CHAPTER-1 (Web Commerce)

1.Define commerce.
AnswerCommerce is normally associated with the buying and selling of items.
2.Before the advent of networks, how was data being transferred between computers?
AnswerWith secondary memories like floppies
3.Name two stages of commerce that cannot be automated.
AnswerProduction of goods and delivery of goods.
4.What is the role of encryption in data transfer
AnswerTo ensure security of data.
5.Name two areas which are reasons of worry in e-commerce.
AnswerSecurity and legal acceptance
6. List the categories of operations comes under e-commerce.
AnswerThe following categories of operations comes under e-commerce.

Transactions between a supplier/a shopkeeper and a buyer or between two companies over
a public network like the service provider network (like ISP). With suitable encryption of data
and security for transaction, entire operation of selling/buying and settlement of accounts can
be automated.

Transactions with the trading partners or between the officers of the company located at
different locations.

Information gathering needed for market research.

Information processing for decision making at different levels of management.

Information manipulation for operations and supply chain management.

Maintenance of records needed for legal purposes, including taxation, legal suits etc.

Transactions for information distributions to different retailers, customers etc. including

Advertising, sales and marketing.

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CHAPTER-2 (Fundamentals of consumer oriented e-commerce)

1. List any three basic needs of consumer oriented e-commerce.
AnswerStandard processes for buying and selling; well accepted hardware and software and secure
commercial and transport practices.
2. List any three basic banking activities.
AnswerThree basic banking activities

1. Account checking,
2. ATM, payment of bills,
3. fund transfer etc.

3. What does ATM stand for.

AnswerATM stand for Automated Teller machine
4. Why does an ATM does not involve a computer at customers level?
AnswerAn ATM does not involve a computer at customers level Because any average customer is more
comfortable with simply inserting an ATM card.
5. What is the samples type of home shopping?
AnswerThe channels describe the product, orders are placed over phone, delivery is made at home
and payment in the standard mode.
6. What is movie on demand?
AnswerThe viewer selects the movie to view an the TV against payment.
7. Name any two concepts of TV based home entertainment?
AnswerMovie an demand and on line games.
8. What is the need for seamless connections?
Answer-

So that persons with different types of hardware and software can interact easily.
9. What is the need for market place interacts?
AnswerTo facilitate comparisons, negotiations, bargaining etc.
10. What is the need for settling disputes?
AnswerTo ensure that disgruntled customers / traders can have a standard recourse for settlement.
11. List and explain the desirable characteristics of e-marketing.
AnswerCharacteristics of e-marketing are-

1. A minimal size of the place- Obviously for any such place to thrive there is a critical size,
below which it is not profitable to operate. This minimal number of buyers and sellers
characterises the profitability of the place.
2. A scope for interactions- Interactions include trial runs of the products, classifications of
doubts on the part of the customers, details of after sales services, ability to compare
different products and of course scope for negotiationsand bargaining. Negotiations can be
in terms of cost, value additions, terms and conditions, delivery dates etc.
3. Scope for designing new products- The customer need not buy only what is available. He
can ask for modifications, upgradations etc.The supplier must be able to accept these and
produce made to order items.
4. A seamless connection to the marketplace- It is obvious that each customer will be
operating with a different type of computer, software, connectivity etc. There should be
available standards sot that any of these costumers will be able to attach himself to any of
the markets without changing his hardware/software/interfaces etc.
5. Recourse for disgruntled users- It is nave to believe that transaction of such a place end
up in complete satisfaction to all parties concerned. Especially because of the facelessness
of the customer and the supplier, there should be a standard recourse to settle such
disputes.

12. Explain basic tenets of e-commerce.

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CHAPTER-3(Electronic Commerce and the World Wide Web)

1. Define EDI.

AnswerElectronic Data Interchange.

