suppliers,
and employers anytime, anywhere.
Ø Advertising and marketing: publicizing and advertising product and services.
Ø Sales: generating orders for the product.
Ø Fulfillment: processing the order and delivering the product.
Ø Support: providing pre and post-sale assistant to generate more sales.
Ø Inventory Mgt: maintaining and reporting inventory status.
Ø Secure communication: fast efficient, reliable communication with customers and partners.
Ø E-Commerce allows you to gather information from customers while delivering a marketing and sales
pith through a website.
Ø E-commerce can be a fully integrated solution or a technical front end to a business that otherwise
isn’t wired.
1.7 Types of E-Commerce / E-Commerce Models:

E-commerce business models can generally be categorized into the following categories.
• Business - to - Business (B2B)
• Business - to - Consumer (B2C)
• Consumer - to - Consumer (C2C)
• Consumer - to - Business (C2B)
• Business - to - Government (B2G)
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• Government - to - Business (G2B)
• Government - to - Citizen (G2C)
2.1. Business–to–Business: A website following the B2B business model sells its products to an
intermediate buyer who then sells the product to the final customer. As an example, a wholesaler
places an order from a company's website and after receiving the consignment, sells the end product
to the final customer who comes to buy the product at one of its retail outlets.
2.2. Business–to–Consumer: A website following the B2C business model sells its products directly to
a customer. A customer can view the products shown on the website. The customer can choose a
product and order the same. The website will then send a notification to the business organization via
email and the organization will dispatch the product/goods to the customer.
2.3. Consumer–to–Consumer: A website following the C2C business model helps consumers to sell
their assets like residential property, cars, motorcycles, etc., or rent a room by publishing their
information on the website. The website may or may not charge the consumer for its services. Another
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consumer may opt to buy the product of the first customer by viewing the post/advertisement on the
website.
2.4. Consumer–to–Business: In this model, a consumer approaches a website showing multiple business
organizations for a particular service. The consumer places an estimate of the amount he/she wants to
spend for a particular service. For example, the comparison of interest rates of personal loan/car loans
provided by various banks via websites. A business organization that fulfills the consumer's
requirement within the specified budget, approaches the customer and provides its services.
2.5. Business-to-Government: B2G model is a variant of the B2B model. Such websites are used by
governments to trade and exchange information with various business organizations. Such websites
are accredited by the government and provide a medium for businesses to submit application forms
to the government.
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2.6. Government–to–Business: Governments use B2G model websites to approach business
organizations. Such websites support auctions, tenders, and application submission functionalities.
2.7. Government–to–Citizen: Governments use G2C model websites to approach citizens in general.
Such websites support auctions of vehicles, machinery, or any other material. Such website also
provides services like registration for birth, marriage, or death certificates. The main objective of G2C
websites is to reduce the average time for fulfilling citizen’s requests for various government services.
1.8 Functions of E-Commerce:

i Marketing:- One of the areas it impacts particularly is direct marketing. In the past this was mainly door-
to-door, home parties (like the Tupperware parties) and mail orders using catalogs or leaflets. This moved
to telemarketing and TV selling with the advance in television technology and finally developed into e-
marketing.
ii Human Resource Management:- Issues of online recruiting, home working, and ‘entrepreneurs’
working on a project by project basis replacing permanent employees.
iii Business law and ethics:- The different legal and ethical issues that have arisen as a result of a global
‘virtual’ market. Issues such as copyright laws, the privacy of customer information etc.
iv Management Information System:- Analysis, design, and implementation of e-business systems within
an organization; issues of integration of front-end and back-end systems.
v Product Operations and Management:- The impact of online processing has led to reduced cycle time.
It takes seconds to deliver digitized products and services electronically; similarly, the time for processing
orders can be reduced by more than 90 percent from days to minutes.
vi Finance and Accounting:- On-line banking, issues of transaction costs, accounting and auditing
implications where ‘intangible’ assets and human capital must be tangibly valued in an increasingly
knowledge-based economy.
vii Economy:- The impact of E-commerce on local and global economies; understanding the concepts of a
digital and knowledge-based economy and how this fits into economic theory.
1.9 Tools& Technologies for E-Commerce:

• Electronic data interchange (EDI)
• Bar codes
• Electronic mail
• Internet
• World Wide Web
• Product data exchange
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• Electronic forms
2.8. Electronic Data Interchange (EDI): EDI is the computer-to-computer exchange of structured
business information in a standard electronic format. Information stored on one computer is translated
by software programs into standard EDI format for transmission to one or more trading partners. The
trading partners’ computers, in turn, translate the information using software programs into a form
they can understand.
2.9. Bar Codes: Bar codes are used for automatic product identification by a computer. They are
rectangular patterns of lines of varying widths and spaces. Specific characters (e.g. numbers 0-9) are
assigned unique patterns, thus creating a "font" that computers can recognize based on light reflected
from a laser.The most obvious example of bar codes is on consumer products such as packaged foods.
These codes allow the products to be scanned at the checkout counter. As the product is identified the
price is entered in the cash register, while internal systems such as inventory and accounting are
automatically updated.
2.10. Electronic Mail: Messages composed by an individual and sent in digital form to other recipients via
the Internet.
2.11. Internet: The Internet is a global network of millions of diverse computers and computer networks.
These networks can all "talk" to each other because they have agreed to use a common
communications protocol called TCP/IP. The Internet is a tool for communications between people
and businesses. The network is growing very, very fast and as more and more people are gaining access
to the Internet, it is becoming more and more useful.
2.12. World Wide Web: The World Wide Web is a collection of documents written and encoded with the
Hypertext Markup Language (HTML). With the aid of a relatively small piece of software (called a
"browser"), a user can ask for these documents and display them on the user’s local computer, although
the document can be on a computer on a totally different network elsewhere in the world.HTML
documents can contain many different kinds of information such as text, pictures, video, sound, and
pointers, which take users immediately to other web pages.It is this ability to jump from site to site that
gave rise to the term "World Wide Web." Browsing the Web (or "surfing the Net") can be a fascinating
activity, especially to people new to the Internet. The World Wide Web is by far the most heavily used
application on the Internet.
2.13. Product Data Exchange: Product data refers to any data that is needed to describe a product.
Sometimes that data is in graphical form, as in the case of pictures, drawings, and CAD files. In other
cases, the data may be character-based (numbers and letters), as in the case of specifications, bills of
material, manufacturing instructions, engineering change notices, and test results.Product data
exchange differs from other types of business communications in two important ways.First, because
graphics are involved users must contend with large computer files and with problems of compatibility
between software applications. (The difficulty of exchanging CAD files from one system to another
is legendary).Second, version control very quickly gets very complicated. Product designs, even late
in the development cycle, are subject to a great deal of change, and because manufacturing processes
are involved, even small product changes can have major consequences for getting a product into
production.
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2.14. Electronic Forms: Electronic form is a technology that combines the familiarity of paper forms with
the power of storing information in digital form. Imagine an ordinary paper form, a piece of paper
with lines, boxes, check-off lists, and places for signatures. To the user, an electronic form is simply a
digital analog of such a paper form, an image, which looks like a form but which appears on a computer
screen and is filled out via mouse, and keyboard. Behind the screen, however, lie numerous functions
that paper and pencil cannot provide. Those extra functions come about because the data from
electronic forms are captured in digital form, thus allowing storage in databases, automatic information
routing, and integration into other applications.
1.10 Framework of E-Commerce
This framework, first developed by Kalakota and Whinston, Professors of Information Systems and
prolific authors on the subject, take a holistic view and identifies the different components of business and
technology that makeup e-commerce. Using the analogy of the architecture of a building illustrated in
Fig., they explain how the different components fit and interact together, emphasizing the relative
importance of each component.
Ø Kalakota and Whinston use the analogy of a traditional transportation company to describe the
complexity of the network and how the different components that make up the technology
infrastructure are interlinked.
Ø The network infrastructure is like the network of roads that are interconnected and are of different
widths, lengths, and quality – for example, the Internet, local area networks, intranets. Network
infrastructures also take different forms such as telephone wires, cables, wireless technology (such as
satellite or cellular technology).
Ø The publishing infrastructure (including the WWW, Web servers) can be seen as the infrastructure of
vehicles and warehouses, which store and transport electronic data and multimedia content along with
the network. Multimedia content is created using tools such as HTML and JAVA. This content can be
very different with varying degrees of complexity similar to different vehicles traveling on the roads.
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For example, text-only, or more complex is an application, such as a computer game, containing audio,
video, graphics, and a program.
Ø Messaging and information distribution infrastructures are the engines and fuel, which transport the
data around the network. Once the multimedia content is created, there has to be a means of sending
and retrieving this information, for example by EDI, e-mail, HyperText Transfer Protocol.
Ø Once content and data can be created, displayed, and transmitted, supporting business services are
necessary for facilitating the buying, selling, and other transactions safely and reliably. For example,
smart cards, authentication, electronic payment, directories/catalogs.
Ø The next components which facilitate and enable e-commerce and which are built on the foundations
of technology are:
o Public policy, regulations, and laws govern issues such as universal access, privacy, electronic
contracts, and the terms and conditions that govern e-commerce.
o Universal agreement of technical standards dictates the format in which electronic data is
transferred over networks and is received across user interfaces and the format in which it is stored.
This is necessary so that data can travel seamlessly across different networks, where information
and data can be accessed by a whole range of hardware and software such as computers, palmtops,
and different kinds of browsers and document readers.
o The interaction of people and organizations to manage and coordinate the applications,
infrastructures, and businesses are all necessary to make e-commerce work.
Ø All these elements interact together to produce the most visible manifestation of e-commerce. These
applications include online banking and financial trading; recruitment; procurement and purchasing;
marketing and advertising; auctions; shopping are just a few examples.
Ø This is a particularly useful framework for managers to understand the importance of technology and
business, both within the organization and external to it, in the planning and development of any
ecommerce or e-business solution.
1.11 Challenges and Barriers in E-Commerce environment:
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Ø Online Payment Issues: in Indian customers, online payment fear is a universal psychological factor
because users can no trust the web as a payment channel.
Ø Customer Acquisition Force: Due to issues like high charges for products, delay in delivery, and lack
of proper courier services in some areas customers do not prefer buying the product online.
Ø Less Awareness:The majority of Indian rural persons are unaware of the Internet and its usage. So
they are also unaware of the E-Commerce sites.
Ø Absence of Cyber Laws:Another big challenge linked with E-Commerce is the absence of cyber laws
to regulate transactions on the Net.
Ø Logistics and Shipment Services: In India, logistics and courier services required lots of
improvement. India is lagging far behind in the logistics and shipment sector because most of the
towns and small villages of India are still not covered by courier companies.
Ø Cash on Delivery: Most of the E-Commerce sites are offering the cash-on-delivery mode of payment
to the customers. But the majority of the customers are denied to make the payment or acceptance of
the product at the time of the delivery. But this mode has been more expensive for ECommerce
companies.
Ø Failure to understand Customers: it is very difficult for e-commerce goods and service providers to
understand the customer behavior in terms of when they buy and how they buy, even a product with a
sound value proposition can fail if producers and retailers do not understand customer habits,
expectations, and motivations.
Ø Distribution Channels: Traditional distribution channels are not always the best way to go for an
ecommerce business. E-commerce needs a flexible distribution model with seamless technological
integration.
Page: 19
Ø Technology: E-commerce is an exciting place full of emerging technology. Companies involved in e-
commerce have to invest in the latest technologies which impact customer experience, marketing,
operations, etc. Failure to invest in technology leads to loss of revenue and market share.
Ø Branding: Customers prefer local, authentic brands that offer them a more genuine experience. Brand
building is a big challenge in e-commerce. Social media is very powerful these days. Companies need
to be very careful about the messages that they put out as consumers react badly to something that they
see as being in a bad state.
Ø Sustaining customer loyalty: Online shoppers are very price-sensitive and are easily lured away. It is
a big challenge to acquire and retain new customers.
Ø Security:when an organization uses the internet to engage in the e-commerce business, it exposes
itself to security risks. A security threat is defined as “a circumstance, condition or event with the
potential to cause economic hardship to data, denial of service and/or fraud, waste, and abuse.” These
security risks can be grouped into three general categories: Client/Server risk, data transfer, and
transaction risk, virus risk. While conducting business on the internet, there is always a security risk
of the possibility of the organization’s data or their customer’s data being intercepted by an
eavesdropper as the traverses internet channels.
Ø Lack of skilled personnel: Another challenge of e-commerce is the difficulty in finding skilled web
developer content providers and knowledgeable professionals to manage and maintain customers
online. Moreover, the turnover of skilled personnel is very high. Therefore, the issue of finding and
retaining personnel is very critical.
Ø Cultural and legal impediments to e-business: Some customers are still somewhat fearful of sending
their credits card numbers over the Internet. Moreover, many customers are simply resistant to change
and are uncomfortable viewing merchandise on a customer screen rather than in person. The legal
environment in which e-commerce is conducted is full of unclear and conflicting laws.
3. E-Commerce in India: India has a population of 1.3 billion. Out of this, India has an internet user base
of 450 million i.e. 36% of the population. India has the second-largest internet user base in the world, only
behind China. The penetration of e-commerce in India is low compared to countries like the USA or France
but is growing at an unprecedented rate. In terms of sales, electronics items and apparel are the largest
selling items and cash on delivery is the most preferred payment method in India. The largest ecommerce
companies in India among others are Flipkart, Amazon India, Snapdeal, and Paytm.
3.1. Transition to E-Commerce in India: India has shown tremendous growth in e-commerce. Due
to the fewer number internet users and lack of awareness, the transition to online purchasing from
traditional purchasing is taking a long time in the Indian market. Though e-commerce has
witnessed tremendous growth in the recent past and is expected to grow, many e-commerce
ventures faced tremendous pressure and had either to close down or were forced to change their
business models to survive. The major factors for the growth of e-commerce in India are:
Barter Process: Prior to the Evaluation of money it was the simple Barter Process where things could be
exchanged say milk for grains.Evaluation of Money brought the concept of Market place.In the marketplace,
commerce includes 4P’s: Product, Price, Place, and Promotions.
All these four components play a vital role in a transaction take place.Different combinations of 4P’s
determine the different forms of Commerce.After the marketplace, the companies realized that customers
would be ready to pay extra if they could deliver products at the customer's doorsteps.A slight modification
Page: 20
on price and place led to the convenience of getting products at their homes. This concept is called Street
Venders.When the postal system came into action, sellers decided to use that new opportunity and started
using mailers giving descriptions of their products. And this concept is called mail order cataloging.
1.12 Indian readiness for E-Commerce:
After that teleshopping concept was introduced with the development of media vehicles.The latest generation
of commerce is one that can be done over the internet. The Internet provides a virtual platform where sellers
and buyers can come in contact forthe sale and purchase of goods and services. This is called E-Commerce.
E-Transaction challenges for Indian corporate:
3.1.1. E-Infrastructural Issues: The Internet is the backbone of E-commerce, Very less portion of
India has internet connectivity. Not easy to reach to common persons of India.Quality of
connectivity is poor in rural areas.
3.1.2. Customer Loyalty: Big challenge for the organizations. Use an E-commerce site o avail of
discounts, cash backs, and gift vouchers. Come to E-commerce sites to check prices and use that
information to bargain with local traders.
3.1.3. Decline Margins: With the large numbers of competitors in the E-Commerce market, the
customer is pampered by offering huge discounts, offers,etc resulting in less margins.
3.1.4. Logistics and Supply Chain: Logistic failure in any area can mean detrimental damage t a
startup's future and can damage the brand's name. Poor connectivity of the area. No transport
available.Providing a guaranteed return policy is very challenging.
3.1.5. Tax-related issues: In India, tax structure varies from state to state. But after the introduction of
GST, this problem will be resolved to some extent.
3.1.6. Touch and Feel: Indian customers are more comfortable buying products physically. Companies
dealing with products like apparel, handicrafts, jewelry face challenges to sell products online
because the customer wants to see and touch them before they buy these products.
3.1.7. Cash on Delivery is the preferred payment Mode: Low credit card access and low trust in an
online transaction. Manual cash collection is more risky and expensive. Higher rejection rate of
COD.High rejection on Indian payment gateways.
3.1.8. Shortage of Skilled Manpower: Shortage of skilled manpower to handle the E-Commerce
functions.
3.1.9. E-Commerce Laws: Laws regarding E-Commerce in India are still evolving and lack of clarity.
No strong act is passed on E-commerce: Laws regarding E-Commerce in India are still evolving
and lack of clarity. No strong act is passed on E-commerce.
3.1.10. Data Protection: Data protection and security of customer personalinformation is also the great
challenge face by the Indian Organizations.
Page: 21
Progress Check:
MCQ’s
Q 1. Which of the following describes e‐commerce?
a) Doing business electronically
b) Doing business
c) Sale of goods
d) All of the above
Q 2. Which of the following is part of the four main types for e‐commerce? a.
B2B
b. B2C
c. C2B
d. All of the above
Q 3. Which segment do eBay, Amazon.com belong?
a. B2B
b. B2C
c. C2B
d. C2C
Q 4. Which type of e‐commerce focuses on consumers dealing with each other? a.
B2B
b. B2C
c. C2B
d. C2C
Q 5. Which products are people most likely to be more uncomfortable buying on the
Internet?
a. Books
b. Furniture
c. Movies
d. All of the above
Q 6. Digital products are best suited for B2C e‐commerce because they:
a. Are commodity like products
b. Can be mass‐customized and personalized
c. Can be delivered at the time of purchase
d. All of the above
Q 7. Which is a function of E‐commerce
a. marketing
b. advertising
c. warehousing
d. all of the above
Q 8. Disadvantages of e-Commerce in India are i
internet access is not universally available
ii Credit card payment security is not yet guaranteed
iii Transactions are de-personalized and human contact is missing
Page: 22
iv Cyberlaws are not in place
a. i and ii
b. ii and iii
c. i, ii, iii
d. i, ii, iii, iv
Q 9. The penetration of E-Commerce is ---------------------- in india as compared to other countries. a.
Low
b. High
c. Not so good
d. None of these
Q 10. Which of the following is nit an online store
a. Flipkart
b. Ebay
c. Amazon
d. Railways
Q 11. Online retailers have also started offering a --------------------- option, which is the most preferred
method in India.
a. Cheque-on-delivery
b. Cash-on-Delivery
c. Card-on-delivery
d. All of these
Q 12. Almost -------------- of Indian E-Commerce business uses cash-on-delivery mechanism. a.
50%
b. 60%
c. 80%
d. 100%
Q 13. For the customer ----------------- makes it easy to reject products at the point of delivery. a.
Cheque-on-delivery
b. Cash-on-delivery
c. Cars-on-delivery
d. All of these
Q 14. -------------- sales would rise in the coming years with the availability of faster broadband
services and new applications.
a. M-Commerce
b. E-Commerce
c. Net-Banking
d. None of these
Q 15. The cost of opening a physical store is very ------------------ as compared to doing business on
Internet.
a. Low
b. High
c. Not so Good
d. None of these
Q 16. ----------------- coverage can be reached through creating a website and uploading it on internet.
a. International
b. Universal
c. Large-Scale
Page: 23
d. Global
Q 17. In E-Commerce -------------- frauds results into financial loss to the customer. a.
Financial
b. Business
c. Investment
d. Credit Cards
Q 18. Internet/E-Commerce needs protection from
a. Hackers
b. Viruses
c. Transaction risks
d. All of these
Q 19. Perishable products like --------------- are not preferred to be purchased online. a.
Fruits
b. Vegetable
c. Clothes
d. Both A and B
Q 20. E-Commerce is dependent on ------------------ and any problem in the connectivity causes
business risk.
a. The business owner
b. Internet
c. Online store
d. Banks
Q 21. ---------------- and -------------------- websites are part of E-Governance.
a. G2B
b. G2C
c. G2E
d. Both A and B
Q 22. -------------- refers to online non-commercial communication between the Government agencies
and Government departments.
a. G2B
b. G2G
c. G2C
d. G2E
Q 23. --------------- and ------------- E-Commerce models are the most widely used models. a.
B2C and B2B
b. G2G and C2C
c. B2B and G2B
d. C2C and B2C
Q 24. Which of the following is a disadvantage of E-Commerce?
a. Speed
b. Accuracy
c. Improved Customer Care
d. Conduct business 24X7
Q 25. Any Internet user can become a vendor or purchaser at ------------ websites. a.
B2C
b. B2B
c. C2C
Page: 24
d. C2B
Answers of MCQ Q
1. a
Q 2. d
Q 3. b
Q 4. d
Q 5. b
Q 6. d
Q 7. d
Q 8. c
Q 9. a
Q 10. d
Q 11. b
Q 12. c
Q 13. b
Q 14. b
Q 15. b
Q 16. d
Q 17. d
Q 18. d
Q 19. d
Q 20. c
Q 21. d
Q 22. b
Q 23. a
Q 24. b
Q 25. c
Long Answer Questions:

