| |
|
||



|

 ||
|
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR THE AWARD OF THE DEGREE OF

||| 
 |

SUBMITTED BY:
MOHAMMED YOUNUS
HALL TICKET NO: 141709672012

|
|

||||||||||||||||||||  |||

 
||
|||||||||||||||||||||||||||||| ||| !"#|$  %|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||   |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||&''( &')'%| |
 |

*+ 
|

Success of every project depends largely on the encouragement and guidance of many others. I
take this opportunity to express my gratitude to the people who have been instrumental in the
successful completion of this project.

I would like to thank Mr. Omer bin Husain (marketing manager), for his valuable guidance during
the project work. I would also like to thank him for his encouragement, advice and overall
supervision. I am highly obliged and grateful to Mr. Ikram ullah aman (faculty member &internal
guide) for providing me with new ideas and valuable advice and endless supply of new ideas
and support for this project.

My special thanks to Mr. Shahid Ansari(principal of Shadan Institute of Management studies) for
his complete guidance and it goes without his support this project would not have been
possible.

This acknowledgement would be incomplete if I failed to thank my classmate, for all the
assistance received. I thank them for their meaningful hints and suggestions.

A lot of effort has gone into this project, and many people have contributed wholeheartedly and
vastly to its competition, I thank everyone who aided me in my endeavors.
||||||||||||||||||||||||||||||||||||||||||||||||

||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||


|$|||

|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 ||$ 
 |
|

),| ||

|||||||||1.1 E-COMMERCE DEFINITION

1.2 E-COMMERCE HISTORY

1.3 TYPES OF E-COMMERCE

1.4 BUSINESS APPLICATIONS

1.5 BENEFITS AND LIMITATIONS

1.6 ABOUT COMPANY

1.7 PURPOSE

1.8 PROBLEM DISCUSSION

&,|
 |

|||||||||2.1 E-MARKETING DEFINITIONS

2.2 OVERVIEW OF ELECTRONIC MARKETING STRUCTURE

2.3 BUSINESS MODELS OF ELECTRONIC MARKETING

2.4 ELECTRONIC DEPARTMENTAL STORES

2.5 CONSUMER PERSPECTIVE MODEL

-,|+|
$
|$
|

||||||3.1 TYPES OF ELECTRONIC PAYMENT SYSTEMS

3.2 DIGITAL TOKEN-BASED ELECTRONIC PAYMENT SYSTEMS

3.3 SMART CARDS AND ELECTRONIC PAYMENT SYSTEMS

3.4 CREDIT CARD-BASED ELECTRONIC PAYMENT SYSTEMS

3.5 DESIGNING ELECTRONIC PAYMENT SYSTEMS

3.6 RISK AND ELECTRONIC PAYMENT SYSTEMS

.,| / | |

 ||||

||||4.1 THE NEW AGE OF INFORMATION-BASED MARKETING

4.2 ADVERTISING ON THE INTERNET

 4.3 CHARTING THE ON-LINE MARKETING PROCESS

4.4 MARKETING RESEARCH

0,|
|+ 
|
 
|

|||5.1 FUNDAMENTALS OF CRM

5.2 CENTRALIZED CUSTOMER SUPPORT

5.3 E-CRM

5.4 CONSUMER BEHAVIOR

1,|
+ $|

||||6.1 GATHERING DATA

6.2 QUALITATIVE VS. QUANTITATIVE RESEARCH METHOD

6.3 THE DELPHI STUDY METHOD

6.4 PRIMARY & SECONDARY SOURCES

6.5 INTERVIEWS

6.5.1 FACE TO FACE INTERVIEW

6.5.2 E-MAIL INTERVIEW

6.6 INTERPRETATION

6.6.1 ANALYZING THE DATA

6.6.2 RELIABILITY

6.7 SHORT SUMMARY OF THE METHODOLOGY

2,|+|

3,||
|

| |
|

ELECTRONIC COMMERCE

4!4|4!4, commonly known as  4!4 or !4, consists of the

buying and selling of products or services over electronic systems such as the Internet and
other computer networks. The amount of trade conducted electronically has grown
extraordinarily with widespread Internet usage. The use of commerce is conducted in this way,
spurring and drawing on innovations in transfer, supply, 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 at
least at some point in the transaction's lifecycle, although it can encompass a wider range of
technologies such as e-mail as well.