2. Define EFT.
AnswerElectronic Data Interchange.
3. Name a few operations performed by e-commerce.
AnswerPayment, fund transfer, order entry, invoicing etc.
4. Define a framework.
AnswerFramework is intended to define and create tools that integrate information.
5. List the six layers of e-commerce architecture.
AnswerThe six layers of e-commerce architecture-

1. Applications
2. Brokerage services
3. Interface
4. Secure messaging
5. Middle ware and
6. Network infrastructure
6. Name the three classes of e-commerce applications based on transactions.
AnswerConsumer to business, Business to business, intra organization.
7. Define a information Brokerage.
AnswerAn intermediary who provides integration between customers and information providers
8. Define a software agent.
AnswerAgent is an encapsulation of users instructions.
9. Define middle ware.
AnswerIt is a mediator between diverse application programs that talk to each other.
10. Name the three stages of e-commerce architecture on web.
Answer-

The three stages of e-commerce architecture on web are

1. Client browser
2. WWW server functions and
3. Third party services.
11. With the help of an example give the meaning of secure messaging.
AnswerSecure messaging is a server based approach to protect sensitive data when sent beyond the
corporate borders and provides compliance with industry regulations such as HIPAA, GLBA and
SOX. Advantages over classical secure e-Mail are that confidential and authenticated exchanges
can be started immediately by any internet user worldwide since there is no requirement to install
any software nor to obtain or to distribute cryptographic keys beforehand. Secure messages provide
non-repudiation as the recipients (similar to online banking) are personally identified and
transactions are logged by the secure email platform.
SMTP (Simple Mail Transfer Protocol) is the de facto standard for email that traverses the Internet.
In fact, the initial specification is a standard (RFC821) first published in 1982 before the Web as we
know it even existed. (For perspective, the standard defining the URL was published in 1994.) If you
send a message on the Internet, you use SMTP. Notes/Domino fully supports SMTP messaging,
providing many powerful mechanisms to keep the message secure.
12. With the help of a diagram explain e-commerce architecture.
Answer- The basic idea is that
your potential customers go to your world-wide web (WWW) page, find a product or service that they
wish to purchase from you, and then purchase it while they are at the web page. There are three
components to this architecture: the Internet, a firewall, and your organization. The Internet is where
you will interact electronically with your customers, your firewall will provide you with reasonable
protection against people who wish you harm, and your organizations systems will process the
business transactions
generated on the WWW by your customers. Later in this white paper we will discuss a development
approach that uses Java and Smalltalk to support this architecture.
To understand why we need to change our systems infrastructure we must first put the requirements
of electronic commerce into perspective. Were talking about the WORLD wide web, and that means
international commerce. Doing business internationally means handling multiple languages, multiple
currencies, multiple cultures, multiple tax laws, and multiple shipping/customs rules. Its a whole new
ball game folks, and we need to step up to the plate right now.
Definitions-

Electronic cash (e-cash) A digital currency used on the Internet to buy and sell products.

Electronic commerce (e-commerce) Any form of commerce in which the buyer of a product
or service uses a computer to interact with the computer system of the seller of that product
or service.

Internet A collection of interconnected computers that people can log onto to share
information, tocommunicate, to be entertained, and to perform electronic commerce
transactions.

Intranet A network internal to your organization that is built either partially or completely
fromInternet-based technology.

World Wide Web (WWW) A component of the Internet that provides users with the ability to
movefrom computer system to computer system by following predefined links among those
systems.

