e Commerce Notes

Suresh Chandra.Ch, Research Scholar(K.U)

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E-Commerce:

Electronic Commerce, commonly referred to as "eCommerce" or "e-commerce", is

defined as the utilization of information and communication technologies (ICT) in

support of all the activities of business transactions.

E-commerce is defined as “any form of business transaction in which the parties

interact electronically rather than by physical exchanges of documents or direct meetings

among officials”.

Simply, E-commerce is defined as “the process of conducting business

electronically or over the internet”.

E-commerce involves business processes spanning the entire value chain:

electronic purchasing and supply chain management, processing orders electronically,

handling customer service, and cooperating with business partners.

ADVANTAGES OF E-COMMERCE:

There are many advantages of E-commerce It provides advantages for sellers

and buyers. Some of the important advantages are:

1. Increased sales opportunities for seller

2. Wider product availability to the buyers.

3. Decreased costs for sellers

4. Customized and personalized information and buying options.

5. 24 hours a day, 7 days a week sales for sellers and 24/7 shopping for buyers.

6. Access to global markets for sellers.

7. Increased speed and accuracy of information delivery.

8. Data collection and customer preferences tracking is available through E-

Business.


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SIGNIFICANCE OF E-COMMERCE

1.Electronic commerce methods enable companies to link their internal and external data

processing systems more efficiently and flexibly, to work more closely with suppliers and

partners, and to better satisfy the needs and expectations of their customers.

2. . Ecommerce software solutions allow the integration of intra and inter firm business

processes.

3. E-commerce is a mainly Internet-based commerce method, the security of online

business information, business activities and their confidence will seriously affect

people's awareness, acceptance and participation of e-business, and thus the impact of e-

business development.

With the development of e-business, some new problems appeared. They are a challenge

to the traditional commercial mode, honesty and the evaluation method.

3. E-commerce can be conducted using the Web, the Internet, intranets, extranets, or some combination of these.

4. E-commerce is any internet initiative – tactical or strategic that transforms business

relationships, whether those relationships be business-to-consumer, business-to-business,

intra business or even consumer – to – consumer.

5. Electronic commerce is market place where businesses are using Internet technologies

and network computing to securely transform:

• Their internal business processes(via Intranets),

• Their business relationships(via extranets), and

• The buying and selling of goods, services, and information (via e-commerce).

OPPORTUNITIES AND RISKS

• Reducing costs, improving margins, efficiencies in company purchasing and

procurement processes for the buyers, and increasing revenues for sellers are the

main objectives of commercial transactions on the internet.

• We use the term “E-commerce” to broadly describe the publishing of information

and the performing of various transactions over the Internet, Extranets, or

Intranets. E-commerce includes the various terms used to express specific

functions, including e-business, e-government, and others. The barriers to


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effective E-commerce are varied enough in the industrial world, but especially

problematic in the developing world. Some obstacles are likely to be removed in

the relatively near future, but others will remain over a much longer period.

• A growing number of companies use computers and the Internet in their daily

business. It is therefore not surprising that e-business is an important if not

significant part of their business strategy.

• Security risks can include theft of data (credit card numbers from your database),

distortion of data (changes to payment files or invoices so that people appear to

owe you more or less than they do), destruction of data, or broadcasting of data

(showing visitors'' real names instead of their nicknames in a chat room or forum).

All of these cost your business money in terms of data recovery and goodwill

recovery.

DIFFERENCE BETWEEN E-BUSINESS & E-COMMERCE

• In practice, e-business is more than just e-commerce.

• E-commerce is a subset of an overall e-business strategy where as e-business is a

strategic focus of all the activities involved in electronic capabilities.

E-Commerce is a subset of E-business. Business involves a whole set of transactions that

must be completed before actual reaching the point where goods or services change

hands for the agreed consideration.

E-Commerce Models: Based on providers (or) producer and customer(or) clients point

of view, the E-Business models are classified into:

• Business-to-business(B2B) *

• Business-to-consumer (B2C) *

• Business-to-employee (B2E)

• Business-to-government (B2G) *

• Government-to-business(G2B)

• Government-to-government (G2G)

• Government-to-citizen (G2C)

• Consumer-to-government (C2G) *


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• Consumer-to-business (C2B) *

B2C BUSINESS MODEL

Business-to-consumer (B2C, sometimes also called Business-to-Customer) describes

activities of businesses serving end consumers with products and/or services.

There are several internet based shops, popularly known by several names such as virtual

shops, cyber shops, dot-com shops, E-stores etc.

Common Characteristics of the shops are;

Customers have access to the internet. ; They operate from the homes or work

places and wish to purchase items sold by the shops. For convenience sake, one can shp

at any time from the house and items will be delivered to the house. Through the web

address of the shop9ending with. .com known as dot com shops), connnected to the world

wide web, customer operates.

BUSINESS CONSUMER

An example of a B2C transaction would be a person buying a pair of shoes from a

retailer. The transactions that led to the shoes being available for purchase that is the

purchase of the leather, laces, rubber, etc.

Typical examples:

• Online book store(eg: amazon.com)


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• Online car purchasing (eg: automall.com)

• Booking and purchase of airline tickets

Advantages of B2 C applications:

• It allows the company to extend existing services to customers

• It allow companies to increase its customers

• It helps the companies to offer a wide choice and allow cheaper prices

• It may give to the company a world wide visibility.

MAJOR LEGAL AND ETHICAL ISSUES IN ELECTRONIC COMMER CE

The ethical values are the moral principles which govern the trustiness of e-

ecommerce. Some of the issues which are need to be considered for the smooth

functioning of business transactions through e-commerce applications are:

1. Privacy

2. Intellectual property

3. Computer crimes.

1. Privacy: privacy has become one of the worrying concerns for e-commerce. The copy

of the original document or video or any form can upset the business of the mother

companies. The privacy has also entered in many fields including media, film and in

duplication design of the products.

2. Intellectual Property: Intellectual property refers to the ownership of invention and

rights. The advancement in technology also created duplication of innovations and such

things created problems to the owners of intellectual property.

3. Computer Crimes: The computer crime or cyber crimes are also increasing with the

development of technology. The misuse of data and information, duplication of

innovations created problems and the computer crimes are also increasing.


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Mechanics for e-commerce:

Some of the important mechanics for e-commerce include the following.

1. The internet

2. The world wide web(www)

3. Web architecture

1. The Internet

Internet is regarded as the system of interconnected networks that spans the globe.

With out the connection of internet, many applications of e-commerce cannot function.

The internet has proven its credibility as majority of the business transactions are

presently performing with the help of internet only. For getting the internet connection,

the following sources are needed.

a). Routers

b). TCP/IP (Transmission Control Protocol and Internet Protocol)

c). Firewalls

d). Infrastructure

e). Network protocols

2.The world wide web(WWW)

It is the part of the internet allows users to share information with an easy to use

interface. The world wide web provide access to all the users through out the world

to share and get the information from all parts of the world.

3. Web architecture:

The web architecture is also a very important web architecture. These include:

• Client/server model


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• N-tier architecture, e.g., web servers, application servers, database servers,

scalability.

E-COMMERCE ARCHITECTURE

The e-commerce architecture means the synthesizing of various existing resources

like DBMS, data repository, computer languages, software agent-based transactions,

monitors or communication protocols to facilitate the integration of data and software for

better applications. The architectural framework for e-commerce consists of six layers of

functionality or services as follows:

1. Application services

2. Brokerage services, data or transaction management

3. Interface and support layers

4. Secure messaging, security and electronic document interchange

5. Middleware and structured document interchange, and

6. Network infrastructure and the basic communication services.

The e-commerce architecture can be of many types depending on the type of

client(s) and type of server.

