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1.WHAT IS E-COMMERCE?
Electronic commerce, commonly known as E-commerce or eCommerce, is
trading in products or services conducted via computer networks 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 at least at one point in the transaction's life-cycle, although it may encompass a
wider range of technologies such as e-mail, mobile devices, social media, and
telephones as well.
Electronic commerce is generally considered to be the sales aspect of e-business. It
also consists of the exchange of data to facilitate the financing and payment aspects
of business transactions. This is an effective and efficient way of communicating
within an organization and one of the most effective and useful ways of conducting
business. It is a Market entry strategy where the company may or may not have a
physical presence.
E-commerce can be divided into 7 subsections:
E-tailing or "virtual storefronts" on websites with online catalogs, sometimes
gathered into a "virtual mall"
Buying or selling on websites and/or online marketplaces
The gathering and use of demographic data through web contacts and social
media
Electronic data interchange, the business-to-business exchange of data
E-mail and fax and their use as media for reaching prospective and established
customers (for example, with newsletters)
Business-to-business buying and selling
The security of business transactions




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Impact on markets and retailers

Economists have theorized that e-commerce ought to lead to intensified price competition, as it
increases consumers' ability to gather information about products and prices. Research by four
economists at the University of Chicago has found that the growth of online shopping has also
affected industry structure in two areas that have seen significant growth in e-
commerce, bookshops and travel agencies. Generally, larger firms are able to use economies of
scale and offer lower prices. The lone exception to this pattern has been the very smallest
category of bookseller, shops with between one and four employees, which appear to have
withstood the trend.
[47]

Individual or business involved in e-commerce whether buyers or sellers rely on Internet-based
technology in order to accomplish their transactions. E-commerce is recognized for its ability to
allow business to communicate and to form transaction anytime and anyplace. Whether an
individual is in the US or overseas, business can be conducted through the internet. The power
of e-commerce allows geophysical barriers to disappear, making all consumers and businesses
on earth potential customers and suppliers. E-bay is a good example of e-commerce business
individuals and businesses are able to post their items and sell them around the Globel



















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2. Advantages of Ecommerce.
Top 11 Advantages of Ecommerce

Overcome Geographical Limitations
If you have a physical store, you are limited by the geographical area that you can
service. With an ecommerce website, the whole world is your playground.
Additionally, the advent of mcommerce, i.e., ecommerce on mobile devices, has
dissolved every remaining limitation of geography.
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Gain New Customers With Search Engine Visibility
Physical retail is driven by branding and relationships. In addition to these two
drivers, online retail is also driven by traffic from search engines. It is not unusual for
customers to follow a link in search engine results, and land up on an ecommerce
website that they have never heard of. This additional source of traffic can be the
tipping point for some ecommerce businesses.

Lower Costs
One of the most tangible positives of ecommerce is the lowered cost. A part of these
lowered costs could be passed on to customers in the form of discounted prices.
Here are some of the ways that costs can be reduced with ecommerce:
Advertising and Marketing
Organic search engine traffic, pay-per-click, and social media traffic are some of
the advertising channels that can be cost-effective.

Personnel
The automation of checkout, billing, payments, inventory management, and other
operational processes, lowers the number of employees required to run an
ecommerce setup.

Real Estate
This one is a no-brainer. An ecommerce merchant does not need a prominent
physical location.


Locate the Product Quicker
It is no longer about pushing a shopping cart to the correct aisle, or scouting for the
desired product. On an ecommerce website, customers can click through intuitive
navigation or use a search box to immediately narrow down their product search.
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Some websites remember customer preferences and shopping lists to facilitate
repeat purchase.

Eliminate Travel Time and Cost
It is not unusual for customers to travel long distances to reach their preferred
physical store. Ecommerce allows them to visit the same store virtually, with a few
mouse clicks.

Provide Comparison Shopping
Ecommerce facilitates comparison shopping. There are several online services that
allow customers to browse multiple ecommerce merchants and find the best prices.