Q 1. What do you understand by the term E-Commerce? List the key differences between traditional
commerce and electronic commerce.
Q 2. What are the basic types of E-Commerce? Give an example of each.
Q 3. Explain the barriers in E-Commerce.
Q 4. Discuss the Indian readiness for E-Commerce. Explain briefly the role of government in ecommerce.
Q 5. What are the requirements for transacting online for an organization dealing in books and music titles?
Explain them.
Q 6. The early years e-commerce can be considered both a success and a failure. Justify the statement.
Q 7. Discuss the factors that contribute to e-commerce success.
Q 8. What is e-business model? Explain the suitable examples B2B. B2C. B2G, and C2C models.
Q 9. Discuss the e-transition challenges for an life insurance company.
Q 10. Discuss the benefits and challenges of E-commerce in detail.
Page: 25
UNIT 2
2.1 Introduction to HTML
HTML stands for Hyper Text Markup Language. An HTML file is a text file containing markup tags. The markup
tags tell the Web browser how to display the page. An HTML file must have an ‘htm’ or ‘html’ file extension. An HTML
file can be created using a simple text editor. The rule-making body of the Web is World Wide Web Consortium
(W3C). W3C puts together specifications for Web standards. The most essential Web standards are HTML, CSS and
XML. The latest HTML standard is XHTML 1.0. Example: Creating a simple web page Start Notepad.
Type in the following text
<html>
<head>
<title>Title of page</title>
</head>
<body>
This is a very basic webpage. <b>This text will be displayed in bold</b>
</body> </html>
Save the file as "firstpage.html".
Double click the saved file the browser will display the page.
Example Explained:
The first tag in your HTML document is <html>. This tag tells your browser that this is the start of an HTML document.
The last tag in your document is </html>. This tag tells your browser that this is the end of the HTML document.
The text between the <head> tag and the </head> tag is header information. Header information is not displayed in the
browser window. The text between the <title> tags is the title of your document. The title is displayed in your browser's
caption. The text between the <body> tags is the text that will be displayed in your browser. The text between the <b>
and </b> tags will be displayed in a bold font.
HTM or HTML Extension?

When you save an HTML file, you can use either the .htm or the .html extension. HTM is a file extension for HTML
(Hypertext Markup Language) file format. The HTML file extension is sometimes abbreviated as .htm for compatibility
with older operating systems, such as Disk Operating System (DOS), Windows 3.x and OS/2., which support eight
character file names with a three character extension..
2.2 HTML Tags

Ø HTML tags are used to mark-up HTML elements
Ø HTML tags are surrounded by the two characters < and >
Ø The surrounding characters are called angle brackets
Ø HTML tags normally come in pairs like <b> and </b>
Ø The first tag in a pair is the start tag, the second tag is the end tag
Ø The text between the start and end tags is the element content
Ø HTML tags are not case sensitive,<b> means the same as <B> Use Lowercase Tags?
We have just said that HTML tags are not case sensitive: <B> means the same as <b>. It is recommended to always use
becauseTags can have attributes. Attributes can provide additional information about the HTML elements on your page.
This tag defines the body element of your HTML page: <body>. With an added bgcolor attribute, you can tell the
browser that the background color of your page should be red, like this: <body bgcolor="red">.
Attributes always come in name/value pairs like this: name="value". Attributes
are always added to the start tag of an HTML element.
Page: 26
Quote Styles, "red" or 'red'?
Attribute values should always be enclosed in quotes. Double style quotes are the most common, but single style quotes
are also allowed. In some rare situations, like when the attribute value itself contains quotes, it is necessary to use single
quotes:
Headings
Headings are defined with the <h1> to <h6> tags. <h1> defines the largest heading. <h6> defines the smallest heading.
<h1>This is a heading</h1>
HTML automatically adds an extra blank line before and after a heading.
Paragraphs
Paragraphs are defined with the <p> tag.
<p>This is a paragraph</p>
<p>This is another paragraph</p>
HTML automatically adds an extra blank line before and after a paragraph.
Line Breaks
The <br> tag is used when you want to end a line, but don't want to start a new paragraph. The <br> tag forces a line
break wherever you place it.
<p>This<br> is a para<br>graph with line breaks</p> The
<br> tag is an empty tag. It has no closing tag.
Comments in HTML
The comment tag is used to insert a comment in the HTML source code. A comment will be ignored by the browser.
You can use comments to explain your code, which can help you when you edit the source code at a later date.

Note: that you need an exclamation point after the opening bracket, but not before the closing bracket.
2.3 Text Formatting Tags

Tag Description
<b> Defines bold text
<big> Defines big text
<em> Defines emphasized text
<i> Defines italic text
<small> Defines small text
<strong> Defines strong text
<sub> Defines subscripted text
Page: 27
<sup> Defines superscripted text
<ins> Defines inserted text
<del> Defines deleted text
Character Entities
Some characters have a special meaning in HTML, like the less than sign (<) that defines the start of an HTML tag. If
we want the browser to actually display these characters we must insert character entities in the HTML source. A
character entity has three parts: an ampersand (&), an entity name or a # and an entity number, and finally a semicolon
(;).
To display a less than sign in an HTML document we must write: < or <
The advantage of using a name instead of a number is that a name is easier to remember. The disadvantage is that not
all browsers support the newest entity names, while the support for entity numbers is very good in almost all browsers.
Note that the entities are case sensitive.
Non-breaking Space
The most common character entity in HTML is the non-breaking space.
Normally HTML will truncate spaces in your text. If you write 10 spaces in your text HTML will remove 9 of them. To
add spaces to your text, use the character entity.
Most Common Character Entities

Result Description Entity Name Entity Number
non-breaking space
< less than < <
> greater than > >
& ampersand & &
" quotation mark " "
' apostrophe ' (does not work in IE) '
Additional Commonly Used Character Entities
Result Description Entity Name Entity Number
¢ cent ¢ ¢
£ pound £ £
¥ yen ¥ ¥
§ section § §
© copyright © ©
® registered trademark ® ®
× multiplication × ×
÷ division ÷ ÷
2.4 The Anchor Tag and the href Attribute

HTML uses the <a> (anchor) tag to create a link to another document.
An anchor can point to any resource on the Web: an HTML page, an image, a sound file, a movie, etc. The
syntax of creating an anchor:
<a href="url">Text to be displayed</a>
Page: 28
The <a> tag is used to create an anchor to link, the href attribute is used to address the document to link to, and the
words between the open and close of the anchor tag will be displayed as a hyperlink.
This anchor defines a link to EEE 111 webpage: <a
href="http://www.google.com">Visit google</a>
The line above will look like this in a browser:
Visit google
The Target Attribute in <A>

With the target attribute, you can define where the linked document will be opened.The line below will open the
document in a new browser window:
<a href="http://www.google.com" target="_blank"> Visit google</a>
The Anchor Tag and its Name Attribute

The name attribute is used to create a named anchor. When using named anchors we can create links that can jump
directly into a specific section on a page, instead of letting the user scroll around to find what he/she is looking for.
Below is the syntax of a named anchor:
<a name="label">Text to be displayed</a>
The name attribute is used to create a named anchor. The name of the anchor can be any text you care to use.
The line below defines a named anchor:
<a href="#down">Bottom of the page</a>
You should notice that a named anchor is not displayed in a special way.
To link directly to the "down" section, add a # sign and the name of the anchor to the end of a URL, like this:
<a href="http://www.iitmjp.ac.in#down">Jump to down section</a>
A hyperlink to the Useful Tips Section from WITHIN the file "firstpage.html" will look like this:
<a name="down">Down is here</a>
2.5 IMG Tag

HTML img tag is used to display image on the web page. HTML img tag is an empty tag that contains attributes only,
closing tags are not used in HTML image element.
<img src="good_morning.jpg" alt="Good Morning Friends"/>
Attributes of img tag
All attributes of HTML image tag are given below.
1) src : It is a necessary attribute that describes the source or path of the image. It instructs the browser where to look
for the image on the server. The location of image may be on the same directory or another server.
2) alt : The alt attribute defines an alternate text for the image, if it can't be displayed.
3) width : It is an optional attribute which is used to specify the width to display the image. 4) height : It specifies the
height of the image.
2.6 Marquee Tag
The HTML <marquee> tag is used for scrolling piece of text or image displayed either horizontally across or vertically
down your web site page depending on the settings.
Syntax
<marquee>This is basic example of marquee</marquee> Code:
<html>
<head><title>MARQUEE TAG</title></head>
<marquee behavior="alternate" direction="left" bgcolor="yellow"
scrollamount="200">
<font size="20" color=”red”>MAHARAJA SURAJMAL INSTITUTE
</font></marquee>
Page: 29
</html>
2.7 DIV tag
The HTML <div> tag is used to group the large section of HTML elements together.
This is the very important block level tag which plays a big role in grouping various other HTML tags and applying
CSS on group of elements. Even now <div> tag can be used to create webpage layout where we define different parts (
Left, Right, Top etc) of the page using <div> tag.
2.8 HTML Tables

Tables are defined with the <table> tag. A table is divided into rows (with the <tr> tag), and each row is divided into
data cells (with the <td> tag). The letters td stands for "table data," which is the content of a data cell. A data cell can
contain text, images, lists, paragraphs, forms, horizontal rules, tables, etc. <table border="1">
<tr>
<td>row 1, cell 1</td>
</tr>
<tr>
</tr>
</table>
How it looks in a browser:
row 1, cell 1 row 1, cell 2
Tables and the Border Attribute
If you do not specify a border attribute the table will be displayed without any borders. Sometimes this can be useful,
but most of the time, you want the borders to show.
To display a table with borders, you will have to use the border attribute: <table
border="1">
<tr>
<td>Row 1, cell 1</td>
<td>Row 1, cell 2</td>
</tr>
</table>
Headings in a Table
Headings in a table are defined with the <th> tag.
<table border="1">
<tr>
<th>Heading</th>
<th>Another Heading</th>
</tr>
<tr>
Page: 30
</tr>
<tr>
</tr>
</table>
Heading Another Heading
Empty Cells in a Table

Table cells with no content are not displayed very well in most browsers.
<table border="1">
<tr>
</tr>
<tr>
<td></td>
</tr>
</table>
row 2, cell 1
Note that the borders around the empty table cell are missing (NB! Mozilla Firefox displays the border).
To avoid this, add a non-breaking space ( ) to empty data cells, to make the borders visible: <table
border="1">
<tr>
</tr>
<tr>
<td> </td>
</tr>
</table>
row 2, cell 1
Table Tags
Tag Description
Page: 31
<table> Defines a table
<th> Defines a table header
<tr> Defines a table row
<td> Defines a table cell
<caption> Defines a table caption
<colgroup> Defines groups of table columns
<col> Defines the attribute values for one or more columns in a table
<thead> Defines a table head
<tbody> Defines a table body
<tfoot> Defines a table footer
Code:
<table border=3>
<tr>
<thcolspan=6>IP University Courses</th>
</tr>
<tr>
<thcolspan=3>Graduate</th>
<thcolspan=3>Post Graduate</th>
</tr>
<tr>
<th>BBA</th>
<th>BCA</th>
<th>B.Tech</th>
<th>MBA</th>
<th>MCA</th>
<th>M.Tech</th>
</tr>
<tr>
<td>240</td>
Page: 32
<td>120</td>
<td>100</td>
<td>200</td>
<td>100</td>
<td>80</td>
</tr>
</table>
2.9 HTML LIST

HTML supports ordered, unordered and definition lists
Unordered Lists
An unordered list is a list of items. The list items are marked with bullets (typically small black circles). An
unordered list starts with the <ul> tag. Each list item starts with the <li> tag.
<ul>
<li>Coffee</li>
<li>Milk</li>
</ul>
Here is how it looks in a browser:
Coffee Milk
Inside a list item you can put paragraphs, line breaks, images, links, other lists, etc.
Ordered Lists
An ordered list is also a list of items. The list items are marked with numbers. An
ordered list starts with the <ol> tag. Each list item starts with the <li> tag.
<ol>
<li>Coffee</li>
<li>Milk</li>
</ol>
Here is how it looks in a browser:
Coffee Milk
Inside a list item you can put paragraphs, line breaks, images, links, other lists, etc.
Definition Lists
A definition list is not a list of items. This is a list of terms and explanation of the terms.
A definition list starts with the <dl> tag. Each definition-list term starts with the <dt> tag. Each definition-list definition
starts with the <dd> tag.
<dl>
<dt>Coffee</dt>
<dd>Black hot drink</dd>
<dt>Milk</dt>
<dd>White cold drink</dd>
</dl>
Here is how it looks in a browser: Coffee
Black hot drink
Milk
White cold drink
Inside a definition-list definition (the <dd> tag) you can put paragraphs, line breaks, images, links, other lists, etc.
Page: 33
List Tags
Tag Description
<ol> Defines an ordered list
<ul> Defines an unordered list
<li> Defines a list item
<dl> Defines a definition list
<dt> Defines a definition term
<dd> Defines a definition description
2.9 Adding audio & video files in HTML pages
Adding sound file in HTML Page
Before HTML5, audio files could only be played in a browser with a plug-in (like flash).
The HTML5 <audio> element specifies a standard way to embed audio in a web page.
The controls attribute adds audio controls, like play, pause, and volume.
The <source> element allows you to specify alternative audio files which the browser may choose from. The browser
will use the first recognized format.
Example:
<audio controls>
<source src="horse.mp3" type="audio/mpeg">
Your browser does not support the audio element.
</audio>
Adding video file in HTML Page

The HTML <video> tag is used to show a video on a web page.
The controls attribute adds video controls, like play, pause, and volume.
The <source> element allows you to specify alternative video files which the browser may choose from. The browser
will use the first recognized format.
The text between the <video> and </video> tags will only be displayed in browsers that do not support the <video>
element.
<html>
<body>
<video width="320" height="240" autoplay>
<source src="movie.mp4" type="video/mp4">
<source src="movie.ogg" type="video/ogg">
Your browser does not support the video tag.
</video>
</body>
</html>
Page: 34
2.10 HTML frames
HTML frames are used to divide your browser window into multiple sections where each section can load a separate
HTML document.
A collection of frames in the browser window is known as a frameset.
The window is divided into frames in a similar way the tables are organized: into rows and columns.
Creating Frames using <frameset>
The <frameset> tag defines a frameset.