Important forms of e-commerce architecture are:

1. Client server architecture

2. Multi client server architecture.

1. Client server architecture:

• Typically the e-commerce customer is the client and the business is the server.

• In the client/server model single machine can be both client and the server.


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• The client /server model utilises a database server in which RDBMS user queries

can be answered directly by the server.

• The client/server architecture reduces network traffic by providing a query

response to the user rather than transferring total files.

• The client/server model improves multi-user updating through a graphical user

interface (GUI) front and to the shared database.

• In client/server architecture, client and server typically communicate through

statements made in structured query language(SQL).

TWO-TIER ARCHITECTURE

The user system interface is usually located in the user’s desktop environment and

the DBM services are usually in a server that is a more powerful machine that services

many clients.

PROBLEMS AND PROSPECTS IN E-COMMERCE

These include:

1. Fraud

2. security

3. legal issues

4. lack of skilled personnel

5. lack of training and maintenance

6. misuse of information

7. high cost

User Interface (Business rules)

(Business rules) Data Access


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1. Fraud: with the advancement of internet technology the people who are

becoming fraud and doing fraud transactions are increasing. The mis use of

business transactions are keep growing and give in a tough question over the

performance of e-commerce.

2. Security: The e-commerce applications are not typical in nature. Hence, the

security problems are arising. The mis use of passwords and hacking the

transactions are keep growing. The security is posing another important tough

challenge to the e-commerce applications.

3. Legal Issues: The cyber crimes are also posing threats to the advancement of e-

commerce. The IT act 2000 is mainly enacted in order to restrict the cyber crimes

and the fraud and misuse of information are the majority of the cases filed in the

recent past.

4. Lack of skilled personnel: For countries, like in India, there is a huge demand

for skilled personnel. Lack of skilled personnel is also a threat as majority of the

middle and old age personnel are not skilled in computers and itnerent.

5. Lack of training and maintenance: Maintenance is also causing another

worrying factor for the e-commerce applications. Proper expertise is needed in

order to maintain the applications of e-commerce and at present, majority of the

companies are suffering from the lack of proper trainers for the employees and the

companies spending for maintenance cost is also increasing as they are hiring

with the services of outsiders.

6. High Cost: For maintenance and installation of several packages and programmes

to run e-commerce applications create high costs. And the high costs will also

generate to small companies to use e-commerce technology for their business

transactions.


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UNIT –II

EDT & INTRANET

Contents:

• EDT • Technology and development of EDI • Intranets • Growth and benefits of intranets • Specific applications of Intranets • E-Commerce Standard

1). EDI

EDI refers to Electronic Data Interchange. EDI is the direct computer to

computer exchange between two organizations of standard business transaction

documents such as invoices, bill of lading (list of a ship’s cargo), purchase orders . It

saves money and time because transactions can be transmitted form one information

system to another through a tele-communications network, eliminating the printing and

handling of paper at one end and the inputting of data at the other.

The EDI standards were designed to be independent of communication and

software technologies. EDI can be transmitted using any methodology agreed to by the

sender and recipient. This includes a variety of technologies, including modem

(asynchronous, and bisynchronous), FTP, Email, HTTP, AS1, AS2, etc.

EDI differs from electronic mail in that it transmits an actual structured

transaction (fields like transaction date/amount, senders name, recipient’s name etc) in

contrast to an unstructured text message such as a letter. EDI consists of standardised

electronic message formats, for business documents such as requests for quotations,

purchase orders, purchase change orders, bills of lading, receiving advices and invoices.


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APPLICATIONS OF EDI:

EDI is used in manufacturing, shipping, warehousing, utilities, pharmaceuticals,

construction, petroleum, metals, banking, insurance, retailing , government, healthcare,

and textiles among others.

The major benefits of EDI is cost reduction by eliminating paper document

handling and with faster electronic document transmission. The other important features

include:

1. Improvements in overall quality: By better record keeping, fewer errors in data,

reductions in processing time, less reliance on human interpretation of data,

minimised unproductive time.

2. Inventory reduction: it permits faster and more accurate filling of orders , helps

reduce inventory, assists in JIT(Just in Time) inventory management.

3. Provides better information: It provides accurate information and audit trails for

transactions, enabling business to identify areas offering the greater potential for

efficiency improvement or cost reduction.

4. Sending invoices: It can be used for sending invoices, purchase orders, custom

documents, shipping notices and other types of business documents in a fast and

expensive method.

5. Saves time: It saves time and manpower by avoiding the need to rekey data.

6. It eliminates the errors introduced by rekeying.

7. Data arrives much faster than it could be by mail, and there is an automatic

acknowledgement.

Limitations:

EDI provides lot of benefits to the organizations and suppliers and some

limitations are also restricts to use the Electronic Data Interchange. They are:

1. Applications of EDI costs very high to develop and operate. Specially new entrants

find this more difficult to use or have the EDI.

2. It does not allow consumers to communicate or transact with vendors in an easy way.

Hence it provides limited accessibility to the consumers and the subscribers must

subscribe to an online service called Value added network(VAN).


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3. It need highly structure protocols, previously established arrangement, unique

proprietary bilateral information exchanges.

2). DEVELOPMENT OF EDI EDI is a means of a communication being rapidly assimilated into every business

practice. The Process by which exchange of information through EDI, typically mirror-

image business applications owned by two or more are trading partners. The most

common trading partners are vendors and customers.

Historically, paper documents were prepared and mailed by the initiation of a

transaction, delivered through the postal system. This process required a significant

degree of human resource and represented non-value-added time in the business cycle.

Later, the telephone has become the most common means of a business interaction.

Recent advances in technology have partially addressed the problems from earlier

sources and the Electronic mail (E-mail) systems have been used for some time as an

intra organizational means of communicating effectively. E- mail’s inefficiency, as with

its close cousin the facsimile (FAX). Later, the e-mail, FAX, and voice mail, all require a

human being to interpret the transmitted information’s content and react. Errors and time

were found problematic constraints. The problem for exchanging large volumes of

transactions was solved with the development in technology with computer punch cards

and magnetic tapes. Developments in telecommunications during the 1970s enabled

these transfers to move between partners even more rapidly. Later, the the creation of

TDCC( Transportation Data Coordinating committee) created the plot form for the

advanced development in EDI. Accredited Standards Committee X12 (ASC X12) was

established with an open membership which enabled the businesses to establish a single

software infrastructure to transform data, a process now termed translation to equate the

ASC X12 standard to its role as a common language for transaction and data exchange.

Technology of EDI


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EDI’s primary tool is software which transforms data from and to the defined

ASC X12 standard formats. Referring to this computer based process as translation

describes its true function. EDI begins and ends with business applications which share

data but have different methods of viewing and processing them. The buyer is assisted

by a firm’s purchasing system in placing an order for an item by part number, quantity,

unit price and delivery schedule. These data elements are received by the supplier’s

order entry system and must be used to identify the product being purchasing, coordinate

delivery from inventory or schedule manufacturing and begin the billing cycle after

delivery is complete.

3). INTRANET

An intranet is a private network that uses Internet protocols to securely share any

part of an organization's information or operational systems with its employees.

Sometimes the term refers only to the organization's internal website, but often it is a

more extensive part of the organization's information technology infrastructure and

private websites are an important component and focal point of internal communication

and collaboration.

An intranet is built from the same concepts and technologies used for the Internet,

such as client-server computing and the Internet Protocol Suite (TCP/IP). Any of the well

known Internet protocols may be found in an intranet, such as HTTP (web services),

SMTP (e-mail), and FTP (file transfer). Internet technologies are often deployed to

provide modern interfaces to legacy information systems hosting corporate data.