13. Give the architecture framework for e-commerce.

Answer- The software framework necessary for building electronic
commerce applications is little understood in existing literature.
In general a framework is intended to define and create tools that
integrate the information found in todays closed systems and
allow the development of e-commerce applications. It is important
to understand that the aim of the architectural frame-work itself
is not to build new database management systems, data repository,
computer languages, software agent based transaction monitors,
or communication protocols.
Rather, the architecture should focus on synthesizing the diverse
resources already in place in corporations to facilitate the integration
of data and software for better applications.
The electronic commerce application architecture consists of six
layers of functionality, or services:
(1) applications;
(2) brokerage services, data or transaction management;
(3) interface, and; support layers
(4) secure messaging, security and electronic document
interchange;
(5) middle ware and structured document interchange; and
(6) network infrastructure and basic communications services,
These layers cooperate to provide a seamless transition between
todays computing resources and those of tomorrow by
transparently integrating information access and exchange within
the context of the chosen application. Electronic commerce applications are based on several
elegant technologies.
But only when they are integrated do they provide uniquely
powerful solutions.
In the ensuing discussion of each of these layers, we will not
elaborate on the various aspects of the network infrastructure that transports information. These
were discussed extensively earlier and will not be addressed here. We begin our discussion with the
application level services.
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CHAPTER-4 (Consumer-Oriented Electronic Commerce)

1. Name the three broad phases of consumers perspective.
AnswerPre-purchase determination, purchase consummation, post purchase interaction.
2. What are the categories of consumers?

AnswerImpulsive buyers, patient buyers and analytical buyers.

3. What are the four types of purchases?
AnswerThe four types of purchases areSpecifically planned, Generally planned, reminder purchases and unplanned purchases.
4. Why are information brokerages needed?
AnswerTo help in comparison shopping, reduce search costs and integration.
5. What issues are included in post purchase interaction?
AnswerInventory issues, database access issues and customer service issues.
6. Name the phases from the merchants point of view?
AnswerPresales interaction, product service, production and delivery and post sales interaction.
7. What is order selection?
AnswerPrioritize orders based on same factors.
8. Why is a critical mass necessary for market?
AnswerOtherwise the cost per unit goes up.
9. What is the need for standardization?
AnswerTo move seamlessly across various hardware and software.
10. On what factors can negotiations take place?
AnswerOver money, terms and conditions, delivery dates and evaluation criteria.
11. List the desirable characteristics of e-commerce market place?
AnswerThe following criteria are essential for consumer-oriented electronic commerce:

Critical mass of buyers and sellers. The trick is getting a critical mass of corporations
andconsumers to use electronic mechanisms. In other words, the electronic marketplace
should be the first place customers go to find the products and services they need.

Opportunity for independent evaluations and for customer dialogue and discussion. In the
marketplace, not only do users buy and sell products or services, they also compare notes
on who has the best products and whose prices are outrageous. The ability to openly
evaluate the wares offered is a fundamental principle of a viable marketplace

Negotiation and bargaining. No market place is complete if it does not support negotiation.
Buyers and sellers need to be able to haggle over conditions of mutual satisfaction, including
money, terms and conditions, delivery dates, and evaluation criteria.

New products and services. In a viable marketplace, consumers can make requests for
products and services not currently offered and have a reasonable expectations that
someone will turn up with a proposed offering to meet that request.

Seamless interface. The biggest barrier to electronic trade is having all the pieces work
together so that information can flow seamlessly from one source to another. This requires
standardization. On the corporate side, companies need compatible EDI software and
network services in order to send electronic purchase orders, invoices, and payments back
and forth.

Recourse for disgruntled buyers. A viable marketplace must have a recognized mechanism
for resolving disputes among buyers and sellers. Markets typically include a provision for
resolving disagreements by returning the product or through arbitrage in other cases.

12. Explain mercantile model from consumers perspective?

AnswerThe business process model from a consumers perspective consist of seven activities that can be
grouped into three phases: pre-purchase phase, purchase consummation, and post-purchase
interaction.

