E-COMMERCE TECHNIQUES

(For [Link](BT), Semester - IV)

Subject code : 17UCSA04

Prepared By
[Link], MSC.,MPhil.,

DEPARTMENT OF COMPUTER SCIENCE

SALEM SOWDESWARI COLLEGE

SELF - FINANCING COURSES WING

SALEM – 10

Version: 2018 – 2019 - 1.0

 Contents
UNIT-I ................................................................................................................................. 1
1.1 HISTORY OF E-COMMERCE AND INDIAN BUSINESS CONTEXT................. 1
1.1.1 ECOMMERCE .................................................................................................... 1
1.2 EMERGENCE OF THE INTERNET ........................................................................ 3
1.3 EMERGENCE OF THE WWW ................................................................................ 5
1.4 ADVANTAGES OF E-COMMERCE ....................................................................... 8
1.4.1 DISADVANTAGES OF E-COMMERCE ........................................................ 10
1.5 TRANSITION TO E-COMMERCE IN INDIA ...................................................... 11
1.6 THE INTERNET AND INDIA ............................................................................... 12
1.7 E-TRANSITION CHALLENGES FOR INDIAN CORPORATE ......................... 14
1.8 BUSINESS MODELS FOR E-COMMERCE .......................................................... 17
1.8.1 BUSINESS MODELS ........................................................................................ 17
1.9 E-BUSINESS MODELS BASED ON THE RELATIONSHIP OF TRANSACTION
PARTIES ........................................................................................................................ 20
1.10 E-BUSINESS MODELS BASED ON THE RELATIONSHIP OF
TRANSACTION TYPES............................................................................................... 27
UNIT-II .............................................................................................................................. 32
2.1 ENABLING TECHNOLOGIES OF THE WORLD WIDE WEB .......................... 32
2.1.1 WORLD WIDE WEB ........................................................................................ 32
2.2 INTERNET CLIENT-SERVER APPLICATIONS................................................ 33
2.3 NETWORKS AND INTERNETS ........................................................................... 35
2.4 SOFTWARE AGENTS INTERNET STANDARD AND SPECIFICATION........ 36
2.5 ISP............................................................................................................................. 38
2.6 E-MARKETING ...................................................................................................... 42
2.6.1 TRADITIONAL MARKETING ....................................................................... 42
2.6.2 IDENTIFYING WEB PRESENCE GOALS...................................................... 43
2.7 ONLINE MARKETING.......................................................................................... 47
2.8 E-ADVERTISING .................................................................................................... 49
2.9 E-BRANDING ......................................................................................................... 55
UNIT-III ............................................................................................................................ 58
3.1 E-PAYMENT SYSTEMS ......................................................................................... 58
 3.2 MAIN CONCERNS OF INTERNET BANKING SYSTEM .................................. 59
3.2.1 INTERNET PAYMENT SYSTEMS.................................................................. 59
3.2.2 ONLINE PAYMENT OPTIONS ...................................................................... 60
3.1.3 DIGITAL PAYMENT REQUIREMENTS ....................................................... 65
3.4 DIGITAL TOKEN BASED ELECTRONIC PAYMENT SYSTEM IN E-
COMMERCE ................................................................................................................. 66
3.5 CLASSIFICATION OF NEW PAYMENT SYSTEMS ........................................... 67
3.6 PROPERTIES OF E-CASH :TO PURCHASE ITEMS OVER THE INTERNET . 72
3.2.2 WIRELESS APPLICATION ............................................................................. 82
3.2.3 CELLULAR NETWORKS ................................................................................ 84
3.2.4 WIRELESS SPECTRUM ................................................................................... 87
3.2.5 TECHNOLOGIES FOR MOBILE COMMERCE ............................................ 93
3.2.6 WIRELESS TECHNOLOGIES ......................................................................... 94
UNIT - IV ........................................................................................................................ 100
4.1 HTML AND WEB DESIGNING .......................................................................... 100
4.1.1 BRIEF HISTORY OF HTML .......................................................................... 100
4.1.2 HTML TAGS ................................................................................................... 101
4.1.3 TABLE CREATION ........................................................................................ 102
4.1.4 HYPERLINK ................................................................................................... 104
4.1.5 REFERENCE ................................................................................................... 105
4.1.6 HEADINGS ..................................................................................................... 105
4.1.7 ALIGNMENT ................................................................................................. 105
4.1.8 SIMPLE WEB PAGE CREATION ................................................................. 105
UNIT - V.......................................................................................................................... 107
5.1 E-MAIL .................................................................................................................. 107
5.1.1 E-MAIL ............................................................................................................ 107
5.1.2 EMAIL COMPONENTS ................................................................................ 108
5.1.3 USE OF EMAIL............................................................................................... 109
5.1.4 EMAIL CREATION........................................................................................ 110
5.1.5 BROWSING..................................................................................................... 114
5.1.6 SEARCH ENGINES........................................................................................ 114
5.1.7 DOWNLOADS ............................................................................................... 115
MODEL QUESTION PAPERS ...................................................................................... 117
OBJECTIVE TEST ........................................................................................................... 119
 E-COMMERCE TECHNIQUES

UNIT- I

History of E-commerce and Indian Business Context: E-Commerce -Emergence of

the Internet - Emergence of the WWW - Advantages of E-Commerce - Transition to
E-Commerce in India - The Internet and India - E-transition Challenges for Indian
Corporate. Business Models for E-commerce: Business Model - E-business Models
Based on the Relationship of Transaction Parties - E-business Models Based on the
Relationship of Transaction Types.

UNIT- II

Enabling Technologies of the World Wide Web: World Wide Web - Internet Client-
Server Applications - Networks and Internets - Software Agents - Internet Standards
and Specifications - ISP.E-Marketing : Traditional Marketing - Identifying Web
Presence Goals - Online Marketing - E-advertising - Ebranding.

UNIT- III

E-Payment Systems: Main Concerns in Internet Banking - Digital Payment

Requirements - Digital Token-based e-payment Systems - Classification of New
Payment Systems - Properties of Electronic Cash - Cheque Payment Systems on the
Internet. Information systems for Mobile Commerce: Introduction - Wireless
Applications - Cellular Network - Wireless Spectrum - Technologies for Mobile
Commerce - Wireless Technologies

UNIT- IV

HTML and Web Designing: Brief History of HTML - HTML Tags - Table Creation -
Hyperlink - Reference - Headings - Alignment - Simple Web Page Creation.

UNIT- V

E-mail: Email - Email Components - use of Email-Email creation-browsing-search

engines-downloads.

TEXT BOOKS

1. [Link], "E-Commerce - An Indian Perspective", 4th Edition, PHI Learning,

2012.

2. C Xavier, "World Wide Web Design with HTML", 13th Reprint, Tata McGraw
Hill, 2006.
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UNIT-I

1.1 HISTORY OF E-COMMERCE AND INDIAN BUSINESS CONTEXT

E-commerce has become a buzzword for businesses over the past few years,
with increased awareness about the use of computer and communications
technologies to simplify business procedures and increase efficiency. Combining a
range of processes, such as

 Electronic Data Interchange (EDI).

 Electronic Mail (e-mail)
 World Wide Web (www).
 Internet Applications.

1.1.1 ECOMMERCE

E-commerce provide a ways to exchange information between individuals,

companies and countries between computers. E-commerce is the movement of
business onto the world wide web. This movement has been broken up into two
main sectors:
• Business-to-business(B2B).
• Business –to-consumer(B2C).
E-comprises core business processes of buying, selling goods, services and
information over the internet. The e-commerce information available on the internet
huge and still growing. currency conversions, tariffs, import and export restrictions,
local business customs and law of each country in which a trading partner resides
can make international electronic commerce difficult.
Many of the international issues that arise, relate to legal, tax and privacy
concerns. Each country has the right to pass laws and levy taxes on businesses that
operate within its jurisdiction. E-commerce is already very big and it is going to get
much bigger. But the actual value to transactions currently concluded online

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dwarfed by the extraordinary influence the internet in over purchases carried out in
the offline world. That influence is becoming an integral part of e-commerce.
a)Early business information interchange efforts:
The emergence of large business organizations in the late and early 1900s
triggered the need to create and maintain formal records of business transactions. In
the 1950s, companies began to use computers to store and process internal
transaction records, but the information flows between businesses continued to be
on paper. Purchase orders , invoices, bills of lading, cheques, remittance advices, and
other standard forms were used to document transactions.
The process of using a person or a computer to generate a paper form, mailing
that form, and then having another person enter the data into the trading partners
computer was slow, inefficient, expensive, redundant, and unreliable. By the 1960s,
businesses that engaged in large volumes of transactions had begun exchanging
transaction information on punched cards or magnetic tape. Data communications
technology are allowed trading partners to transfer data over telephone lines
instead of shipping punched cards or magnetic tapes to each other.
The American national standards institute(ANSI) has been the coordinating
body for standards in the united national states since 1918. ANSI does not set
standards, though it creates procedures and organizational standards for the
development of national standards and accredities committees that follow those
procedures.
In 1979, ANSI chartered a new committee to develop uniform EDI standards.
This committees is called the Accredited Standards Committee X12. The committee
meets three times a year to develop and maintain EDI standards. The committee and
its subcommittees include information technology professionals from over 800
businesses and other organizations.
In 1987, the united nations published its first standards under the title EDI for
Administration, Commerce, and Commerce and Transport (EDIFACT, or
UN/EDIFACT).EDI began to view the internet as a potential replacement for the
expensive leased lines and dial-up connections. The lack of third-party verification
continues to be an issue, since the internet has no built-in facility. Because EDI

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transactions are business contracts and often involve large amount of money, the
issue of non-repudiation causes significant concern.