4). GROWTH OF INTRANET

An intranet can be understood as a private version of the Internet, or as a private

extension of the Internet confined to an organization. The first intranet websites and

home pages began to appear in organizations in 1990 - 1991. Although not officially

noted, the term intranet first became common-place inside early adopters, such as

universities and technology corporations, in 1992.


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Intranets differ from extranets in that the former are generally restricted to

employees of the organization while extranets may also be accessed by customers,

suppliers, or other approved parties. Extranets extend a private network onto the Internet

with special provisions for access, authorization and authentication.

5). BENEFITS AND APPLICATIONS OF INTRANETS

• Workforce productivity : Intranets can also help users to locate and view

information faster and use applications relevant to their roles and responsibilities.

With the help of a web browser interface, users can access data held in any

database the organization wants to make available, anytime and - subject to

security provisions - from anywhere within the company workstations, increasing

employees' ability to perform their jobs faster, more accurately, and with

confidence that they have the right information. It also helps to improve the

services provided to the users.

• Time: With intranets, organizations can make more information available to

employees on a "pull" basis (i.e., employees can link to relevant information at a

time which suits them) rather than being deluged indiscriminately by emails.

• Communication: Intranets can serve as powerful tools for communication within

an organization, vertically and horizontally. From a communications standpoint,

intranets are useful to communicate strategic initiatives that have a global reach

throughout the organization. The type of information that can easily be conveyed

is the purpose of the initiative and what the initiative is aiming to achieve, who is

driving the initiative, results achieved to date, and who to speak to for more

information. By providing this information on the intranet, staff have the

opportunity to keep up-to-date with the strategic focus of the organization. Some

examples of communication would be chat, email, and or blogs.

• Web publishing allows 'cumbersome' corporate knowledge to be maintained and

easily accessed throughout the company using hypermedia and Web technologies.

Examples include: employee manuals, benefits documents, company policies,

business standards, newsfeeds, and even training, can be accessed using common

Internet standards (Acrobat files, Flash files, CGI applications). Because each


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business unit can update the online copy of a document, the most recent version is

always available to employees using the intranet.

• Business operations and management: Intranets are also being used as a

platform for developing and deploying applications to support business operations

and decisions across the internet worked enterprise.

• Cost-effective: Users can view information and data via web-browser rather than

maintaining physical documents such as procedure manuals, internal phone list

and requisition forms.

• Promote common corporate culture: Every user is viewing the same

information within the Intranet.

• Enhance Collaboration: With information easily accessible by all authorized

users, teamwork is enabled.

• Cross-platform Capability: Standards-compliant web browsers are available for

Windows, Mac, and UNIX.

• Built for One Audience: Many companies dictate computer specifications. This,

in turn, may allow Intranet developers to write applications that only have to work

on one browser (no cross-browser compatibility issues).

• Knowledge of your Audience: Being able to specifically address your "viewer"

is a great advantage. Since Intranets are user specific (requiring database/network

authentication prior to access), you know exactly who you are interfacing with.

So, you can personalize your Intranet based on role (job title, department) or

individual ("Congratulations Jane, on your 3rd year with our company!").

• Immediate Updates: When dealing with the public in any capacity,

laws/specifications/parameters can change. With an Intranet and providing your

audience with "live" changes, they are never out of date, which can limit a

company's liability.

• Supports a distributed computing architecture: The intranet can also be linked

to a company’s management information system, for example a time keeping

system.


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6). EXTRANET

An extranet is a private network that uses Internet protocols, network

connectivity, and possibly the public telecommunication system to securely share

part of an organization's information or operations with suppliers, vendors, partners,

customers or other businesses. An extranet can be viewed as part of a company's intranet

that is extended to users outside the company, usually via the Internet.

Advantages

• Exchange large volumes of data using Electronic Data Interchange (EDI)

• Share product catalogs exclusively with trade partners

• Collaborate with other companies on joint development efforts

• Jointly develop and use training programs with other companies

• Provide or access services provided by one company to a group of other

companies, such as an online banking application managed by one company on

behalf of affiliated banks

• Share news of common interest exclusively.

EXTRANET STRUCTURE

Enterprise

Intranet

ElectronicStorefront

InformationDissemination

CustomerServices

BusinessIntelligence

Internet

Extranet

Logistics ProviderDistributorsSuppliers

FinancialSrvices

• KnowledgeManagement

• InternalCommunication

• ProjectManagement


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7). E-Commerce Standards

The standards are generally used to represent the trust and authenticity of the object

or invention. The e-commerce standard will help the organizations to ensure that they are

equipped with the inputs that enable smooth flow of business transactions. Some of the

important e-commerce standards include:

1. Data communication standards ( these include LAN, inter connect software,

hardware)

2. Physical later( to get the data in bits between the computers)

3. Data link layer

4. Network layer

5. Transport layer

6. Presentation & application layers.


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UNIT – III

ELECTRONIC PAYMENT SYSTEMS

Contents:

� Electronic Payment Systems

� Banking network

� Role of intermediaries

� Post paid payment systems

� Instant paid payment systems

� Prepaid payment system

1. ELECTRONIC PAYMENT SYSTEMS

Today, many users make payments electronically rather than in person. Hundreds

of electronic payment systems have been developed to provide secure Internet

transactions. Electronic payment systems are generally classified into four categories:

credit card and debit cards; electronic cash; micro payment systems; and session-level

protocols for secure communications.


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STRUCTURE OF E-PAYMENT SYSTEM 1.CREDIT CARD: A credit card is part of a system of payments named after the small

plastic card issued to users of the system. It is a card entitling its holder to buy goods and

services based on the holder's promise to pay for these goods and services. The issuer of

the card grants a line of credit to the consumer (or the user) from which the user can

borrow money for payment to a merchant or as a cash advance to the user.

2.DEBIT CARD : A debit card (also known as a bank card or check card) is a plastic card

that provides an alternative payment method to cash when making purchases.

Functionally, it can be called an electronic cheque, as the funds are withdrawn directly

from either the bank account, or from the remaining balance on the card. In some cases,

the cards are designed exclusively for use on the Internet, and so there is no physical

card.

The use of debit cards has become widespread in many countries and has overtaken the

cheque, and in some instances cash transactions by volume. Like credit cards, debit cards


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are used widely for telephone and Internet purchases, and unlike credit cards the funds

are transferred from the bearer's bank account instead of having the bearer to pay back on

a later date.

Debit cards can also allow for instant withdrawal of cash, acting as the ATM card for

withdrawing cash and as a cheque guarantee card. Merchants can also offer

"cashback"/"cashout" facilities to customers, where a customer can withdraw cash along

with their purchase.

3. e-CASH: Electronic Cash (also known as e-money, , electronic currency, digital

money, digital cash or digital currency) refers to money or scrip which is exchanged only

electronically. Typically, this involves use of computer networks, the internet and digital

store value systems. Electronic Funds Transfer (EFT) and direct deposit are examples of

electronic money. Also, it is a collective term for financial cryptography and technologies

enabling it.

4. MICRO PAYMENT SYSTEMS : Micropayments are financial transactions involving

very small sums of money. PayPal defines a micropayment as a transaction of less than

12 USD and offers less expensive fees for micropayment transactions. A problem that has

prevented the emergence of feasible micropayment systems that allow payments of less

than a dollar is a need to keep costs for individual transactions low,[2] which is

impractical when transacting such small sums,[3] even if the transaction fee is just a few

cents.