The <frameset> element holds one or more <frame>elements.
Each <frame> element can hold a separate document.
To use frames on a page we use <frameset> tag instead of <body> tag.
The <frameset> tag defines how to divide the window into frames.
The rows attribute of <frameset> tag defines horizontal frames and cols attribute defines vertical frames.
Frame Tag
frame is indicated by <frame>tag and it defines which HTML document shall open into the frame.
<iframe> Tag
The <iframe> tag defines a rectangular region within the document in which the browser can display a separate
document, including scrollbars and borders. The src attribute is used to specify the URL of the document that occupies
the inline frame.
Example
<html>
<body>
<h2>HTML Iframes</h2>
<p>You can use the height and width attributes to specify the size of the
iframe:</p>
<iframesrc="mypage.html" height="200" width="300" title="Iframe Example">
</iframe>
</body>
</html>
<noframe> tag
NOFRAMESelement to provide alternate content for user agents that do not support frames or are configured not to
display frames.
Example
<html>
<head>
<title>HTML Frames</title>
</head>
<frameset rows="10%,80%,10%">
<frame name="top" src="top_frame.htm" />
Page: 35
<frame name="main" src="main_frame.htm" />
<frame name="bottom" src="bottom_frame.htm" /> <noframes>
<body>
Your browser does not support frames.
</body>
</noframes>
</frameset>
</html>
Attributes of frame tag
Src= indicate the URL of the document to be loaded into the frame.
Name= Gives the frame a unique name.
Scrolling= controls the appearance of horizontal and vertical scrollbars in a frame. This takes the value yes/no/auto.
noresize= By default you can resize any frame by clicking and dragging on the borders of a frame. The noresize attribute
prevents a user from being able to resize the frame. For example noresize="noresize". frameborder=This attribute
provides the user agent with information about the frame border.
Possible values:
1: This value tells the user agent to draw a separator between this frame and every adjoining frame. This is the default
value.
0: This value tells the user agent not to draw a separator between this frame and every adjoining frame.
2.11 HTML forms
An HTML form is a section of a document which contains controls such as text fields, password fields, checkboxes,
radio buttons, submit button, menus etc.
An HTML form facilitates the user to enter data that is to be sent to the server for processing.
The HTML <form> tag is used to create an HTML form and it has following syntax:
<form action="Script URL" method="GET|POST"> form

elements like input, textarea etc.
</form>
Form Attributes
There are two attributes within the opening < form > tag: action tells the Web browser where to send the form data
when the user fills out and submits the form. This should either be an absolute URL (such as
http://www.example.com/myscript.php ) or a relative URL (such as myscript.php , /myscript.php , or
../scripts/myscript.php.
method tells the browser how to send the form data captured by various form elements. You can use two methods:
GET: GET method sends the data captured by form elements to the web server encoded into a URL, which points to a
web server. GET is useful for sending small amounts of data (1024 bytes) and makes it easy for the user to resubmit the
form. GET requests remain in the browser history
POST: POST method send the data enclosed in the body of the request message. POST method can send much larger
amounts of form data. POST requests do not remain in the browser history
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Forms Elements
text input & password
A text input field –– This allows the user to enter a single line of text. You can optionally prefill the field with an initial
value using the value attribute.
<input type=”text” name=”textField” id=”textField” value=” ”>
A password field — This works like a text input field, except that the entered text is not displayed. This is, of course,
intended for entering sensitive information such as passwords. Again, you can prefill the field using the value attribute.
<input type=”password” name=”pass” id=”pass” value=””>
Checkbox
A checkbox field — This is a simple toggle; it can be either on or off. The value attribute should contain the value that
will be sent to the server when the checkbox is selected.
<input type=”checkbox” name=”checkboxField” id=”checkboxField value=”yes”>
Radio button
All buttons in a group have the same name attribute. Only one button can be selected per group.
As with checkboxes, use the value attribute to store the value that is sent to the server if the button is selected.
<input type=”radio” name=”radioButtonField” id=”radioButtonField1” value=”radio1”> Submit button
A submit button — Clicking this type of button sends the filled-in form to the server-side script for processing. The
value attribute stores the text label that is displayed inside the button (this value is also sent to the server when the button
is clicked)
<input type=”submit” name=”submitButton” id=”submitButton” value=”Submit Form”>
reset button
A reset button — This type of button resets all form fields back to their initial values (often empty). The value attribute
contains the button label text:
<input type=”reset” name=”resetButton” id=”resetButton” value=”Reset Form”>
pull-down menu
A pull-down menu — This allows a user to pick a single item from a predefined list of options.
The size attribute’s value of 1 tells the browser that you want the list to be in a pull-down menu format. Within the select
element, you create an option element for each of your options.
Place the option label between the <option> ... </option> tags. Each option element can have an optional value attribute,
which is the value sent to the server if that option is selected.
<select name=”pullDownMenu” id=”pullDownMenu” size=”1”>
<option value=”option1”>Option 1</option>
</select>
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list box
This works just like a pull-down menu, except that it displays several options at once. To turn a pull-down menu into a
list box, change the size attribute from 1 to the number of options to display at once:
<select name=”listBox” id=”listBox” size=”3”>
</select>
multi-select list box
This works like a list box, but it also allows the user to select multiple items at once by holding down Ctrl (on Windows
and Linux browsers) or Command (on Mac browsers). To turn a normal list box into a multi-select box, add the attribute
multiple (with a value of “multiple“) to the select element.
<select name=”multiListBox” id=”multiListBox” size=”3” multiple=”multiple”>
<option value=”option3”>Option 3</option> </select>
textarea
This is similar to a text input field, but it allows the user to enter multiple lines of text. Unlike most other controls, you
specify an initial value (if any) by placing the text between the <textarea> ... </textarea> tags, rather than in a value
attribute. A textarea element must include attributes for the height of the control in rows (rows) and the width of the
control in columns (cols):
<textarea name=”textAreaField” id=”textAreaField” rows=”4” cols=”50”></textarea>
Example of HTML form
<html>
<body>
<form action="valid.jsp">
Enter name:<input type="text" name="name" value="">
Enter password:<input type="password" name="password">
Enter Email:<input type="email" name="email" value=""> Enter
Gender:
<input type="radio" name="gender" id="male" value="male">male <input
type="radio" name="gender" id="female" value="female">female Select
Country:
<select name="country" id="register_country">
<option value="india">india</option>
<option value="pakistan">pakistan</option>
<option value="africa">africa</option>
<option value="china">china</option>
<option value="other">other</option>
</select>
<input type="submit"value="register">
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</form>
</body>
</html>
output
Short Answers Questions
Q1. What is HTML?

Ans.HTML is the abbreviation for Hypertext Markup Language. It is the typical documents’ markup language for
developing web pages to display on the web browser. The extensions used to save HTML pages are .html and .htm.
Q2. Define HTML Layout.

Ans. An HTML web page is arranged in a specific layout (format). Here are the sections of an HTML webpage The
primary sections of the layout are:
Header to define a document or a section header.
Main content where the entire web page content is included.
Footer to define a document or a section footer.
There are also sections such as articles and the navigation bar that are the parts of a layout.
Q3. What is a Tag in HTML?

Ans. In an HTML page, tags used are to place the content and format the pages. They always defined between (<) and
(>) symbols. For example, <h1>text</h1>.
An opening tag must be preceded with a closing tag and indicated with a ‘/’ symbol.
A tag instructs the browser to format the HTML. Tags have many uses, such as changing the appearance of text,
displaying a graphic, or linking another page.
Q4. What are Attributes in HTML?

Ans. An additional attribute is given to each tag to alter the behavior of the tag. Attributes are defined directly after the
tag name, inside the angular brackets. They appear in opening tags and can never appear in closing tags.
For example:
You can define an attribute for the <input> tag, such as a text field, checkbox, radio button, or many more ways.
Q5. What are the different types of lists in HTML?

Ans, HTML lists are used to group a set of related items in lists. It is defined with an <li> tag.
Some commonly used HTML lists: Ordered List (HTML tag: <ol>)
Unordered List (HTML tag: <ul>)
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Description List (HTML tag: <dl>)
Q6. What is an Anchor tag in HTML?

Ans. An anchor tag is used to link two sections, web pages, or website templates in HTML. Its
format is:
<a href=”#” target=”link”></a>
Where ‘href’ is an attribute of the anchor tag used to identify the sections in a document, the ‘link’ is defined in the
target attribute, which is to be linked.
Q7. What are the common use of comments?

Ans. Comments are used in an HTML document to make important notes and help developers mention any modification
to be incorporated afterward. They are not displayed in the browser when the code is executed. A comment is always
written in between the ‘—‘ symbol at the beginning and end of the angular brackets. Syntax:
<!—‘Comment’ !–>
Q8. What are HTML Forms?

Ans. Forms are used to collect the user information when they are filled, and details are provided to save into the
database.
Q9. What is a Marquee Tag in HTML?

Ans. You can put scrolling text with a Marquee tag. With the help of this tag, an image or text can be scrolled up, down,
left, or right.
The text which is scrolled is defined within the <marquee>……</marquee> tag.
Q10. How to make a picture of a background image of a web page?

Ans. To make a picture a background image on a web page, you have to use background attribute of body tag. <body
background=”image.jpg>
Long Answer Questions.
Q1. What is HTML? Discuss the main features of HTML.

Ans.HTML stands for Hyper Text Markup Language. An HTML file is a text file containing markup tags. The markup
tags tell the Web browser how to display the page. An HTML file must have an ‘htm’ or ‘html’ file extension. An HTML
file can be created using a simple text editor. The rule-making body of the Web is World Wide Web
Consortium (W3C). W3C puts together specifications for Web standards. The most essential Web standards are HTML,
CSS and XML. The latest HTML standard is XHTML 1.0 Features of HTML:
It is easy to learn and easy to use.
It is platform-independent.
Images, videos, and audio can be added to a web page.
Hypertext can be added to text.
It is a markup language.
Q2. Explain the following HTML Tags.
<A>
<IMG>
<MARQUEE>
<DIV>
<PRE>
Page: 40
Ans. i. An anchor tag is used to link two sections, web pages, or website templates in HTML. Its
format is:
<a href=”#” target=”link”></a>
Where ‘href’ is an attribute of the anchor tag used to identify the sections in a document, the ‘link’ is defined in the
target attribute, which is to be linked.
ii. HTML img tag is used to display image on the web page. HTML img tag is an empty tag that contains attributes only,
closing tags are not used in HTML image element.
<img src="good_morning.jpg">
Attributes of img tag
All attributes of HTML image tag are given below.
1) src:It is a necessary attribute that describes the source or path of the image. It instructs the browser where to look for
the image on the server.The location of image may be on the same directory or another server.
2) alt :The alt attribute defines an alternate text for the image, if it can't be displayed.
3) width :It is an optional attribute which is used to specify the width to display the image.
4) height :It specifies the height of the image.
iii.The HTML <marquee> tag is used for scrolling piece of text or image displayed either horizontally across or
vertically down your web site page depending on the settings.
Example:
<marquee>This is basic example of marquee</marquee>
IV. The HTML <div> tag is used to group the large section of HTML elements together.
This is the very important block level tag which plays a big role in grouping various other HTML tags and applying
CSS on group of elements. Even now <div> tag can be used to create webpage layout where we define different parts (
Left, Right, Top etc) of the page using <div> tag.
V. The <pre> tag in HTML is used to define the block of preformatted text which preserves the text spaces,
line breaks, tabs, and other formatting characters which are ignored by web browsers. Text in the <pre> element is
displayed in a fixed-width font, but it can be changed using CSS. The <pre> tag requires a starting and end tag.
Q3. What are frames? Give an example of iframe.

Ans. HTML frames are used to divide your browser window into multiple sections where each section can load a
separate HTML document. A collection of frames in the browser window is known as a frameset. The window is divided
into frames in a similar way the tables are organized: into rows and columns.
The <iframe> tag defines a rectangular region within the document in which the browser can display a separate
document, including scrollbars and borders. The src attribute is used to specify the URL of the document that occupies
the inline frame.
Example
<html>
<body>
<h2>HTML Iframes</h2>
<p>You can use the height and width attributes to specify the size of the
iframe:</p>
<iframesrc="mypage.html" height="200" width="300" title="Iframe Example">
</iframe>
</body>
</html>
Page: 41
Q4. Write a code for Student Registration form in HTML. Ans.
<HTML>
<HEAD>
<TITLE>REGISTRATION FORM</TITLE>
</HEAD>
<BODY BGCOLOR="CYAN">
<FORM>
<H1>REGISTRATION FORM</H1>
ENTER NAME:
<INPUT TYPE="TEXT" required="yes" value="ENTER NAME"><BR>
ENTER PASSWORD:<INPUT TYPE="PASSWORD"><BR> ENTER EMAIL:
<INPUT TYPE="EMAIL" VALUE="ENTER EMAIL"><BR>
ENTER GENDER:<INPUT TYPE="RADIO" NAME="GENDER">MALE<INPUT TYPE="RADIO"
NAME="GENDER">FEMALE<BR>
SELECT COURSE:
<SELECT SIZE="3" MULTIPLE="MULTIPLE">
<OPTION>BBA</OPTION>
<OPTION>BCOM</OPTION>
<OPTION>BCA</OPTION>
<OPTION>BED</OPTION>
</SELECT>
<BR>
<INPUT TYPE="SUBMIT" VALUE="REGISTER">
</FORM>
</BODY>
</HTML>
Q5. Discuss HTML Frame. What are the various elements used in creating HTML form?
Ans. An HTML form is a section of a document which contains controls such as text fields, password fields,
checkboxes, radio buttons, submit button, menus etc.
An HTML form facilitates the user to enter data that is to be sent to the server for processing. Forms
Elements
A text input field –– This allows the user to enter a single line of text. You can optionally prefill the field with an initial
value using the value attribute.
<input type=”text” name=”textField” id=”textField” value=” ”>
A password field — This works like a text input field, except that the entered text is not displayed. This is, of course,
intended for entering sensitive information such as passwords. Again, you can prefill the field using the value attribute.
<input type=”password” name=”pass” id=”pass” value=””>
Checkbox
A checkbox field — This is a simple toggle; it can be either on or off. The value attribute should contain the value that
will be sent to the server when the checkbox is selected.
<input type=”checkbox” name=”checkboxField” id=”checkboxField value=”yes”>
Radio button
Page: 42
All buttons in a group have the same name attribute. Only one button can be selected per group.As with checkboxes,
use the value attribute to store the value that is sent to the server if the button is selected. <input type=”radio”
name=”radioButtonField” id=”radioButtonField1” value=”radio1”>
Submit button — Clicking this type of button sends the filled-in form to the server-side script for processing. The value
attribute stores the text label that is displayed inside the button (this value is also sent to the server when the button is
clicked)
<input type=”submit” name=”submitButton” id=”submitButton” value=”Submit Form”>
reset button — This type of button resets all form fields back to their initial values (often empty). The value attribute
contains the button label text:
<input type=”reset” name=”resetButton” id=”resetButton” value=”Reset Form”>
pull-down menu — This allows a user to pick a single item from a predefined list of options.The size attribute’s value
of 1 tells the browser that you want the list to be in a pull-down menu format. Within the select element, you create an
option element for each of your options.Place the option label between the <option> ... </option> tags. Each option
element can have an optional value attribute, which is the value sent to the server if that option is selected.
<select name=”pullDownMenu” id=”pullDownMenu” size=”1”>
list box- This works just like a pull-down menu, except that it displays several options at once. To turn a pull-down
menu into a list box, change the size attribute from 1 to the number of options to display at once:
<select name=”listBox” id=”listBox” size=”3”>
multi-select list box- This works like a list box, but it also allows the user to select multiple items at once by holding
down Ctrl (on Windows and Linux browsers) or Command (on Mac browsers). To turn a normal list box into a
multiselect box, add the attribute multiple (with a value of “multiple“) to the select element.
<select name=”multiListBox” id=”multiListBox” size=”3” multiple=”multiple”>
textarea- This is similar to a text input field, but it allows the user to enter multiple lines of text. Unlike most other
controls, you specify an initial value (if any) by placing the text between the <textarea> ... </textarea> tags, rather than
in a value attribute. A textarea element must include attributes for the height of the control in rows (rows) and the width
of the control in columns (cols):
<textarea name=”textAreaField” id=”textAreaField” rows=”4” cols=”50”></textarea>
Page: 43
MCQ
1) HTML stands for -
a. HighText Machine Language
b. HyperText and links Markup Language
c. HyperText Markup Language
d. None of these
2) The correct sequence of HTML tags for starting a webpage is -

a. Head, Title, HTML, body
b. HTML, Body, Title, Head
c. HTML, Head, Title, Body
d. HTML, Head, Title, Body
3) Which of the following element is responsible for making the text bold in HTML?
a. <pre>
b. <a>
c. <b>
d. <br>
4) Which of the following tag is used for inserting the largest heading in HTML?4.9Program a. <h3>
b. <h1>
c. <h5>
d. <h6>
5) Which of the following tag is used to insert a line-break in HTML?