1. The pre-purchase preparation phase includes search and discovery for a set of products in
the larger information space capable of meeting customer requirements and products
selection from the smaller set of products based on attribute comparison.
2. The purchase consummation phase includes mercantile protocols that specify the flow of
information and documents associated with purchasing and negotiation with purchasing and
negotiation with merchants for suitable terms, such as price, availability, and delivery dates;
and electronic payment mechanisms that integrate payment into the purchasing process.
3. The postpurchase interaction phase includes customer service and support to address
customer complaints, product returns, and product defects.
Lets consider each of the consumer purchasing phases in detail.
13. Explain mercantile model from merchants perspective?
Answeri) Order planning and Order generation: - Order planning leads intoorder generation. Orders are
generated by broadcast ads, sending personalized e-mail to the customer, or creating web pages.

ii) Cost Estimation and Pricing: - Pricing is the bridge between customer needs and company
capabilities. Pricing at the individual order level depends on understanding, the value to the
customer that is generated by each order, and instituting a system that enables the company to price
each order based on its valued and cost.
iii) Order Receipt and Entry:- In this step customer enter his order about services and products that
he want to buy. This department is staffed by very experienced employees.
iv) Order Selection and Prioritization: - In this phase CSRs decide that which orders to accept and
which to decline and set priorities because some orders are better for business.
v) Order Scheduling: - It means slotting the selected order into an actual production or operational
sequence. This is very difficult because the different functional departments like- sales, marketing,
customer service etc may have conflicting their goals.
vi) Order fulfillment and Delivery: -- This is very complex phase where the actual provision of the
product or service is made.
vii) Order Billing and Account/Payment Management:viii) Post-sales Service:- It play important role in companys profit equation. Depending upon the
specific of the business, it can include element as physical installation of a product, repair and
maintenance. Because of the information conveyed and intimacy involved, post sales services can
affect customer satisfaction and company profit.
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CHAPTER-5 (Electronic Payment Systems)

1. What are the three types of electronic tokens?
AnswerCash, debit and credit (also called real time, prepaid and post paid).
2. What are the four properties that e-cash should have?
AnswerMonetary value, inter operability, retrievability and security.
3. How does digital signature works?
AnswerBy providing two keys, one with the public and the other privately with the buyer. The
signature is coded with both.
4. What are the two desirable properties in any e-transaction?
AnswerAnonymity and security.
5. What is double spending?
AnswerDouble spending Spending the same cash in more than one place.
6. What is the difficulty in storing e-cash?
Answer-

It does not provide interest. Also exchange fluctuations affect it.

7. What are the normal constraints put on e-cash?
AnswerA validity limit, the more amount that can be stored, more no. of exchanges and no. of exchanges
within a time period.
8. What is an electronic purse.
AnswerIt is card with a pre-determined amount of money loaded.
9. What are the three ways in which payment through credit cards can be made over the net?
AnswerUsing plain cards, encrypted cards and cards with third party verification.
10. Name any four issues addressed in a e-payment system.
AnswerPrivacy, security, database integration, brokers etc.
11. Explain the various issues to be addressed while designing e-payment system.
Answer12. Explain the categories of credit card payment system on on-line networks.
AnswerWe can break credit card payment on on-line networks into three basic categories:

1. Payments using plain credit card details. The easiest method of payment is the exchange
ofunencrypted credit cards over a public network such as telephone lines or the Internet.
Thelow level of security inherent in the design of the Internet makes this method problematic.
Authentication is also a significant problem, and the vendor is usually responsible to ensure
that the person using the credit card is its owner. Without encryption there is not way to do
this.
2. Payments using encrypted credit card details. It would make sense to encrypt your credit
card details before sending them out, but even then there are certain factors to consider.
One would be the cost of a credit card transaction itself. Such cost would prohibit low-value
payments (micro-payments) by adding costs to the transactions.
3. Payment using third party verification. One solution to security and verification problems is
the introduction of a third party; a company that collects and approves payments from one
client to another. After a certain period of time, one credit card transaction for the total
accumulated amount is completed.