Enable Deals, Bargains, Coupons, and Group Buying
Though there are physical equivalents to deals, bargains, coupons, and group
buying, online shopping makes it much more convenient. For instance if a customer
has a deep discount coupon for turkey at one physical store and toilet paper at
another, she may find it infeasible to avail of both discounts. But the customer could
do that online with a few mouse-clicks.

Provide Abundant Information
There are limitations to the amount of information that can be displayed in a physical
store. It is difficult to equip employees to respond to customers who require
information across product lines. Ecommerce websites can make additional
information easily available to customers. Most of this information is provided by
vendors, and does not cost anything to create or maintain.
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Create Targeted Communication
Using the information that a customer provides in the registration form, and by
placing cookies on the customer's computer, an ecommerce merchant can access a
lot of information about its customers. This, in turn, can be used to communicate
relevant messages. An example: If you are searching for a certain product on
Amazon.com, you will automatically be shown listings of other similar products. In
addition, Amazon.com may also email you about related products.

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Remain Open All the Time
Store timings are now 24/7/365. Ecommerce websites can run all the time. From the
merchant's point of view, this increases the number of orders they receive. From the
customer's point of view, an "always open" store is more convenient.

Create Markets for Niche Products
Buyers and sellers of niche products can find it difficult to locate each other in the
physical world. Online, it is only a matter of the customer searching for the product in
a search engine. One example could be purchase of obsolete parts. Instead of
trashing older equipment for lack of spares, today we can locate parts online with
great ease.






















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3.Disadvantages of Ecommerce.
.

Ecommerce Lacks That Personal Touch
Not that all physical retailers have a personal approach, but I do know of several
retailers who value human relationship. As a result, shopping at those retail outlets is
reassuring and refreshing. Clicking on "Buy Now," and piling up products in virtual
shopping carts, is just not the same for me.

Different people sing to different tunes. For me, the demise of the personal touch in
online transactions is the biggest disadvantage of ecommerce.

Ecommerce Delays Goods
Unless you are using a website to merely order a pizza online, ecommerce websites
deliver take a lot longer to get the goods into your hands. Even with express
shipping, the earliest you get goods is "tomorrow."

But if you want to buy a pen because you need to write something right now, you
cannot buy it off anecommerce website. Likewise with candy that you want to eat
now, a book that you want to read tonight, a birthday gift that you need this
evening... You get the idea.

An exception to this rule is in the case of digital goods, e.g. an ebook or a music file.
In this case, ecommerce might actually be faster than purchasing goods from a
physical store.

Many Goods Cannot Be Purchased Online
Despite its many conveniences, there are goods that you cannot buy online. Most of
these would be in the categories of "perishable" or "odd-sized." Think about it, you
cannot order a popsicle (also referred to as an ice pop or ice lolly) or a dining table
set.

Well, you could order both of them online, but consider the inconvenience. The
popsicle would have to be transported in refrigerated trucks. Unless the seller was
willing to make a huge loss, the cost of shipping that popsicle would far exceed the
cost of the popsicle.

Likewise, a dining table set can certainly be purchased online. In some cases, the
cost oflogistics is bearable. But if you have to return the furniture, you will get well-
acquainted with the inconvenience of ecommerce.

Ecommerce Does Not Allow You to Experience the Product Before Purchase
You cannot touch the fabric of the garment you want to buy. You cannot check how
the shoe feels on your feet. You cannot "test" the perfume that you want to buy. You
get the idea.

In many cases, customers want to experience the product before purchase.
Ecommerce does not allow that. If you buy a music system, you cannot play it online
to check if it sounds right? If you are purchasing a home-theatre system, you would
much rather sit in the "experience center" that several retail stores set up.
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Anyone Can Set Up an Ecommerce Website
We live in an era where online storefront providers bring you the ability to set up an
ecommerce store within minutes. I have tried it, and it is possible to set up a basic
store in under 10 minutes.