a. <br>
b. <a>
c. <pre>
d. <b
6) How to create an unordered list (a list with the list items in bullets) in HTML?
a. <ul>
b. <ol>
c. <li>
d. <i>
7) Which character is used to represent the closing of a tag in HTML?

a. \
b. !
c. /
d. .
Page: 44
8) How to create a hyperlink in HTML?
a. <a href = "www.msijanakpuri.com"> Maharaja Surajmal Institute </a>
b. <a url = "www.msijanakpuri.com" Maharaja Surajmal Institute /a>
c. <a link = "www.msijanakpuri.com"> Maharaja Surajmal Institute </a>
d. <a> www.msijanakpuri.com < Maharaja Surajmal Institute /a>
9) How to create an ordered list (a list with the list items in numbers) in HTML?
a. <ul>
b. <ol>
c. <li>
d. <i>
10) Which of the following element is responsible for making the text italic in HTML? a. <i>
b. <italic>
c. <it>
d. <pre>
11) How to insert an image in HTML?

a. <imghref = "jtp.png" />
b. <imgurl = "jtp.png" />
c. <img link = "jtp.png" />
d. <imgsrc = "jtp.png" />
12) How to add a background color in HTML?

a. <marquee bg color: "red">
b. <marquee bg-color = "red">
c. <marquee bgcolor = "red">
d. <marquee color = "red">
13) <input> is -
a. a format tag.
b. an empty tag.
c. All of the above
d. None of the above
14) Which of the following tag is used to make the underlined text?
a. <i>
b. <ul>
c. <u>
d. <pre>
15) How to create a checkbox in HTML?

a. <input type = "checkbox">
b. <input type = "button">
c. <checkbox>
d. <input type = "check">
Page: 45
16) Which of the following tag is used to define options in a drop-down selection list?
a. <select>
b. <list>
c. <dropdown>
d. <option>
17) HTML tags are enclosed in-

a. # and #
b. { and }
c. ! and ?
d. < and >
18) Which of the following tag is used to add rows in the table?
a. <td> and </td>
b. <th> and </th>
c. <tr> and </tr>
19) The <hr> tag in HTML is used for -

a. new line
b. vertical ruler
c. new paragraph
d. horizontal ruler
20) Which of the following attribute is used to provide a unique name to an element? a. class
b. id
c. type
21) Which of the following HTML tag is used to display the text with scrolling effect?
a. <marquee>
b. <scroll>
c. <div>
22) Which of the following HTML tag is the special formatting tag?
a. <p>
b. <b>
c. <pre>
23) Which of the following is the correct way to send mail in HTML?
a. <a href = "mailto: xy@y">
b. <a href = "xy@y">
Page: 46
c. <mail xy@y</mail>
24) Which of the following is the container for <tr>, <th>, and <td> ?
a. <data>
b. <table>
c. <group>
d. All of the above
25) How to insert a background image in HTML?

a. <body background = "img.png">
b. <img background = "img.png">
c. <bg-image = "img.png">
26) What are the types of unordered or bulleted list in HTML?

a. disc, square, triangle
b. polygon, triangle, circle
c. disc, circle, square
d. All of the above
27) Which of the following is the correct way to create a list using the lowercase letters? a. <ol alpha = "a" >
b. <ol type = "a">
c. <ol letter = "a">
28) Which of the following is the correct way to start an ordered list with the count of numeric value 4?
a. <ol type = "1" initial = "4">
b. <ol type = "1" begin = "4">
c. <ol type = "1" num = "4">
d. <ol type = "1" start = "4">
29) Which of the following HTML attribute is used to define inline styles?
a. style
b. type
c. class
30) Which of the following is the paragraph tag in HTML?

a. <p>
b. <b>
c. <pre>
31) An HTML program is saved by using the ____ extension.

a. .ht
b. .html
Page: 47
c. .hml
32) A program in HTML can be rendered and read by -

a. Web browser
b. Server
c. Interpreter
33) The tags in HTML are -

a. case-sensitive
b. in upper case
c. not case sensitive
d. in lowercase
34) Which of the following is the root tag of the HTML document?
a. <body>
b. <head>
c. <title>
d. <html>
35) In HTML5, which of the following tag is used to initialize the document type?
a. <Doctype HTML>
b. <\Doctype html>
c. <Doctype>
d. <!DOCTYPE html>
36) Which of the following tag is used to create a combo box (or drop-down box)?
a. <list>
b. <select>
c. <input type = "dropdown">
d. <ul>
37) Which of the following are the attributes of the Top of Form tag?
a. method
b. action
c. Both (a) & (b)
38) Which is the correct way to comment out something in HTML?

a. Using ## and #
b. Using 
c. Using </-- and -/->
d. Using <!-- and -!>
39) Which HTML tag is used to display the power in expression, i.e., (x2 - y2)? a. <sup>
Page: 48
b. <sub>
c. <p>
40) Which of the following is the correct way to change the font face in HTML?
a. <font name = "Calibri"> ……… </font>
b. <font face = "Calibri"> ……… </font>
c. <font = "Calibri"> ……… </font>
Page: 49
UNIT-3
Electronic Payment System
E-commerce sites use electronic payment, where electronic payment refers to paperless monetary
transactions. Electronic payment has revolutionized the business processing by reducing the paperwork,
transaction costs, and labor cost. Being user friendly and less time-consuming than manual processing, it
helps business organization to expand its market reach/expansion. Listed below are some of the modes of
electronic payments − Credit Card
Debit Card
Smart Card
E-Money
Electronic Fund Transfer (EFT)
3.1 Digital Payment Requirements
The Government of India has been taking several measures to promote and encourage digital payments in
the country. As part of the ‘Digital India’ campaign, the government aims to create a ‘digitally empowered’
economy that is ‘Faceless, Paperless, Cashless’. There are various types and modes of digital payments. Some
of these include the use of debit/credit cards, internet banking, mobile wallets, digital payment apps, Unified
Payments Interface (UPI) service, Unstructured Supplementary Service Data (USSD), Bank prepaid cards,
mobile banking, etc.
Digital payment methods are often easy to make, more convenient and provide customers the flexibility to
make payments from anywhere and at anytime. These are a good alternative to traditional methods of
payment and speeden up transaction cycles. Post demonetization, people slowly started embracing digital
payments and even small time merchants and shop owners started accepting payments through the digital
mode.
Digital Payment
Digital payment occurs when goods or services are purchased through the use of various electronic mediums.
There is no use of cash or cheques in this type of payment method.
Requirements for Digital Payment Systems
The success or failure of any on-line payment systems depends not only on technical issues but also on
user’s acceptance. The user’s acceptance depends on a number of issues such as advertisement, market
position, user preferences etc. Ø Atomicity
Atomicity guarantees that either the user’s online payment transaction is completed or it does not
take place at all. If the current on-line payment transaction fails then it should be possible to
recover the last stable state. This feature resembles the transactional database systems, in which
either a transaction is committed or rolled back.
Ø Privacy
Anonymity suggests that the identity, privacy and personal information of the individuals using the
online payment methods should not be disclosed. In some online payment methods, it is
possible to trace the individual’s payment details. In case of purchases using Debit Card, it is
possible to find out the purchase details as that information is registered at the vendor and the
bank’s databases. So some online payment systems like
Debit cards are not anonymous systems. In some other payment systems, anonymity can be weak as
the efforts to get the purchase details of the user can be more expensive than the information
Page: 50
itself. There are privacy laws in several countries to guarantee the privacy of the user and protect
the misuse of personal information by the financial institutions.
Ø Scalability
As the online payment methods are getting more and more acceptance of the users, the demand for
online payment infrastructure will also be increasing rapidly. Payment systems should handle
the addition of users without any performance degradation. To provide the required quality of
service without any performance degradation, the payment systems need a good number of
central servers. The central servers are needed to process or check the payment transactions.
The growing demand for the central servers, limits the scalability of the online payment
systems.
Ø Security
Security is one of the main concerns of the online payment methods and it is one of the crucial issues
which decide the general acceptance of any online payment methods. Internet is an open
network without any centralized control and the online payment systems should be protected
against any security risks to ensure a safe and reliable service to the users. When users are
paying online they want to be sure that their money transaction is safe and secure. On the
other hand, banks and payment companies and other financial institutions want to keep
their money, financial information and user information in a secure manner to protect it against
any possible misuse.
Ø Reliability
As in any other business activity, even in online payment methods, the user expects a reliable and
an efficient system. Any online payment system would fail, despite of it’s advanced
technological features, if it fails to get the users acceptance and pass their reliability tests. There
are many reasons, which can make the system unreliable to the users. Some of them are Security
threats, poor maintenance and unexpected breakdowns.
Ø Usability
Usability is an important characteristic of an interactive product like online payments. On-line
payment systems should be user friendly and easy to use. Any online payment system with
complicated procedures, complex payment process and other associated complications with the
payment environment, can’t get users acceptance. Poor usability of a web shopping or a
payment method could also discourage online shopping. To make the online payments simple
and user friendly, some of the online payment systems allow the users to make payments with
minimum authorization and information inputs.
Ø Inter operability
In online payment Technologies, different users prefer different payment systems. The different
payment systems use different kinds of currencies and the payment systems should support
interoperability between them. If a payment system is inter operable, then it is open and allows
other interested parties to join without confining to a particular currency. In the real life
situation, there should be some sort of mutual agreement between various online payment
systems to provide the interoperability. Interoperability can be achieved by the means of open
standards for data transmission protocols and infrastructure. An interoperability system can
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gain much acceptance and high level of applicability than individually operating payment
systems.
Because of the rapid technological changes, it’s not always easy to get interoperability between
various payment systems.
3.2 Electronic Payment System
An e-payment system is a way of making transactions or paying for goods and services through an
electronic medium, without the use of checks or cash. It’s also called an electronic payment system or online
payment system. Read on to learn more.
The electronic payment system has grown increasingly over the last decades due to the growing spread of
internet-based banking and shopping. As the world advances more with technology development, we can
see the rise of electronic payment systems and payment processing devices. As this increase, improve, and
provide ever more secure online payment transactions the percentage of check and cash transactions will
decrease.
3.3 Types of Electronic Payment System
METHODS OF ELECTRONIC PAYMENT SYSTEM
One of the most popular payment forms online is credit and debit cards. Besides them, there are also
alternative payment methods, such as bank transfers, electronic wallets, smart cards or bitcoin wallet
(bitcoin is the most popular crypto currency).
E-payment methods could be classified into two areas, credit payment systems and cash payment systems.
Credit Payment System
Ø Credit Card — A form of the e-payment system which requires the use of the card issued by a
financial institute to the cardholder for making payments online or through an electronic device,
without the use of cash.
Ø E-wallet — A form of prepaid account that stores user’s financial data, like debit and credit card
information to make an online transaction easier.
Ø Smart card — A plastic card with a microprocessor that can be loaded with funds to make
transactions; also known as a chip card.
Ø Cash Payment System
Ø Direct debit — A financial transaction in which the account holder instructs the bank to collect a
specific amount of money from his account electronically to pay for goods or services.
Ø E-check — A digital version of an old paper check. It’s an electronic transfer of money from a bank
account, usually checking account, without the use of the paper check. E-cash is a form of an electronic
payment system, where a certain amount of money is stored on a client’s device and made accessible
for online transactions.
Ø Stored-value card — A card with a certain amount of money that can be used to perform the
transaction in the issuer store. A typical example of stored-value cards are gift cards.
Advantages of electronic payment systems

(i) Time savings- Money transfer between virtual accounts usually takes a few minutes, while a wire
transfer or a postal one may take several days. Also, you will not waste your time waiting in lines at a
bank or post office.
(ii) Expenses control- Even if someone is eager to bring his disbursements under control, it is necessary to
be patient enough to write down all the petty expenses, which often takes a large part of the total
amount of disbursements. The virtual account contains the history of all transactions indicating the store
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and the amount you spent. And you can check it anytime you want. This advantage of electronic
payment system is pretty important in this case.
(iii) Reduced risk of loss and theft- You can not forget your virtual wallet somewhere and it can not be
taken away by robbers. Although in cyberspace there are many scammers, in one of the previous
articles we described in detail how to make your e-currency account secure.
(iv) Low commissions- If you pay for internet service provider or a mobile account replenishment through
the UPT (unattended payment terminal), you will encounter high fees. As for the electronic payment
system: a fee of this kind of operations consists of 1% of the total amount, and this is a considerable
advantage.
(v) User-friendly- Usually every service is designed to reach the widest possible audience, so it has the
intuitively understandable user interface. In addition, there is always the opportunity to submit a
question to a support team, which often works 24/7. Anyway you can always get an answer using the
forums on the subject.
(vi) Convenience- All the transfers can be performed at anytime, anywhere. It’s enough to have an access to
the Internet.
Disadvantages of electronic payment systems
(i) Restrictions- Each payment system has its limits regarding the maximum amount in the account, the
number of transactions per day and the amount of output.
(ii) The risk of being hacked- If you follow the security rules the threat is minimal, it can be compared to
the risk of something like a robbery. The worse situation when the system of processing company has
been broken, because it leads to the leak of personal data on cards and its owners. Even if the electronic
payment system does not launch plastic cards, it can be involved in scandals regarding the Identity
theft.The problem of transferring money between different payment systems- Usually the majority of
electronic payment systems do not cooperate with each other. In this case, you have to use the services
of e-currency exchange, and it can be time-consuming if you still do not have a trusted service for this
purpose. Our article on how to choose the best e-currency exchanger greatly facilitates the search
process.
(iii) The lack of anonymity- The information about all the transactions, including the amount, time and
recipient are stored in the database of the payment system. And it means the intelligence agency has an
(iv) access to this information. You should decide whether it’s bad or good.
(v) The necessity of Internet access- If Internet connection fails, you can not get to your online account.
3.4 Concept of e-money
Broadly, electronic money is an electronic store of monetary value on a technical device. The definition of
electronic money is becoming more scientific and specific with developments associated with it. The
European Central Bank defines e-money in the following words. “E-money can be defined as amount of
money value represented by a claim issued on a prepaid basis, stored in an electronic medium (card
or computer) and accepted as a means of payment by undertakings other than the issuer” (ECB). E
money is a monetary value that is stored and transferred electronically through a variety of means – a
mobile phone, tablet, contactless card (or smart cards), computer hard drive or servers. Electronic money
need not necessarily involve bank accounts in transaction but acts as a prepaid bearer instrument. They are
often used to execute small value transactions.
Electronic Money
Scrip or money that is exchanged only through electronically is referred to as electronic money. Electronic
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Money is also referred as e – money, Electronic Cash, Digital Money, Electronic Currency, Digital
Currency, e – currency, Digital Cash, and Cyber Currency. Electronic Money uses Internet, Digital Stored
Value systems, and Computer Networks.
Some of the examples of electronic money are Direct Deposit, EFT (Electronic Funds Transfer), Virtual
Currency, and Digital Gold Currency.
TYPES OF ELECTRONIC CURRENCIES