5. SESSIONAL LEVEL PROTOCOLS: Sessional level protocols include a set of rules

which is used by computers to communicate with each other across a network. A protocol

is a convention or standard that controls or enables the connection, communication, and

data transfer between computing endpoints. In its simplest form, a protocol can be

defined as the rules governing the syntax, semantics, and synchronization of

communication. Protocols may be implemented by hardware, software, or a combination

of the two. At the lowest level, a protocol defines the behavior of a hardware connection.

e-CASH:


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Electronic Cash (also known as electronic money, electronic currency, digital

money, digital cash or digital currency) refers to money or scrip which is exchanged only

electronically. Typically, this involves use of computer networks, the internet and digital

store value systems. Electronic Funds Transfer (EFT) and direct deposit are examples of

electronic money. Also, it is a collective term for financial cryptography and technologies

enabling it.

ECash is a legal form of computer-based currency that can be securely purchased

and withdrawn by credit card, Cheque, certified cheques, wire transfer, money order and

Electronic Cheque Processing (ECP). Users can also deposit to and withdraw from their

ECash Direct account using several third-party merchants' payment solutions.

2). BANKING NETWORK IN ONLINE COMMERCE

An overview of four elements of an online commerce or e-commerce and their

relationship to the bank is given below.

7. Update with Account status 5. Obtain payment authorization 4. Select goods 6. Confirm payment 3. Merchant system 1. Select a store 2. Link to merchant server BANKING SYSTEM IN E-COMMERCE

Browser (Consumer)

Website

Website (Online shopping

mall)

Banking system


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1. The consumer and the associated browser to interact with the consumer

2. The merchant system residing on an online web server with a connection to the

web browsers over the internet.

3. An online shopping mall that may help direct consumers to the merchant server.

4. The background banking network to support on-line payments from consumer to

the merchant.

1. Consumer and the Browser

A consumer interacts with the online commerce system through a web

browser. Typically, the consumer first accesses a shopping mall and then uses the

hyperlinks from the mall to access the merchants’ homepage.

2. Shopping Mall

A shopping mall is where most consumers first visit for a shopping spree. The

connection between the shopping mall and a merchant’s storefront are showing. There

will be several shopping malls and it may pay to enlist with one or more well known

shopping malls. Typically a merchant should be listed with several online shopping

malls.

3. Merchant System

A merchant system consists of a home page and related software to manage the

business.

4. Banking network

The banking network consists of several components. First, there is a bank

that processes the online financial transactions for the given merchants. This bank

maintains the accounts for the merchant, authorizes and processes the payments. The

merchant’s bank also maintains a link with the consumer’s bank for verifying the

transactions. The link between the merchant and its bank is often real-time so as to allow

on-line authorization of consumer payments. The consumer’s bank typically has an off-

line link to the consumer, for eg: a post a mail or e-mail.


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In short, for a complete transaction, the following steps need to be executed a

complete transactions.

1. The consumer accesses (browses in internet) the shopping mall and selects a shop

for purchasing certain items.

2. The shopping mall server accesses the merchant system for the selected shop.

3. The merchant system presents the store’s home page to the consumers. It also

includes information on the various goods available from this store.

4. The consumer selects the desired goods, interacts with the merchant system and

makes the payments.

5. the merchant system accesses it bank for authorization of the consumer payments

6. The merchant system informs the consumer that the payment is accepted and the

transactions is completed (At later time, the merchants bank obtains payment

from the consumer’s bank).

7. The consumer’s bank informs the consumer of the money transfer through mail

such as a monthly report or on-line bank account.

3). PREPAID PAYMENT SYSTEMS Prepaid payment systems are one of the electronic payment systems. In this

system, the amount for the value of goods or services will be paid by the customers at the

time of purchase or in advance to receive a good or service.

These include:

1. Prepaid cards

2. Internet Accounts/Wallet/Purse

3. Mobile Accounts/Wallet/Purse

4. Remittance Cards ( Domestic or International)

i). PREPAID CARDS

1. Closed System Payment Instruments, which are not reloadable with cash and do not

permit cash withdrawal (for example: phone calling, prepaid voucher and gift vouchers)


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2. Semi-Closed System Payment Instruments, used at merchant locations, and which can

be reloaded, but do not allow cash withdrawal (for example: cash cards and smart cards)

3. Semi-Open System Payment Instruments: these can be reloadable or non-reloadable,

and can be used at any point-of-sale terminal, but they do not allow cash withdrawal.

Eg: Gift cards issued by banks

4. Open System Payment Instruments: these can be re-loadable or non-reloadable, but

most importantly, they permit cash withdrawal at ATMs. Examples of such cards are the

Payroll cards and travel cards

ii). Internet Accounts/Wallet/Purse

Internet account or wallet is essentially a pre-paid transaction instrument, much

like Cash Card services like Itz Cash Card and Done Card, though with an Internet

Wallet, a user can withdraw money as well.

These are classified into:

1. Internet bank accounts

2. Internet virtual accounts with cash withdrawal across the globe

3. Wallets/ purse for specific usages with no cash withdrawal.

iii). Mobile Accounts

Mobile banking account with all features of traditional banking and cash. Mobile

accounts are also called as m-commerce. Mobile Commerce is any transaction, involving

the transfer of ownership or rights to use goods and services, which is initiated and/or

completed by using mobile access to computer-mediated networks with the help of an

electronic device. Mobile Commerce (also known as M-Commerce, mCommerce or U-

Commerce, owing to the ubiquitous nature of its services) is the ability to conduct

commerce, using a mobile device e.g. a mobile phone (cell phone), a PDA, a smart phone

and other emerging mobile equipment such as dashtop mobile devices.

iv). Remittance:

Across the globe; no limits and specified value for specific transaction and total during

the year.


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4). POST PAID PAYMENT SYSTEM

Post Paid payment system can be divided into three categories:

I). Credit Cards

Credit card is plastic card which is issued by a bank. It is issued to customers of

high credit ranking. the necessary information is stored in magnetic form on the card. A

card holder can purchases the item from the shop or the showrooms and need not pay

cash. he has to flash the card in machine at the place where he is making purchases.

Banks issues credit card to the customers upto a certain limit. The customers can

purchase goods/services from the authorized showrooms without carrying physical cash

with them. The bills are present by the showroom to the authorized branch. This bills is

presented by the paying branch to the issuing branch. Issuing branch informs the

customer about the debit. Banks takes nominal charges for credit cards. Credit cards are

used for online purchases. The merchants likes credit cards because that they know that

they are issued by issuing bank on the basis of creditability of the credit holder and thus,

like cheques, they don't have the risk of bounced. The customers like purchasing through

credit cards because they do not get goods and services as per the term and condition,

they can cancel the transaction.

For on-line transactions, credit cards are the easiest method of payment. Credit card

payment for online transactions can be preformed by phones or by filling form on the

website. The credit card holder has to exercise great precautions. if it is lost, an FIR

should be lodged and the concerned bank should be informed immediately.

ii). Cyber Cash

Unlike Credit card, Cyber Cash is not directly involved in handlng funds. In

Cyber cash system, after deciding what is to be purchased the customer makes payment

to the merchant through credit card without disclosing the credit card number to him. The

credit card number sent to the merchant in encrypted form. The merchant forward the


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encrypted payment with his private ket to the bank's Cyber Cash gateway server. The

bank's Cyber Cash gateway server decrypts the information, processes the transaction and

forwards it to the merchant's bank. The merchant's bank forwards the authorization

request to the customer's bank. The approval or denial code sent to back to Cyber Cash

gateway server which returns the approval or denial code the seller who then passes it on

the customer. This process takes 15-20 second.

iii). Internet Cheques

A cheque is a signed paper document that orders the signer's bank to pay an

amount of money to a person specified on the cheque or bearer from the signer's account

on or after a specified date. Cheques pass directly from the payer to the payee, so that the

timing or the purpose of the payment is clear to the payee. The payee can deposit the

cheque in an account of his choice. Banks operate extensive facilities to accept cheques

for deposit Process them internally and clear and settle between banks.

