Online Goods and Services

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  • Created by: Curlot
  • Created on: 08-03-14 17:21

Online Shopping

Buying and selling of goods and services using webistes.

You can buy Physical goods e.g Books or Non-physical goods e.g Music Downloads.

Online Shops.

  • Websites display goods for sale.
  • Customers select items and place them into a virtual 'basket'
  • Customers go to a 'check stage'
  • Payment using credit/debit cards is made and order is confirmed
  • Goods are dispatced and delivered to the customer


  • Images provided of products
  • 24/7 availibilty
  • Comparison of products
  • Customer reveiws
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Online Booking for Travel, Lesuire and Entertainme

  • Bookings systems display events avaliable
  • Customers select required services and places in a virtual 'shopping basket'.
  • Customer enter details
  • Payment is made and confirmed
  • Confirmation e-mail is sent and customers print the ticket.
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Advantages and Disadvantages for the Customer


  • Far greater choice of products
  • Shop 24/7
  • Compare prices
  • No need to go out
  • You have the right to return any goods within 7 days of delivery for any reason
  • Other customer reviews


  • You need internet access
  • You can't pay with cash
  • Yo can't touch products or try on clothes
  • Pay for delivery
  • Submitting personal inforamtion
  • Risk of not recieving goods or having details sent on to 3rd party websites


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Impact on Business and Lifestyles


  • No need to pay rental prices when online
  • They have a smaller staff when online
  • Greater range of products
  • Attract custom from all over the world


  • Easier for people with physical disabilities or young children
  • More choice for those in remote areas
  • Available any time for those who work unsocial hours
  • Reduced carbon footprint


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Online Autions

  • Seller and bidder create accounts
  • Seller supplies a description & photo of product
  • The bidder with the hihest bid wins after a set period of time
  • The  bidder is obliged to buy the item they won
  • The bidder and seller exchange emailsto arrange delivery.

Features include

  • Users can rate other users
  • Sellers can use a 'Buy Now' option
  • Secure payment is arranged by the aution webiste
  • Bidders can see the status of thier bids
  • Bidders can search for specific items they want.


  • Trust both buyers and selelrs
  • Third party payment options for secure payment
  • A large number of sellers whcih lowers prices.
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Online Education

How it Works

  • Student creates an account and selects their courses
  • Teaching material is provided on website
  • Assignments submitted and returned to students electronically.


  • Interactive teaching material
  • Communities of students interacting online
  • Provides personalised learning
  • Students work from home.
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Onine News

How it works

  • News reports are written by reporters of a newspaper or Tv company.
  • They are made available online for free or through a subscription
  • Users access the website to read the latest news using RSS feeds


  • Easy to search for and sort news items
  • Up to date news aviliabe worldwide
  • Review news items from different sources.
  • Allows users to select news
  • News presented in text, images and videos.
  • Extra content provided for subscribers
  • Users can add comments
  • Users can subscribe to content.

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Online Banking

How they work

  • User creates a secure online bank account
  • Money can be transferred electronically into that account
  • Payments can be made to other accounts


  • View up-to-date account details
  • View all transactions
  • Pay bills online
  • Create new bank accounts
  • Secure access provided
  • Offers promotions to online customers.
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Online Games

A central server runs the game and allows the game software and streams each player's position and actions to all players over the internet.

Players need high bandwidth and low latency interent connection to avoid lag when playing.

Players select each game and create online accounts, then ineract with each other as well as a computer opponent.

Some games are able to store data such as graphics and sound locally on the players' computers.

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Strreaming Vs. Downloading


User selects entertainment service. -> User presses play -> Progamme is continually sent from the server and streamed over the internet -> Player buffers some data in case of delays in data arriving. -> Programmer plays.


User selects entertainment service-> User downloads entire file from the serverto computer -> User presses play -> Programme plays

In the last 2 stages of dowloading no internet connectionis required

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How and Why Organisations operate online.

To operate online the company needs a webiste for customers to find information and/or buy the organisation's goods or services.

Overheads are generally lower online so they can be morem porfitable than a high street shop.


  • No need to distrubute goods to shops
  • Easy to make changes to products and prices.
  • Inexpensive ways to reach a new market.
  • Minimal start up time and investment needed.
  • The organisation can be located anywhere.


  • Skilled staff needed to develop and run an efficient webiste.
  • Ensuring secure payment is difficult
  • Need a delivery service and facilities to handle returns
  • Are only avaliable to those wtih an internet connection and can pay electronically.
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Transactional Data

Transactional data is the information collected about a sale or purchase. It is stored in databases. Personalised information is often stored in cookied created on your computer when you visit a website.

Commercial Value.