There are two types of electronic currencies namely: Hard Electronic Currency and Soft Electronic Currency-
Ø Hard Electronic Currency does not allow reversing charges i.e. it supports only Non – Reversible
transaction. The advantage of this type is that it reduces the operating cost of e – currency system.
Ø Soft Electronic Currency allows payment reversals. The payment is reversed only in case of dispute
or fraud. The payment reversible time will be 72 hrs or even more. Some examples of this type are
Credit Card and Pay Pal.
Electronic Money systems are developing day by day. Some of the developments are: it can be used
with Secured Credit Cards for wide range facilities and the bank accounts that are linked can
be used with an internet to exchange currency with Secure Micropayment system like Pay Pal.
Different Systems of Electronic Money
Electronic Money includes three different systems namely
Centralized Systems,
Decentralized Systems, and Offline
Anonymous Systems.
Centralized Systems
There are many centralized systems that directly sell their e – currency to end users is Web Money, Pay Pal,
Hub Culture Ven, and CashU but Liberty Reserve sells only via 3rd party digital currency exchangers.
Decentralized Systems
Electronic Money includes some decentralized systems. They are:
Bitcoin, and Ripple Monetary System.
(i) Bitcoin: – Bitcoin is a Peer to Peer Electronic Money system with maximized inflation limit.
(ii) Ripple Monetary System: – Ripple Monetary system is a system that is developed to distribute
electronic money system independent to local currency.
Offline Anonymous System Offline Anonymous System can be done ‘offline’. In this electronic money
system, the merchants do not need to have interaction with banks before receiving currency from the users.
Instead of that, the merchants can collect spent money by users and deposits the money later to the bank.
The merchant can deliver his storage media in bank for exchanging the electronic money to cash.
3.5 Infrastructure issues and risks in EPS

Infrastructure is necessary for the successful implementation of electronic payments. Proper Infrastructure for
electronic payments is a challenge.
For electronic payments to be successful, there is the need to have reliable and cost effective infrastructure
that can be accessed by majority of the population.
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Electronic payments communication infrastructure includes computer network, such as the internet and
mobile network used for mobile phone.
In addition, banking activities and operations need to be automated. A network that links banks and other
financial institutions for clearing and payment confirmation is a pre-requisite for electronic payment
systems. Mobile network and Internet are readily available in the developed world and users usually do not
have problems with communication infrastructure.
In developing countries, many of the rural areas are unbanked and lack access to critical infrastructure that
drives electronic payments.
Some of the debit cards technologies like Automated Teller Machines (ATMs) are still seen by many as
unreliable for financial transactions as stories told by people suggested that they could lose their money
through fraudulent deductions, debits and other lapses for which the technology had been associated with by
many over the last few years.
Telecommunication and electricity are not available throughout the country, which negatively affect the
development of e-payments. The development of information and communication technology is a major
challenge for e-payments development. Since ICT is in its infant stages in Nepal, the country faces difficulty
promoting e-payment development.
RISKS IN ELECTRONIC PAYMENT SYSTEMS

Electronic payments allow you to transfer cash from your own bank account to the bank account of the
recipient almost instantaneously. This payment system relies heavily on the internet and is quite popular due
to the convenience it affords the user. It would be hard to overstate the advantages of electronic payment
systems, but what about the risks? Certainly they exist, both for financial institutions and consumers.
(i) The Risk of Fraud
Electronic payment systems are not immune to the risk of fraud. The system uses a particularly vulnerable
protocol to establish the identity of the person authorizing a payment. Passwords and security questions
aren’t foolproof in determining the identity of a person. So long as the password and the answers to the
security questions are correct, the system doesn’t care who’s on the other side. If someone gains access to
your password or the answers to your security question, they will have gained access to your money and can
steal it from you.
(ii) The Risk of Tax Evasion
The law requires that businesses declare their financial transactions and provide paper records of them so
that tax compliance can be verified. The problem with electronic systems is that they don’t fit very cleanly
into this paradigm and so they can make the process of tax collection very frustrating for the Internal
Revenue Service. It is at the business’s discretion to disclose payments received or made via electronic
payment systems in a fiscal period, and the IRS has no way of knowing if it’s telling the truth or not. That
makes it pretty easy to evade taxation. (iii) The Risk of Payment Conflicts
One of the idiosyncrasies of electronic payment systems is that the payments aren’t handled by humans but
by an automated electronic system. The system is prone to errors, particularly when it has to handle large
amounts of payments on a frequent basis with many recipients involved. It’s important to constantly check
your pay slip after every pay period ends in order to ensure everything makes sense. Failure to do this may
result in payment conflicts caused by technical glitches and anomalies.
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(iv) The Risk of Impulse Buying
Impulse buying is already a risk that you face when you use non-electronic payment systems. It is
magnified, however, when you’re able to buy things online at the click of a mouse. Impulse buying can
become habitual and makes sticking to a budget almost impossible.
3.6 Electronic Fund Transfer
ELECTRONIC FUND TRANSFER

Electronic Funds Transfer (EFT) is the electronic transfer of money from one bank account to another, either
within a single financial institution or across multiple institutions, via computer-based systems, without the
direct intervention of bank staff. EFT transactions are known by a number of names. In the United States,
they may be referred to as electronic checks or e-checks.
Types of Electronic Fund Transfer
The term covers a number of different payment systems, for example:
Cardholder-initiated transactions, using a payment card such as a credit or debit card
Direct deposit payment initiated by the payer
Direct debit payments for which a business debits the consumer’s bank accounts for payment for goods or
services
Wire transfer via an international banking network such as SWIFT
Electronic bill payment in online banking, which may be delivered by EFT or paper check Transactions
involving stored value of electronic money, possibly in a private currency.
HOW IT WORKS?
EFTs includes direct-debit transactions, wire transfers, direct deposits, ATM withdrawals and online bill pay
services. Transactions are processed through the Automated Clearing House (ACH) network, the secure
transfer system of the Federal Reserve that connects all U.S. banks, credit unions and other financial
institutions.
For example, when you use your debit card to make a purchase at a store or online, the transaction is
processed using an EFT system. The transaction is very similar to an ATM withdrawal, with
nearinstantaneous payment to the merchant and deduction from your checking account.
Direct deposit is another form of an electronic funds transfer. In this case, funds from your employer’s bank
account are transferred electronically to your bank account, with no need for paper-based payment systems.
Types of EFT payments

There are many ways to transfer money electronically. Below are descriptions of common EFT payments you
might use for your business.
Ø Direct deposit lets you electronically pay employees. After you run payroll, you will tell your direct
deposit service provider how much to deposit in each employee’s bank account. Then, the direct
deposit provider will put that money in employee accounts on payday. Not all employers can make
direct deposit mandatory, so make sure you brush up on direct deposit laws.
Ø Wire transfers are a fast way to send money. They are typically used for large, infrequent payments.
You might use wire transfers to pay vendors or to make a large down payment on a building or
equipment.
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Ø ATMs let you bank without going inside a bank and talking to a teller. You can withdraw cash, make
deposits, or transfer funds between your accounts.
Ø Debit cards allow you to make EFT transactions. You can use the debit card to move money from
your business bank account. Use your debit card to make purchases or pay bills online, in person, or
over the phone.
Ø Electronic checks are similar to paper checks, but used electronically. You will enter your bank
account number and routing number to make a payment.
Ø Pay-by-phone systems let you pay bills or transfer money between accounts over the phone.
Ø Personal computer banking lets you make banking transactions with your computer or mobile
device. You can use your computer or mobile device to move money between accounts.
Comparison
Category NEFT RTGS IMPS
Settlement
Type Half hourly batches Real time Real time
Minimum
Transfer Re.1 Rs.2 lakh Re.1
Limit
Rs. 10,00,000
However, maximum amount per

Maximum
transaction is limited to
Transfer Rs.50,000/- for cash-based No limit Rs.2 lakh
Limit remittances within India and to
Nepal under the Indo-Nepal
Remittance Facility Scheme.
8:00 AM – 7:00 PM all working

days except 2nd and 4th Saturday 8:00 AM – 6:00 PM all
of the month working days
Service Unavailable on Sunday and Bank Unavailable on Sunday and Available 365 days 24/7
Timings Holidays Bank Holidays
Operates in 23 half-hourly .
settlement batches
No charges for inward Charges for remittance
No charges for inward transactions through IMPS are
Transaction transactions (at destination bank Charges applicable for decided by the individual
Charges branches for credit to beneficiary outward transactions for member banks and PPIs.
accounts) amount: The taxes are included.
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Comparison
Category NEFT RTGS IMPS
Rs.2 lakh – Rs.5 lakh: not

exceeding Rs.25
Above Rs.5 lakh: not
exceeding Rs.50 GST
is also applicable
Payment
Options Online and Offline Online and Offline Online
3.6 Security Issues in E-Commerce

E-Commerce is defined as the buying and selling of products or services over electronic systems such as the
Internet and to a lesser extent, other computer networks. It is generally regarded as the sales and commercial
function of eBusiness. There has been a massive increase in the level of trade conducted electronically since
the widespread penetration of the Internet. A wide variety of commerce is conducted via eCommerce,
including electronic funds transfer, supply chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management systems, and automated data
collection systems. US online retail sales reached $175 billion in 2007 and are projected to grow to $335
billion by 2012 (Mulpuru, 2008).
This massive increase in the uptake of eCommerce has led to a new generation of associated security
threats, but any eCommerce system must meet four integral requirements: privacy – information
exchanged must be kept from unauthorized parties integrity – the exchanged information must not
be altered or tampered with authentication – both sender and recipient must prove their identities to
each other and
non-repudiation – proof is required that the exchanged information was indeed received (Holcombe, 2007).
Need and Concepts
In spite of its advantages and limitations E-commerce has got some security issues in practical. E-commerce
security is nothing but preventing loss and protecting the areas financially and informational from
unauthorized access, use or destruction. Due the rapid developments in science and technology, risks
involved in use of technology and the security measures to avoid the organizational and individual losses
are changing day to day. There are two types of important cryptography we follow for secured E-commerce
transactions.
Ø Symmetric (private-key) cryptography: This is an encryption system in which sender and receiver
possess the same key. The key used to encrypt a message is also used to decrypt the encrypted message
from the sender.
Ø Asymmetric (public-key) cryptography: In this method the actual message is encoded and decoded
using two different mathematically related keys, one of them is called public key and the other is called
private key.
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Security is an essential part of any transaction that takes place over the internet. Customers will lose his/her
faith in e-business if its security is compromised. Following are the essential requirements for safe
epayments/transactions :−
Ø Confidentiality − Information should not be accessible to an unauthorized person. It should not be
intercepted during the transmission.
Ø Integrity − Information should not be altered during its transmission over the network.
Ø Availability − Information should be available wherever and whenever required within a time limit
specified.
Ø Authenticity − There should be a mechanism to authenticate a user before giving him/her an access
to the required information.
Ø Non-Repudiability − It is the protection against the denial of order or denial of payment. Once a
sender sends a message, the sender should not be able to deny sending the message. Similarly, the
recipient of message should not be able to deny the receipt.
Ø Encryption − Information should be encrypted and decrypted only by an authorized user.
Ø Auditability − Data should be recorded in such a way that it can be audited for integrity requirements.
E-COMMERCE SECURITY CAN BE DIVIDED INTO TWO BROAD TYPES:

(1) Client-Server Security
Client-server securities are popular because they increase application processing efficiency while reducing
costs and gaining the maximum benefit from all resources working together. These benefits are gained by
splitting processing between the client machine/software and server machine/software. Each process works
independently but in cooperation and compatibility with other machines and applications (or pieces of
applications).
All independent processing must be performed to complete the requested service. Cooperation of
application processing produces another client-server advantage, it reduces network traffic. Since each node
(client and/or server) performs part of the processing within itself, network communication can be kept to a
minimum. For example, static processes, like menus or edits, usually take place on the client-side. The
server, on the other hand, is responsible for processes like updating and reporting.
(2) Data and Transaction Security
Secure Electronic Transaction (SET) is a system for ensuring the security of financial transactions on the
Internet. It was supported initially by Mastercard, Visa, Microsoft, Netscape, and others. With SET, a user is
given an electronic wallet (digital certificate) and a transaction is conducted and verified using a
combination of digital certificates and digital signatures among the purchaser, a merchant, and the
purchaser’s bank in a way that ensures privacy and confidentiality. SET makes use of Netscape’s Secure
Sockets Layer (SSL), Microsoft’s Secure Transaction Technology (STT), and Terisa System’s Secure
Hypertext Transfer Protocol (S-HTTP). SET uses some but not all aspects of a public key infrastructure
(PKI).
3.7 Electronic Commerce Security Environment
E-COMMERCE SECURITY ENVIRONMENT

E-commerce embodies several business transactions over utilizing electronic systems. E-commerce website
involves internal network which might interface with World Wide Web. E-commerce introduced external as
well as internal risk to both business and website to which it connected.
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External threats to e-commerce website are raised from various sources involving electronic economic
environment as well as risk related to the external internet. Internal threats come from staff, internal
network, management and business processes. The most common risk is security-related issues that relate to
the interface among the consumer transactions and network.
Intruders pose a security threat to the network through DoS attack that can overwhelm site or theft of private
financial information after gaining access to the internal system through vulnerabilities of an e-commerce
website. Other security threats related to these websites are summarised as beneath: Malicious code threats:
These types of threats involve worms, viruses and Trojan horses.
Viruses are external threats and have the ability to corrupt files on the website after finding their direction in
the internal network. They might be critical as they completely harm the computer system and disrupt
normal operations of the computer.
Trojan horse is defined as programming code that performs destructive functions. They attack computers
while downloading something.
Wi-Fi eavesdropping: It is one of the simplest ways in the e-commerce to steal private information. It is
recognized as virtual listening of data that is shared across Wi-Fi network that is not encrypted. It occurs on
personal and public computers as well.
Other Threats: Certain other threats which are raised are data packet sniffing, port scanning and IP
spoofing. An attacker can involve a sniffer to attack an information packet flow and scan unique data packs.
Through IP spoofing, it becomes hard to trace the intruder. The target is here to modify the source address
and provide it such a look that it must look as though it is derived from another computer.
TECHNIQUES TO COMBAT E-COMMERCE THREATS

Encryption: It is defined as a mechanism of converting normal information into an encoded content that
cannot be read by others except the one who sends or receive this message.
Having digital certificates: It is known as digital certificate being issued by a trustworthy third party
company. An SSL certificate is essential because it gives a high authentication level to the website. The
main function of this certificate is to secure an e-commerce website from unintended attacks like Man-
inmiddle attacks.
3.8 Security threats in E-Commerce environment
In the past few years it’s seemed like there has been a new widespread security breach every other week.
High profile incidents such as Heartbleed and WannaCry and hacks of notable entities including Sony
Pictures and the Democratic National Committee have brought cyber security to the front of people’s minds.
The magnitude of Distributed Denial of Service (DDoS) attacks has risen with the increased number of
devices connecting to the internet, and as more of the population engages with these devices the risk of
sensitive information being taken advantage of continues to rise.
E-COMMERCE THREATS
Some of the common security threats we may come across:- (i)
Malware
Malware, or malicious software, is any program or file that is harmful to a computer user. Malware includes
computer viruses, worms, Trojan horses and spyware. These malicious programs can perform a variety of
functions, including stealing, encrypting or deleting sensitive data, altering or hijacking core computing
functions and monitoring users’ computer activity without their permission.
(ii) Virus
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A computer virus is a type of malicious software program (“malware”) that, when executed, replicates itself
by modifying other computer programs and inserting its own code. When this replication succeeds, the
affected areas are then said to be “infected” with a computer virus.
Computer viruses currently cause billions of dollars’ worth of economic damage each year, due to causing
system failure, wasting computer resources, corrupting data, increasing maintenance costs, etc. In response,
free, open-source antivirus tools have been developed, and an industry of antivirus software has cropped up,
selling or freely distributing virus protection to users of various operating systems. As of 2005, even though
no currently existing antivirus software was able to uncover all computer viruses (especially new ones),
computer security researchers are actively searching for new ways to enable antivirus solutions to more
effectively detect emerging viruses, before they have already become widely distributed. (iii) Spam
Spam is the electronic equivalent of the ‘junk mail’ that arrives on your doormat or in your postbox.
However, spam is more than just annoying. It can be dangerous – especially if it’s part of a phishing scam.
Spam emails are sent out in mass quantities by spammers and cybercriminals that are looking to do one or
more of the following:-
(a) Make money from the small percentage of recipients that actually respond to the message.
(b) Run phishing scams – in order to obtain passwords, credit card numbers, bank account details and more
(c) Spread malicious code onto recipients’ computers,
(IV) Spyware threats Spyware is generally loosely defined as software that’s designed to gather data
from a computer or other device and forward it to a third party without the consent or knowledge of the
user. This often includes collecting confidential data such as passwords, PINs and credit card numbers,
monitoring keyword strokes, tracking browsing habits and harvesting email addresses. In addition to all
of this, such activities also affect network performance, slowing down the system and affecting the
whole business process. It is generally classified into four main categories: Trojans, adware, tracking
cookies and system monitors.
(V) Trojan Horse
A Trojan horse is a destructive program that masquerades as a benign application. Unlike viruses, Trojan
horses do not replicate themselves but they can be just as destructive. One of the most insidious types of
Trojan horse is a program that claims to rid your computer of viruses but instead introduces viruses into
your system.
(VI) Worms
A computer worm is a standalone malware computer program that replicates itself in order to spread to other
computers.[1] Often, it uses a computer network to spread itself, relying on security failures on the target
computer to access it. Worms almost always cause at least some harm to the network, even if only by
consuming bandwidth, whereas viruses almost always corrupt or modify files on a targeted computer.
3.9 Basics of Encryption and Decryption

