Online Goods and Services

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  • Created by: imogenhoe
  • Created on: 27-03-14 13:50

How do online shops work?

  • Website displays the goods for sale
  • Customer places products in the virtual 'shopping basket'
  • Customer selects 'check out'
  • Payment is made and confirmed
  • Goods and services are dispatched and delievered to customer
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What are the Features of an online shop?

  • Facility to sort and search for goods
  • Images provided of products
  • 24/7 availibilty
  • Comparison of prices to similar products
  • Reccomendations for future purchases
  • Customer reviews of products
  • Some sites offer 'comparison sites'
  • Bookable delievery service, for example food.
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How do online booking systems work?

  • Booking system displays events available
  • Customer selects the seat/ flight/ holiday and places it in the virtual 'shopping basket'
  • Customer enters personal details
  • Payment is made and confirmed
  • Confirmation email ticket sent and customers print the 'ticket'
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State two fetaures of an online shop that would be

  • Customer reviews
  • Books rated by other customers
  • Customers able to seeexample pages from the book without leaving the house
  • Available 24/7/365
  • Tailored reccomendations given to customets for additional purchases
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Name 2 advantages to the customer of online shoppi

  • Far greater choice because you are not limited to one geographical area.
  • You can shop all day, every day.
  • You can find the best price using price compariosn websites.
  • You do not have to leave the house.
  • You have the right to return goods within 7 days of delievery unless customised.
  • You can read other users' reviwes of a product.
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Name 2 disadvantages of online shopping.

  • You need Internet access and computer skills.
  • You cannot pay using cash.
  • You cannot see or touch products or try on clothes.
  • You usually have to pay for delievery.
  • You need to submit personal informationthrough a website.
  • There is a risk of not recieving goods or having personal details stolen on fraudulent websites.
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What is the impact on businesses?

  • Dont have to pay expensive rental prices.
  • They often need smaller staff, which saves money.
  • Carry a greater range of stock.
  • Attract customers from all over the world.
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What is the impact on lifestyles?

  • Easier access for people with physical disabilities or young children.
  • More choice for people in a remote area.
  • Available any time for people who work unsocial hours.
  • Reduced carbon footprint.
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How do online auctions work?

  • Seller and bidder create onlien accounts.
  • Seller supplies a description and photogrpah of an item for auction.
  • The bidder with the highest bid at a scheduled time wins the item.
  • The bidder is obliged to buy the item they have won at the auction.
  • The seller and bidder exchange emails to arrange payment and delievery.
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Features of an online auction.

  • Bidders can search for items they want.
  • Bidders can see the stauts of their bids.
  • Changes can be made before the scheduled end time.
  • Users of the auction service can rate each other.
  • Sellers can choose to make an item available for purchase immediately rather than bidding.
  • Secure payment is arranged by the auction site.
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Benefits of online auctions?

  • The ability to search easily for goods that you want.
  • A community of users which builds trust by rationg both buyers and sellers.
  • Thrid party payment options for secure payments.
  • A large number of sellers competing for business, which drives fown prices.
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How does online education and training work?

  • Student creates online account and selects his or her courses.
  • Teaching material is provided on a website.
  • Assignments submitted and returned to students electronically.
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Features to education and training online.

  • Interactive teaching material.
  • Communities of students interacting online.
  • Provides personalised learning.
  • Students work from home.
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How do information services work and what are the

They are reports made online for free or through subscription.

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What are the features of information services?

  • easy to search for and sort news items. 
  • up to date news available worldwide. 
  • Review news items from different sources.
  • Allows users to slect 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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What is online banking and what are its features?

Online banking is a space where users create a secure online bank account. Money can be transferred electronically into an account and payments can be made to other accounts. Its features include:

  • View up-to-date bank account details. 
  • View all transactions. 
  • Pay bills online.
  • Create new bank accounts. 
  • Secure access provided. 
  • Offers promotions to online customers. 
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How does online gaming work?

  • A central server runs the game software and streams each players position and actions to all players over the internet.
  • Players need a high bandwidth low latency internet connection to avoid lag when gaming. 
  • Players select game and create online accoutns, then interact with each other as well as a computer opponent. 
  • Some games store data such as graphics and sound locally on players' computer. 
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Give two benefits on an on-demand entertainment se

  • Do not have to wait for media to download before playing.
  • Does not use as much local storage. 
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Give one possible reason that a game might lag.

  • A low bandwidth high latency internet connection migh tmake the game lag. 
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Advantages for the retailer when operating online.

  • No need to distribute goods to shops. 
  • Easy to make changes to products and prices.
  • Customers only need a web browser, an internet connection, and a means of paying electronically. 
  • Inexpensive way to reach new markets. 
  • Minimal start up time and investment needed: internet businesses can be set up from home. 
  • The organisation can be located wherever it likes. 
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Disadvantages to the retailer when operating onlin

  • Skilled staff needed to develop and run an efficent website. 
  • Ensuring online payment security is difficult. 
  • Need a delivery service and the facilities to handle returns.
  • Customers limited to those with access to the internet and who can pay electronically. 
  • If the retailer has high street shops as well, they may find that their high street shops suffer and have to close down because they cannot compete with the online shop. 
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What transactional data?

A transaction occurs everytime you buy or sell something. Transactional data is the information collected about that sale or purchase. It is stored in databases which can then be searched and sorted. Personal information can often be stored in cookies created on your computer when you visit a website. 

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Why is transactional data important to the organis

  • It allows the organsiationto keep a record of your purchases. 
  • It allows delievery to be tracked. 
  • It contains a rich source of information about customer shopping habits and preferences. 
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What transactional data is collected?

  • Purchase price.
  • Date and time of the purchase.
  • Personal information from your online account.
  • Delievery tracking data that displays delievery staus and location. 
  • Details of the items purchased. 
  • Unique reference number given to each transaction. 
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What is transactional data used for?

  • To ubderstand customers buying bits and to see trends in sales. 
  • To produce a more personalised experience e.g showing other goods that you might be interested in. 
  • Personalised adverts. 
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Why do organisations use internet advertising?

  • It is cheaper than traditional adverts eg. TV. 
  • It reaches a wide range of customers. 
  • Statistics can be gathered. 
  • It can be targeted at particular customers. 
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Internet advertising using search engines.

  • Advertisement is displayed when sutomers search using key words. 
  • With Google Adwords the advertsing company only pays Google when people click on their adverts. It is called 'cost-per-click'.
  • The key words have to be carefully chosen and teh advert carefullym worded to make people want to click on it.
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