But if anybody can set up a store, how do I know that the store I am purchasing from
is genuine? The lowered barriers to entry might be a great attraction to the aspiring
ecommerce entrepreneur. But for the buyer, reliability can be an issue. This could
lead customers to restrict their online purchases to famous ecommerce websites.

Security
When making an online purchase, you have to provide at least your credit card
information and mailing address. In many cases, ecommerce websites are able to
harvest other information about your online behavior and preferences. This could
lead to credit card fraud, or worse, identity theft.


































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3. e commerce types.
The major different types of e-commerce are:
1. business-to-business (B2B).
2. business-to-consumer (B2C).
3. business-to-government (B2G).
4. consumer-to-consumer (C2C).
5. mobile commerce (m-commerce).
What is B2B e-commerce?
B2B e-commerce is simply defined as e-commerce between companies. This is the
type of e-commerce that deals with relationships between and among businesses.
About 80% of e-commerce is of this type, and most experts predict that B2B e-
commerce will continue to grow faster than the B2C segment. The B2B market has
two primary components: e-frastructure and e-markets. E-frastructure is the
architecture of B2B, primarily consisting of the following:
logistics - transportation, warehousing and distribution (e.g., Procter and
Gamble);
application service providers - deployment, hosting and management of
packaged software from a central facility (e.g., Oracle and Linkshare);
outsourcing of functions in the process of e-commerce, such as Web-hosting,
security and customer care solutions (e.g., outsourcing providers such as
eShare, NetSales, iXL Enterprises and Universal Access);
auction solutions software for the operation and maintenance of real-time
auctions in the Internet (e.g., Moai Technologies and OpenSite Technologies);
content management software for the facilitation of Web site content
management and delivery (e.g., Interwoven and ProcureNet); and
Web-based commerce enablers (e.g., Commerce One, a browser-based,
XML-enabled purchasing automation software).
E-markets are simply defined as Web sites where buyers and sellers interact with
each other and conduct transactions.10
The more common B2B examples and best practice models are IBM, Hewlett
Packard (HP), Cisco and Dell. Cisco, for instance, receives over 90% of its product
orders over the Internet.
Most B2B applications are in the areas of supplier management (especially purchase
order processing), inventory management (i.e., managing order-ship-bill cycles),
distribution management (especially in the transmission of shipping documents),
channel management (i.e., information dissemination on changes in operational
conditions), and payment management (e.g., electronic payment systems or EPS).
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Benefits of B2B E-Commerce in Developing Markets
The impact of B2B markets on the economy of developing countries is evident in the
following:
Transaction costs. There are three cost areas that are significantly reduced through
the conduct of B2B e-commerce. First is the reduction of search costs, as buyers
need not go through multiple intermediaries to search for information about
suppliers, products and prices as in a traditional supply chain. In terms of effort, time
and money spent, the Internet is a more efficient information channel than its
traditional counterpart. In B2B markets, buyers and sellers are gathered together into
a single online trading community, reducing search costs even further. Second is the
reduction in the costs of processing transactions (e.g. invoices, purchase orders and
payment schemes), as B2B allows for the automation of transaction processes and
therefore, the quick implementation of the same compared to other channels (such
as the telephone and fax). Efficiency in trading processes and transactions is also
enhanced through the B2B e-markets ability to process sales through online
auctions. Third, online processing improves inventory management and logistics.
Disintermediation. Through B2B e-markets, suppliers are able to interact and
transact directly with buyers, thereby eliminating intermediaries and distributors.
However, new forms of intermediaries are emerging. For instance, e-markets
themselves can be considered as intermediaries because they come between
suppliers and customers in the supply chain.
Transparency in pricing.Among the more evident benefits of e-markets is the
