SAMI ULLAH KHAN BS ACCOUNTING AND FINANCE 9494

E-COMMERCE
MIDTERM EXAMINATION 2020
QUESTION-1
ANSWER:
 CONSUMER TO CONSUMER:
The proposed business model will be consumer to consumer, it
is a market place in which we can buy and sell real estate and
goods such as furniture, electronics, household goods, cars, bike
and fashion etc. C2C marketplace is convenient because in this
seller post their goods for sale and buyer purchase it. It is a form
of business model that has emerged with e-commerce
technology and the sharing economy. We can also do
advertising and enable revenue streams
C2C companies earned their revenue by charging fees from
seller whenever he lists an item on website. These companies is
growing day by day because of it cost effectiveness.
 ADVANTAGES OF PROPOSED BUSINESS MODEL:
(C2C)
a) The first advantage is that it has low cost that’s why it is
growing day by day.
b) There is no intermediary between seller and buyer, you can
personally contact seller or buyer.
SAMI ULLAH KHAN BS ACCOUNTING AND FINANCE 9494

c) It has wide reach; seller has posted different varieties of

goods.
d) It is available 24/7 you can access to it whenever you want.

 DISADVANTAGES OF PROPOSED BUSINESS

MODEL: (C2C)
a) The biggest disadvantage is that payment made has no
guarantee.
b) There may be scam; the product may be a fraud.
c) In a time of payment you can be robbed, there is no safety.

QUESTION-2
ANSWER:
 BUSINESS TO CONSUMER (B2C):
The proposed business model will be business to consumer, it
refers to the selling of products and services between business
and consumer over the internet. We will provide different
products on website for sale; we will also pay bloggers for
advertisement of our website.
 ADVANTAGES OF PROPOSED BUSINESS MODEL:
a) It has low cost than traditional business to consumer
models.
b) It has easy business administration like delivery process,
record data and other business management tasks
SAMI ULLAH KHAN BS ACCOUNTING AND FINANCE 9494

c) B2C models can provide many niche market oppurtunities.

d) Business to consumer market has more stability than the
traditional businesses.
e) It also has better sales, because most of people nowadays
prefer online shopping.

 DISADVANTAGES OF PROPOSED BUSINESS

MODELS (B2C):
a) In B2C model the competition is severe since there are
millions of online brands and services that can put our
business at a stake in terms of customer base. 
b) Another disadvantage is infrastructure which means that a
total number of 26 million people in the world are deprived
of using a stable internet connection.
c) Still there is a limited interaction between business and
consumers; In Pakistan still most of people prefer
traditional shopping.
d) There can be scams in B2C models, then can send you
damage products etc.

QUESTION-3
ANSWER:
 REVENUE MODELS:
ABC travel agency can used different revenue models for
generating revenue.
 SAMI ULLAH KHAN BS ACCOUNTING AND FINANCE 9494

1. PEER WITH VACATION RENTAL MARKET

PLACE:
These websites seek to build a shared economy where for
the duration of their stay, travellers get in contact with
property owners who give rooms or houses for rent. It is
also a great revenue model for travel agency to generate
revenue by linking with different rental place like hotels,
flats and hostels etc.
II. SUBSCRIPTION REVENUE MODEL:
Resorts and hotels can be connected to the ABC agency
(B2B) and users may access hotel descriptions and contact
information via the website. As consumers want to
schedule their entire trip from their homes, airlines, local
taxis etc also team up with these companies.
III. PARTNERSHIP REVENUE MODEL:
On social media, users interested in travelling to a specific
destination find tips, explanations and feedback from other
travelers. Through working with these social travel sites
with large communities, online agencies and booking
platforms will definitely wider your customer base and will
have proper revenue streams.

 ADVANTAGES OF PROPOSED REVENUE MODELS:

a) It is easy to generate revenues through these revenue
models.
b) The key advantage of Subscription revenue model is that
once you attached with customer, you actually retain them
SAMI ULLAH KHAN BS ACCOUNTING AND FINANCE 9494

for a sometime so it will give some benefits to the business

models.
c) In partnership revenue model actually your business model
is linked with other business model, which means their
success is your success. Most of business models are
successful because of partnership. It is also a great revenue
model for generating revenue streams.

QUESTION-4
(i) As a student of Business, state and justify why online
shopping is better than in -store shopping ?
ANSWER:
1) First of all online shopping is time saving, we get what we
want from our control sitting at home or office.
2) Second it is comfortable means we can order different
products from our comfort zone.
3) Third it has a wider range of brands, we can buy different
varieties at just one place.
4) Fourth online shopping has 24/7 services, you can buy
anytime you want.
5) Fifth it also provides discounts and vouchers for their
customers.
6) Sixth It may provide free shipping and home delivery at our
doorstep, no need to go outside and get a product from
shopping mall etc.
SAMI ULLAH KHAN BS ACCOUNTING AND FINANCE 9494

7) Seventh the product listed on online website has more and

accurate information than in store.

(ii) Why revenue model is a part of the business model.

Elaborate and justify with example.
ANSWER:
Revenue model is an important component of business model; it
describes how a company generates revenue. It identifies what
value to offer, how to price the value and who will pay the
price.
EXAMPLE:
Careem is a business model, which provides riding services to
people. People used this service by using Careem application
which brought Careem drivers and passenger together. This
overall generating value of customers is a business model.
The revenue model of this company is the collection of usage
fees on the basis of fares, surge pricing or any other high class
riding service.
In the above example, it is shown that how revenue model is an
important component of business model.

(iii) Discuss the advantages of m-commerce over e-

commerce?
SAMI ULLAH KHAN BS ACCOUNTING AND FINANCE 9494

ANSWER:
1) It has faster buyer journey means most of people use
mobile app for their shopping and it works 1.5* faster to
load data and information.
2) Mobile commerce has wider reach and accessibility, now
days every person owns a smart phone. Every person
having a smart phone is a potential customer.
3) With E commerce you can track valuable customer data,
you can know in which products customer are interested
nowadays.
4) M commerce communicates with their customers through
push notifications which comes with higher open rate
(90%).
5) M commerce offers better customer experience, 69% of
population prefer shopping over smart phones because it
gives better customer experience.