1.2 EMERGENCE OF THE INTERNET

Using the internet, you can communicate with other people throughout the
world by means of e-mail, read online versions of newspapers, magazines, academic
journals, and books, participate in games and obtain free computer software. In
recent years, the internet has allowed commercial enterprises to connect with one
another and with customers.
In the early 1960s, the us department of defense became very much concerned
about the possible effects of a nuclear attack on its computing facilities. The Defense
Department realized the need for powerful computers for coordination and control.
The powerful computers of that time were all large mainframe computers. So the
Defense Department began examining ways to connect these computers to each
other and also to weapon installations that were distributed all over the world. The
Defense Department agency charged with this task, hired many of the best
communications technology researchers. These researchers worked to devise ways
to build networks that could operate independently. Networks that would not
require a central computer to control network operation.
The world telephone companies were early models for network computers.
because early network of computers used leased computer telephone company line
for their connection. telephone company system of that time established a single
connections between a buyer and sender for each telephone calls, and that
connections carried all the along the single path. when a company wanted to connect
computer it owned at different different location. it placed a telephone call to
establish a connection and then connected one computer to each end of that single
connection. The number of network user in the country and education research
communities continued to grow. Many of these new participants used the
technology to transfer files and access remote computers. The network software
included tow tools for performing these task. File Transfer Protocols (FTP) enable
user to transfer files between computers. and telnet user log on their computer

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account from remote sites. both FTP and Telnet are still widely used on the internet
for file transfers and remote logins, even though more advanced techniques are now
available that allow multimedia transmissions such as real-time audio and video
clips.
The first e-mail mailing lists also appeared on these networks. In 1979, a
group of students and programmers at the duke university and the university of
north Carolina started usenet. Usenet allows anyone who connects to the network to
read and post articles on a variety of subjects. the defense department’s networking
software became more widely used as academic and research institutes realized the
benefits of having a common communications networks.
a)Commercial use of the Internet
As personal computers became more powerful, affordable, and available
during the 1980s, companies increasingly used them to construct their own internal
networks. although these networks included e-mail software that enabled the
employees to send messages, businesses wanted their employees to be able to
communicate with people outside their corporate networks for promoting business.
The defense department network and most of the other academic networks that had
teamed up with it were receiving funding from the national science
foundation(NSF). The NSF prohibited commercial network traffic on its networks
and so business turned to commercial e-mail service providers to handle their e-mail
needs. Large firms built their own networks that used leased telephone lines to
connect field offices to corporate headquarters.
In 1989, the NSF permitted two commercial services, MCI mail and
Compuserve to establish limited connections to the internet for the sole purpose of
exchanging e-mail to send e-mail transmissions with users of the internet addresses
and allowed members of the research and education communities on the internet to
send e-mail directly to MCI Mail and Compu Serve addresses. The NSF justified this
limited commercial use of the internet as a service that would primarily the
Internet’s non-commercial users.

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b)Growth of the Internet

In 1991, the NSF further eased its restrictions on internet commercial activity
and began implementing plans to privatize the internet. the privatization of the
internet was susbstantially completed in 1995, when the NSF turned over the
operation of the main internet connections to a group of privately owned companies.
the new internet structure was based on your Network Access Point (NAPs), each
operated by a separate company. These companies, which are known as network –
access providers, sell internet access rights directly to larger customers are indirectly
to smaller firms through other companies, called Internet Service Providers (ISPs).
The internet was a phenomenon that truly sneaked into an unsuspecting
world. The researchers who had been so involved in the creation and growth of the
internet just accepted it as a part of their working environment. People outside the
research community were largely unaware of the potential offered by a large
interconnected set of computer networks.
The opening of the internet to business activities helped increase the internet’s
growth. there was another development that worked hand with the
commercialization of the internet to its growth. That development was the World
Wide Web (WWW).

1.3 EMERGENCE OF THE WWW

The web is more a way of thinking about and organizing information storage
and retrieval than a technology. As such, its history goes back to many years. Two
important innovations played key roles in making the internet easier to use and
more accessible to people who were not research scientists. These two innovations
were Hypertext and Graphical User Interfaces (GUIs).
a)Origins of the Web
In 1945, Vannevar Bush, who was director of the US Office of Scientific
Research and Development, wrote an atlantic monthly article about ways that
scientists could apply the skills they learned during World War II to peacetime
activities. The article included a number of visionary ideas about future uses of
technology to organize and facilitate efficient access to information. Bush speculated

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that engineers would eventually build a machine that he called information.

Hypertext, as implemented on the Web, however, has its origin in the start of the
electronic computer age, when ideas about associative linking could be married with
the possibilities of automated storage – and – retrieval systems. In 1965, Ted Nelson
coined the term hypertext to describe a text that is not constrained to be sequential.
Hypertext therefore is more than just footnotes that serve as commentary or further
information in a text. It extends the structure of ideas by making ‘chunks’ of ideas
available for inclusion in many parts of multiple texts. It is not constrained to be text.
It can include the combination of text pictures, graphics, sound and [Link]
important components of the proposal follow:
 A user interface that would be consistent with all platforms and that would
allow users to access information from many different computers.
 A scheme for this interface to access, which would allow any user on the
network to access any information.

Hypertext Transfer Protocol (HTTP) is the internet protocol responsible for

transferring and displaying web pages. HTTP runs in the application layer of
Transmission Control Protocol/Internet protocol (TCP/IP) model. Like the other
internet protocols, HTTP employs the client-server model in which a user’s web
browser opens an HTTP session and sends a request to remove server for a web
page. In response, the server creates an HTTP response message that is sent back to
the user’s web browser. The response contains the page displayed by the client’s
browser. After the client determines that the message it received is correct, the
TCP/IP connection is closed and the HTTP session ends. The process is
demonstrated in this figure

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The number of world wide web users continues to double in size about every 12 to
15 months. All of these have had an impact. The internet offers a range of messaging
techniques, all of which work rapidly. The standards used to make it work are not all
ratified by international standards to be agreed has surely accelerated the growth in
the number of Internet users.

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1.4 ADVANTAGES OF E-COMMERCE

Some of the key strengths of using the Internet for businesses include the
following:
24*7 operation
Round-the-clock operation is an expensive proposition in the brick-and-
mortar world, while it is natural in the ‘click – and – conquer’ world.
Global reach
The net being inherently global, reaching global customer is relatively easy on
the net compared to the world of bricks.
Cost of acquiring, serving and retaining customers
It is relatively cheaper to acquire new customers over the net; thanks to 24 * 7
operation and its global reach. Through innovative tools of ‘push’ technology, it is
also possible to retain customers loyalty with minimal investments.
An extended enterprise is easy to build
The Internet provides an effective (often less expensive) way to extend your
enterprise resource planning (ERP), supply chain management (SCM) and customer
relationship management(CRM), can easily be deployed over the Internet,
permitting amazing efficiency in time needed to market, customer loyalty, on-time
delivery and eventually profitability.
Disintermediation
Using the Internet, one can directly approach the customers and suppliers,
cutting down on the number of levels and its process, cutting down the costs.
Improved customer service to your clients
It results in higher satisfaction and more sales.
Power to provide the ‘best of both the worlds
It benefits the traditional business side-by-side with the Internet tools.
A technology-based customer interface
The customer interface in the electronic environment is a ‘screen-to-face’
interaction. This include PC-based monitors, ATM machines, PDAs, or other
electronic devices . These types of interfaces place an enormous responsibility on the
organization to capture and represent the customer experience because there is often

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no opportunities for direct human intervention during the encounter. If the interface
is designed correctly, the customer will have no need for a simultaneous or follow-
up phone conversation. Thus, the ‘ screen – to – customer ‘ interface has the potential
to both increase sales and decrease costs. In fact a number of innovators are entering
the e-commerce markets with solutions that demand for web users. Thus, a Poorly
designed customer interface has both negative revenue and cost implications.
The customer controls the interaction
The customer is in control during screen-to-face interaction, which employs a
‘self service’. The customer controls the search process, the time spent on various
sites, the degree of price/product comparison. At a minimum, the seller attempts to
influence the buying process by directing the potential buyer to different products
or locations in the store, overcoming price objections and reading in real time to
competitive offering. However, the seller has much less power in the online
environment due to the control and information flows that the online world puts in
customer’s hands.
Knowledge of customer behavior
While the customer controls the interaction, the firm has unprecedented
access to observe and track individual consumer behavior. Companies, through a
third-party measurement firm such as Vividence and Accrue. This level of customer
behavior tracking, in contrast with tracking consumer attitudes, knowledge or
behavior intentions, is not possible in the brick-and-mortar world. Electronic
retailers can welcome a user back by name. An online business can actually position
offers and merchandise in way that uniquely appeal to specific customers.
Network economics
In information intensive industries, a key competitive centres on the
emergence of industry-standard products, services, components and or architecture.
It applies both hardware (eg, cable modems versus DSL lines) and software (eg, MP3
versus streaming audio). A key result of network effects and positive feedback is
increasing return economics as compared to the traditional decreasing returns model
often associated with the brick-and-mortar world. It also means that the traditional
realities of marketing such as the importance of word-of-mouth (WOM) among

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potential customers, become greatly magnified in this new environment. It makes

viral marketing a reality for consumer-oriented e-commerce business such as ICQ in
instant messaging system.

1.4.1 DISADVANTAGES OF E-COMMERCE

Some businesses may never lend themselves to electronic commerce. For eg,
perishable foods, and high-cost items (such as jewellery , antiques, and the like),may
be difficult to inspect from a remote location, regardless of any technologies that
might be devised in the future. Most of the disadvantages of electronic commerce
today, however, stem from the newness and rapidly developing pace of the
underlying technologies. These disadvantages will disappear as e-commerce
matures and becomes more and more available to and get accepted by the general
population. Many products and services require a critical mass of potential buyers
who are well-equipped and willing to buy through the internet.
Businesses often calculate the return-on-investment before committing to any
new technology. This has been difficult to do with e-commerce, since the cost and
benefits have been hard to quantify. Costs, which are a function of technology, can
change dramatically even dramatically. Even during short – lived e-commerce
implementation projects, because the underlying technologies are changing rapidly.
Many firms have had trouble in recruiting and retaining employees with
technological, design, and business process skills needed to create an effective e-
commerce atmosphere. Another problem facing firms that want to do business on
the internet is the difficulty of integrating existing databases and transaction-
processing software designed for traditional commerce into a software that enables
e-commerce
In addition to technology and software issues, many businesses face cultural
and legal obstacles in conducting e-commerce. Some consumers are still somewhat
fearful of sending their credit card numbers over the internet. The legal environment
in which e-commerce is conducted is full of unclear and conflicting laws. In many
cases, government regulators have not kept up with the trends in technologies.