increase in price transparency. The gathering of a large number of buyers and
sellers in a single e-market reveals market price information and transaction
processing to participants. The Internet allows for the publication of information on a
single purchase or transaction, making the information readily accessible and
available to all members of the e-market. Increased price transparency has the effect
of pulling down price differentials in the market. In this context, buyers are provided
much more time to compare prices and make better buying decisions. Moreover,
B2B e-markets expand borders for dynamic and negotiated pricing wherein multiple
buyers and sellers collectively participate in price-setting and two-way auctions. In
such environments, prices can be set through automatic matching of bids and offers.
In the e-marketplace, the requirements of both buyers and sellers are thus
aggregated to reach competitive prices, which are lower than those resulting from
individual actions.
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Economies of scale and network effects. The rapid growth of B2B e-markets creates
traditional supply-side cost-based economies of scale. Furthermore, the bringing
together of a significant number of buyers and sellers provides the demand-side
economies of scale or network effects. Each additional incremental participant in the
e-market creates value for all participants in the demand side. More participants form
a critical mass, which is key in attracting more users to an e-market.
What is B2C e-commerce?
Business-to-consumer e-commerce, or commerce between companies and
consumers, involves customers gathering information; purchasing physical goods
(i.e., tangibles such as books or consumer products) or information goods (or goods
of electronic material or digitized content, such as software, or e-books); and, for
information goods, receiving products over an electronic network.12
It is the second largest and the earliest form of e-commerce. Its origins can be traced
to online retailing (or e-tailing).13 Thus, the more common B2C business models are
the online retailing companies such as Amazon.com, Drugstore.com, Beyond.com,
Barnes and Noble and ToysRus. Other B2C examples involving information goods
are E-Trade and Travelocity.
The more common applications of this type of e-commerce are in the areas of
purchasing products and information, and personal finance management, which
pertains to the management of personal investments and finances with the use of
online banking tools (e.g., Quicken).14
eMarketer estimates that worldwide B2C e-commerce revenues will increase from
US$59.7 billion in 2000 to US$428.1 billion by 2004. Online retailing transactions
make up a significant share of this market. eMarketer also estimates that in the Asia-
Pacific region, B2C revenues, while registering a modest figure compared to B2B,
nonetheless went up to $8.2 billion by the end of 2001, with that figure doubling at
the end of 2002-at total worldwide B2C sales below 10%.
B2C e-commerce reduces transactions costs (particularly search costs) by
increasing consumer access to information and allowing consumers to find the most
competitive price for a product or service. B2C e-commerce also reduces market
entry barriers since the cost of putting up and maintaining a Web site is much
cheaper than installing a brick-and-mortar structure for a firm. In the case of
information goods, B2C e-commerce is even more attractive because it saves firms
from factoring in the additional cost of a physical distribution network. Moreover, for
countries with a growing and robust Internet population, delivering information goods
becomes increasingly feasible.
What is B2G e-commerce?
Business-to-government e-commerce or B2G is generally defined as commerce
between companies and the public sector. It refers to the use of the Internet for
public procurement, licensing procedures, and other government-related operations.
This kind of e-commerce has two features: first, the public sector assumes a
pilot/leading role in establishing e-commerce; and second, it is assumed that the
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public sector has the greatest need for making its procurement system more
effective.15
Web-based purchasing policies increase the transparency of the procurement
process (and reduces the risk of irregularities). To date, however, the size of the
B2G e-commerce market as a component of total e-commerce is insignificant, as
government e-procurement systems remain undeveloped.
What is C2C e-commerce?