  • It allowas organisations to keep a record of your purchases.
  • It allows delivery to be tracked
  • It contains info about customer shoppoing habits and preferences.

Used for??

  • Understanding customers' buying habits and trends in sales.
  • Producing a more personalised experience
  • Targeted advertising campaigns
  • Personalised markets
  • To track delivery of goods.
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Internet Advertising

  • Targeted at particular customers
  • Statistics can be gathered
  • Cheaper than traditional advertising
  • Reaches a wide range of customers
  • Reaches customers much faster.

Can use search engines by producing adverts when a customer searches for a particular word ior items.

Advertising through social networking is used to target adverts at particular users by using data such as location, age and interest.

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Viral & Targeted Marketing

Viral Marketing is when organisation creates interesting content that makes people want to 'pass it on' to their friends using social networking, email and texting.

Why is it used ?

  • If the content 'goes viral' it spreads quickly
  • It is cheap beacuse the organisation does not have to pay for adverts.
  • Memorable content means that people remember the brand name.

Online targeted market is about concentrating online advertising on the groups of customers who most likely to buy a product.

How does it work?- Collecting data and combine online data from:

  • cookies that are used to store your browsing habits.
  • transactional data
  • social networking sites.
  • microblogging sites
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Personalisation Techniques

They make advertisiments relevent to a particular audience using their personal information and have the aim of persuading the customer to buy related products.

Adverts personalised using your past browsing history and searching on other webites.

Recomendations based on your browsing history and oter items you may have purchased.

To avoid targeted marketing you can:

  • opt out of sharing your personal information with the other organisations when creating online accounts.
  • delete cookies
  • be careful with the personal information you add to online profiles.
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Payment Systems

Credit/ Debit Cards

When you pay with a credit/debit card you are authorising the organisation you are buying from to transfer money from your bank account to its own bank account.

  • Debit cards let the customer pay by taking money directly out of their account,
  • Credit Cards allow the customer to borrow the money. The customer pays the money back at a later date, often with the interest.

The Credit Card Verification (CCV) code is the number on the back of the card which is not included on the mangnetic stripe or chip. Entering the CCV means the person entering the code must have seen the credit card.

To make sure a website is secure, look out of:

  • The URL changing from http to https.
  • Norton secured which adds a further layer of authentication
  • A padlock symbol.
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Locally Installed Software

Locally Installed Software.

User obtains software on DVD or download from the internet. -> User installs software on computer or file server.


  • Works without being online
  • You hold the licence to use the software
  • You control the access to the computer so security is good.


  • Takes up a large amount of space
  • Must download and install upgrades and patches to fix bugs
  • All data is stored locally so it must be backed up. 
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Hosted Software

User logs in through Internet to use software when needed. -> Software runs on a web server over the internet.


  • Software doesn't take up any file space
  • Allows users from different parts of the world  to work on the same document at the same time.


  • Cannot work without an Internet connection
  • Not as secure - hosting compnay might be targeted by online hackers.
  • Response time depends on network speed.
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Commercial Respnse to Hosted Software

To respond to the this challenge the commercial software producers have:

  • Made their products more appealing and of better quality by including more facilities and functions.
  • Provided software 'bundled' in which you buy a computer. So when you buy a PC or Laptop it oftens comes with software application installed.
  • Used copyright to protect their products to stop similar 'free' products being offered as a 'software service'
  • Provided technical support
  • Offered their own versions of software as a service.
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Local Storage

Local Storage is when your files are stored on the digital device you are using.


  • You have over access to your files and security of the data.
  • Data can be accessed quickly
  • You do not need an Internet connection to access the data.


  • You are responsible for keeping the data safe.
  • It is difficult to share your data with others.
  • You have  to back up your own data.
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Online Storage

Online storage is when your files are stored on a server elsewhere which you access the internet. This is referred to as 'the cloud'.


  • The data is availible anywhere you have Internet acces and a browser.
  • Some online data storage services are free.
  • It is easy to share your data with others.
  • Data is backed up for you.


  • You have to trust that the organisation storing your data  will keep your data secure.
  • It may not be reliable.
  • You need an internet connection to access your data.
  • Less control of your data as you do not know where it is stored,
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Search Engines

A search engine is a computer program thtah searches for web content that contains or is tagged with the key words you have entered into the search box for.

The search engine then search its indexes for content containing those key words and displays a list of the content that is matched.

You choice of key words is important, when searching for a particular thing:

  • Add more key words to narrow down the search.
  • Search by the type of object you are searching.
  • Use advanced search facilities.
  • Seacrh date/language
  • Use more than one search engine.

It is important to check that results are valid beacuse some website may infect your computer with spyware, contain biased or inappropriate content, or simply not be exactly about the subject you are after. You can check validity by cross-referencing information from other websites.

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