A large percentage of electronic commerce is conducted entirely electronically for virtual items
such as access to premium content on a website, but most electronic commerce involves the
transportation of physical items in some way. Online retailers are sometimes known as e-
tailers and online retail is sometimes known as  . Almost all big retailers have electronic
commerce presence on the World Wide Web.
History

!"| 5|

Originally, electronic commerce was identified as the facilitation of commercial transactions

electronically, using technology such as Electronic Data Interchange (EDI) and Electronic Funds
Transfer (EFT). These were both introduced in the late 1970s, allowing businesses to send
commercial documents like purchase orders or invoices electronically. The growth and
acceptance of credit cards, automated teller machines (ATM) and telephone banking in the
1980s were also forms of electronic commerce. Another form of e-commerce was the airline
reservation system typified by Sabre in the USA and Travicom in the UK.

From the 1990s onwards, electronic commerce would additionally include enterprise resource
planning systems (ERP), data mining and data warehousing.

In 1990, Tim Berners-Lee invented the Worldwide Web web browser and transformed an
academic telecommunication network into a worldwide everyman everyday communication
system called internet/www. Commercial enterprise on the Internet was strictly prohibited until
1991.[1] Although the Internet became popular worldwide around 1994 when the first internet
online shopping started, it took about five years to introduce security protocols and DSL allowing
continual connection to the Internet. By the end of 2000, many European and American
business companies offered their services through the World Wide Web. Since then people
began to associate a word "ecommerce" with the ability of purchasing various goods through
the Internet using secure protocols and electronic payment services.

$
|| 

|

E-commerce is the use of Internet and the web to transact business but when we focus on
digitally enabled commercial transactions between and among organizations and individuals
involving information systems under the control of the firm it takes the form of e-business.
Nowadays, 'e' is gaining momentum and most of the things if not everything is getting digitally
enabled. Thus, it becomes very important to clearly draw the line between different types of
commerce or business integrated with the 'e' factor.

There are mainly five types of e-commerce models:

1. 6||6!|&% - As the name suggests, it is the model involving businesses

and consumers. This is the most common e-commerce segment. In this model, online
businesses sell to individual consumers. When B2C started, it had a small share in the market
but after 1995 its growth was exponential. The basic concept behind this type is that the online
retailers and marketers can sell their products to the online consumer by using crystal clear data
which is made available via various online marketing tools. E.g. an online pharmacy giving free
medical consultation and selling medicines to patients is following B2C model.

2. 6||6|&% - It is the largest form of e-commerce involving business of

trillions of dollars. In this form, the buyers and sellers are both business entities and do not
involve an individual consumer. It is like the manufacturer supplying goods to the retailer or
wholesaler. E.g. Dell sells computers and other related accessories online but it is does not
manufacture all those products. So, in order to sell those products, it first purchases them from
different businesses i.e. the manufacturers of those products.

3. 6!||6!|&% - It facilitates the online transaction of goods or services

between two people. Though there is no visible intermediary involved but the parties cannot
carry out the transactions without the platform which is provided by the online market maker
such as eBay.

4.
!||
!|
&
% - Though it is an e-commerce model but it is more than that. It is a

technology in itself which helps people to directly share computer files and computer resources
without having to go through a central web server. To use this, both sides need to install the
required software so that they can communicate on the common platform. This type of e-
commerce has quite low revenue generation as from the beginning it has been inclined to the
free usage due to which it sometimes got entangled in cyber laws.

5.  !4 - It refers to the use of mobile devices for conducting the transactions. The
mobile device holders can contact each other and can conduct the business. Even the web
design and development companies optimize the websites to be viewed correctly on mobile
devices.

| |+

 || 

|

The global nature of the technology, low cost, opportunity to reach hundreds of millions of
people, interactive nature, variety of possibilities, and resourcefulness and rapid growth of the
supporting infrastructures result in many potential benefits to organizations, individuals, and
society. These benefits are just starting to materialize, but they will increase significantly as EC
expands. It is not surprising that some maintain that the EC revolution is just ³as profound as the
change that came with the industrial revolution´.

|||||||| 7 |

The following are the benefits of EC to organizations:

1. Electronic commerce expands the marketplace to national and international markets.

2. Electronic commerce decreases the cost of creating, processing, distributing, storing and
retrieving paper-based information.
3. Ability for creating highly specialized businesses.
4. Electronic commerce allows reduced inventories and overhead by facilitating ³pull-type
supply chain management. In a pull-type system the process starts from customer
orders and uses just-in-time manufacturing.
5. The pull-type processing enables expensive customization of products and services
which provides competitive advantage to its implementers.
6. Electronic commerce reduces the time between the outlay of capital and the receipt of
products and services.
7. Electronic commerce initiates business processes reengineering projects. By changing
processes, productivity of salespeople, knowledge workers, and administrators can
increase by 100 percent or more.
8. Electronic commerce lowers telecommunications cost-the internet is much cheaper than
VANs.
9. Some other benefits of EC include improved image, improved customer service, new
found business partners, simplified processes, compressed cycle and delivery time,
increased productivity, eliminating paper, expediting access to information, reduced
transportation costs and increased flexibility.