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1.5 TRANSITION TO E-COMMERCE IN INDIA

The potential for e-commerce is enormous in india, owing to the rapid growth
of the number of internet users. The enormous saving in time and money achieved
by both buyer and sellers is the principal advantage.
a)Indian Readiness for E-commerce:
The proliferation of the net at a rapid pace and the granting of private ISP
(Internet Service Provider) licenses has put the market en route to a new phase. Even
small and medium enterprises(SMEs) have been increasingly realizing the potential
of the net.
The technological advancements happening in all spheres of life in india will
be the driving factors for the spread of e-commerce in this country, as has happened
elsewhere in the world. NASSCOM (National Associatiation of Software and Service
Companies), has recently released the findings of its survey to evaluate the e-
commerce scenario in india. E-Commerce is dependent to a great extent, on the
number of internal users in india. The following tables give the rate of growth of
internet users in india.
a)Growth Of Internet In India
Tables:

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1.6 THE INTERNET AND INDIA

The internet has undergone a steady evolution from being a source of instant
communication in the early 90s to a rich source of infotainment and education. This
evolution has been driven by the growing customer expectations with the content of
internet. Thus, newer segments of internet usage have emerged and there lie
potential user segments that are still unexplored and may emerge in the future.
Five years ago there was limited internet access but only in a few major cities,
all in the hands of the government. VSNL, the agency responsible for internet
activities, and the DOT (Department of Telecommunications) provided an erratic
connectivity, and bandwidth and far too few phone lines. Connection rates ran as
low as 5% and users were frequently cut off. And the rates for this pathetic level of
services were among the highest in the world. By the end of 1998, after three years of
government monopoly, there were barely 1, 50,000 internet connections in india.
Diagram

Presently, the government monopoly is largely over. Dozens of small to large

Internet Service Providers have set up shop, triggering a price war and an
improvement of service. Users are now estimated at over 37 million, with a growth
predicted to reach more than 50 million in the next three years.

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According to the NASSCOM survey, considering the interest the government is

taking in the growth of the market, e-commerce in india will witness a significant
jump over the next three years. Based on these preliminary findings, experts have
concluded that the penetration of the internet and e-commerce transaction in india
will increase by leaps and bounds. The survey findings also point to the fact that
india’s active internet population would spend close to 3.2 percent of its total regular
household spending through internet purchase.
Revenue streams will increasingly be aligned with the emerging blobal
model, it is being anticipated. This would mean that the major part of the revenues
would come from transactions, while a smaller amount would be realized from
advertising. It is expected that by 2003, more than 75 percent of the revenues of
internet business-to-customer businesses would come from transactions. Indian
software and services companies need to tap into some of these vertical segments to
gain the maximum advantage in the e-commerce solution sector.
Financial services:
A large number of users use the internet for some form of financial guidance.
Stock trading:
Online stock trading is nowadays one of the most demanding e-commerce
utilities. The ability to offer market access at a competitive price is a key advantage
of online stock broking companies and this is slowly happening in india too.
Banking:
Internet banking is now growing. Many banks like ICICI and HDFC are
making inroads into this area.

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Legal and professional services:

Opportunities also exist for Indian companies in legal and other professional
services. There are significant legal and regulatory implications of implementing an
internet business or migrating from a traditional off-line business. In terms of
opportunities for Indian legal service providers, the requirement for professional,
legal and regulatory advice is expected to increase as the number of e-commerce
users increases.
Tour and Travel:
The travel industry has readily to e-commerce. There has been a growing
emphasis on the search for alternative distribution channels within the sector ,
particularly with the railways and the airlines, as they seek to reduce costs. These
sectors have adapted well because of their online reservation systems,.
Healthcare:
It represents one of the biggest expenditures of governments worldwide. The
internet has the potential to enhance communications, streamline processes and
create new business opportunities, by providing high-quality administrative service
and integrating information systems.

1.7 E-TRANSITION CHALLENGES FOR INDIAN CORPORATE

Some issues that corporate face while e-transforming themselves are worth
delving into, in the following manner:
a)Internal Resisting Issues:
[Link] wrangles:
With organizations e-transforming themselves, the old ways of doing things
are being replaced by new ways which destabilize the existing power equations. The
fear of this among the staff is a significant barrier to the organizational
transformation.
[Link] changes:
The e-biz team spearheading the e-com initiatives in an organization, mostly consists
of young, externally recruited, tech savvy populace who maintain a ‘skunkwork’

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like culture. This open culture may be in direct conflict with the already established
culture in the organization and may force the old-timers to oppose any change.
[Link] many are prepared:
A survey by the GIIC found out that only 20 per cent of the organizations covered
under the CIO segment are trying to use e-commerce at least to some extent. Eighty
per cent of the industry is in the process of gearing up for the show , such as banks
and sectors like IT, courier, travel and transport.
[Link] of skill and training:
Lack of skill and training within a company (28 per cent) and lack of funds (24 per
cent) are other factors impeding the implementation of IT in companies. Most of
these companies are from traditional businesses like manufacturing, travel, transport
and education.
b)External Driving Factors:
[Link] necessity:
No one will dispute the argument that any business will benefit if it cuts
down the processing time for a transaction. E-commerce does exactly increases
process efficiency by reducing transaction time and this can have a significant
impact on cash flows and the bottom line.
[Link] business, the driving factor:
Business entities will themselves be the key drivers. The big bosses of the
industries will be the guiding and forcing factor for SMEs to adopt the internet. If the
same happens in india and companies like HLL, maruti, TELCO, Reliance Industries
and other major players in their respective segments make it mandatory to have
their dealers, suppliers and other linked to their supply chain on the Internet, one
can imagine the stampede that will ensue. These companies must have their supply
chain e-driven, if they are to compete in the global market, and this again will lead to
growth in the B2B segment.
[Link] Market:
If you are looking at ‘ the world as your market’, e-commerce will fit in neatly
with your plans. Globalization is forcing organizations to achieve new competitive

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levels in order to enter the world market. It is imperative that we get on to the e-
commerce bandwagon for the sheer efficiencies that it can generate.
[Link] for money:
E-commerce will be one of the key factors in propelling B2C growth in the
indian market. Te driving factors for the B2C segment will be convenieece, low cost
to end – consumers and a wider choice. If you take a look at the products available
on [Link],most products are available at discount of 20-50 per cent over the price
in the physical world.
[Link]-entry barriers:
The good thing about the internet is that one does not deep pockets to be
successful. It will not take much resource or time for a new entrant to compete with
you. Barnes & Noble, the dominant player with huge financial resources, watched its
market share being eroded by the upstart, forcing it finally to get on the e-commerce
bandwagon. If this can happen with Barnes & Noble, it can happen with your
business too. So can you to your established competitor.
[Link] Factors:
With the private ISPs becoming aggressive and also looking at the huge cable
market to provide Internet connections, it is only a matter of time before subscriber
numbers start looking up.
c)Doubts and Difficulties:
[Link] are shaky about buying over the Internet:
A very high proportion among PC owners and PC non-owners opine that
they would not like to but through the internet. The reasons are they are not sure of
the quality and the delivery of the products. They need to feel the products and
bargain before they buy them. Many do not understand the new methods of buying
and selling in a digital environment, and forces the corporate to adopt a wait and
watch policy.
[Link] are not bought for browsing the Internet:
Browsing the internet and purchasing through the Internet and purchasing
through the internet are among the least important perceived benefits of owing a

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computer. Business, learning(self) and education for children are so far given as the
main reasons for purchasing a computer.
[Link] of proper commercial and legal system:
Security, lack of proper and secure payment structures, legal issues: a clear fix
on contracts and liabilities in the digital economy, and trust and assurance are the
main concerns.

1.8 BUSINESS MODELS FOR E-COMMERCE

1.8.1 BUSINESS MODELS

A business model is the method of doing business by which a company can
sustain itself, that is , to generate revenue. The business model spells out how a
company makes money by specifying where it is positioned in the value of chain.
Some models are quite simple. A company produces goods or services and
sells it to customers. If all goes well, the revenues from sales exceed the cost of
operation and the company realizes profit. Other models can be more intricately
woven. Radio and television broadcasting is a good example. The broadcaster is part
of a complex network of distributors, content creators, advertisers, and listeners or
viewers. It is not always clear at the outset. The bottom lines depends on many
competing factors. The marketing strategy of the company is needed to assess the
commercial viability of a business model and to answer questions like the following:
• How is competitive advantage being built?
• What is the positioning?
• What is the marketing mix?
• Which product-market strategy is followed?
E-commerce can be defined as any form of business transaction in which the parties
interact electronically. A transaction in an electronic market represents a number of
interactions between parties. It could involves several trading steps, such as
• Marketing
• Ordering
• Payment
• Support for delivery.

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An electronic market allows the participating sellers and buyers to exchange goods
and services with the aids of information technology. Electronic markets have three
main functions such as :
• Matching buyers and sellers.
• Facilitating commercial transaction.
• Providing legal infrastructure.

Information technology permeates all three functions and also helps to

increase market efficiency and reduce transaction costs. The interaction between
participants is supported by electronic trade processes that are basically search,
valuation, payment and settlement, logistics, and authentication. The internet and
the World Wide Web allow companies to efficiently implement these key trading
processes. For instance, many search services and brokers are available to help
buyers find information, products, and merchants in electronic markets.

Represent of an electronic commerce

E-commerce can be formally defined as technology-mediated exchange
between parties (individuals, organizations, or both) as well as the electronically-
based intra- or inter-organizational activities that facilitate such exchanges. It is
global. It favours intangible things are ideas, information and relationships, these
three attributes produce a new type of marketplace and society.
The effectiveness of an e-commerce website is measured through the various
parameters that constitute the web usage analysis for e-commerce. The web channel

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provides new opportunities and challenges for analysis. It collects a large amount of
detailed information on every user action. There is little knowledge of the end-to-
end process from identifying what usage analysis is interesting to an organization.
Although there are many different ways to categorize e-business models, they can be
broadly classified as follows:
1. E-business model based on the relationship of transaction parties.
2. E-business model based on the relationship of transaction types.
3. Classification by revenue model. A revenue model may comprise:
a) Product sales model that charges customers directly for the product or
services they buy
b) Subscription model that charges a fixed monthly or annual rental for the
service.
c) Transaction fee model that charges a service fee based on volume and value of
the transactions offered; advertising support model that charges advertisers of
changing users; and sponsorship model that provides sponsorship by companies for
non-financial reasons.
4. Classification by distribution channel. A distribution channel may comprise:
a. Direct marketing where manufacturers such as Dell, Nike, Lego or sony
market directly from company sites to individual customers
b. Pure play e-tailors who have no physical stores, only an online sales presence.
c. Click-and-mortar retailers who are traditional retailers with a supplementary
website.
A business model can be defined as architecture for product, service, and
information flow including a description of business players, their roles and revenue
sources. For example, some of the most popular revenue-generating models adopted
by companies are:
i) Charge fee for advertising.
ii) Sell goods and services
iii) Sell digital contents
iv) Charge for processing the transactions that occur between two parties on the
web.