The electronic Cheque or e-cheque, is based on the idea that electronic documents

can be substituted for paper and public key cryptographic signatures can be substituted

for handwritten signatures. The e-cheques is designed to fit into current cheque practices

and system with minimum impact on payers, payees, banks and the financial system. The

payer writes a cheque by structuring an electronic document with the information legally

required to be in a cheque and cryptographically sign it. The payee receives the e-cheque,

verifies the payee's signature, writes out a deposit, and signs the deposit. The payee's

bank verifies the payer’s and payee’s signatures, credits the payee’s account and forwards

the cheque for clearing and settlement. Thus credit will not be a clear credit. it will be

float or temporary credit. to be confirmed after it has been cleared by the paying bank, in

the settlement process. The payee's bank verifies the payee's signature and debits the

payee’s account. The advantages of e-cheque are that cryptographic signatures on every

e-cheque can be verified at all points, while in paper cheques hand writing signatures are

rarely verified.


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5). INSTANT PAID PAYMENT SYSTEMS

Instant paid payment systems include the following type of debit cards.

Debit card is a type of payment system in which we do not have to wait for days

together or months for getting payments, rather payments are made instantly. The use of

debit card payments has expanded rapidly over the past few years. A debit card is a card

that is used to access money in a saving account. Debit cards look like credit cards but

operate like cash. When debit cards are used, money is subtracted directly from the bank

account and money can be spent only up to the amount in, that account. Debit cards can

be used at Automated Teller Machines (ATMs) and some types are also accepted at many

grocery stores, retail stores, gas stations, and restaurants.

There are different types of debit cards:

i). Online Debit Card

Online debit cards are Personal Identification Number (PIN) based cards. The

cardholder's ATM or check card, PIN and a magnetic- stripe reader are used at the point

of sale provide fast, efficient online processing of purchases. Online cards based

transactions are called Electronic funds Transfers or EFTs. There is an immediate transfer

of money from buyer's bank account to the merchant's account. To access account, PIN is

entered in a keypad, as is done at an ATM. The system checks the accounts and transfers

enough money to cover the transactions. The merchant may charge a fee for this

transaction.

ii). Off-line Debit Card

Off-line debit cards are signature based cards and are often

referred to as check cards. They are available through bank and carry a credit cards logo

(such as Visa or Master cards). Unlike debit transaction, off-line purchases are debits to

the cardholder's account within 2 to 3 business days rather than immediately. Funds are


29

verified at the time of purchase and the merchant is guaranteed payment.

UNIT – IV

E- SECURITY

Contents:

� Security mechanisms

� Healthy security policy and strategy

� Use of Cryptography

� Client based security

� Server based security

1. SECURITY MECHANISMS

Security is the protection of any computer device, communication device or

network from unauthorized access to data, viruses etc.

CONCEPT OF E-SECURITY:

E-Security refers to the protection of electronic applications like software,

hardware, programs, mails and other features from unauthorized persons to access, share

or to use without a proper identity.

The basic security concepts in E-security are:

1. Confidentiality

2. Integrity

3. Availability

E-security is very important because as the internet is a collection of loosely

connected networks. There are so many varieties of hosts available to the hackers such as

Gateways, routers, dial-up connections and Internet service providers. The individual

hosts can access the former in a variety of ways, the intruders (who misuse the

confidential information) can access to the variety of information like:


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• Hardware and software

• System configuration

• Type of network connections

• Phone numbers used

• Access and authentication procedures.

i). ATTACKING METHODS

The attacking methods are the sources to the intruders to misuse the most valuable

information in the internet. Some of the important attacking methods are:

• Gaining access to user’s account

• Gaining privileged(confidential) access

• Using the victim’s system as a launch platform for attacks on other sites.

• Causing danger in less than 45 seconds

• A decrease in productivity

• A significant loss of credibility or market opportunity

• A business no longer able to compete

• Legal liability and

• Loss of life

The important Security mechanisms include:

1. SET (Secure Electronic Transaction)

2. SSL (Security Socket Layer)

3. Hacking Security Tools

1. SECURE ELECTRONIC TRANSACTION (SET)

SET is a standard, designed to allow merchant transactions to occur across the

internet comparing to traditional transaction. The customer needs to have a valid

account set-up, they would thereafter receive a valid certificate with a public key to

authenticate the transaction.

Eg: A bank card account , credit card transactions etc.


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FUNCTIONS OF SET: The important functions of SET are:

• Provide for confidential payment information and enable confidentiality

• Ensure integrity for all transmitted data.

• Provide authentication that a buyer is a legitimate user of a branded bank card

account.

• Provide authentication that a merchant can accept bank card payments

• Ensure the use of the best security practices and design techniques to protect all

legitimate nor prevents their use.

SET offers buyers more security than is available in the commercial market.

Cardholders, merchants and the financial institutions each retain SET certificates that

identify them and the public keys associated with their digital identities.

2. SSL (SECURITY SOCKET LAYER)

SSL is a technology that encrypts or codes the packets of information sent over the

internet so that only the sending and receiving computer can reassemble and read the

information.

• The combination of SSL and certificates make transactions very secure.

• Many companies use the SSL method developed by Netscape Communication.

• Netscape communications proposed a protocol for providing data security

layered between high-level application protocols and TCP/IP

3. HACKING SECRUTIY TOOLS

The Hacker is a computer enthusiast who gains unauthorized access to a computer

or network. A person who enjoys exploring the details of programmable systems and

how to stretch their capabilities, as opposed to most users, who prefer to learn only the

minimum necessary.

– One who programs enthusiastically (even obsessively) or who enjoys

programming rather than just theorizing about programming.

– A person who is good at programming quickly.


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– An expert at a particular program, An expert or enthusiast of any kind.

– One who enjoys the intellectual challenge of creatively overcoming or

circumventing limitations. A malicious meddler who tries to discover

sensitive information by poking around. Hence "password hacker",

"network hacker".

HACKING SECURITY TOOLS

Hacking refers to the hobby/ profession of working with computers. Hacking is

defined as “ the unauthorized or illegal process of breaking into computer systems.

A hacking tool is a program designed to assist with hacking, or a legitimate

utility that can also be used for hacking. The important hacking security tools are:

1. Cryptology and Encryption

2. Kerberos

3. Security protocols

4. Digital signatures

5. Firewall security

6. UNIX security etc.

4).USE OF CRYPTOLOGY:

Cryptography or cryptology is a protection method that secures information by its

confidentiality. It is used to protect information about the integrity and authentication of

data.

• Cryptography is used to prevent from unauthorized view of mails, messages,

information from the internet.

• Cryptology is the interdisciplinary of mathematics, computer science and

engineering.

• The applications of cryptography include ATM cards, computer passwords, and

electronic commerce.

• Encryption is the powerful tool of cryptography which is used for ensurity.

• Cryptography is used in the second world war-II period also to send highly

secured messages to the very high level general staff messages by the Germany.

Eg:


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ii). Encryption:

In cryptography, encryption is the process of transforming information (referred

to as plaintext) using an algorithm (called cipher) to make it unreadable to anyone except

those possessing special knowledge, usually referred to as a key. The result of the process

is encrypted information (in cryptography, referred to as cipher text).

The word encryption also refers to the reverse process, decryption to make the

encrypted information readable again (i.e. to make it unencrypted).

Encryption has long been used by militaries and governments to facilitate secret

communication. Encryption is now commonly used in protecting information within

many kinds of civilian systems. In recent years there have been numerous reports of

confidential data such as customers' personal records being exposed through loss or theft

of laptops or backup drives. Encrypting such files at rest helps protect them should

physical security measures fail. Digital rights management systems which prevent

unauthorized use or reproduction of copyrighted material and protect software against

reverse engineering are another somewhat different example of using encryption on data

at rest.