||
|

The following are the benefits of EC to consumers:

1. Electronic commerce enables customer to shop or do other transactions 24 hours a

day, all year round, from almost any location.
2. Electronic commerce provides customers with more choices; they can select from
many vendors and from more products.
3. Electronic commerce frequently provides customers with less expensive products
and services by allowing them to shop in many places and conduct quick
comparisons.
 4. In some cases, especially with digitized products. EC allows quick delivery.
5. Customers can receive relevant and detailed information in seconds, rather than
days or weeks.
6. Electronic commerce makes it possible to participate in virtual auctions.

BENEFITS TO SOCIETY

THE following are the benefits of EC to society

1. Electronic commerce enables more individual to work at home and to do less

travelling for shopping, resulting in less traffic on the roads and lower air
pollution.
2. Electronic commerce allows some merchandise to be sold at lower prices, so
less affluent people can buy more and increase their standard of living.
3. Electronic commerce enables people in Third world countries and rural areas to
enjoy products and services that otherwise are not available to them. This
includes opportunities to learn professions and earn college degrees.
4. Electronic commerce facilitates delivery of public services, such as health care,
education and distribution of government social services at a reduced cost and/or
improved quality. Health-care services, for example, can reach patients in rural
areas.

Limitations of e-commerce

There is no doubt behind the fact that E-commerce has given many companies the right to
cheer but there are a few limitations of E-commerce too.

1. The companies or the businesses who are selling the products are not able to communicate
with the customer face to face. Due to this they are not able to get the feedback about the
products so that they may improvise on the products. Although online chat programs have
solved this issue to some extent but it needs to be implemented on a large scale.

2. Another limitation with E-commerce is that you are not able to touch and check the quality of
a product before buying it.

3. Credit Card security is a serious issue. People who are carrying out a transaction over the
Internet are worried about the credit card security.

4. The next one is a technological limitation that the cost involved with bandwidth and server is
too high.

5. Customers are still worried and fear about their online Credit Card orders.

6. Extensive database and technical knowledge and experience required.

Business applications

Some common applications related to electronic commerce are the following:

¦ Email
¦ Enterprise content management
¦ Instant messaging
¦ Newsgroups
¦ Online shopping and order tracking
¦ Online banking
¦ Online office suites
¦ Domestic and international payment systems
¦ Shopping cart software
¦ Teleconferencing
¦ Electronic tickets
¦ Group Buying
|


+|

 , or , is short for "4!4|" and is a method of composing, sending, and
receiving messages over electronic communication systems. Most e-mail systems today use
the Internet, and e-mail is one of the most popular uses of the Internet.

E-MAIL ADDRESS

E-mail address is relatively easy to understand. Every e-mail address has three necessary
elements:

UserID: Every person with an e-mail address has a user identification of some sort. It is usually
something simple, like johndoe, but can be more complex.

 UID: The user ID

 @: THE ³at´ sign connects the user ID with the third element.
 DOMAIN: every e-mail address has one domain.

The basic form of an e-mail address is

username@hostname.subdomain.domain

The text before the @ (pronounced ³at´) sign specifies the username of the individual, while the
text after the @sign indicates how the computer system can locate the individual¶s mailbox.
 The number of periods (a period is pronounced ³dot´) varies from e-mail address to e-
mail address. Most address has either one or two dots.

A given field in an e-mail address, that is, a part separated by dots, can be no more than 63
characters long all fields combined must total less than 256 characters|


||
 
|
%|

!5!||
8 (
) is a formalized means of organizing and storing an
organization's documents, and other content, that relate to the organization's processes. The
term encompasses strategies, methods, and tools used throughout the lifecycle of the content.

 |
  |
%|

|88 (
) is a form of real-time direct text-based communication between two or
more people using personal computers or other devices, along with shared software clients. The
user's text is conveyed over a network, such as the Internet. More advanced instant messaging
software clients also allow enhanced modes of communication, such as live voice or video
calling.

|
* 
|

A |98!65 is a repository usually within the Usenet system, for

messages posted from many users in different locations. The term may be confusing to some,
because it is usually a discussion group. Newsgroups are technically distinct from, but
functionally similar to, discussion forums on the World Wide Web. Newsreader software is used
to read newsgroups.