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E-commerce models can be perceived in the form of relationship between two

entities such as:
• Direct marketing versus indirect marketing.
• Fully cyber marketing versus partial cyber marketing.
• Electronic distributor versus electronic broker.
• Electronic store versus shopping mall.
• Generalized e-malls versus shopping e-malls.
• Proactive versus strategic cyber marketing.
• Global versus regional marketing.
• Sales versus customer service.

1.9 E-BUSINESS MODELS BASED ON THE RELATIONSHIP OF

TRANSACTION PARTIES

Electronic markets are emerging in various fields. Different industries have

markets with different charecteristics. The former represents companies that sell
digital information goods, such as news, articles, music, books or digital videos. In

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the information B2C market, the electronic infrastructure not only helps match
customers and sellers, but also acts as the distribution channel, delivering products
to customers. In this case, the infrastructure, such as server and networks must
support the delivery of large files, streaming media and other types of digital goods
in an efficient way.
This B2C market over the internet can be viewed as an open system, where
the number of participants is unknown. In the automotive B2B market, the product
traded, such as parts and components of cars, have a high degree of specificity. The
market infrastructure used is to be mainly based on Electronic Data Interchange
(EDI) over expensive VAN services. EDI involves the exchange of standardized,
structure information between organizations, permitting direct communication
between computer systems. The B2B application is the strong integration of different
applications. Server, network, and software should provide the infrastructure to
integrate web-based applications with mainframe and legacy systems.
The nature of the market’s requirements is critical for creating the underlying
e-business infrastructure. The relation between B2B and B2C models is clearly covers
business transactions along the various interactions existing in the value chain from
producers of raw materials to retailers and consumers including Manufacturers and
distributors. B2C reflects only the interactions between a customer and a retailer.
Basically, B2C transactions include the following steps:
i) Account acquisition
ii) Product discovery through search and browse
iii) Price negotiation
iv) Payment
v) Product delivery

Relationship between B2B and B2C model

E-commerce can be classified according to the transaction partners such as

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• Business-to-consumer (B2C)
• Business-to-government (B2G)
• Consumer-to-business (C2B)
• Consumer-to-consumer (C2C)

E-business transaction model

a)Business - to – Consumer model:
B2C e-business models include virtual malls, which are websites that host
many online merchants. Virtual malls typically charge setup, listing, or transaction
fees to online merchants, and may include transaction handling services and
marketing options. Some of the reasons for using B2C are:
1. Inexpensive costs, big opportunities:
Once on the internet, opportunities are immense as companies can market their
products to the whole world without much additional cost.

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2. Globalization:
Even being in a small company, the web can make you appear to be a big player
which simply means that the playing field has been leveled by e-business. The
Internet is accessed by millions of people around the world, and definitely, they are
all potential customers.
3. Reduced operational costs:
Selling through the web means cutting down on paper costs, customer support costs,
advertising costs, and order processing costs.
4. Customer convenience:
Searchable content, shopping carts, promotions and interactive and user-friendly
interfaces facilitate customer convenience, thus generating more business.
Customers can also see order status, delivery status, and get their receipts online.
5. Knowledge Management:
Through database systems and information management, you can find out who
visited your sites, and how to create, better value for customers.

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Process in B2C
b)Business-to-Business (B2B):
B2B is that model of e-commerce whereby a company conducts its trading
and other commercial activity through the internet and the customer is another
business itself. This essentially means commercial activity between companies
through the internet as a medium.
This is supposed to be a huge opportunity area on the web. Companies have
by and large computerized all the operations worldwide and now they need to go
into the next stage by their customer and vendors.
c)Major advantages of B2B:
1. Direct interaction with customers:
This is the greatest advantage of e-business. The unknown and faceless customer
including other businesses, buying the products of a large MNC like HLL or Procter
& Gamble through distributors, channels, shops and this like now has a name, face,
and a profile. Large MNCs pay a fortune for this information on customer buying
patterns.
2. Focused sales promotion:
This information gives authentic data about the likes, dislikes and preferences of
clients and thus helps the company bring out focused sales promotion drives which
are aimed at the right audience.
3. Building customer loyalty:
It has been observed that online customers can be more loyal than other customers if
they are made to feel special and their distinct identity is recognized and their
concerns about privacy are respected. It has also been found that once the customers
develop a binding relationship with a site and its product.
4. Scalability:
It means that the web is open and offers round-the-clock access. It provides an access
never known before to the customer. This access is across locations and time zones.
Microsoft is using this model very successfully. The additional cost of serving a
larger segment of customers comes down once in a critical mass is reached.

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5. Saving in distribution costs:

A company can make huge savings in distribution, logistical and after-sales support
costs by using e-business models. E-business models involve the customer in the
business interaction to such a level that companies are able to avoid setting up the
huge backbone of sales and support force, which ordinarily would have to be set up.
d)Business-to-Business Transactions and Models:
B2B interactions involve much more complexity than B2C, typically B2B
transactions include, among others the following steps:
i) Review catalogues
ii) Identify specifications
iii) Define requirements
iv) Post request for proposals (REP)
v) Review vendor repetition
vi) Select vendor
vii) Fill out purchase orders (po).
viii) Send PO to vendor
ix) Prepare invoice
x) Make payment
xi) Arrange shipment
xii) Organize product inspection and reception.

Business – to – business Market place

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Consumer-to-Consumer (C2C):
With the C2C e-business model, consumers sell directly to other consumers
via online classified ads and auctions, or by selling personal services or expertise
online.

There are also a number of new consumer-to-consumer expert information

exchanges that are expected to generate $6 billion in revenue by 2005. Some of these
exchange as [Link] and abuzz and free and some allow their experts ot
negotiate fees with clients. It provides bills the person’s credit card, delivers the
answer and takes a 20 per cent commission.
e)Consumer-to-Business (C2B):
The C2B model, also called a reverse auction or demand collection model,
enables buyers to name their own price, often binding, for a specific goods or
services generating demand. The website collects the “demand bids” and offers the
bids to the participating Sellers. [Link] (travel, autos, consumer

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electronics) and [Link] (travel, telephone, mortgages) are examples of C2B e-

business models.

1.10 E-BUSINESS MODELS BASED ON THE RELATIONSHIP OF

TRANSACTION TYPES

This business model is essentially ruled by the following two parameters:

1) On the basis of Value addition:
Value addition is the addition of value to a product or service because of the
opportunities that it offers on the web.
2) On the basis of control:
At the high end of control there is hierarchical control and at the low end there is no
control, so that it is self-organizing. Normally, the control is done through the
policies of the website.
Based on these, nine types of transactions can be identified as below:
• Brokerage
• Aggregator
• Info - mediary
• Community
• Value chain
• Subscription
• Manufacturer
• Advertising
• Affiliate
These transaction types take place in a variety of ways. Moreover, any given firm
may combine one or two of these as part of its web business strategy.
a)Brokerage Model:
The characteristics of the brokerage model are as follows:
• The price – discovery mechanism is its key – principle.
• It is a meeting point for sellers and buyers.
• Auctions and exchanges are the modes of transactions.
• It is a ‘Free Market’.

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• It consists of Global Network of Buyers and Sellers.

• It is a Virtual Market space enabled by the internet.
• It encompasses all types of organizations now

b)Advantages of the Brokerage Model:

Following are the advantages of the brokerage model:
• C2C trading
a) Allows buyers and sellers to trade directly bypassing intermediaries, and
b) Reduces cost for both the parties.
• Global reach
• Trading convenience, which
a) Allows trading at all hours, and
b) Provides continually updated information.
• Sense of community through direct buyer and seller communication.
• Efficient access to information.
• Alleviation of the risks of anonymous trading.

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c)Brokerage - Price Discovery Mechanisms:

There are three kinds of price discovery mechanisms, which form the basis for
the brokerage model. They are:
1. Auction
2. Reverse Auction
3. Market exchange

E-bay model
d)Aggregators:
There are four types of aggregators such as the following:
1. Content aggregators:
They are among the first large-scale sites on the web and mostly represent large
publishing companies.
2. Mainstream aggregators:
These includes sites like yahoo providing a web directory and a search engine, along
with a bunch of attractive tools like e-mail addresses, home pages, remainders and
many others. The most attractive features of these sites is that they have an ‘easy to
remember’ on the web.

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3. Event aggregators:
These are sites that provide in-depth content and tools to the needs of a particular
group, which doubles as a clearly defined customer base.
4. Shopping aggregators:
It let consumers roam through hundreds of sites and catalogues and find the best
price in seconds. They help consumers gift through dozens of e-commerce sites.
e)Info-mediatory:

Info-mediatory
Buyer-based revenue sources are relatively rare but can be expected increase
over the next few years as info-mediary services become valued in online shopping
environments. Such sources could include membership or subscription fees,
allowing access to valued information or services, a transactional percentage, or fees
based on services, such as connecting a seller to a buyer and ensuring privacy
protection. An info-mediary front end to the web could help protect consumers from
unsolicited mailings and confusing product selection.
f)Community:
• Social capital:
It provides the most popular platform for expression and discussion that allows
exchange of thoughts and opinions. Sulekha had helped raised over $1 million/rs.5
crores for hundreds of cultural and charitable organizations by promoting and
selling tickets for their funds and events.
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• Economic capital:
Sulekha runs one of the most popular online classifieds services worldwide, which
allows for the exchange of products and services among Indians.
• Political capital:
Sulekha provides a powerful platform for Indian organizations worldwide to
promote and find support for petitions advocating their causes.
g)Value Chain Model:
Value Chain moves businesses away from discrete streams of data about the
product being made to one unified pool of information that even extends outside the
company to suppliers and customers. The goal is to develop full and seamless
among all members of the chain, resulting in lower inventories, higher customer
satisfaction and shorter time to the market.
h)Subscription Model:
Users are charged a periodic such as daily, monthly, or annual fee to
subscribe to a service. It is not uncommon for sites to combine free content with
“premium” (i.e. subscriber or member-only) content. Subscription fees are incurred
irrespective of actual usage rates. Subscription and advertising models are
frequently combined.
1. Content Service: It provides text, audio or video content to users who
subscribe for a fee to gain access to the service.
2. Person-to-person Networking Services: It is the distribution of user-
submitted information, such as individual searching for former schoolmate.
3. Trust Services: It is in the form of membership associations that abide by an
explicit code of conduct, and in which members pay a subscription fee.
4. Internet Service Providers: If offer network connectivity and related services
on a monthly subscription. Some popular topics of subscription model are:
a. Existing newsletter topics.
b. Trade associations.

