Steve has recently set-up an online bank account
|1. Online retail has boomed in the past ten years |
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|a. Give three reasons why some retailers operate online. |
|(3) |
|1. It is an easier way of displaying the products that the companies are selling in store or online. |
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|2. It is an easier way for companies to sell their products because people can buy them from anywhere around the world. |
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|3. Businesses can buy in bulk off websites so this benefits companies because their making a lot of money if businesses buy in bulk online. |
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|b. Describe three features of an online store that facilitate shopping online. |
|(6) |
|1. You can zoom in online. This is good because then you can look closer at an item you may want to buy, it also helps because then you can |
|look at every part of the item closer. |
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|2. There is a basket online. This helps you shop online because then you can see what you’re going to buy and pay for all of it there and then.|
|This helps people who may not have shopped online before. |
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|3. Information boxes allow you to look at what a certain item does, for example a hard drive goes into your computer to make more memory. This |
|helps people to understand what the product does. |
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|2. Online retailers collect data about their customers’ shopping habits. |
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|a. Give three reasons why they do this. |
|(3) |
|Retailers do this because then they can set a target audience for their products, this helps them sell their products in bulk. |
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|Retailers also do a thing called targeted marketing. This allows them to sell a product to someone who they know will buy it. |
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|3. They also collect customers shopping habits because then they know what to sell more of and what to sell less of to make more money. |
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|b. Organisations that collect and store customer data must keep it secure. |
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|Complete this table by identifying three potential risks to customer data. |
|For each risk, suggest one measure an organisation can take to prevent it happening. |
|(6) |
|Risk |Preventative measure |
|1. People who hack a website can access your own personal details |The company can use firewalls to stop hackers getting into your personal |
|and use them to buy stuff. |details. |
|2.A virus can get onto the website and people can access your |Companies can stop this happening by checking the website for viruses |
|details |daily. They also have anti-virus software on the internet. |
|3. | |
|3. Online retailers make use of cookies to identify customer returning to their website. |
|Explain what a cookie is and how it works. |
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|(3) |
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|4. Online retailers use targeted, personalised advertising to boost sales. |
|Explain how they do this |
|(4) |
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