Consumer-to-consumer e-commerce or C2C is simply commerce between private
individuals or consumers.
This type of e-commerce is characterized by the growth of electronic marketplaces
and online auctions, particularly in vertical industries where firms/businesses can bid
for what they want from among multiple suppliers.16 It perhaps has the greatest
potential for developing new markets.
This type of e-commerce comes in at least three forms:
auctions facilitated at a portal, such as eBay, which allows online real-time
bidding on items being sold in the Web;
peer-to-peer systems, such as the Napster model (a protocol for sharing files
between users used by chat forums similar to IRC) and other file exchange
and later money exchange models; and
classified ads at portal sites such as Excite Classifieds and eWanted ,
Pakwheels.com (an interactive, online marketplace where buyers and sellers
can negotiate and which features Buyer Leads & Want Ads).
Consumer-to-business (C2B) transactions involve reverse auctions, which empower
the consumer to drive transactions. A concrete example of this when competing
airlines gives a traveler best travel and ticket offers in response to the travelers post
that she wants to fly from New York to San Francisco.
There is little information on the relative size of global C2C e-commerce. However,
C2C figures of popular C2C sites such as eBay and Napster indicate that this market
is quite large. These sites produce millions of dollars in sales every day.
Advantages of C2C sites
Consumer to consumer ecommerce has many benefits. The business model of C2C
is very interesting.The primary benefit which consumers get is reduction in cost as
compared to buying space of their adds on other ecommerce sites which seem to be
quite expensive.People interested in selling their items can post their respective
items for free or with minimal charge depending on the c2c website.This leads to
formation of a profitable customer base. C2C websites form a perfect platform for
buyers and sellers who wish to buy and sell products of similar interest.This leads to
increase in visitor to customer conversion ratio.Another benefit is that business
owners can easily afford the low cost of maintaining C2C websites and earn good
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profits instead of buying or hiring a shop which could cost a lot.Another major plus
point these websites have is that personal items like watch ,shoes etc can be
purchased and sold with ease which is not in case of other types of ecommerce.
Disadvantages of C2C sites
There are a couple of disadvantages to these type of sites as well.Doing transaction
on these type of websites requires co-operation between the buyer and seller.It has
been noted many times that these two do not co-operate with each other after a
transaction has been made.They do not share the transaction information which may
be via credit or debit card or internet banking.This can result in online fraud since the
buyer and seller are not very well versed with each other.This can lead to lawsuit
being imposed on either ends or also on the site if it has not mentioned the
disclaimer in its terms and conditions.This may also hamper the c2c website's
reputation.Companies which handle consumer to consumer ecommerce
websites seem to have becoming very cautious to prevent online scams.
What is m-commerce?
M-commerce (mobile commerce) is the buying and selling of goods and services
through wireless technology-i.e., handheld devices such as cellular telephones and
personal digital assistants (PDAs). Japan is seen as a global leader in m-commerce.
As content delivery over wireless devices becomes faster, more secure, and
scalable, some believe that m-commerce will surpass wireline e-commerce as the
method of choice for digital commerce transactions. This may well be true for the
Asia-Pacific where there are more mobile phone users than there are Internet users.
Industries affected by m-commerce include:
Financial services, including mobile banking (when customers use their
handheld devices to access their accounts and pay their bills), as well as
brokerage services (in which stock quotes can be displayed and trading
conducted from the same handheld device);
Telecommunications, in which service changes, bill payment and account
reviews can all be conducted from the same handheld device;
Service/retail, as consumers are given the ability to place and pay for orders
on-the-fly; and
Information services, which include the delivery of entertainment, financial
news, sports figures and traffic updates to a single mobile device.