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UNIT-II

2.1 ENABLING TECHNOLOGIES OF THE WORLD WIDE WEB

2.1.1 WORLD WIDE WEB

The World Wide Web is a global information medium which users can read
and write via computers connected to the Internet. The term is often mistakenly used
as a synonym for the Internet itself, but the Web is a service that operates over the
Internet, just as e-mail also does. The World Wide Web (abbreviated as WWW or
W3,[1] commonly known as the Web) is a system of interlinked hypertext
documents that are accessed via the Internet. With a web browser, one can view web
pages that may contain text, images, videos, and other multimedia and navigate
between them via hyperlinks.
Tim Berners-Lee, a British computer scientist and former CERN employee,is
considered the inventor of the Web. On March 12, 1989.
The terms Internet and World Wide Web are often used without much distinction.
However, the two things are not the same. The Internet is a global system of
interconnected computer networks. In contrast, the World Wide Web is one of the
services transferred over these networks. It is a collection of text documents and
other resources, linked by hyperlinks and URLs, usually accessed by web browsers
from web servers.
Viewing a web page on the World Wide Web normally begins either by
typing the URL of the page into a web browser, or by following a hyperlink to that
page or resource. The web browser then initiates a series of background
communication messages to fetch and display the requested page.
The following example demonstrates the functioning of web browser when
accessing a page at the URL [Link] The
browser resolves the server name of the URL ([Link]) into an Internet Protocol
address using the globally distributed Domain Name System (DNS). This lookup
returns an IP address such as [Link]. The browser then requests the resource by
sending an HTTP request across the Internet to the computer at that address. It
requests service from a specific TCP port number that is well known for the HTTP

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service, so that the receiving host can distinguish an HTTP request from other
network protocols it may be servicing. The HTTP protocol normally uses port
number 80. The content of the HTTP request can be as simple as two lines of text:
GET /wiki/World_Wide_Web HTTP/1.1
Host: [Link]
The computer receiving the HTTP request delivers it to web server software
listening for requests on port 80. If the web server can fulfill the request it sends an
HTTP response back to the browser indicating success:
HTTP/1.0 200 OK
Content-Type: text/html; charset=UTF-8
followed by the content of the requested page. The Hypertext Markup Language for
a basic web page looks like <html> <head> <title>[Link] – The World Wide
Web</title> </head> <body> <p>The World Wide Web, abbreviated as WWW and
commonly known ...</p> </body> </html>
The web browser parses the HTML and interprets the markup (<title>, <p> for
paragraph, and such) that surrounds the words to format the text on the screen.
Many web pages use HTML to reference the URLs of other resources such as images,
other embedded media, scripts that affect page behavior, and Cascading Style Sheets
that affect page layout. The browser makes additional HTTP requests to the web
server for these other Internet media types. As it receives their content from the web
server, the browser progressively renders the page onto the screen as specified by its
HTML and these additional resources.

2.2 INTERNET CLIENT-SERVER APPLICATIONS

The client–server model of computing is a distributed application structure

that partitions tasks or workloads between the providers of a resource or service,
called servers, and service requesters, called clients.[Often clients and servers
communicate over a computer network on separate hardware, but both client and
server may reside in the same system. A server host runs one or more server
programs which share their resources with clients. A client does not share any of its

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resources, but requests a server's content or service function. Clients therefore

initiate communication sessions with servers which await incoming requests.
Examples of computer applications that use the client–server model are Email,
network printing, and the World Wide Web
a) Client and server roles
The client–server characteristic describes the relationship of cooperating
programs in an application. The server component provides a function or service to
one or many clients, which initiate requests for such services.
Servers are classified by the services they provide. For instance, a web server serves
web pages and a file server serves computer files. A shared resource may be any of
the server computer's software and electronic components, from programs and data
to processors and storage devices. The sharing of resources of a server constitutes a
service.
Whether a computer is a client, a server, or both, is determined by the nature
of the application that requires the service functions. For example, a single computer
can run web server and file server software at the same time to serve different data
to clients making different kinds of requests. Client software can also communicate
with server software within the same computer. Communication between servers,
such as to synchronize data, is sometimes called inter-server or server-to-server
communication.
b) Client and Server communication
Clients and servers exchange messages in a request-response messaging
pattern: The client sends a request, and the server returns a response. This exchange
of messages is an example of inter-process communication. To communicate, the
computers must have a common language, and they must follow rules so that both
the client and the server know what to expect. The language and rules of
communication are defined in a communications protocol. All client-server protocols
operate in the application layer. The application-layer protocol defines the basic
patterns of the dialogue. To formalize the data exchange even further, the server
may implement an API (such as a web service).The API is an abstraction layer for
such resources as databases and custom software. By restricting communication to a

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specific content format, it facilitates parsing. By abstracting access, it facilitates cross-

platform data exchange.
A server may receive requests from many different clients in a very short
period of time. Because the computer can perform a limited number of tasks at any
moment, it relies on a scheduling system to prioritize incoming requests from clients
in order to accommodate them all in turn. To prevent abuse and maximize uptime,
the server's software limits how a client can use the server's resources. Even so, a
server is not immune from abuse. A denial of service attack exploits a server's
obligation to process requests by bombarding it with requests incessantly. This
inhibits the server's ability to responding to legitimate requests.

2.3 NETWORKS AND INTERNETS

a) Networks
Since the 1970s, computer communication has changed from an esoteric
research topic to an essential part of the infrastructure. Networking is used in every
aspect of business, including advertising, production, shipping, planning, billing,
and accounting.
The growth and uses of the global Internet† are among the most interesting
and exciting phenomena in networking. In 1980, the Internet was a research project
that involved a few dozen sites. Today, the Internet has grown into a production
communication system that reaches all populated countries of the world. Many
users have high speed. Internet access through cable modems, DSL, or wireless
technologies.
b) The Five Key Aspects Of Networking
To master the complexity in networking, it is important to gain a broad
background that includes five key aspects of the subject:
• Network Applications And Network Programming
• Data Communications
• Packet Switching And Networking Technologies
• Internetworking With TCP/I
• Additional Networking Concepts And Technologies

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c) Internets
Internets", also known as "The Internets", is a Bushism-turned-catchphrase
used humorously to portray the speaker as ignorant about the Internet or about
technology in general, or as having a provincial or folksy attitude toward
technology. Former United States President George W. Bush first used the word
publicly during the 2000 election campaign. The term gained cachet as an Internet
humor meme following Bush's use of the term in the second 2004 presidential
election debate on October 8, 2004.
The Internet is a global system of interconnected computer networks that use
the standard Internet protocol suite (TCP/IP) to link several billion devices
worldwide. It is an international network of networks that consists of millions of
private, public, academic, business, and government packet switched networks,
linked by a broad array of electronic, wireless, and optical networking technologies.
The Internet carries an extensive range of information resources and services, such as
the inter-linked hypertext documents and applications of the World Wide Web
(WWW), the infrastructure to support email, and peer-to-peer networks for file
sharing and telephony.

2.4 SOFTWARE AGENTS INTERNET STANDARD AND SPECIFICATION

In computer science, a software agent is a computer program that acts for a

user or other program in a relationship of agency, which derives from the Latin
agere (to do): an agreement to act on one's behalf. Such "action on behalf of" implies
the authority to decide which, if any, action is appropriate.
Related and derived concepts include intelligent agents (in particular
exhibiting some aspect of artificial intelligence, such as learning and reasoning),
autonomous agents (capable of modifying the way in which they achieve their
objectives), distributed agents (being executed on physically distinct computers),
multi-agent systems (distributed agents that do not have the capabilities to achieve
an objective alone and thus must communicate), and mobile agents (agents that can
relocate their execution onto different processors).

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The term "agent" describes a software abstraction, an idea, or a concept,

similar to OOP terms such as methods, functions, and objects. The concept of an
agent provides a convenient and powerful way to describe a complex software entity
that is capable of acting with a certain degree of autonomy in order to accomplish
tasks on behalf of its host. But unlike objects, which are defined in terms of methods
and attributes, an agent is defined in terms of its behavior.
In computer network engineering, an Internet Standard (abbreviated as
"STD") is a normative specification of a technology or methodology applicable to the
Internet. Internet Standards are created and published by the Internet Engineering
Task Force (IETF).
a)Specification process
Becoming a standard is a two step process within the IETF called Proposed
Standards and Internet Standards. If an RFC is part of a proposal that is on the
Standard Track, then at the first stage, the standard is proposed and subsequently
organizations decide whether to implement this Proposed Standard. After the
criteria in RFC 6410 is met (two separate implementations, widespread use, no errata
etc.), the RFC can advance to Internet Standard.
b)Proposed Standard
A Proposed Standard (PS) is generally stable, has resolved known design
choices, is believed to be well-understood, has received significant community
review, and appears to enjoy enough community interest to be considered valuable.
However, further experience might result in a change or even retraction of the
specification before it advances. Usually, neither implementation nor operational
experience is required.
c)Internet Standard
An Internet Standard is characterized by a high degree of technical maturity
and by a generally held belief that the specified protocol or service provides
significant benefit to the Internet community. Generally Internet Standards cover
interoperability of systems on the Internet through defining protocols, message
formats, schemas, and languages. The most fundamental of the Internet Standards
are the ones defining the Internet Protocol.

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An Internet Standard ensures that hardware and software produced by

different vendors can work together. Having a standard makes it much easier to
develop software and hardware that link different networks because software and
hardware can be developed one layer at a time. Normally, the standards used in
data communication are called protocols.
All Internet Standards are given a number in the STD series - The first document in
this series, STD 1, describes the remaining documents in the series, and has a list of
Proposed Standards.