ENCRYPTION
In computing, encryption is the method by which plaintext or any other type of data is converted from a
readable form to an encoded version that can only be decoded by another entity if they have access to a
decryption key. Encryption is one of the most important methods for providing data security, especially for
end-to-end protection of data transmitted across networks.
Encryption is widely used on the internet to protect user information being sent between a browser and a
server, including passwords, payment information and other personal information that should be considered
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private. Organizations and individuals also commonly use encryption to protect sensitive data stored on
computers, servers and mobile devices like phones or tablets.
Benefits of Encryption
The primary purpose of encryption is to protect the confidentiality of digital data stored on computer
systems or transmitted via the internet or any other computer network. A number of organizations and
standards bodies either recommend or require sensitive data to be encrypted in order to prevent
unauthorized third parties or threat actors from accessing the data. For example, the Payment Card Industry
Data Security Standard requires merchants to encrypt customers’ payment card data when it is both stored at
rest and transmitted across public networks.
Modern encryption algorithms also play a vital role in the security assurance of IT systems and
communications as they can provide not only confidentiality, but also the following key elements of
security:-
Authentication: The origin of a message can be verified.
Integrity: Proof that the contents of a message have not been changed since it was sent.
Non-repudiation: The sender of a message cannot deny sending the message.
Types of Encryption
(1) Symmetric key / Private key
In symmetric-key schemes, the encryption and decryption keys are the same. Communicating parties must
have the same key in order to achieve secure communication.
(2) Public key
In public-key encryption schemes, the encryption key is published for anyone to use and encrypt messages.
However, only the receiving party has access to the decryption key that enables messages to be read,
Publickey encryption was first described in a secret document in 1973;, before, then all encryption schemes
were symmetric-key (also called private-key).
DECRYPTION
The conversion of encrypted data into its original form is called Decryption. It is generally a reverse process
of encryption. It decodes the encrypted information so that an authorized user can only decrypt the data
because decryption requires a secret key or password.
One of the reasons for implementing an encryption-decryption system is privacy. As information travels
over the Internet, it is necessary to scrutinise the access from unauthorized organizations or individuals. Due
to this, the data is encrypted to reduce data loss and theft. Few common items that are encrypted include text
files, images, e-mail messages, user data and directories. The recipient of decryption receives a prompt or
window in which a password can be entered to access the encrypted data. For decryption, the system
extracts and converts the garbled data and transforms it into words and images that are easily
understandable not only by a reader but also by a system. Decryption can be done manually or
automatically. It may also be performed with a set of keys or passwords.
There are many methods of conventional cryptography, one of the most important and popular method is
Hill cipher Encryption and Decryption, which generates the random Matrix and is essentially the power of
security. Decryption requires inverse of the matrix in Hill cipher. Hence while decryption one problem
arises that the Inverse of the matrix does not always exist. If the matrix is not invertible then the encrypted
content cannot be decrypted. This drawback is completely eliminated in the modified Hill cipher algorithm.
Also this method requires the cracker to find the inverse of many square matrices which is not
computationally easy. So the modified Hill-Cipher method is both easy to implement and difficult to crack.
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MCQ’s
1. What is e-payment?
A. Electronic payment for buying and selling through the Internet
B. Payment of online software
C. Payment of online services
2. What is the main driver of electronic payment growth? A. Consumer demand for new methods
B. Government regulation
C. Technology development
3. What are the main concerns about electronic payment?

A. Privacy and security
B. Privacy and charged fees C. Security and charged fees
4. What is Bitcoin?
A. An online payment blog
B. First decentralized digital currency
C. A mobile app for online shopping
5. Which of the following is not an advantage of using bitcoins?

A. Low tranfer fee
B. Your account can't be frozen
C. You can cash out in another currency
6. Which of the following is not an example of mobile payment?

A. A.NFC
B. PaySafeCard
C. PayGol
D. Boku
7.For international business, e-payment should be thought around 2 axis. Which ones?
A. Quality and Costumer
B. Costumer and Security
A. C.Security and Quality
8. Which is the most challenging characteristic of cash when considering creating the equivalent on the
internet?
A. Immediacy
B. Anonymity
C. Portability
D. Acceptability
9. Which of the following isn't a procedure used by companies to verify the purchase forms?
A. Card Verification Number (CVN)
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B. Address Verification System (AVS)
C. Digital Signature System (DSS)
10.What can you do with MBnet service? A.

Create a virtual debit card
B. Open a new bank account
C. Order a new credit car
11. Which one of the following is not a Digital Wallet? A. Google Wallet
B. MFerio
C. IGS Wallet
D. Lemon Wallet
12. What is Digital checking?

A. An online commercial payment platform
B. An electronic variation of the paper check
C. Exploration software poor payment checking
13. PayPal is currently used in how many countries and currencies?

A. 150 countries and 12 currencies
B. 180 countries and 18 currencies
C. 190 countries and 24 currencies
14. Which of the following companies offers micropayment versatile solutions in Portugal nowadays? A.
Easypay
B. Payone C.
MBill
15. What are the three main reasons for the failure of many new payment systems such as digital cheques?
A. difficulty developing a system that is secure, convenient, and accepted by everyone
B. difficulty developing a system that is worldwide, less costly, and long-lasting
C. difficulty developing a system that is portable, standard, and transferable D. difficulty developing a
system that is up to date, legal, and reliable
16. Why are digital cash and cheque systems different from micropayments?
A. Vendors can use them without using the internet, unlike with micropayments.
B. They both require vendors to establish a network of approved banks and merchants, but
micropayments do not.
C. They depend on a network of billing servers that can be established by several types of organizations,
but micropayments do not.
D. They are both more widely accepted by vendors than micropayments are.
17. Non-electronic payment systems have traditionally included the following

A. cheques, credit cards, and NetChecks such as DigiCash
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B. cash, ewallet, and cheques
C. Mondex, debit cards, and smart cards
D. credit cards, cash, and cheques
18.eChecks have the following attribute:

A. contain the same information as paper cheques and may contain additional value-added data B.
do not require digital certificates or encryption technologies
C. can also be produced in paper form
D. remove the need for one of the parties to have a bank account
19. Encryption can be done

A. only on textual data
B. only on ASCII coded data
C. on any bit string
D. only on mnemonic data
20.Public key system is useful because A.

it uses two keys.
B. there is no key distribution problem as public key can be kept in a commonly accessible database.
C. private key can be kept secret.
D. it is a symmetric key system.
21. In public key encryption if A wants to send an encrypted message

A. A encrypts message using his private key
B. A encrypts message using B’s private key
C. A encrypts message using B’s public key
D. A encrypts message using his public key
22. In public key encryption system if A encrypts a message using his private key and sends it to B
A. if B knows it is from A he can decrypt it using A’s public key B.
Even if B knows who sent the message it cannot be decrypted
C. It can be decrypted by all.
D. A should send his public key with the message
23. Public key encryption method is a system

A. which uses a set of public keys one for each participant in e-Commerce
B. in which each person who wants to communicate has two keys; a private key known to him
only and a public key which is publicized to enable others to send message to him. C. which
uses the RSA coding system.
D. which is a standard for use in e-Commerce.
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24. The following ciphertext was received. The plaintext was permuted using permutation (34152) and substitution.
Substitute character by character +3 (A Æ D, etc). The plain text after decryption is: Cipher
text:PDLJDLXHVQC
A. MAIGAIUESNZ
B. IAMAGENIUSZ
C. LDPDJHPLXVZ
D. IAMAGENIUSC
25. By symmetric key encryption we mean

A. one private key is used for both encryption and decryption
B. private and public key used are symmetric
C. only public keys are used for encryption
D. only symmetric key is used for encryption
26. Encryption is required to

i. protect business information from eavesdropping when it is transmitted on internet
ii. efficiently use the bandwidth available in PSTN
iii. to protect information stored in companies’ databases from retrieval
iv. to preserve secrecy of information stored in databases if an unauthorized person retrieves it A. i and
ii
B. ii and iii
C. iii and iv
D. i and iv
Short Answers Questions
1 Is Business over Internet secure? Discuss

2 What are the key points of vulnerability in e-commerce environment?
3 Explain various cyber security policies.
4 What are the various features of EPS?
5 What are the various types of EFT?
6 Discuss the various Digital Payment System Requirements.
7 What are the benefits of E-Currencies?
8 Discuss the various security issues in E-payment.
9 Define the term Encryption and Decryption.
10 List out the differences between Public Key and Private key.
Long Answers Questions
1 Explain the various types of Electronic Payment Systems in detail.

2 List out the differences between NEFT, RTGS and IMPS.
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3 What is Cryptography? Explain the process of encryption and decryption in context to the following: i.
Symmetric Key Cryptography
ii. Asymmetric Key Cryptography 4
Explain the working of EFT in detail.
5 Suppose A wants to send a message to B using public key encryption. Explain how this entire process will
be carried if the message to be sent is: MATHEMATICIAN. Generate the keys on your own and show
how the encryption and decryption of data is carried out.
Page: 67
UNIT 4
4. History of E Commerce !!!!!!!!
A FEW YEARS AGO, E - E-COMMERCE

COMMERCE
APPLICATIONS WERE THUS, THE E-
APPLICATIONS SUCESSFUL E
FOCUSES ON
FOCUSED PRIMARILY COMMERCE PROCESSES AND
COMMERCE
ON HANDLING
TRANSACTIONS AND
APPLICATIONS ARE TRANSACTIONS THAT APPLICATIONS
DESIGNED IN ORDER SUPPORT ONLINE
MANAGING CATALOGS.
TO MAXIMISE THE BUYING AND SELLING.
ARE THOSE
BUSINESS
REQUIREMENTS REVENUES AND ARE A WELL DESIGNED E - WHICH ARE
HOWEVER ARE DEVELOPED TO COMMERCE
APPLICATION NEEDS • SCALABLE
EVOLVING BEYOND ENABLE A
TRANACTION SUPPORT FLOURISHING TO PROVIDE ALL THE • RELIABLE
TO INCLUDE CONTENT ONLINE BUSINESS INFORMATION TO THE • SECURE
MANAGEMENT, WITH MINIMAL CUSTOMERS THAT • COST - EFFECTIVE
PERSONALIZATION, WOULD ENABLE THEM
INTEGRATION AND
INVESTMENTS TO TAKE THE
MARKET ENABLEMENT. DECISIONS
4.1-Ecommerce Applications--
What are the various Different Sectors of E Commerce?
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The above image explains the various sectors of E Commerce. Let’s take a deeper look into each of
these.
Page: 69
4.1.1 E Commerce in banking
Advantages of E Banking Disadvantages of E Banking
I. TIME SAVING: Saves time by allowing I. INTERNET CONNECTION: Internet is a
direct transaction from office, home or any pre-requisite to perform e-banking. It may
place. not be completely available in rural areas.
II. CONVINIENCE: Users can pay phone and II. COMPUTER KNOWLEDGE: It can only be
electricity bills via online banking without performed by people who are computer
rushing to utility company’s bill collection literate
outlets. III. SECURITY CONCERNS: People fear that
III. 24*7 SERVICES: It can be performed at their accounts can be hacked and funds can
anytime from anywhere be transferred to unauthorized accounts
IV. ECO FRIENDLY: It does not consume IV. LACK OF HUMAN TOUCH: Eliminates
volumes of paper like conventional banking human interaction completely. Some people
modes and hence helps protect environment still prefer interacting with bank staff.
V. EASY ACCESS: To perform online V. DISRUPTION IN SERVICES: Cannot be
banking task all that you need is a computer used when bank’s server is down. In that case
system and an internet connection it becomes difficult to note if transaction has
VI. FASTER BANKING: Banking transactions been performed or not
are done in real time and within moments
VII. OTHER BENEFITS: Cost saving as there is
no need of extra staff to visit banks.
Beneficial to merchants as it ensures quick
payments
4.1.2 E Commerce In Insurance

E-insurance is the use of internet and information technology to produce and distribute insurance services.
Advantages of E-Insurance Disadvantages of E-Insurance
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Ø Reduction in managerial and administrative Ø In case of complex insurance products, and
cost high value transactions which customers are
Ø By selling insurance policy directly to willing to spend huge amount on consulting,
customers reduces the commission payable selling through internet is not so appropriate
directly to the middlemen Ø Technical obstacles including issues related
Ø Process of issuance of policy and settlement to security and reliability of network and
of claims can be accomplished easily internet are major concerns in e-insurance
Ø E-insurance allows consumers to search for Ø E-insurance transactions cannot be done
insurance products from different companies. when the server of insurance company is
Based on evaluation they can select which down
one best suits their needs Ø E -insurance completely eliminates human
Ø Transaction can be performed from anytime interaction
and anywhere
4.1.3 E Commerce in Travel Services

Online travel companies may provide the following additional services which are not generally provided
in conventional travel companies. This image illustrates one of the example of travel services online.
Fare Comparison
Online
application for Currency
VISAConversion
Shopping for
E UckeUngtravel and
accessories
Advantages of E Commerce in travel Disadvantages of E Commerce in Travel

Ø The amount of free information is tremendous Ø Many people do not use internet
which can be accessed from anytime and Ø Complex trips require specialized knowledge and
anywhere arrangements which are not feasible online
Ø Potential savings can be made through special Ø There is a possibility of online fraud as payments
sales and elimination of travel agents by buying are done online
directly from providers Ø Restrictive Cancellation prices
Ø Online travel sites offer a one stop, convenient,
leisure and business travel experience where
Page: 71
consumers can find content community and
commerce
Ø Saving money by paperless environment
Ø Provides more personalized services
4.1.4 E Commerce in Real Estate Industry

Real estate industry is an ideal area for e-commerce due to the following
reasons:
Ø Potential buyers can view many properties on screen which saves time for not only the buyer but also
brokers
Ø Potential buyers can sort and organise properties according to his criteria and preview interior and
exterior of the property.
Ø Potential buyers can make mortgage or rental comparisons and calculations as well as compare the price
of property on different sites.
Ø Potential buyers can get detailed information and can get more detailed listings then that provided
through conventional means such as brokers
Ø E.g.; 99acres.com, Magicbricks.com
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The image illustrates the various sectors of REAL ESATE INDUSTRY.
4.1.5 Online marketing