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4. e commerce works and functions?

Ecommerce is a strange animal. On the one hand, it seems like it is the new kid on
the block -- one that will revolutionize the way business is transacted. On the other,
its business model often seems identical to physical retail that has been around for
centuries.

The truth is that both points of view are valid. Ecommerce does much the same as
physical retail. However, the fact that it operates digitally, introduces some unique
business elements. Here is how ecommerce works.

A Product or Service Needs to Be Sold
This goes to the heart of commerce. There has to be an exchange of value. If one of
the parties to the transaction is paying money, the other one should provide a
product or service in return. We have reached a point where almost all goods that
sell in physical stores also sell on ecommerce websites -- gadgets, books,
automobiles, grocery, toys, and apparel among others.

The ecommerce era has also enabled easy sale of new categories of products. One
example would be digital goods such as music, ebooks, software and the like. In
addition, ecommerce enables easy transactions in a wide variety of goods such as
air tickets and magazine subscriptions.

There Should Be a Mechanism to Accept Orders
When the customer has browsed through your ecommerce website and decided that
they would like to buy, there has to be a process that accepts their order. The
software that runs this process is called a shopping cart.

In addition to making a note of what is being purchased and updating the order
database, the shopping cart performs several other tasks:
computation of taxes and other levies
processing of coupons and other discounts
capturing the billing and delivery address of the customer
upselling to the customer
ensuring user acceptance of terms of service and other conditions of sale
creation of codes, such as invoice numbers, order number, tracking number and
the like
presenting customers with delivery options and adding the corresponding fee
forwarding customers to the payment gateway
(in the case of downloadable digital goods) redirecting paid customers to the
download page.


We Need a Payment Mechanism
There are some ecommerce websites, especially in the business-to-business space
that might provide credit for purchases. In most cases, an ecommerce transaction
involves transacting money. This process is conducted by a piece of software called
the payment gateway.
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The payment gateway:
presents a customers with payment options
accepts identification details, such as credit card numbers
authenticates customers using a password, CVV code, or multiple factors of
authentication.

The Product Needs to Be Delivered
I agree with people who say that effective logistics is the key to a successful
ecommerce business. One of the most disappointing features of online purchase is
the indeterminate and inordinate delay in receiving goods.

As a result, ecommerce businesses need to ensure that the right product is delivered
to the customer, in good condition, and within the period that the customer expected.
Since logistics is a specialized function, several ecommerce businesses outsource it
to third party logisticsproviders.

Customers Need to Be Serviced
Customers need to be serviced pre-sales as well as post sales.

Before the sale, customers might have queries about product features that are not
mentioned on the website. They might have questions about customization and
accessories.

After the sale, customers might have queries related to the usage, repair or
enhancement of the products or services that they have already purchased.

Reverse Logistics Need to Be Managed
There is no such thing as an error-free product. As a result, some products will be
damaged or stop functioning right. Sometimes the wrong product will be delivered.
Such error or damage triggers the reverse logistics process. In the usual mode,
goods move from the ecommerce business to the customer. In reverse logistics, the
flow is in the opposite direction.

Conclusion
An ecommerce business has many moving parts. To be successful, it is necessary
for you to manage each one of them skillfully.







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5.The Home Buying Process.
Buying a home can be a very intimidating process, especially if you've never done it
before.

So the first thing you should do before you start the home buying process is to figure
out whether owning a home is right for you. It may or may not be and this decision
depends on you and what your circumstances are. Take into account that if you do
buy a home, there are extra responsibilities and costs that go along with owning a
home-such as lawn care, home maintenance and repairs, etc.

Step 1: Check Your Credit Report & Score
Before getting a mortgage or any kind of loan, you should always check your credit.
According to the law, you're allowed to receive one free copy of your credit report per
year. You can do this by visiting Annualcreditreport.com. Scores range from
approximately 300 to 850; generally, the higher your score, the better loan you'll
qualify for. Don't forget to check your report for errors. If there are any, dispute them.
It may help your credit score
.
Step 2: Figure out How Much You Can Afford
You can calculate how much you can afford by starting online. There are several
online mortgage calculators that will help you calculate an affordable monthly
mortgage payment. Don't forget to factor in money you'll need for a down payment,
closing costs, fees (such as fees for an attorney, appraisal, inspection, etc.) and the
costs of remodeling or furniture. Remember that you don't always have to put down
20 percent as your parents once did. There are loans available with little to no down
payment. An experienced home loan expert can help you understand all your loan
options, closing costs and other fees.

Step 3: Find the Right Lender and Real Estate Agent
To find the right mortgage lender It's best to shop around. Get recommendations
from your friends and family and check with the Better Business Bureau. Talk to at
least three or four mortgage lenders. Ask lots of questions and make sure they have
answers that satisfy you. Make sure to find someone that you are comfortable with
and who makes you feel at ease.

Once you have the right mortgage lender, make sure you at least get a pre-
approval. Pre-qualifications are only a guess based on what you tell the lender and
are no guarantee, whereas a pre-approval will give you a better idea of how big a
loan you qualify for. The lender will actually pull your credit and get more information
about you. However, you could even take it one step further by getting an actual
approval before you start home shopping. That way, when you're ready to make an
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offer, it will make the sale go much quicker. Besides, your offer will look more
appealing than other buyers since your financing is guaranteed.