Encryption is also used to protect data in transit, for example data being

transferred via networks (e.g. the Internet, e-commerce), mobile telephones, wireless

microphones, wireless intercom systems, Bluetooth devices and bank automatic teller

machines. There have been numerous reports of data in transit being intercepted in recent


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years. Encrypting data in transit also helps to secure it as it is often difficult to physically

secure all access to networks.

iii). KERBEROS

MIT(Massachusetts Institute of Technology (MIT)) developed Kerberos to protect

network services provided by Project Athena. The protocol was named after the Greek

mythological character Kerberos (or Cerberus), known in Greek mythology as being the

monstrous three-headed guard dog of Hades.

Kerberos is a popular third-party authentication protocol. It is an encryption-

based system that uses secret key encryption designed to authenticate users and network

connections. It provides an authentication means in an open network.

iv). PASSWORD

A password is a secret word or string of characters that is used for authentication,

to prove identity or gain access to a resource (example: an access code is a type of

password). The password must be kept secret from those not allowed access.

Banks, hospitals, and other businesses are requiring usernames and passwords to

gain access to their sites. Free e-mail sites, newspapers and even game sites require

usernames and passwords. Often the requirement to use usernames and passwords is

imposed to gain marketing data.

Passwords are not displayed on the screen, when they are typed into

prevent anyone else from reading them. User passwords are generally encrypted using the

DES algorithm. Once a password is encrypted, it cannot be decrypted back to its text

format. This helps to prevent hackers from reading the password file and stealing

passwords. Users have the responsibility for the maintenance of their passwords.

A user can change passwords at his will periodically or as necessary, unless the

administrator has set up password aging mechanisms, which forces the user to change

the password at regular intervals.

v). KEYS:

In cryptography, a key is a piece of information (a parameter) that determines the

functional output of a cryptographic algorithm or cipher. Without a key, the algorithm

would have no result. In encryption, a key specifies the particular transformation of

plaintext into cipher text, or vice versa during decryption. Keys are also used in other


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cryptographic algorithms, such as digital signature schemes and message authentication

codes.

vi). DIGITAL SIGNATURE

A digital signature or digital signature scheme is a mathematical scheme for

demonstrating the authenticity of a digital message or document. A valid digital signature

gives a recipient reason to believe that the message was created by a known sender, and

that it was not altered in transit. Digital signatures are commonly used for software

distribution, financial transactions, and in other cases where it is important to detect

forgery and tampering.

Digital signatures are often used to implement electronic signatures, a broader

term that refers to any electronic data that carries the intent of a signature,[1] but not all

electronic signatures use digital signatures.[2][3][4] In some countries, including the United

States, and members of the European Union, electronic signatures have legal

significance. However, laws concerning electronic signatures do not always make clear

whether they are digital cryptographic signatures in the sense used here, leaving the legal

definition, and so their importance, somewhat confused.

Digital signatures employ a type of asymmetric cryptography. For messages sent

through an insecure channel, a properly implemented digital signature gives the receiver

reason to believe the message was sent by the claimed sender. Digital signatures are

equivalent to traditional handwritten signatures in many respects; properly implemented

digital signatures are more difficult to forge than the handwritten type.

A digital signature scheme typically consists of three algorithms:

• A key generation algorithm that selects a private key uniformly at random from a

set of possible private keys. The algorithm outputs the private key and a

corresponding public key.

• A signing algorithm which, given a message and a private key, produces a

signature.


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• A signature verifying algorithm which given a message, public key and a

signature, either accepts or rejects the message's claim to authenticity.

Two main properties are required. First, a signature generated from a fixed

message and fixed private key should verify the authenticity of that message by using the

corresponding public key. Secondly, it should be computationally infeasible to generate a

valid signature for a party who does not possess the private key.

SECURED PROTOCOLS

Security protocol (cryptographic protocol or encryption protocol) is an abstract or

concrete protocol that performs a security-related function and applies cryptographic

methods.

A protocol describes how the algorithms should be used. A sufficiently detailed protocol

includes details about data structures and representations, at which point it can be used to

implement multiple, interoperable versions of a program.

Cryptographic protocols are widely used for secure application-level data transport.

The prominent secure transmission protocols to secure web communications are:

1. Secure sockets layer(SSL)

2. Secure HTTP(S-HTTP)

FIREWALL

A firewall is a piece of software or hardware that helps screen out hackers, viruses, and

worms that try to reach your computer over the Internet. If you are a home user or small-

business user, using a firewall is the most effective and important first step you can take

to help protect your computer.

It is important to turn on your firewall and antivirus software before you connect to the

Internet.


37

A firewall is a part of a computer system or network that is designed to block

unauthorized access while permitting authorized communications. It is a device or set of

devices configured to permit, deny, encrypt, decrypt, or proxy all (in and out) computer

traffic between different security domains based upon a set of rules and other criteria.

Firewalls can be implemented in either hardware or software, or a combination of both.

Firewalls are frequently used to prevent unauthorized Internet users from accessing

private networks connected to the Internet, especially intranets. All messages entering or

leaving the intranet pass through the firewall, which examines each message and blocks

those that do not meet the specified security criteria

EXAMPLES OF FIREWALL USAGE

4. CLIENT BASED SECURITY


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Client based security uses various authorization methods to make sure that only

valid users and programs have access to information resources such as databases.

Password protection, encrypted smart cards, biometrics, and firewalls are some of the

important client based security tools used for the protection from unauthorized access.

Client – server network is one of the vital challenges for clients. Network

security on the Internet is a major concern for commercial organizations, especially top

management. By connecting to the Internet, a local network organization may be

exposing itself to the entire population on the internet. Internet connection effectively

breaches the physical security perimeter of the corporate network and opens itself to

access from other networks comprising the public Internet.

Client based security problems falls under three categories.

1. Physical security holes

2. Software Security holes

3. Inconsistent usage holes.

1. Physical Security holes: It result when individuals gain unauthorized physical

access to a computer. A good example is the work place, where it would be easy

for a hack to reboot a machine into single-user mode and tamper with the files, if

precautions are not taken. On the network, this is also a common problem, as

hackers gain access to network systems by guessing passwords of various users.

2. Software Security holes: It results when badly written programs or ‘privilege’

software are ‘compromised’ into doing thing they should not. ‘Send mail’ and

‘rlogin’ are some of the important problem which enable a cracker to create a root

shell or super user access mode. This problem can cause deleting of entire file

system, or create a new account r password file resulting in incalculable damage.

3. Inconsistent usage holes: It results when a system administrator assembles a

combination of hardware and software such that he system is seriously flawed

from a security point of view. The incompatibility of attempting two unconnected

but useful things creates the security hole. Problem like this are difficult o isolate


39

once a system is et up and running, so it is better to carefully build the system

with them in mind.

To reduce these security problems and threats, various protection methods are

developed. At the file level, operating systems typically offer mechanisms such as access

control lists that specify the resources various users and groups are entitled to access.

Some of the important security mechanisms that help the clients (users) of a

system are:

1. Security through obscurity: Hiding account passwords in binary files or scripts.

2. Password schemes: Using a minimum of eight character length mixed case

passwords containing at least one non-alphanumeric character and changing

passwords every 60 to 90 days.