Ø Online marketing is a set of tools and methodologies used for promoting products and services through the
internet. Online marketing includes a wider range of marketing elements than traditional business
marketing due to the extra channels and marketing mechanisms available on the internet.
Ø Online marketing is also known as internet marketing, web marketing, or digital

marketing. It includes several branches such as social media marketing (SMM),
search engine optimization (SEO), pay-per-click advertising (PPC), and search
engine marketing (SEM).
Advantages of online marketing Disadvantages of online marketing
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1. It does not require too much capital to 1. Internet marketing requires a great
get started. You can easily start building one deal of effort and hard work.
with less than a thousand bucks.
2. The net is ever changing. What is in
2. IM provides you flexibility. Since demand and hot now may not be the same
most of the transactions are done online, you few months from now so you need to be
get to work at your own pace and at your constantly on the lookout for anything new
own chosen time. for your business to survive.
3. Your business is open 24 hours a day 3. A wide array of product competition

every day. This means you will still make is out there in the World Wide Web.
money online while you are sleeping at the Remember that you are not the only person
comfort of your own bed. who offers the service or sell the product.
There are many online business owners who
4. Your customers are not limited to just sell the same products you do.
only in your neighborhood or a neighboring
town, it is worldwide and they can shop 4. Getting the right people to visit your
anytime they please. site is as hard as finding a prospect.
5. Experimenting and testing products or 5. Most online marketing sites do not

services costs less have customer service/inquiry response
programs. This is why most people feel
6. You will have the ability to make deprived of knowing further information
affiliate programs and recruit affiliates regarding certain products or services
because what they need is an actual person
whom they can talk to or inquire about.
6. People tend to be cautious because of

the too many scams in the internet.
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Advantages of E-tailing Disadvantages of E-tailing
Ø It reduces the space occupied by retail outlets Ø All customers do not have internet connectivity
(brick and mortar market) in the real world. which is a pre-requisite
Ø E-tailers can start business with lesser investment Ø Maintaining e-tailing websites in terms of
that infrastructure cost for order fulfillment, storing
Ø Makes the overall operating cost low goods, dealing with returns may be expensive
Ø It gives quick and easy access to shopping spaces Ø Trust, security, privacy concerns are hindrances
at any time and from any place where there is to e-tailing
access to internet Ø Can’t feel products
Ø On the contrary a physical store is restricted to Ø Just by reading description and looking at
area of visibility and accessibility product we cannot make an correct estimation
Ø It creates a new platform for goods from different about the product
parts of the world which could be imported by
placing an order.
Ø E-tailing removes middlemen and manufacturers
so the sellers are able to directly deal with the
customers
4.1.6 E- Tailing and business-to-

consumer (B2C) sales of
products and services.
Electronic retailing
(E-tailing) is the sale of goods Notably,
and strong
services through the Internet. distribu1on
channels are
cri1cal to
electronic
E-tailing requires companies to tailor retailing as
their business models to capture these are the
Internet sales, which can include avenues that
building out
move the
distribuUon channels such as warehouses,
product to the
Internet customer.
webpages, and product shipping
centres.
E-tailing can include

business-tobusiness (B2B)
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4.1.7 Financial services
Ø Financial services are the economic service provided by the finance industry, which encompasses a
broad range of business that manage money, including credit unions, banks, credit card companies,
insurancecompanies, accountancy companies, consumer-finance companies, stock brokerages,
investment funds, individual managers, and some government-sponsored enterprises.
Ø Internet has drastically changed the cost and capabilities for marketing, distributing and servicing
financial products as well as enabling development of new types of financial products such as rating,
comparison etc.
Advantages Of Financial Services Disadvantages Of Financial Services
1) Availability: You can avail the banking services 1) Internet Requirement: An uninterrupted internet
round the clock throughout the year. connection is a foremost requirement to use
2) Easy to Operate: Using the services offered by internet banking services.
online banking is simple and easy. 2) Transaction Security: No matter how much
3) Convenience: You need not leave your chores precautions banks take to provide a secure
behind and go stand in a queue at the bank network; online banking transactions are still
branch. susceptible to hackers.
4) Time Efficient: You can complete any 3) Difficult for Beginners: There are people in
transaction in a matter of a few minutes via India who have been living lives far away from
internet banking. the web of the internet. It might seem a whole
5) Activity Tracking: When you make a transaction new deal for them to understand how internet
at the bank branch, you will receive an banking works.
acknowledgement receipt. 4) Securing Password: Every internet banking
account requires the password to be entered in
order to access the services. Therefore, the
password plays a key role in maintaining
integrity.If the password is revealed to others,
they may utilize the information to devise some
fraud.
The various application of financial services are as follows:

1. Credit card
2. Debit card
3. Smart card
4. Self-directed investment
5. Electronic stock market
6. Advertising based models
Brief about some of these are below:
Application Brief about each of following:
Page: 76
Electronic v Electronic stock trading is the practice of buying and selling stock and other assets
Stock Market using an electronic brokerage service.
v Electronic trading involves setting up an account with a brokerage of your choice,
including providing your contact and financial information—to facilitate electronic
transfers between your bank and the brokerage.
v Electronic trading service allow users to sign up over the internet and conduct stock
transactions using a purely electronic interface on the web.
v Electronic stock trading has several advantages over traditional trading through a live
broker.
v All information is protected and stored by the Depository Trust Company therefore
guaranteeing that no information is lost.
Credit card • The prominence of credit card industries has been growing for the past few years.
• The industry is anchored on continued innovations in marketing and technology,
leading to increased competition among credit card companies.
• Online marketing strategies play a significant role in the growth of credit card
industries.
• For example-
1) Personalised marketing
2) Online application for credit cards
3) Expansion of marketing to subprime customers
4) Offering more personal finance management tools to compete
5) Affiliate and third-party collaboration marketing
Self-Directed § Many investors pay investment professionals to manage their investment for them.
Investment § This turns out to be advantageous for those who do not understand investing
§ On the other hand, professional services often charge commissions and all investment
gains may go in this commission.
§ Electronic investing allows users to direct their own investments and buy and sell
whenever they please without having to interact with middle men.
§ For example, Citibank and Wells Fargo offer investing platforms
§ Not only we can invest directly but also, we can compare policies, take suggestions and
understand their pros and cons. E.g., policy bazaar.
Advertising Ø Under Advertising-based model, companies buy advertising space on a site. In the
based models purchased advertising space, organizations convey their intended information in text or
graphics format. Companies provide payment for promoting their advertisements.
Ø The advertising model works best when the volume of viewer traffic is large or highly
specialized
Ø To reach a wider audience, advertiser have to pay a high rate for a site that can deliver
a larger number.
Ø To reach a small targeted well-defined audience, advertiser may utilise a site that
attracts business professionals and has a high- quality positions.
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4.1.8 Online Learning
Ø Online learning is a method of education whereby students learn in a fully virtual environment.
Ø First introduced in the 1990s with the creation of the internet and utilized in distance learning, online
learning (also called e-learning) is most prevalent in higher education, enabling students from different
geographical areas to engage with an academic institution and other students online and learn flexibly, at
their own pace, while working towards a degree or certificate.
Ø Online learning refers to an internet-based learning environment that can connect students of diverse
backgrounds who boast different perspectives.
Ø A higher education institution will use a learning management system, or LMS, to facilitate online
learning, which can take the form of asynchronous learning (where students are not required to be online
at the same time, and utilize discussion threads and e-mails to complete coursework) or synchronous
learning (where students must be online at the same time).
Advantages of Online Learning Disadvantages of Online Learning
• It is flexible; can be accessed from anywhere • One of the major disadvantages faced by students
with a device and internet connection. learning online is managing screen time.
• Budget-friendly. • Online education requires staying logged in on
the screen for an extended period regularly.
• Convenient attendance.
• Long-duration screen time becomes a great
• Class recordings are available for later difficulty for the students and harmful for their
references. health as well, especially the eyes.
• Another disadvantage includes technical glitches.
Poor Internet connectivity issues also arise
multiple times during online sessions.
• Other disadvantages include: Feeling of isolation
by individuals, Minimal peer help, Group work
not as efficient as it would be if done offline.
4.2 Emerging Trends in Ecommerce--

Emerging trends in E Commerce
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Use of Video and Interactive Content
• Shoppable photos and interactive videos are the new frontier in e-commerce.
• Taking off on social platforms such as Instagram and YouTube, these interactive marketing
elements (“shoppertainment”) allow viewers to purchase featured products directly through a
pop-up
Customized Packaging Beyond the need for “green”
packaging, the trend toward customized packaging highlights one way to make your products
stand out from those of your competitors.
Customizing may be specific to your brand or even directly tied to your customer with
personalized touches.
These trends are particularly acute with subscription boxes to add the “premium” factor to the
experience.
The Rise of B2B e-commerce

B2B e-commerce is shifting away from the heavy use of sales reps to introduce greater selfservice
options, as well as a growth in up-sell and cross-sell products and services.
The Global Consumer Base

The desire for live customer service, ever-present language barriers, and compliance with data
security laws add complexity to a global customer base — none of which are insurmountable,
but all of which must be dealt with thoughtfully.
Selling through social media

Brands are moving toward where users are spending their time: social media. This
social discovery is helping to create a new path to growth that doesn’t rely on search
rankings.
Omnichannel Ad Spends
• Most retailers today are multichannel: they sell products across many different channels,
whether retail, online, or social.
• In this framework, each channel is supported independently by different staff.
The Rise of Voice Shopping

• Powered by digital home assistants such as Shop with Alexa (Amazon) people are starting to
shop online via voice commands.
• It is projected that voice shopping will reach $40 billion in the US by 2022, a number still in its
infancy.
The Growing Importance of User-Generated Content

Word of mouth has always been a powerful force in marketing, with online reviews and other
user-generated content (including photos) directly influencing buyer confidence and trust. In
2021, many online consumers won’t even purchase a product if they can’t read usergenerated
reviews about a product.
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The Need for Mobile e-commerce Sites
Given the limitations around mobile browsing, many brands are investing in mobile apps for
e-commerce to add greater value, demonstrated to increase conversion, revenue, and loyalty
4.3 Economic impact on E Commerce:

The effect on buyer
Empowering individuals to shop online has a massive positive impact on shoppers all through the world. The
buyer’s shopping experience is more significant than any other time in recent memory. They are dancing with joy
as products are accessible to them at a much lower cost than they would be in nearby stores. The key reason
behind delight is, they can shop anyplace on the planet and utilize money transaction standard and monetary
distinctions all through the world.
ECONOMIC IMPACT ON E COMMERCE
Direct correspondence with the client

One thing you could state about utilizing ecommerce as intend to sell your product to those clients who are
resistant to not having that eye-to-eye contact with a salesperson. That could be a specific downpour with the
more seasoned age who are not computerized local, and it is ludicrous to buy online as its detract from an attempt
before you purchase the product. Individuals who are sure utilizing the web to order can communicate on the web
and are reliance on up close and personal contact with the customer at the hours of need as the product is
requested gasp and the communication happens on the web. The client attempt before they purchase examining
the product audits for product to perceive what the order has.
Lower cost
Ecommerce is the best case of lower value clients. One who can go without much of a stretch contrast the
product with its offline market seller. Ecommerce can completely attempt to speak with the client with the
assistance of
such a large number of online devices like emails. They can convey and speak with the client, utilizing email
pamphlet, illuminating them regarding the extraordinary offers and limited stock that they may be keen on
purchasing. Again, this enables the client and keeps them in the loop of the most recent deals that could be a
piece of importance to them.
4.3.1 OTHER ECONOMIC IMPACT ON E-COMMERCE
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IMPACTS EXPLANATION
Facilitates Commerce facilitates the access of artisans to world market. It is very helpful in
artisans access to creating new opportunities for ther it facilitates the marketing of handicrafts and other
global market such a cts in global market helping the artisans to gain more and empower the
developing countries.
Facilitates The earning level of all those people concerned with industries tourism increases to a
promotion and large extent. Improved demand forecasts Improved demand forecasting leads to
development of reduction in current inventory level which will have a significant economic impact
tourism Ecommerce can dram ically reduce production costs which results in price reduction
Facilitates E-commerce offers a great opportunity to the developing countries like India to greatly
promotion of expand their market internally and externally. It has helped a lot in the context of
rural community overall development of Indian rural community. As a result of e commerce rural areas
which were earlier considered unprofitable have become focus for investment and
market expansion. In rural areas there may not be adequate market to make it viable to
open a shop to sell products such as digital television or fashion products. However
there are consumers who may have purchasing power and hence e-commerce is the
perfect route to deliver their products to those who can afford from non metros
Facilitates E-commerce is able to provide information flow and market transparency in

agriculture agricultural sector. It also offers tremendous opportunities to create collaborative
sector of market places at low cost. It can tighten up the supply chain and cut the transaction cost
economy which is beneficial for local producers.
Encourage It encourages innovative ideas, creativity of entrepreneur investor also invest because
entrepreneurship of less cost involved E business are even commenced by new blood because of
ecommerce Encourage entrepreneur because online business lead to high margins Act
as
a medium of foreign trade Helps in increasing export Helps in balance of trade
Reducing national sett Reducing inflation rate Help in increasing GDP Promote
comprehensive growth Opportunity to reach online customer Enhance Economic
development Provide option for the retaller to expand Companies who do recruitment
& selection through commerc Promotion of industry
E-commerce It solves the problem of funding, technology, infrastructure & ineffective marketing. It
help in helps in creation of employment opportunity.E-commerce provide new market access,
development of business opportunity, enhance competitiveness.Helps in globalization.
MSME'S Local companies have became international just by having internet presence enables
companies to reach more customers& prospects on an international level earlier only
large organization could have think of becoming international but now it is possible for
all.
E-commerce It is true that some jobs became obsolete with the arrival of e-commerce but it is also
helps in the true that e-commerce is a "net job creator". These jobs are created in the internet sector
creation of
employment
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such as engineers, designers and sales people. The extremely rapid growth of
ecommerce retail sales has provided a boost to courier services. It has created
employment opportunities in industries producing softwares and systems used by

ecommerce and other occupations associated with websites and networks. In India
Flipkart, Amazon, Snapdeal and Caratlane are e commerce players hiring temporary
staff for delivery, online marketing and customer services.
E-commerce has E-commerce provides a new venue for connecting with consumers and conducting
been driving transactions. Our country has witnessed e-commerce revolution accompanied by
business widespread use of the internet, web technologies and their applications. E commerce
transformation has changed the way business is conducted around the world. It minimizes the cost of
and economic transportation, advertising and marketing. It reduces the distance between buyer and
modernization seller, thus permitting rapid exchange of information o services which mean buyers and
sellers for business purposes entrepreneurs often utilize the social networking sites like
face book and twitter.
4.3.2 ROLE OF E COMMERCE IN THE INDIAN ECONOMY
1. Largest employer in the services sector.

2. Maximum growth in the non-agricultural sector has been witnessed by retail trade.
3. Witnessed tremendous growth in the last 10 years.
4. Set to cross the $ 1trillion mark by 2020 from $ 672 billion in 20174.3.4 Factors that make
India an attractive place are :
5. The shopping revolution that has led to this retail The second largest population in the
world, boom.
6. s India ranks among the best countries to invest in retail space. India is the world’s
fifthlargest global destination in the retail space. A middle class of 600 million people,
Increasing urbanization,
Rising household incomes,
Connected rural consumers, and
Increasing consumer spending.
4.3.3Impact of E Commerce on Indian Economy
1. The e-commerce boom has given a boost to manufacturing, transport, sales and other related activities.
2. This is fostering an overall environment for financial growth of various sectors Markets in unreachable
pockets of India
3. Online retail is no longer limited to the big towns and cities.
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4. They are overcoming infrastructure barriers by creating warehouses in the most remote locations and
enabling easier access of goods and services to the remotest corners. Providing Employment
5. Currently e-commerce is providing 1 million jobs to the Indian work force.
6. Indian ecommerce industry statistics forecast a massive growth in employment opportunities in this sector
which would create 12 million new jobs in coming decade.
7. Startup environment has seen a positive growth with the rise of e-commerce.
8. SMEs operating from home or garage are able to sell on popular marketplaces and cater to global audience.
9. This is contributed to increased exports even from the unorganized sectors.
10. Retail market has been revolutionized by e-commerce. Online stores are offering better choices, deep
discounts and convenience of shopping. The combined sales of three top e-commerce players in India is
already more than the sales of ten biggest offline retailers. Brick and mortar shops account for only 10% of
total retail
11. Growth of B2B ecommerce companies
12. Effect of e commerce on Indian economy is not limited to the B2C model. Although the current profits of
B2B are not as great as B2C e-commerce, but slowly and certainly it is catching up. B2B market potential
stood at USD 300 Billion n 2014 and by 2020 it is expected to reach USD 700 Billion.
13. Engineering, medicine, MBA and other similar jobs were the only professional choice of an average Indian
a decade ago. This is fast changing and entrepreneurship is becoming the first career choice of young
Indians.
14. Evolution of ecommerce in India has made technology available for all.
15. Thanks to the future ready, affordable e-commerce platforms and even the very young entrepreneurs are
able to give wings to their dreams and roll out an online store in no time.
16. Evolution of ecommerce in India has made technology available for all.
17. Thanks to the future ready, affordable e-commerce platforms and even the very young entrepreneurs are
able to give wings to their dreams and roll out an online store in no time.
18. India has the biggest millennial population of internet savvy youngsters. With greater purchasing power
and changed lifestyle and shopping habits, this generation is playing the role of a positive catalyst in the
growth of ecommerce. Given the population size of India it is no wonder that all the ecommerce bigwigs
are trying their best to woo Indian customers 4.3.4 Future prospects of E Commerce
1. The online retail market in India has more than tripled since 2015, but it is only expected to contribute to
2.9
2. By 2022, the sector will be worth $71.94 billion, which is a 120% growth compared to $32.70 billion in
2018, the research firm
3. In its present state the contribution of E-Commerce to GDP is around 0.2% which is expected to grow 15
times to around 2.5% by 2030.
4. By 2030 the contribution to GDP by E-Commerce is expected to reach to around 300Billion Dollars which
is around 20 Billion Dollars in its present state
5. The impact is so huge that the present wave of de-monetization could have not been thought if ECommerce
did not exist. E-Commerce to a large extent helped absorb its shock as well as gained the maximum out of
it as well.
4.4 Social Considerations Of E Commerce
Page: 83
6. Brief explanation of social considerations of E Commerce:
7. E-commerce is technology-enabled buying and selling that occurs over telecommunications
networks such as the internet. As in physical marketplaces, these exchanges can occur between
businesses, between a business and a consumer, or even between consumers. E-commerce has
grown dramatically since the late 1990s. This transition from traditional physical marketplaces
to technology-enabled ones has important economic and social implications.
8. E-commerce reduces transaction costs by removing many of the geographic and time barriers
that buyers and sellers previously faced. Customers who had to drive to a physical store location
during business hours, park, and manually do comparison shopping before buying, can now do
this for many products online, anytime, with the help of comparison-shopping sites such as My
Simon. For information products, such as digital music, which can be both bought
and delivered online, e-commerce also reduces the product delivery cost.
9. The social impact of e-commerce can be measured by satisfaction and trust through the
following factors:
10. Greater use of the Internet The fastest growing demographic segment includes students and youth.
11. This segment is the leading user of advanced applications and online technologies.
12. With more and more users on the web through telephony, it was expected that the country reached
243 million in June 2014, representing a growth of 28% over the previous year.
13. The growth in the number of Internet users has also led to substantial growth in other digital
industries such as e-commerce, mobile commerce, and digital advertising.
14. The government of India has made efforts in the education system through the implementation of
computer tools and techniques, essential for all educational levels, from primary education to the end
of studies.
15. Students from urban and rural areas were sensitized by supplying the personal computer, Laptops,
tablets or laptops with the use of the Internet and its advantages to improve lifestyle and provide
electronic books and e-books.
16. Entrepreneurs are also attracted to advanced computer technologies and their usefulness for
electronic commerce.
17. The development of educational standards at all levels has allowed a great demand for electronic
commerce and m-commerce in the market.
18. Changes in online shopping habits the online shopping process is constantly being worked on to
make it easier, more understandable and easier to use.
19. As online offers give some discounts and attractive prices.
20. This, along with better offers, has brought changes in the buying habits of online buyers
4.5 Technological Consideration of E Commerce