2.5 ISP

An Internet service provider (ISP) is an organization that provides services for

accessing, using, or participating in the Internet. Internet service providers may be
organized in various forms, such as commercial, community-owned, non-profit, or
otherwise privately owned.

a)INTERNET Service Providers :

• Have WW's entry points (NEP) or Point of Presence (POP) through which
users get connected to internet.
• The user may wish to connect to only on PC with a few terminals or with a
LAN and WAN.
• ISP - Provides connection of various types & speeds.
b)INTERNET CONNECTION :
The internet connection flow within the following categories.
i) Dedicated Connection :
A Least telephone line at 56kbps or 64kbps or T link at 1.544 mega bytes
connects the get way computer are router of a WAN or LAN.
c)On Demand Connection :
The user has to dial up to the higher speed using a modem or an ISDN
d)Dial up Account :
Single user with PC connects to the ISP's Computer. The modems used are X
modem, Z modem or Kermit.

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e)Serial Line Internet Protocol ( SLIP ): or Point to Point A/c ( PP A/c )

i) It is more like on demand type of connection for single user PC.
ii) All the client application can run directly from the PC.
f)Part Time Hold Connection :
i) Based on unix to unix copy protocol ( UUCP )
ii) An user organization may dial an ISP’s at periodic intervals and
transfers its mail etc.,
iii) Single UUCP connection enables an organization to save several mail users.
g)INTERNET Communication Protocol :
i) An communication protocol allows difference kinds of computers
using different operating system with communicate with one another
ii) A user connected on any network on the internet can communicate
with people or software located on anyother network connected to the internet using
the protocol TCP / IP. Unix system develops the UUCP protocol to network
themselves into an network called UUCP net. The UUCP is a point to point protocol
design for communicating over telephone and serial lines.
UUCP user for transporting e-mail between computer than don’t have
TCP/IP.
h)Internet Services and Resources :
i) There are innumerable information resources located on any number of
serves on the internet.
ii) The internet community has developed new ways of communicating in
the internet space or cyber space which are more user friendly.
iii) The internet service are boardly classified into two categories.
i) Communicating in the cyberspace.
ii) Locating and returning information.
i)INTERNET MAIL :
i) Electronic mail is oldest service on the internet and still most
dominant.
ii) It enables one to send information in the form of letters, messages,
advertisement, spread sheets, game programs, binary files and multimedia data files.

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iii) E-mail on the internet in expensive volume independent and distance

independent.
E-mail software comprises mail serves on the internet and the mail user agent
at the user end. The mail servers based on various protocol.
Simple mail transfer protocol ( SMTP ) (ie) unix to unix Copy protocol (
UUCP)
Post office protocol (POP)
A mail user agent software running on a PC or terminal is used to compose
and send mail through a server retrieve mail from a server and display the same on
the users screen. It also performance a variety of functions such as submit or receive
messages, retain or remove after fetch, resend, spell check, single to inform the
arrival of new messages, folder facility, attach or detach, system address book, sort,
delete, filter, print etc.,
The Internet mail user agent may also use Pop. The mail user agent can also
process attached files using the multipurpose internet mail extension protocol (
MIME )
There are other ways for communicating on the internet.
i) User net news : It is similar to a electronic bulletin board. Each
dedicated to a specific topic and shared by 1000 of uses. These bulletin boards are
refer to as news groups which are classified into various classes. Such as business,
science, magazines, health, computers etc.,
ii) There are over 10,000 news groups carried by major ISP’s
iii) Any one can post an message on it are moderated - some one running a
news group is recurred to approve a message before posting it on a electronic
bulletin board.
iv) There is no Central administration of use net. It is run by people who
use it.
j)Mailing Lists :
i) The use net group is open to all but if the internet is confined to a
smaller domain. A mailing list may be used.

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ii) Discation groups are announcement of specific nature generally used

mailing list. A discation groups of members restricted to only subscribers as per the
mailing list, receive messages from the server as soon as some one has sent one.
k)Internet Relay Chat :
i) The IRC service in internet differs from use net. In that, chat or
discussion takes place in real time. It is the very popular service with the multiuser
implementation with the UNIX. “Top Program”.
ii) The IRC network on the internet consist of multiple interconnected on
the serves.
iii) The IRC service comprises a number of channels public, private, secret,
invisible. A user can choose the channel of his choice and be part of a particular
conference on the internet.
This is run by a software program known as IRC Client. The IRC allows a
user to change from one group to another on chat group to another join any
conversation are listen only.
l)Internet Talking :
i) This internet light audio or video service allows a user Computer to
connect to other user computer on the internet.
ii) The messages are exchanged in real time and a program executing in
the background called the talk daemon handles the actual communication service.
iii) This program should be compatable between user deciding to encatch
in internet chat video exchange is conducted in real time over a internet which
included software packages light line com and VDO Phone.
m)Internet Search :
An internet is an a enormous source of information. Locating and retrieving
information are the key problems. The search tools are essential to do this task. The
tools of the internet are divided as follows.
• Telnet rlogin rsh
• File transfer protocol ( FTP ) Archive.
• Hopher and Veronica.
• Wide Area Information service ( WAIS )

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• Hyper text Transfer Protocol ( HTTP )

• WHOIS
• World Wide Web ( WWW )
n)Telnet :
i) It is very popular internet service which enables a user to log into
another computer to run as software there.
ii) Telnet is a program to allows a computer to establish a session with a
remote cost on the internet.
iii) Many public services can be accesses using telnet and also the database
on the service. Once log on to the server he can execute various commands to
operate the host system such as ‘rlogin’ & ‘rsh’.
o)File Transfer Protocol ( FTP ) :
i) FTP is the tool that is used to transfer files among computers on the
internet.
ii) FTP is a set of specification a program which enables one to login on a
remote computer in order to send files to it and receive files from it.
iii) The files may be of anytype text, graphics multimedia or binary files.
iv) The FTP is a collection of programs which includes both client and
server software.

2.6 E-MARKETING

E-Marketing can include any internet-based promotion, including website,

targeted e-mail, Internet bulletin boards, site where customers can dial-in and
download files, and so on. The term does not have a strict meaning though, and
many marketing managers use it use it to describe any computer-based marketing
tool.

2.6.1 TRADITIONAL MARKETING

If marketing is whatever you do to promote the sale of your products or
services, then it should include:
1. Marketing research – from competitive information- gathering to industry
awareness to soliciting customer opinions and preferences.

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2. Publicity from press releases to the positioning of your company and its
offerings in the marketplace
3. Advertising that is text-based (classifieds) and graphic-based (display)
4. Sales, including distribution and merchandising
5. Customer service and customer support.
Traditional marketing seems to fall far short of three features. There are certain
problems associated with it, which can be listed as follows:
1. Traditional marketing id often expensive. It can cost a lot of money to
produce and print brochures, product sheets , and catalogues. It is also expensive to
keep support personnel on hand to answer inquiries from customers, and it costs a
lot of money in postage and shipping fees to send information to prospective
customers.
2. Traditional marketing can be a very time-consuming process. Mistakes have
to be corrected: you have to go back to the ad agency or printer to revise, add or
delete.
3. Traditional marketing often has a “hit and miss” quality. Marketers often
send out bulk of mails to customers and yet receive a tiny response. Moreover they
feel that they do not cater to the taste of the consumers or rather that they do not
come across the right consumer.
Business have always made their presence felt by establishing shops, factories,
warehouses, and office buildings. An organization’s presence is the public image it
presents to its stakeholders. The stakeholders of a firm include its customers,
suppliers, employees, stockholders, neighbors, and the general public.

2.6.2 IDENTIFYING WEB PRESENCE GOALS

On the Web, business and other organizations have the advantage of creating
a space of their own choice, design and other embellishment, good enough to make a
distinctive presence. A website can have images, and can activated them by
animation, thus making the customers feel and enjoy its presence.
These Web presence project the image of each of these companies. Each presence is
consistent with other elements of the marketing efforts of these companies.

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a)Achieving Web Presence Goals

An effective site is the one that creates an attractive presence that meets the
objectives of the business or the organization. These objectives include:
1. Attracting visitors to the website
2. Making the site interesting enough so that visitors stay and explore
3. Convincing visitors to follow the site’s link to obtain information
4. Creating an impression consistent with the organization’s desired images
5. Building a trusting relationship with visitors
6. Reinforcing positive images that the visitor might already have about the
organization
7. Encouraging visitors to return to the site.

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b)The Uniqueness of the web:

The failure to understand how the web is different from other presence
building media is one reason why so many business fail to achieve their web
objectives. The scenario has changed for the better in the recent times with the
prominence of Internet technologies over others.
Now, most of the websites that are designed to create an organizations presence in
the web medium include links to a fairly standard information set. The site give
visitors easy access to its history, statements about its objectives or mission,
information about products or services offer, financial information and means of
communication with the organization.
c)Meeting the needs of website Visitors:
People visit a website seldom arrive at it by accident; they are at it for a
special reason. The web designer who makes a site useful for everyone, needs to
keep in mind some of the possible reasons listed as follows.
Learning about products or services that the company offers. Buying the products or
services that the company offers. Obtaining information about warranties or service
and repair policies for products they have purchased. Obtaining general information
about the company or organization. Obtaining financial information for making an
investment or credit-granting decision.
Identifying the people who manages the company or organization. Obtaining
contact information of a person or a department in the organization offers support,
and gains their confidence so the they return to it again. Thus the customer value is
upheld.

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d)Site Adhesion: Content , Format and Access:

i)Content
A customer accesses a website for the content of that site. Initially a customer
will want navigate quickly to gain a clear understanding of the site’s progression to
more detailed information.
ii)Format
The format of an organization’s site is important with respect to the
customer’s technical sophistication. Vendors need to create a balance between
information provision and information delivery speed.
iii)Access
Online data access depends on the bandwidth requirement. The clear rule in
the initial interaction phase is to use as minimal a bandwidth as is feasible to
facilitate as wide an audience as possible.
iv)Maintaining a Website
Creating a website that meets the needs of visitors with such a wide range of
motivation can be challenging. The website visitors will be connected to the internet
through a variety of communication channels that provide different bandwidths and
data transmission speeds.
A good site design lets visitors choose among information attributes such as
level of details, formats of aggregation, viewing format and downloading format.
Websites can also offer visitors, multiple information formats by including links to
files in those formats.
For example , the page offering financial information could include links to an
HTML file, an Adobe PDF file, and an Excel spreadsheet file.
v)Metrics Defining Internet Units of Measurement
The e-commerce world has, since inception been attempting to measure parameters
associated with the Web and websites in order to asses two things:
1. Advertising : How many people saw our banner ad?
2. Visitation – How many people came to our site?