Step 4: Look for the Right Home
Make a list of the things you'll need to have in the house. Ask yourself how many
bedrooms and bathrooms you'll need and get an idea of how much space you
desire. How big do you want the kitchen to be? Do you need lots of closets and
cabinet space? Do you need a big yard for your kids and/or pets to play in?

Once you've made a list of your must-have's, don't forget to think about the kind of
neighborhood you want, types of schools in the area, the length of your commute to
and from work, and the convenience of local shopping. Take into account your safety
concerns as well as how good the rate of home appreciation is in the area.

Step 5: Make an Offer on the Home
Now that you've found the home you want, you have to make an offer. Most sellers
price their homes a bit high, expecting that there will be some haggling involved. A
decent place to start is about five percent below the asking price. You can also get a
list from your real estate agent to find out how much comparable homes have sold
for. Once you've made your offer, don't think it's final. The seller may make a
counter-offer to which you can also counter-offer. But you don't want to go back and
forth too much. Somewhere, you have to meet in the middle. Once you've agreed on
a price, you'll make an earnest money deposit, which is money that goes inescrow to
give the seller a sign of good faith.

Step 6: Get the Right Mortgage for Your Situation
There are many different types of mortgage programs out there, but as a first-time
home buyer, you should be aware of the three basics: adjustable rate, fixed
rate and interest-only.

Adjustable rate mortgages (ARMs) are short-term mortgages that offer an interest
rate that is fixed for a short period of time, usually between one to seven years.
After that, the interest rate can adjust every year up or down, depending on the
market. These are good for people who don't plan on living in their home very
long and/or are looking for a lower interest rate and payment.
Fixed-rate mortgages are more traditional and offer a fixed interest rate (and thus
a fixed monthly payment) for a longer period of time, usually 15 or 30 years,
though they're available in 20 or 25 year terms. These are good for people who
like a predictable payment and plan on living in their home for a long time.
Both fixed and adjustable rate mortgages can have an interest-only payment.
What this means is that for a certain amount of time during the loan term, you're
allowed to pay only enough to cover the interest portion of your payment. You
can still pay principal when you wish, but don't have to if your budget is tight.
There is a myth that with interest-only mortgages, you don't build equity. This is
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not necessarily true, since you can build equity through home appreciation. The
benefit to interest-only mortgages is that you increase your cash flow by not
paying principal.

Remember to ask your mortgage lender or mortgage banker lots of questions about
which mortgage is right for you and your situation.

Step 7: Close on Your Home
Make sure you get a home inspection before you close. It will be well-worth the
money spent since it ensures the property's structural soundness and good
condition.

Setting the closing date that is convenient to both parties may be tricky, but can
certainly be done. Remember that you may have to wait until your rental agreement
runs out and the seller may have to wait until they close on their new house.

Be sure you talk to your mortgage banker to understand all the costs that will be
involved with the closing so there are no surprises. Closing costs will likely include
(but are not limited to) your down payment, title fees, appraisal fees, attorney fees,
inspection fees, and points you may have bought to buy down your interest rate.

Step 8: Move In!
You've got your mortgage, closed the deal and now it's time to move in! Whether you
use a mover or not is up to you, depending on your financial situation and how much
stuff you have to move; perhaps also, whether you have a lot of friends willing to
help you move. Either way, you're done with the home buying process! Just start
unpacking and start enjoying your first home! Buying a home for the first time doesn't
have to be a hassle if you're prepared and you know what to do and when to do it.
Choose an experienced home loan lender and a friendly, knowledgeable real estate
agent-they are the key to helping you have a smooth home buying experience!