3. Biometric Systems: The most secure level of authorization, involve some unique

aspect of a person’s body. It involves a person to stick a finger or a hand into a

slot, or sign their name, or still while an optical system scans their eye ball. This

biometric systems are expensive ones and are only used

5). SERVER BASED SECURITY Servers can be affected from the threats which consist of unauthorized

modification of server data, unauthorized eavesdropping or modification of incoming

data packets, and compromise of a server system by exploiting bugs in the server

software. Compared to stand-alone systems, network servers are much more susceptible

to attacks where legitimate users are impersonated.

Servers can also be attacked with threats such as denial of service, where a user

can render the system unusable for legitimate users by “hogging” a resource by damaging

or destroying resources so that they cannot be used. The two most common forms of

denial of service attacks are service over loading and message flooding.


40

In service overloading, one can easily overload a WWW server by writing a small loop

that sends request continually for a particular file, for example, a home page. “Denial of

service attacks may be caused intentionally or unintentionally by “runaway” software

programs such as those caught in an infinite loop.

Message overloading occurs when someone sends a very large file to a message

box every few minutes. The message box rapidly grows in size and begins to occupy all

the space on the disk and increases the number of receiving processes on the recipient’s

machine, tying it up even more and often causing a disk crash.

Security tools for Server based security:

To counter the server threats, some of the important concepts emerged in the area

of network security on the internet are:

1. Firewalls

2. IP packet screening Routers

3. Proxy application Gateways

4. Hardened Firewall Hosts

1. FIREWALLS:

Firewall is a protection device to shield vulnerable areas from some form of

danger. In the context of the Internet, a firewall is a system – a router, a personal

computer, a host or a collection of hosts set up specifically to shiled a site or subnet from

protocols and services that can be abused from hosts on the outside of the subnet.

Firewall is a basically a method placing a device a computer or a router - between gthe

network and the Internet to control and monitor all traffic between the outside world and

the local network.

2. IP PACKET SCREENIGN ROUTERS

This is static traffic routing service placed between the network service provider’s

router and the internal network. The traffic routing service may be implemented at an IP

level via screening rules in a router or at an application level via proxy gateways and

servers.


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3. PROXY APPLICATION GATEWAYS

Proxy application gateway is a special server that typically runs on a firewall machine.

Their primary use is access to applications such as the World Wide Web from with in a

secure perimeter. Instead of talking directly to external WWW servers, each request

from the client would be routed to a proxy on the firewall that is defined by the user. The

proxy is known as how to get through the firewall.

4. HARDENED FIREWALL HOSTS

A Hardened firewall host is stripped down machine that has been configured for

increased security. This type of firewall requires inside or outside users to connect to the

trusted applications on the firewall machine before connecting further. Generally, these

firewalls are configured to protect against unauthenticated interactive logins from the

external world.

Hardened host requires the following steps.

They are:

1. Removing all user accounts except those necessary for operation of the firewall.

2. Removing all no crucial files and executables, especially network serer programs

and client programs.

3. Extending traffic logging and monitoring to check remote access.

4. Disabling IP forwarding to prevent the firewall from forwarding unauthorized

packets between the internet and the enterprise network.


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UNIT – V

MARKETING STRATEGIES ON WEB

Contents:

� Web design

� Attracting visitors to website

� Direct marketing

� Virtual societies

� Banner and campaigning

� Online shopping

� Shopping solutions

1. MARKETING ON WEB OR ONLINE MARKETING:

Online marketing, also known as digital marketing, web marketing, internet

marketing, search marketing or e-marketing, is referred to as the marketing (generally

promotion) of products or services over the Internet. iMarketing is used as an abbreviated

form for Internet Marketing.

Internet marketing is considered to be broad in scope because it not only refers to

marketing on the Internet, but also includes marketing done via e-mail and wireless

media. Digital customer data and electronic customer relationship management (ECRM)

systems are also often grouped together under internet marketing.

Internet marketing ties together the creative and technical aspects of the Internet,

including design, development, advertising, and sales. Internet marketing also refers to

the placement of media along many different stages of the customer engagement cycle

through search engine marketing (SEM), search engine optimization (SEO), banner ads

on specific websites, email marketing, mobile advertising, and Web 2.0 strategies.

1. WEB DESIGN


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Web design is the process of planning and creating a website.

� Text, images, digital media and interactive elements are shaped by the web

designer to produce the page seen on the web browser.

Typically, a web design consists of the following sources. They are:

1. Clients and Servers

2. Internet service providers

3. Internet service providers

4. Website hosting services

5. Domain names, URLs and IPs

6. Registrars

1. CLIENTS AND SERVERS

A client is a person who requires having a website. Typically all the

people who want to get the ownership of a website is regarded as clients. The servers

are the providers of the website and internet.

2. INTERNET SERVICE PROVIDERS

The internet service providers are the providers of the internet connection. In

India, the internet service providers are BSNL, Vodafone, TATA, Reliance, Idea etc.

They provide the internet service to the systems and the internet service is needed to

view the web pages in the internet of a system.

3. WEBSITE HOSTING SERVICES

These provide the services to connect the website or webpage to the internet.

The web service providers will charge the amount from the clients and enlist the

websites to the internet. Web hosting services include:

� Computer (server)

� Web server software

� Firewall hardware and software

� IT services

– (Backup, troubleshooting, hardware repair)

� Disk space

� Bandwidth / connection to internet


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� Routers and switchers

� Email server / storage

4. DOMAIN’S URL’S AND IPs

The specific address of a computer on the Internet. The domain indicates the name or

title of a web site or webpage. The domain names are unique in nature and a client who

wants to create a website should ensure that the title or name which suggest is not

registered and not used. There are several classifications are there for domain names.

The extensions include .com, .org, .edu, .in , .net etc.

Eg:

– microsoft.com

Uniform Resource Locator (URL): URL is very vital in order to display the contents

of a web page. URL will also help to display the sub pages of a web page.

Eg:

– http://www.microsoft.com/faqs.html

An Internet Protocol address (IP address) is a numerical label assigned to each device

(e.g., computer, printer) participating in a computer network that uses the Internet

Protocol for communication. An IP address serves two principal functions: host or

network interface identification and location addressing. Its role has been characterized as

follows: "A name indicates what we seek. An address indicates where it is. A route

indicates how to get there.192.168.1.1

5. DOMAIN REGISTRAR

A company that provides domain name registration services for a fee.

� Maintain database which maps domain names to IP’s

� Propagate new domain name/IP address information across the internet

STEPS TO DESIGN A WEBPAGE: The following are the important steps in the

creation of a web page. They are:

1. Choose a domain name

2. Register with a Registrar


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3. Choose a hosting service

4. Tell Registrar the IP address

5. Create web content

6. Store (publish) onto hosting server (FTP)

7. Submit new site to search engines

2). PRINCIPLES OF GOOD WEB DESIGN TO ATTRACT VISITO RS

The following principles help the visitors to attract a web page. A good web

design is possible only, if the client as well as designer considers the following issues.

1. Visitor-centric, clear purpose

2. Progressive disclosure

3. Displays quickly

4. Browser compatible

5. Intuitive navigation

6. Spelling, grammar, writing

7. Secure (eCommerce)

8. Attractive design, easy to read

9. Cultural bias? (Regional? Domestic? International?)

10. No technical problems (broken links, buggy scripts)

11. Maintainable (separate content from style)

12. Search Engine Accessible

3). ONLINE SHOPPING

Online shopping is the process whereby consumers directly buy goods or services

from a seller in real-time, without an intermediary service, over the Internet.

� It is a form of electronic commerce. An online shop, eshop, e-store, internet shop,

webshop, webstore, online store, or virtual store evokes the physical analogy of

buying products or services at a bricks-and-mortar retailer or in a shopping centre.

� The process is called Business-to-Consumer (B2C) online shopping. When a

business buys from another business it is called Business-to-Business (B2B)

online shopping.