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2.7 ONLINE MARKETING

Marketing is a societal process, which discerns consumer’s wants, focusing on

a product or service to fulfil those wants, attempting to mould the consumers
toward the products or services offered. Indeed, marketing is fundamental to any
businesses growth. The marketing teams (marketers) are tasked to create consumer
awareness of the products or services through marketing techniques. Unless it pays
due attention to its products and services and consumers' demographics and desires,
a business will not usually prosper over time.
Online communication today is not only confined to the computer, and so
marketing can be provided to the end-user in more ways than via the computer.
This paper will not distinguish between different ways of accessing the Internet. A
website can be designed to appear best on a smaller screen (cellular phone), or chat
can via the Internet go from computer to regular phone, even with one end typing
in text and the other end speaking. Online marketing will therefore be used in the
broadest term possible, only where necessary will the definition be stated and
discussed.
There are three new market segments which are as follows:
a. Cyberbuyers:
While "cyberbanking" and "cybercommerce" offer great convenience, they can be
sources of concerns for consumers. The FDIC is aware of a few problems and pitfalls
in particular, including:
• Companies pretending to be banks offering unusually high interest rates on
deposits that, in reality, are not banks and are not insured by the FDIC;
• Thieves using sophisticated computer programs to obtain sensitive
information, such as credit card or Social Security numbers, when consumers pay for
purchases over the Internet or send e-mail to friends;
b. Cyberconsumers
These are the home computer users wired up to commercial online services and the
Internet. This group represents the pot of gold, and marketers simply need to find
ways to make it more attractive to shop and buy online than to go the local store.

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c. Cybersurfers:
They use online technology to expand their horizons, challenge their abilities,
and for fun. This segment is typically younger, and possesses shorter attention
[Link] of the important aspects of marketing are advertising, sales, security of
the transactions and the mode of payment used for payments. And all of these have
had to adapt and change themselves according to the demands of the Internet.

d. Advantages of Online Marketing:

i)Measurability:
By E-mail marketing, you can easily find the number of E-mails sent, number
of E-mails that have been opened and that those who have opened up, the number of
people who are not registered, and click rate (which includes the link been effective
and who clicked on it). It is easy. Creating a marketing message via E-mail is almost
as easy as writing an E-mail . It is automatic.
E-mail marketing has a tool called an “autoresponder”. For example, if you
want to send a campaign message to your recipient its on special days you just
create the messages and schedule it . It is fast and efficient. Timing is everything, so
it can be said: this is a quick and efficient way. Offers promotions through E-mail
with a clear call to action, can have tremendous impact on earnings. Channels cannot
provide any possibility for you in a short period of time so as to obtain the customer
directly .
E-mail marketing is known as a permission marketing and it is one of it’s
advantages because it allows customers to decide whether they want to be reached
via E-mail . Mass customization are enabled by E-mail marketing so each message is
unique to each customer, it helps marketers to inform the success of their
promotions easily and quickly, it provides a major insights into the recipient’s
actions through measurable events such as message open.
ii)Various businesses that can flourish on the Internet
• Banking
• Databanks
• Retailing

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2.8 E-ADVERTISING

Electronic advertising is an attempt to release information on the Internet in

order to establish a relationship among vendors and buyers. Internet advertising can
also aim at strengthening the position of a specific brand in the market (brand
building) or attempt to evoke direct response from consumers. This latter type of
advertising has great advantages compared with other advertising means, such as
television or radio that do not support bi-directional communication and
transactions. Moreover, Internet advertising can be defined as every form of
commercial content, available through the Internet and designed by a company, in
order to inform consumers of a good or a service (Schlosser et al, 1999). The most
common way of advertising through the Internet is the so-called "brochure ware",
which refers to the use of a company's
official website to show its products and business activities.
• The new age of information-based marketing.
• Advertising on the internet.
• Marketing research.
a)Advertising on the Internet
The notion of advertising and marketing became inevitable after 1991 when
the internet was opened for commercial traffic.
There are very good reasons for embracing the inevitability of growing of
commercial advertising on the internet:
• Advertising conveys much needed information
• Advertising generates significant revenue
Key components for making internet advertising effectively are:
• Advertising process
• Core content
• Supporting content
• Market and consumer research
• Repeat customers

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b)On-line advertising paradigms:

Two different advertising paradigms are emerging in the on-line world, they are:
1. Active or push-based advertising
2. Passive or pull-based advertising
c)Active or push-based advertising:
Active or push-based advertising is of two types they are :
d)The broadcast model:
Broadcasting message provides a means for reaching a great number of
people in short period of time. It mimics the traditional model, in which customer id
exposed to the advertisement during TV programming. It basically uses direct mail,
spot television, cable television. Text-based broadcast messages also used in
advertising in Usenet news groups.
e)The junk mail model:
Disadvantage of the direct mail include relatively high cost per contact. Junk
mail is the just poorly targeted direct mail. It is most intrusive of all forms of internet
advertising, because it is easily implemented using electronic mail. Junk mail creates
unwanted expense as well as an annoyance.
Passive or pull-based advertising . Pull-based advertising provide a feedback loop,
company and customers. On-line pull-based advertising includes the following:
Billboards Catalogs or yellow pages directories: endorsements
f)Based on the above three we have the fallowing mode ls:
The billboards or www model: Billboard advertising is often used to remind
the customer of the advertising messages communicated through other media.
The advantage of this model is no customer charges. In this message must be simple,
direct.
g)Catalog and yellow pages directory model:
Traditionally, the most visible directory service of advertising is the yellow
pages. Catalog model is the least intrusive model but requires active search on the
part of customer. Yellow pages are low in cost in terms of production and placement.
Disadvantage of yellow page include lack of timeliness and little creative flexibility.

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Customer endorsement model: In endorsements people tell their experiences with

products and services. These are in question and answer format. Marketing
h)Various means of Advertising:
• E-mail
• Banners
• Skyscrapers
• Banner Swapping
• Streaming Video and Audio
• Effectiveness tracking
• Mini-sites, Pop-ups
i)Personalized Online Communications:
Online companies have the opportunity to reduce mass-marketing expenses
and increase response retaes by developing marketing strategies that center around
individual customer. We categorise personalized marketing in to five primary forms
as follows:
1. Permission Marketing
2. Personalized recommendations
3. Personalized advertisements
4. Personalized Web pages
5. Personalized e-commerece stores

j)Conducting online market research:

Research Market research is extremely important for companies in terms of
how they allocate their advertising dollars in sales promotions, how they introduce
new products, how they target new markets.
Broadly marketing research is divided into three faces:
• Data collection Data organization
• Data analysis and sense making
• Data collection:

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Markets mainly relied on source database for understanding consumer

behavior. Source data base mainly comprise of numeric information. Delivery of
source database services fallows two main patterns. Data collect and collate data,
making it available by data base producers. Data collect and collate data, making it
available by central hosts like CompuServe, American online..etc.
k)Data organization:
Everyone is collecting data from electronic commerce, but very few are
organizing it effectively for developing a marketing strategy. The key abilities in
their environment are:
Leverage its established database into customized offerings by audience and
markets. Leverage its established database in terms of horizontal growth.
l)Data analysis and sense making:
The ability to link database to analytic tools like econometric programs and
forecasting models is called data analysis. Market research is undergoing major
changes; the next generation of source database will definitely include multimedia
information.
m)Internet Marketing Trends:
Technology-enabled Relationship Management:

The steps involved in internet marketing techniques are:

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1. Provider of information
If you are collecting contact information which includes or may include personal
data, certain information must be notified to the data subject:
• the identity of the data controller;
• the purpose(s) for which the data are intended to be processed; and
• any further information which is necessary, having regard to the specific
circumstances in which the data are or are to be processed, to enable processing in
respect of the data subject to be fair.
The information should in general be given to data subjects or made readily
available to them at the point of collection. The most common way to meet these
requirements in the website context is through the use of fair processing notices and
privacy policies.
2. Site registered with search engines
Search engine is a tool for finding information, especially on the Internet or
World Wide Web. Search engines are essentially massive databases that cover wide
swaths of the Internet. Most consist of three parts: at least one program, called a
spider, crawler, or bot, which crawls through the Internet gathering information; a
database, which stores the gathered information; and a search tool, with which users
search through the database by typing in keywords describing the information
desired (usually at a Web site dedicated to the search engine).
3. Specialized services to users requesting information
It is a source intended to provide the customer or end user with information
and support related to a companies or institution's products and services. The
purpose is usually to troubleshoot problems or provide guidance about products
such as computers, electronic equipment, food, apparel, or software. Corporations
usually provide help desk support to their customers through various channels such
as toll-free numbers, websites, instant messaging, or email.
4. Specialized email to users requesting periodic information
A content provider publishes a feed link on their site which end users can
register with an aggregator program (also called a feed reader or a news reader)
running on their own machines; doing this is usually as simple as dragging the link

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from the web browser to the aggregator. When instructed, the aggregator asks all the
servers in its feed list if they have new content; if so, the aggregator either makes a
note of the new content or downloads it. Aggregators can be scheduled to check for
new content periodically. Web feeds are an example of pull technology, although
they may appear to push content to the user.
5. Offline Advertising
Advertising a Web site and its URL in traditional media such as radio, TV and
magazines.
6. Banner Advertising
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 known as a "click through." In
many cases, banners are delivered by a central ad server.
7. Targeted Emails to Past Customers
Much of the email that consumers receive today is targeted to their personal
or lifestyle preferences. Of course there are still the wildcard kinds of messages that
everyone receives but those messages that are based on either previous purchases or
those identified in opt-in or double opt-in subscriber methods have made it much
easier for email marketing professionals to cater to everyone on their lists.
8. Spam Mail
Spam is most often considered to be electronic junk mail or junk newsgroup
postings. Some people define spam even more generally as any unsolicited email.
However, if a long-lost brother finds your email address and sends you a message,
this could hardly be called spam, even though it is unsolicited. Real spam is
generally email advertising for some product sent to a mailing list or newsgroup
9. Chain mail
Chain e-mails are those that, in the body or subject of the message, ask the
recipient to forward the e-mail on to multiple people. Many chain letter e-mails are
hoaxes and are often considered to be a security and privacy risk. If the message is
forwarded on by a person, it will usually show the names and e-mail addresses of

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everyone you have sent it to, and possibly the addresses of everyone the last person
(from which you received it) also sent it to.
10. Advertising
The act or practice of calling public attention to one's product, service, need,
etc., especially by paid announcements in newspapers and magazines, over radio or
television, on billboards, etc.: to get more customers by advertising.