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CHAPTER-6 (Inter-organizational Commerce and EDI (Electronic Data

Interchange)
1. Define EDI.
AnswerInter-process communication of business information in standard electronic form.
2. List the four layers of EDI architecture.
AnswerSemantic layer, standard layer, transport layer and physical layer.
3. List any two tangible benefits of EDI.
AnswerReduced paper based systems, improved customer service.
4. Who is liable if an EDI network fails to deliver the message?
AnswerNot decided as yet.
5. Can the digital signature fully replace handwritten signature?
Answer- No
6. What is EFT?
AnswerElectronic Fund transfer.
7. What is the need for open EDI?
AnswerTo allow e-commerce between two organizations for a short duration.
8. With the help of a diagram explain the flow of in formation in EDI.
Answer9. List the tangible benefits of EDI.
AnswerSaving also accrue from the following improvements:

Reduced paper-based systems: EDI can impact the effort and expense a company devotes
to maintaining records, paper- related supplies, filing cabinets, or other storage systems and
to the personnel required to maintain all of these systems. EDI can also reduce postage bills
because of the amounts of paper that no longer need be sent..

Improved problem resolution and customer service: EDI can minimize the time companies
spend to identify and resolve interbusiness problems. EDI can improve customer service by
enabling the quick transfer of business documents and a marked decrease in errors.

Expanded customer/supplier base: Many large manufacturers and retailers with the
necessary clout are ordering their suppliers to institute an EDI program. However, these are

isolated islands of productivity because they are unable to build bridges to other companies.
With the advent of electronic commerce, the bridge is now available.

10. Explain the layered architecture of EDI.

Answer--------------------

CHAPTER-7 (EDI Implementation, Value-Added Networks)

1. List any four components of EDI implementation.
AnswerEDI standard, translation software, trading partners, value added networks etc.
2. What is the common structure of EDI messages?
AnswerEach message is made up of transaction sets which are divided into data segments, which in
turn are made up of data elements.
3. What are the four layers of EDI implementation?
AnswerBusiness application layer, format conversion layer, translator layer and envelop for document
messaging.
4. List any three disadvantages of custom translators.
AnswerThey are restrictive, difficult to up date and are unsupported.
5. What are main types of EDI access methods?
AnswerDirect dialing, limited Third party VAN and full service Third party VAN.
6. What are the costs of EDI implementation.
AnswerFixed costs, Maintenance fees, VAN charges.
7. List the factors that affect the fixed costs.
AnswerVolume of documents, cost of EDI translation software and implementation time.
8. What are the disadvantages of VANs for EDI.
AnswerSlowness, high costs.
9. List the main costs of VAN.
AnswerAccount startup costs, usage costs and interconnect costs.
10. List four advantages of Internets.
AnswerFlat pricing, cheap access, common standards and secure.

11. How much will an EDI implementation cost?

AnswerPrices for EDI products vary from no cost ( for very simple one-function products) to several
thousands of dollars for full-function applications.
The final cost depends on several factors:

1. The expected volume of electronic documents: Generally speaking, PC products cost less
but handle only a few documents and trading partners. Mid-range EDI packages can be a
little more expensive but can handle a larger volume of multiple document types or multiple
trading partners.
2. Economics of the EDI translation software: Some products initially look like a bargain, but as
needs grow, hidden costs suddenly appear. These costs can range from new transaction
sets for doing different forms to expensive upgrades.
3. Implementation time: Some applications are easier to learn and use than others. The more
time spent in training, the more time it takes to get into production mode. If the
implementation time frame is tight, it is wise to look for a translator that doesnt require
training before implementation.Maintenance fees and VAN charges can vary considerably
and as such can affect the cost of EDI systems:
4. Maintenance fees: Most companies charge an annual maintenance fee, usually a
percentage of the translators list price. This fee should include software updates, standards
updates, technical support, and customer service.
5. VAN charges: VANs bill for data transmission, similar to long-distance phone calls. Come
base their billing per document & others charge based on the number of kilo-characters in
each document. Some also bill for connect time.