Despite the advent of file-sharing technologies such as BitTorrent, as well as the increased use
of blogs, formal discussion forums, and social networking sites, coupled with a growing number
of service providers blocking access to Usenet (see main article), newsgroups continue to be
widely used.
|

|:558|

|:558 is the process whereby consumers directly buy goods or services from a
seller in real-time, without an intermediary service, over the Internet. If an intermediary service is
present the process is called electronic commerce. An online shop, eshop, e-store, internet
shop, web shop, webstore, online store, or virtual store evokes the physical analogy of
buying products or services at a bricks-and-mortar retailer or in a shopping mall. The process is
called Business-to-Consumer (B2C) online shopping. When a business buys from another
business it is called Business-to-Business (B2B) online shopping. Both B2C and B2B online
shopping are forms of e-commerce.

+|  |

|;<8 (or !|;<8) allows customers to conduct financial transactions on a

secure website operated by their retail or virtual bank, credit union or building society.

+|||

An |4|6 or |5!64 "|6 is a type of office suite offered by websites

in the form of software as a service. They can be accessed online from any Internet-enabled
device running any operating system.[1] This allows people to work together worldwide and at
any time, thereby leading to international web-based collaboration and virtual teamwork.
Usually, the basic versions are offered for free and for more advanced versions one is required
to pay a nominal subscription fee.


| |  +|
$
|$
|

A 5"|" is a system for the transfer of money. What makes it a "system" is that it
employs cash-substitutes; traditional payment systems are negotiable instruments such
as drafts (e.g., checks), credit cards and other charge cards, documentary credit (such as L/C)
and electronic funds transfers. Some payment systems include credit mechanisms, but that is
essentially a different aspect of payment. Payment systems are used in lieu of tendering cash in
domestic and international transactions and consist of a major service provided by banks and
other financial institutions. In the US, they are regulated by different state statutes (UCC) and
federal regulations.



 | |* |

:558|4!|9! is software used in e-commerce to assist people making purchases
online, analogous to the English term 'shopping cart'. In British English it is generally known as
a shopping basket, almost exclusively shortened on websites to 'basket'.

The software allows online shopping customers to accumulate a list of items for purchase,
described metaphorically as "placing items in the shopping cart". Upon checkout, the software
typically calculates a total for the order, including shipping and handling (i.e. postage and
packing) charges and the associated taxes, as applicable.
|

+ |

A 4!4 or ! is the live exchange and mass articulation of

information among several persons and machines remote from one another but linked by
a telecommunications system. Terms such as audio conferencing, telephone conferencing and
phone conferencing are also sometimes used to refer to teleconferencing.

The telecommunications system may support the teleconference by providing one or more of
the following: audio, video, and/or data services by one or more means, such
as telephone, computer, telegraph, teletype, radio, and television
|

4!4|4<|

An 4!4|4< or  4< is used to represent the purchase of a seat on a

passenger airline, usually through a website or by telephone, or sometimes through airline ticket
offices or travel agencies. This form of airline ticket rapidly replaced the older multi-layered
paper tickets (from close to zero to 100% in about 10 years) and became mandatory
for IATA members as from June 1, 2008. During the last few years, where paper tickets were
still available, airlines frequently charged extra for issuing them. E-tickets are also available for
some entertainment venues.

Once a reservation is made, an e-ticket exists only as a digital record in the airline computers.
Customers usually print out a copy of their receipt which contains the record locator or
reservation number and the e-ticket number.

According to critical acclaim, Joel R. Goheen is recognized as the Inventor of Electronic

Ticketing in the Airline Industry, an industry where global electronic ticket sales (the industry
standard) accounts for over US$400 billion a year (2007).

|$ |
Group buying, which refers to social buying or collective buying as well, is the buying an offer
which has been significantly reduced, due to the fact that it is only valid if enough buyers are
found. Recently, group buying has been taken online in numerous forms, although group buys
prior to 2009 usually referred to the grouping of industrial products for wholesale (especially in
China). As just mentioned, s
 are a variation of tango buying that also occurs in China,
in which an item must be bought in a minimum quantity or dollar amount; otherwise, the seller
will not allow the purchase. Since individuals typically do not need multiples of one item or do
not have the resources to buy in bulk, group buys allow people to invite others to purchase in
bulk jointly. These group buys often result in better prices for the individual buyers or ensure
that a scarce or obscure item is available for sale.

Group buys were and still are often organized by like-minded people through Internet forums.
There have also been recent attempts at creating more focused online forums such as
GroupBuyCenter.com.[1] And Tippr.com the vast majority of the users tend to focus on
aftermarket auto parts and have now also started to leverage the group buying model for
purposes of buying other consumer durables.
|