Brief About Technical Consideration Of E Commerce
Costumers get Better Shopping Experience
E-commerce industry has changed the process of business and cash transactions. Now it has introduced a lot
of new, modern and useful factors by which customers enjoy easy and hassle-free shopping. Anybody can
purchase at the top of a button and receives the product at the doorstep. Thus, the customers depend more on
Page: 84
the e-commerce market place.
Faultless Payment Process

The most popular thing about E-commerce industry is its mode of payments. Most of the cases, the payment
is done digitally here. By knowing the convenience and other advantages of digital payment,
people gradually adopting this process. E-wallets and gift cards are increasing the business. The
technological advancements have gained the faith of people and they like to expend more on e-commerce
websites because of its transparency and the safety of money.
Give Personalized Information in B2B Sector

As companies changing to B2B e-commerce, increasing real-time procurement data will be gathered. The
B2B e-commerce competitors access this data to better understand the actions of the customer and provide
services according to the data.
Artificial Intelligence Improves the E-commerce Industry

Artificial Intelligence will find a huge transformation in B2B e-commerce. It is different from B2C e-
commerce as there are large numbers of users and use-cases. But B2B e-commerce will have fewer numbers
of users; those do large ticket transactions under restricted use cases. In these cases, B2B e-commerce will
apply AI and adopt it eagerly as it is very uncomplicated and powerful. Businesses get efficient by doing
effective decision making at purchases, computerization of several routine tasks, offer important insights,
release several man-hours behind procurement and doing business purchases clear and low cost.
Decision Making During the Procurement Process

Usually, the procurement managers or executives those work for corporate find difficulties in making
choices during the procurement process since it will impose pressure on development and the business of
the company on many levels. Technological advancements will also help the procurement teams of
businesses to better comprehend the requirements of the business and provide them fair insights to do more
up to date complicated decisions.Additionally, Business to Business E-commerce companies will make
personalized dashboards for their customers and this will let them know about essential data-points and
buying suggestions. In the coming days, the personalization will be advanced by combining APIs with the
buyers’ active ERP/CRM platforms to make the purchases more controlled and seamless.Thus, today
technology’s role in e-commerce is unavoidable and faultless. The success of E-commerce is based on it
right from its beginning to each and every progress happening every time in the industry.
4.6 Regulatory legal and ethical considerations
E commerce is technology enabled buying and selling that occurs over telecommunication networks such as
internet.
This buying and selling occurs between B2B and C2C business models.
This transition from traditional physical markets to technology enabled marketplaces has important implications
which can be classified as follows:
1. Economic Implication in Ecommerce
2. Technological Implications in E Commerce
3. Social Implications in Ecommerce
Page: 85
Let’s look into each one of them in a bit of detail:
Economic Implication Technological Implication Social Implications

E commerce has the following E commerce is technology driven Social implications include the
economic implications: and it uses various ecommerce following:
applications and technologies to
1. REDUCTION IN increase the scope of business. 1. PRIVACY
TRANSACTION COSTS AS Technology used in ecommerce has
COMPARED TO For an e commerce retailer website an effect on the social issues such as
TRADITIONAL to be successful it needs to be well privacy.
COMMERCE integrated and for which new
methods are building and evolving. Business engaged in e commerce
Transaction costs may be based on cost
associated with organizing a gather information to know
This means that there is a need to be customer’s purchasing habits, web
transaction, starting with a search for a
properly developed, designed and browsing behavior across multiple
product and then negotiating for a
managed so that it functions stores.
price to finally make it up for
effectively over time.
exchange.
Page: 86
This information is gathered to to
E commerce reduces transaction costs The technology should be: provide personalized service and
by removing many of the geographical 1. SCALABLE speed up online transactions
and time barriers that buyers and 2. EASY TO USE AND
sellers face. CONVINIENT The ecommerce sites should post
3. RESPONSIVE DESIGN privacy policies on the websites
It also reduces the product delivery indicating therein where and how
costs. personal information can be used.
2. COST SAVING FOR 2. SECURITY

BUSINESS The technical characteristics of
For business the potential cost saving internet can pose a problem to
are even greater. privacy n integrity of information
flows.
Most industries are organized into
supply chains which integrate demand To reduce this the companies uses
and supply requirements along digital certificates to authenticate
manufacturers, suppliers and that they are who they claim to be.
warehouses for the stock to be
available on the right time at the right Companies employ firewalls to
place. prevent unauthorized access to or
from private networks.
Yet another way can be the use of

encryption of information before
sending it through internet.
3. JOB CREATION
The volume of domestic and
international trade will increase
through e commerce
It is also directly expected to

increase or create new jobs in
information and communication
technologies
Indirect creation of jobs is going to

increase the demand and
productivity of which is likely to
affect the loss of jobs in the retail
sector.
4. SOCIAL ISOLATION
E commerce is a great facilitator of
new flexible forms of in the sense
that people can trade on the move or
88
84
from home.
It provides all comforts of shopping

thus leading to social isolation.
E commerce companies should

reduce social isolation.
4.6.1 Ethical Considerations to E Commerce:

Ethicsis at the heart of social and political debates about the Internet. Ethics is the study of principles that
individuals and organizations can use to determine right and wrong courses of action. It is assumed in
ethics that individuals are free moral agents who are in a position to make choices.The implementation of
ecommerce revolves around a number of issues out of which some are listed below-
CONTRACT LAW
COPYRIGHT LAW
1. Software License Agreements
2. Business Tracsactions In Cyberspace 1Computer Software. Copyright Protection For
Legal and regulatory issues that may be particularly
relevant in an E Commerce Environment include:3. Contract For Data Processing Services 2.
Copyright Protection In
4Software Or Hardware.1). Contract For Development Of Custom Adherence to national

and international privacy Images And Text Files.
requirements
2) Adherence to national and international
TRADEMARK LAWrequirements for regulated
industries.PATENT LAW
1.Domain Name Disputes3) Enforceability of contracts 1.
Patent For Novel Software
2. Infringement Or Dilution Of 4) The legalities of p2. Patent
For Computer articular activities
Trademarks On Internet.5) Violation of intellectual TORT LAW
property rights.Software 1. Defamation
2. Trade Disparagementand
Unfair Competition Law
3. Privacy Issues In Database.
89
4.6.2 .Legal Disputes in B2C Internet Based E Commerce
• Failure In Delivery
Legal • Partial Order Delivery
• No Return Policy
Disputes
• No Credit For Returned Goods
In B2C • Denial Of Services
Internet • Denial Of Making Transactions
Based E • Recieved Damaged Product
Commerc • No Authorised Service Center.
e 4.6.3.LEGAL ISSUES ON
INTERNET
The various legal issues on internet are as
follows:
• Privacy of online data
• Cyber jurisdiction
• Copyright issues
• Patent
• Trademark
• Domain name disputes
• Products liability laws
• Encryption laws
• Tort law on the internet
4.6.4 Some more Legal considerations to E Commerce:
Information rights: An individual’s right to their own personal information to have in a public marketplace,
or in their private homes with internet technology.
Property rights: what are the traditional intellectual property rights be enforced in an internet world .
Governance: Should the Internet and e-commerce be subject to public laws? And if so, what law-making
bodies have jurisdiction - state, federal, and/or international?
Public safety and welfare: What efforts should be undertaken to ensure equitable access to the Internet and
ecommerce channels? Should governments be responsible for ensuring that schools and colleges have access
to the Internet?
90
CYBER JURISDICTION
Jurisdiction is a concept whereby in a legal system the power to hear and determine a case is
vested in an appropriate court.
Internet can be treated a multi jurisdictional because websites can be accessed from anywhere in
the world.
The issue of jurisdiction of indian courts in combating cybercrimes committed outside effets
indian cyber services.
This is the reason because of which rules and regulations are different
legal issues to the internet.
COPYRIGHT ISSUES
A copyright is a ownerhsip of intellectual property and its protection issues related to e commerce.
The objective of copyright law is to encourage authors and poets to create original copies by rewarding
them with exclusive right for a limited period to exploit the work for monetory gain.
It protects the author or poets to safegaurd their work for being produced any unauthorised
reproduction of works.
In order to feature a copyright document one must seek permission of the owner. If any unlawful
activity detected by owner he or she always has a right to request to take off the product.
TRADEMARKS
Trademark act protects the right conferred to use a particular mark which may be a symbol, mark or any device
applied to the articles of commerce to indicate distinctiveness of goods.
A trademark is established through usage and not through invention or authorship.
PATENTS
A patent is an exclusive right granted by the government to an individual to make, use and sell an
invention.
Patent law protects rights conferred in respect of a new invention to manufacture the product patented
or use the process patented.The objective of patent law is to reward the invetors new machines,
devices or inductrial methods of labour.
It provides protection for maximum duration of 20 years.
MCQ QUESTIONS
1._____ is a function of E commerce.
A. Marketing
91
B. Supply Chain
C. Finance
D. All of the above
2. E-commerce has _____ scope than E-Business or Digital Business.
A. Higher
B. Wider
C. Narrower
D. More
3.________ is NOT an example of E-Commerce Platform.
A. Amazon Pantry
B. Reliance SMART
C. Flipkart Plus
D. DMart Ready
4.Social collaboration is ______.
A. Group-centric
B. Individual-centric
C. Organization-centric
D. Person-centric
5. Which of the following is an Internet‐based company that makes it easy for one person to pay
another over the Internet?
A. electronic check
B. electronic bill presentment and payment
C. conversion rates
92
D. financial cybermediary
6.In ___________E-Commerce Model, Marketer or Companies charge others for allowing them to place
a banner on their websites, blogs or platforms.
A. Affiliate
B. Advertising
C. Transaction
D. Aggregator
7.Companies like Flipkart, Shop clues and Myntra belongs to the ________ Ecommerce (EC) segment.
A. B2B
B. P2P
C. B2C
D. C2B
8. In which website Global Easy Buy is facilitated?
A. Ebay.com
B. Amazon.com
C. Yepme.com
D.None of these
9.. What is the process in which a buyer posts its interest in buying a certain quantity of items, and
sellers compete for the business by submitting successively lower bids until there is only one seller left?
A. B2B marketplace
B. Intranet
C. Reverse auction
93
D. Internet
10. Unique value auction is mainly applies to?
A. New products
B. Second hand products
C. Engineering products
D. None of above
11. E-Commerce stands for _______.
A. Electrical Commerce
B. Electronic Commerce
C. Entertainment Commerce
D. Electro Chemical Commerce
12. _______describes e-commerce.
A. Doing business offline
B. Doing business electronically
C. Surfing online
D. Both A & B
Short And Long Answer Questions:
Q1. What is internet banking? Explain different types of transactions that a customer can transact using
internet banking?
Q2. Explain the reasons due to which real estate transactions are an ideal area of e commerce?
Q3. Explain the advantages and disadvantages of online marketing?
94
Q4. What is e tailing? Explain the advantages and disadvantages of e tailing?
Q5. Explain the various social, ethical, legal and technological considerations to E Commerce?
Q6. How the technological revolution is changing the ecommerce strategies in social and technological field?
Q7. Explain how ecommerce is impacting an individual business growth?
Q8 How business legal and ethical considerations are essential part of Ecommerce? Explain with example.
Q9 What are the possible regulatory terms and conditions a E-Business must adhered?
Q10 What are the disputes occurs in settlement of E business. How patents impacts the business growth.
References
1..Elias M. Awad(3rd ED.2007) Electronic Commerce-from vision to fulfilment

2.BharatBhaskar (4th Ed.2013) tata McGraw Hill
3.Schneider Gary (9th Ed.2014) Electronic commerce, senage learning
4. E- commerce by SushilaMadan
5.David king-Pearson Education
6. HTML: The Complete Reference, Thomas A Powell
7. HTML and CSS: Design and Build Websites 1st Edition, by Jon Duckett
95

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Course: Bachelor of Business Administration

E-Commerce (BBA106) Semester

1.1. Nature of E-Commerce:

1.3 Traditional Commerce Vs. E-Commerce:

Basis for Traditional Commerce E-Commerce

E-Business enables organizations to accomplish the following goals:-

1.5 Advantages and Disadvantages of E-Commerce:

1.3.1. Technical disadvantages

1.7 Types of E-Commerce / E-Commerce Models:

1.8 Functions of E-Commerce:

1.9 Tools& Technologies for E-Commerce:

1.11 Challenges and Barriers in E-Commerce environment:

E-Transaction challenges for Indian corporate:

Long Answer Questions:

HTM or HTML Extension?

2.2 HTML Tags

2.3 Text Formatting Tags

Most Common Character Entities

2.4 The Anchor Tag and the href Attribute

The Target Attribute in <A>

The Anchor Tag and its Name Attribute

2.5 IMG Tag

2.7 DIV tag

2.8 HTML Tables

Empty Cells in a Table

2.9 HTML LIST

2.9 Adding audio & video files in HTML pages

Adding sound file in HTML Page

Adding video file in HTML Page

Creating Frames using <frameset>

The <frameset> tag defines a frameset.

Attributes of frame tag

2.11 HTML forms

<form action="Script URL" method="GET|POST"> form

text input & password

multi-select list box

Example of HTML form

Short Answers Questions

Q1. What is HTML?

Q2. Define HTML Layout.

Q3. What is a Tag in HTML?

Q4. What are Attributes in HTML?

Q5. What are the different types of lists in HTML?

Q6. What is an Anchor tag in HTML?

Q7. What are the common use of comments?

Q8. What are HTML Forms?

Q9. What is a Marquee Tag in HTML?

Q10. How to make a picture of a background image of a web page?

Long Answer Questions.

Q1. What is HTML? Discuss the main features of HTML.

Q3. What are frames? Give an example of iframe.

2) The correct sequence of HTML tags for starting a webpage is -

5) Which of the following tag is used to insert a line-break in HTML?

7) Which character is used to represent the closing of a tag in HTML?

11) How to insert an image in HTML?

12) How to add a background color in HTML?

15) How to create a checkbox in HTML?

17) HTML tags are enclosed in-

19) The <hr> tag in HTML is used for -

25) How to insert a background image in HTML?

26) What are the types of unordered or bulleted list in HTML?

30) Which of the following is the paragraph tag in HTML?

31) An HTML program is saved by using the ____ extension.