12. What is VAN? with the help of a diagram explain the functions of third party VAN.
AnswerA VAN is a communications network that typically exchanges EDI messages among trading partners.
It also provides other services, including holding messages in electronic mailboxes, interfacing with
other VANs and supporting many telecommunications modes and transfer protocols.
13. What is EDI? List the factors that make the inteRnet useful for EDI
Answer--------------------

CHAPTER-8 (Intra organizational Electronic Commerce)

1. What is work flow management?

AnswerIt is the concept of task coordination for better results.
2. What are the two main issues that are focused by customization?
AnswerTime to market and flexible operations.
3. What is supply chain management?
AnswerIt is the chain of suppliers and customers for a particular business.
4. What is the main disadvantage of vertical organization?
AnswerIt allows gaps to exist between employees of different departments.
5. What is the main difference between horizontal and vertical organizations?
AnswerHorizontal organization is two tiered as against multiple tiered organization.
6. Define virtual organization?
AnswerIt is a network closely coupled upstream with suppliers and downstream with customers.
7. What are the two approaches of virtual organization?
AnswerDownward and lateral.
8. What are the two main categories of SCM?
AnswerPush based and pull based.
9. What are the primary elements of SCM
AnswerLogistics, integrated marketing and agile manufacturing
10. What is meaning of push based and pull based supply chains.
Answer- A push strategy within the advertising/marketing industry involves directing marketing efforts
at resellers. The success of the marketing depends on the ability of these intermediaries to market
the product. The goal of a push strategy is to make the customer aware of the product/brand at the
point of purchase. Examples of push strategy tactics include displaying the product near the register,
a packaging design to encourage purchase, and direct selling to customers at stores.
A pull strategy encourages the consumer to actively seek out your product/brand. The idea is to "get
the consumer to come to you." This intensifies consumer demand by directing marketing strategies
at the consumer. Examples of pull strategy tactics include advertising, mass media promotion, and

word of mouth promotion.

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CHAPTER-9 (The Need for Computer Security)

1. What are the two basic types of physical data security?
AnswerData integrity and Data availability.
2. Name the two type of threats to data.
AnswerActive threats and passive threats.
3. What is masquerade?
AnswerThe attacker pretends to e some one else.
4. What is IP spoofing?
AnswerIt is a tool that intruders use to take over an open terminal and login connections after they
get root access.
5. What is Telnet?
AnswerTelnet enables users to log in to remote computers.
6. What is the basic principle of kerberos?
Answer- It provides authentication to messages in an open network.
7. What is the unit over which kerberon acts?
Answer- Tickets
8. What are the three ownership groupings in unix files?
AnswerOwner, user, others.
9. What are the three levels of file access permissions in unix?
AnswerRead, write and execution.
10. What are the three main categories of fire walls?
AnswerPacket filters, application level gateways and proxy servers.

11. Give the remarks on hacking technionces.

Answer12. What is the meaning of Active and passive theats.
Answer13. List the guidelines to be followed for security policy?
Answer14. List the issues to he addressed while displaying a security policy.
Answer15. Differntiate between viruses and worrms.
Answer16. Explain the most prominent secure transmission protocol for web communications.
Answer--------------------

CHAPTER-10 (Approaches to Safe Electronic Commerce)

1. List the four basic goals of electronic Security?
AnswerPrivacy, Integrity, authentication and availability.
2. What is non-repudiation?
AnswerA person cannot deny after having sent / received a message.
3. What is key Management?
AnswerTo create, distribute, revoke and manage keys.
4. What is encryption of data?
AnswerEncoding of data with a suitable key.
5. What is the encryption algorithm on which SSL depends?
AnswerThe RSA algorithm.
6. What are basic elements in a SEPP process?
AnswerCard holder, merchant, acquirer and certificate management systems.

7. What does SET stand for?

AnswerSecure Electronic Transaction.
8. What is meant by integrity of data?9. List the key functions of SET specification.
AnswerThe contents should not get changed.