46

Online shoppers commonly use a credit card to make payments, however some systems

enable users to create accounts and pay by alternative means, such as:

� Billing to mobile phones and landlines

� Cash on delivery (C.O.D., offered by very few online stores)

� Cheque

� Debit card

� Direct debit in some countries

� Electronic money of various types

� Gift cards

� Postal money order

� Wire transfer/delivery on payment

Egs: 1. www.ebay.in

2. www. amazon.com

3. shopping.rediff.com

4). VIRTUAL COMMUNITY (OR) VIRTUAL SOCIETIES:

A virtual community is a social network of individuals who interact through

specific media, potentially crossing geographical and political boundaries in order to

pursue mutual interests or goals. One of the most pervasive types of virtual community

includes social networking services, which consist of various online communities.


47

The explosive diffusion of the Internet since the mid-1990s has also fostered the

proliferation of virtual communities taking the form of social networking services and

online communities. The nature of those communities is diverse, and the benefits that

Rheingold envisioned are not necessarily realized, or pursued, by many. At the same

time, it is rather commonplace to see anecdotes of someone in need of special help or in

search of a community benefiting from the use of the Internet.

Types of virtual communities (or) Virtual Societies

1. Internet message boards

An online message board is a forum where people can discuss thoughts or ideas

on various topics. Online message centers allow users to choose which thread, or board of

discussion, users would like to read or contribute to. A user will start a discussion by

making a post on a thread. Other users who choose to respond can follow the discussion

by adding their own post to that thread. Message boards are not conversation based

because user responses do not have to take place right away. Whenever the user revisits

the message board, he/she can make a response. Unlike a conversation, message boards

do not have an instantaneous response and require that users actively go to the site to

check for responses.

Anyone can register to participate in an online message board. A message board is unique

because people can choose to participate and be apart of the virtual community, even if

they choose not to contribute their thoughts and ideas. Registered users can simply view

the various threads or contribute if they choose to.

2. Online chat rooms

Shortly after the rise of interest in message boards and forums, people started to

want a way of communicating with their "communities" in real time. The downside to

message boards was that people would have to wait until another user replied to their

posting, which, with people all around the world in different time frames, could take

awhile. The development of online chat rooms allowed people to talk to whoever was


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online at the same time they were. This way, messages were sent and online users could

immediately respond back.

Chat room users communicate through text based messaging. Most chat room

providers are similar and include an input box, a message window, and a participant list.

The input box is where users can type their text based message to be sent to the providing

server. The server will then transmit the message to the computers of anyone in the chat

room so that it can be displayed in the message window. The message window allows the

conversation to be tracked and usually places a time stamp once the message is posted.

There is usually a list of the users who are currently in the room, so that people can see

who is in their virtual community.

3). Virtual worlds

Virtual worlds are the most interactive of all virtual community forms. In this type

of virtual community, people are connected by living as an avatar in a computer-based

world. Users create their own avatar character (from choosing the avatar's outfits to

designing the avatar's house)and control their character's life and interactions with other

characters in the 3-D virtual world. It is similar to a computer game, however there is no

objective for the players. A virtual world simply gives users the opportunity to build and

operate a fantasy life in the virtual realm. Characters within the world can talk to one

another and have almost the same interactions people would have in reality. For example,

characters can socialize with one another and hold intimate relationships online. This

type of virtual community allows for people to not only hold conversations with others in

real time, but also to engage and interact with others. The avatars that users create are like

humans. Users can choose to make avatars like themselves, or take on an entirely

different personality than them.

4. Social network services

Social networking services are the most prominent type of virtual community.

They are either a website or software platform that focuses on creating and maintaining

relationships. Facebook, Twitter, and Myspace are all virtual communities. With these

sites, one often creates a profile or account, and adds friends or follow friends. This


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allows people to connect and look for support using the social networking service as a

gathering place. These websites often allow for people to keep up to date with their

friends and acquaintances’ activities without making much of an effort.

WEB BANNER AND CAMPAIGNING

A web banner or banner ad is a form of advertising on the World Wide Web

delivered by an ad server. This form of online advertising entails embedding an

advertisement into a web page. It is intended to attract traffic to a website by linking to

the website of the advertiser. The advertisement is constructed from an image (GIF,

Flash, often employing animation, sound, or video to maximize presence. Images are

usually in a high-aspect ratio shape (i.e. either wide and short, or tall and narrow) hence

the reference to banners. These images are usually placed on web pages that have

interesting content, such as a newspaper article or an opinion piece. Affiliates earn money

usually on a CPC (cost per click) basis. For every unique user click on the ad, the affiliate

earns money.

The web banner is displayed when a web page that references the banner is loaded

into a web browser. This event is known as an "impression". When the viewer clicks on

the banner, the viewer is directed to the website advertised in the banner. This event is

known as a "click through". In many cases, banners are delivered by a central ad server.

When the advertiser scans their logfiles and detects that a web user has visited the

advertiser's site from the content site by clicking on the banner ad, the advertiser sends

the content provider some small amount of money.

Web banners function the same way as traditional advertisements are intended to

function: notifying consumers of the product or service and presenting reasons why the

consumer should choose the product in question, although web banners differ in that the

results for advertisement campaigns may be monitored real-time and may be targeted to

the viewer's interests. Behavior is often tracked through the use of a click tag.

Banner ads


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– Located on Web pages, act like small billboards, usually contain graphics

and an advertising message

Benefits include:

• Increased brand recognition, exposure and possible revenue

• Side panel ads or skyscraper banners

• Advertisements that lie vertically on Web sites

• Placing logo on banners will enhance brand recognition

DIRECT MARKETING

Direct marketing is the process where the marketers directly interact with the

customers to sell their goods and services. Direct marketing is also called as face to face

marketing. The important sources for Direct Marketing are:

1. Direct marketing through telephone

2. Direct marketing through web

3. Door-to – door marketing

4. E-mail Marketing

Eg: Dell Company markets and sells its laptops directly through its website. Such

practices will help the companies to avoid the intermediaries and the cost for the product

can also be decreased.


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i). Direct marketing through web:

Direct marketing helps the marketers to directly interact with the

customers. This feature helps the marketers to easily promote the products and

services through banner ads and online advertisements. The customers can

also benefit with the view of many products and services in front of a system.

Direct marketing helps the marketers to reduce the cost of promotion and enable

the sales that can be done directly with the customers with out the help of

marketing intermediaries.

ii). Email Marketing

Sending marketing messages through email is one of the most widely used direct-

marketing methods. According to one study,email is used by 94% of marketers, while

86% use direct mail. One reason for email marketing's popularity is that it is relatively

inexpensive to design, test, and send an email message. It also allows marketers to deliver

messages around the clock, and to accurately measure responses.

Online Tools

With the expansion of digital technology and tools, direct marketing is increasingly

taking place through online channels. Most online advertising is delivered to a focused

group of customers and has a trackable response.

• Display Ads are interactive ads that appear on the Web next to content on Web

pages or Web services. Formats include static banners, pop ups, videos, and

floating units. Customers can click on the ad to respond directly to the message or

to find more detailed information. According to research by eMarketer,

expenditures on online display ads rose 24.5% between 2010 and 2011.

• Search: 49% of US spending on Internet ads goes to search, in which advertisers

pay for prominent placement among listings in search engines whenever a

potential customer enters a relevant search term, allowing ads to be delivered to

customers based upon their already-indicated search criteria. This paid placement


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industry generates more than $10 billion dollars for search companies. Marketers

also use search engine optimization to drive traffic to their sites.

• Social Media Sites, such as Facebook and Twitter, also provide opportunities for

direct marketers to communicate directly with customers by creating content to

which customers can respond.

e Commerce Notes

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