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 easier to buy things offline than buying from a shop, you can buy anytime, anywhere |

|wherever you are in the world. |

|2. Once the website is set up they can leave it to operate on its own whilst the creator can |

|get on with other things. |

|3. If the buyer decides to buy something, it is easy to put it in the post and they can charge |

|for the delivery as well. |

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|b. Describe three features of an online store that facilitate shopping online. |

|(6) |

|1. One feature would be a shopping basket on the top so the buyer can buy numerous |

|things at once without hassle. |

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|2. Another feature is using PayPal or credit/debit cards to buy things. This provides the |

|buyer with many different forms of purchasing and with PayPal it provides very high |

|security. |

|3. One more feature are the links to social sites like Facebook or Twitter. This is used a lot |

|nowadays to show how popular and recognized the website is. Having a Facebook and |

|Twitter page makes the website look more official. |

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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) |

|1. So if the buyer is regularly buying a certain thing then the online retailer can email |

|the customer informing him/her of the deals on that particular item. |

|2. They do this so they know what age group are mostly visiting the website so the retailers |

|can suite the website to that social group. |

|3. If the customer is buying suspicious items on a regular basis then the retailer can inform |

|someone about this behaviour and the customer can be investigated. |

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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. Being hacked. Losing all of their money that is in the bank. |Using very secure lines to purchase things so hacking is not possible. |

|2. Getting somebody’s house details. |Only being able to visit someone’s details if they are given permission. |

|3. Buying from an insecure website and buying the items but not |Only buy from websites that have https at the start. |

|receiving them. | |

|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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