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Process of Online Buying

1) Need Identification
2) Information Search
3) Evaluation of Alternatives
4) Purchase Decision
5) Purchase Evaluation
* due to branding and positioning.
5 Stage Purchase Process:













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The Role of the Web in the Buying Process aka Purchase Process or Buying Cycle
Definition: Buying Process
A standard process that corporations and individuals progress through (in order)
when purchasing a product or service. Also known as the 'Buying Cycle' or
'Purchase Process'.

The Purchase Process:
This process typically consists of 5 major steps:
1. Need/Problem Recognition or Identification This is the initial stage
where an individual comes to the realization that she has a problem (or
opportunity). It is only once an individual recognizes a problem that she can
start looking for a solution. This stage cannot be skipped, and is always the
first stage of the process. Eg. I need to hang a picture on my office wall.
2. Information Gathering/Determination of Alternatives This is the 2nd
stage of the purchase process where an individual now begins to look for
solutions to their problems or to the opportunities that they've identified. There
are often more ways than one to achieve the given objective.
eg. I can:
a. merely drill a screw into the wall
b. drill a hole and insert a plug for more stability
c. use a laser to create a hole and insert a plug
d. use an adhesive tape of some sort, and merely stick it to the wall
e. do nothing
Role of the Internet in Stage 2:
In terms of the internet, it dramatically improves an individuals ability to find
alternatives and information about most of those alternatives. Perform a
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search for "hang a picture"and you'll be presented with at least 146,000
results.
3. Assessment of Alternatives/Alleviation of Risk -
The 3rd phase of the process is the Assessment of Alternatives with an eye to
reduce risk, and maximize the probability the objective set forth is satisfied.
The more complex and costly the possible solutions, the more questions that
have to be asked and answered. Each alternative is assessed in turn.
eg.
a. what is the likelihood that a single screw in the wall will hold the
picture?
b. what is the cost of replacing the picture if the screw does not hold?
c. do I already have a drill?
d. can I borrow a drill?
e. do a have a wall plug?
f. how much does a wall plug cost?
g. how far will I have to drive to get the wall plug?
h. how much time will it take to drive to buy a wall plug?
i. what is the likelihood the wall plug won't hold the picture?
j. how much is a wall drilling laser?
k. do I have a wall drilling laser or can I borrow one?
l. will a wall drilling laser cause the wood stud in the wall to catch fire,
and what is the probability of my office burning?
Role of the Internet in Stage 3:
In terms of internet marketing, potential purchasers will look for recognized
brands online, or anything within a website that suggests stability and
credibility such as:
a. crests
b. partnerships with recognized brands
c. awards
d. consumer feedback and opinion
e. site quality
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4. Purchase
The 4th phase of the buying process is in making the actual purchase. Now
that the individual has decided what alternative they will go with because it
offers the best perceived combination of goal achievement and minimization
of risk they purchase.
5. Post Purchase Evaluation
This is the last phase of the Buying Cycle and once again it involves the
individual asking themselves a series of questions, but this time the questions
are designed to help the individual learn from his/her mistakes.
eg.
a. did the purchase accomplish its objective?
b. were any of the risks realized?
Ultimately, an individuals satisfaction with a purchase, and their likelihood of
becoming a brand advocate, will be based on the perceived results relative to
expectations. Did the purchase exceed their expectations, merely meet their
expectations, or fall beneath expectations? If it exceeded expectations, you've
got a brand advocate. If merely met, the individual is likely brand neutral. If the
purchase falls below expectations, then you'll likely have a 'brand basher',
spreading news of their negative experience in as many places as possible.
Role of the Internet in Stage 5:
Once again, the internet plays a tremendous role in spreading both the brand
advocate and brand basher messages. Blogging and micro-blogging
(eg. Twitter) make it possible for people to share their experiences with
hundreds (even thousands) of others with minimal effort. At the same time,
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these post purchase opinions often remain online indefinitely, leading to a
sudden rise in the need for 'online reputation management' services. This of
course means that a firm's 'brand message' is no longer carried by the firm
its now carried and diseminated by their clients. So its entirely up to a
company what message clients carry forward about their brand all they
have to do is manage client expectations, so that they can be exceeded!