2.9 E-BRANDING

In traditional markets, one of the major roles of a brand is to substitute

information in order to simplify consumer's time-consuming process of search and
comparison before a purchase decision. The Internet makes search and comparison
an easy and inexpensive task, thus it threatens to eliminate the aforementioned role
of the brand.
A typical Web transaction requires from the potential customer to submit or
to give access to detailed personal information. The latter gave rise to a lot of
discussion given both the concern of people when sharing personal information and
the outer risks involved with it. Although, certain policies and directives have been
enabled, the intangible and anarchic nature of the Internet is still difficult to be ruled.
Moreover, consumers buy goods that, in most cases, they have never handled or
seen before. All of the above demonstrate the value of trust and security in the
Internet. In other words, customers tend to be loyal to those sellers whose
transaction scheme has been tested or is known and familiar to them.
E-brand awareness and e-brand image are defined next. E-brand awareness
describes the consumer's likelihood and ease with which he/she associates a
[Link] e-brand with a product category. Similarly, an e-brand's image relates to
consumer perceptions about a [Link] as reflected by the associations linked to the
[Link] in consumer's memory . Industry analysis shows that reliability,
personalization, velocity and ease of navigation are critical factors in establishing a
positive e-brand image [29]. Equally important to the generation of positive
perceptions for the e-brand image are consumers' sense of security and privacy
when accessing the [Link]

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Element Meaning to the customer

Differentiation In what significant ways is this product or
service unlike its competitors
Relevance How does this product or service fit in to
my life?
Perceived value In this product or service good?
a)Sprial Branding:
Spiral branding puts the focus on the Internet as the core technology that
encourages the customer to give and receive information. The enterprise then is
expected to share this information across various divisions and departments. The
overall idea is that information is funneled through the Net, integrated back into the
legacy system and served back to the customer in the form of information relevant to
his interests, thus fostering customer loyalty and enhancing the customer
relationship.
Spiral branding in the organization, both to build and support the brand, is
the key to long-term success. But before this can happen, some critical abilities must
be in place, including: The ability to quantify the value of the customer interaction.
The analytic applications' reporting solutions help to quantify the value of the
customer interaction. The metrics tracked and reported can help guide e-businesses
with their customer relationship management strategies. The ability to set thresholds
to trigger rules and events. The results of the calculations that analytic applications
provide can be used to set thresholds that trigger specified business rules and events
and, in turn, automate the delivery of specific content (such as personalized offers
and product recommendations).
The ability to integrate data.
The problem with both the integrated marketing and spiral branding
theoretical concepts is they rely on overcoming problems. One of these problems,
data integration, is so significant that it minimizes all others. Data integration is the
ability to integrate different data sets from multiple legacy systems .

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Despite the Internet and the popular thinking that the Net is dealing with
pristine data, the Net still depends on having access to data throughout the
enterprise. Because most information about a customer has been stored in legacy
systems for years, spiral branding - even though it depends on the Internet for its
delivery system - must rely on historical information to work effectively.
Without quality integration, the final data do not produce good results when
put into a common customer database. The integrated data sets may have
inconsistent values or be lightly populated, and this can result in the delivery of poor
information about the nature of a consumer.
The keys to spiral branding are:
1. Use each media for its best purpose
2. Do it fast
3. Iterate constantly

b)Implement several key strategies:

Heightened focus on customers. Attention must be shifted from attracting
new customers to cultivating current customers and prospects. More corporate
resources should be spent on retaining the profitable customers than on the
unprofitable ones.
Well-defined customer relationship strategy. This increasingly critical strategy
will determine which customers the organization plans to attract, retain and
cultivate. It will also dictate what balance of technology and process will be
necessary to drive the customer relationship further. Re-engineered internal
processes to accommodate the new expectations of the consumer. Systems must be
developed that allow customers to deliver feedback and the enterprise to remember
that feedback and take action. Enterprise wide systems must be reworked to
eliminate internal barriers that often obstruct customer relationship building
activities, such as information hoarding.

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UNIT-III

3.1 E-PAYMENT SYSTEMS

a)Introduction
The ease of purchasing and selling products over the Internet has helped the
growth of electronic commerce and electronic payments services are a convenient
and efficient way to do financial transactions. Current e-payment technologies
depend on using traditional methods that are common to non-electronic systems.
Due to the nature of Internet, security and authenticity of payments and participants
cannot be guaranteed with technologies that are not specifically designed for
electronic commerce.
We need an e-payment system that would not only provide secure payments
but should also have properties like online customer and merchant authentication,
unforgeable proof of transaction authorization by the customer both to the merchant
and the bank, privacy of customer and transaction data. This chapter provides an
overview of e-payment architecture and their functionalities, their requirements and
verification of payment protocols.
Entities
Electronic payments involve a payer and a payee. A payer (buyer or
customer), is an entity who makes a payment. A payee (seller or merchant), is an
entity who receives a payment. The main purpose of an electronic payment
protocols is to transfer monetary value from the payer to the payee. The process also
involves a financial institution (bank or mint).
Typically, financial institution participates in payment protocols in two roles:
as an issuer (interacting with the payer) and as an acquirer (interacting with the
payee). The issuer is responsible for validating the payer during account
registrations and holds the payer’s account and assets. The acquirer holds the
payee’s account and assets. The payee deposits the payments received during a
transaction with the acquirer. The acquirer and the issuer then proceed to perform
an inter-banking transaction for clearance of funds. It is possible for the issuer and
the acquirer to be from the same financial institution.

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Other parties that may be present in a payment protocol include a Trustee

(arbiter) who is an entity that is independent from all parties. All entities in a
protocol unconditionally trust the Trustee who is called to adjudicate any disputes
between the payer and the payee. Certain payment systems might involve more
players like payment Gateways (PG) who are entities that act as a medium for
transaction processing between other entities (e.g. MasterCard, Visa) and
Certification Authorities (CA) who are necessary if the e-payment systems involve
PKI’s. They issue public key certificates to entities involved in a payment protocol so
that their authenticity can be publicly verified.

3.2 MAIN CONCERNS OF INTERNET BANKING SYSTEM

3.2.1 INTERNET PAYMENT SYSTEMS

Internet payment systems refer to the various methods by which individuals
and companies doing business online collect money from their customers in
exchange for the goods and services they provide. A number of different forms of
payment exist for online purchases, and more are being developed all the time. After
all, it is in the best interest of both consumers and merchants to make electronic
commerce as safe and easy as possible. "On the Internet, a small, one-man operation
can look as good or better than a large, multinational corporation. But whether it's an
individual working out of a virtual office, or a CEO sitting in an expensive
downtown office building, they're going online for one purpose to sell. And they're

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leaving no stone unturned in their efforts to make it safe and easy for their
customers to buy. "
Customers who physically visit retail establishments can choose among a
variety of payment methods, including cash, checks, credit cards, and debit cards.
Customers who shop on the Internet are beginning to expect online merchants to
offer the same variety and convenience in payment terms. Credit cards remain the
most common form of payment for online purchases, although the options have
expanded to include digital cash, smart cards, electronic checks, and other
technologies.
In addition, some customers continue to make online purchases using
traditional payment methods, such as placing orders by telephone or fax, or sending
a check via snail mail. He claims that small businesses can add value to their product
or service offerings by making payment easy, comfortable, and secure for their
customers. It affecting online payment systems from both the sellers' and the buyers'
perspectives are maintaining the security of financial information sent over the
Internet. A survey conducted by Visa showed that 91 percent of consumers were
concerned about privacy and security on the Internet. It means that they intended to
buy online but did not complete the transaction. "Concerns about security and the
perception that online credit card transactions are extremely unsafe seem to be
among the biggest issues keeping many retailers and consumers from closing sales
electronically.

3.2.2 ONLINE PAYMENT OPTIONS

a)Credit Cards
As of 2000, credit cards remained the most common means of online
payment. They were also among the easiest payment methods, for consumers as
well as for merchants. From the consumer's standpoint, ordering merchandise from
the Internet required only entering a credit card number and expiration date in the
appropriate fields on a merchant's Web site. Many consumers felt greater confidence
in online transactions when they used a credit card, knowing that a third party (the
credit card company or issuing bank) was involved and could help protect them

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against fraud. In most cases, the consumer's liability for fraudulent credit card
charges is limited to $50.
For merchants who already accept credit cards offline, taking credit card
payments over the Internet is relatively simple. It basically involves setting up two
Web pages, one to promote the company and its products or services, and the other
to process order information. it can be difficult for online retailers to establish the
merchant accounts needed to begin accepting credit cards. Many banks are reluctant
to set up accounts for online merchants because they deal with "card-not-present
transactions," or transactions in which the physical credit card and holder's signature
are not used. The approval process for these accounts is usually quite rigorous, and
the fees on sales tend to be higher than those charged to regular merchants. These
high fees can pose a particular problem for online merchants who sell small-ticket
items.
Once a small business has established a merchant account with a bank, It is
also necessary to obtain card authorization software which can be run on a computer
network or a point-of-sale (POS) terminal to transmit sale data to the payment
processing firm via a modem and telephone line. The processing firm checks the
validity of the credit card number, expiration date, and purchase amount, then
provides the merchant with an authorization number. The preferred method for
handling online sales is to pass the transaction information along to the payment
processing firm for authorization while the customer is still online. An e-mail
confirmation completes the transaction.
b)Smart Cards
Smart cards are similar to credit cards, except they store information on an
imbedded chip instead of on a magnetic strip on the back. Consumers can load
money into an account on the card by using an automatic teller machine (ATM) or
by placing the card in a slot in a specially equipped computer. The imbedded chip
keeps track of how much money is added to and withdrawn from the account. Smart
cards are already quite popular for online sales in some international markets. They
are eventually expected to combine the features of credit, debit, phone, and other
cards in one piece of plastic.

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c)Digital Cash
Digital cash is a form of electronic currency that functions similarly to a debit
card. Customers can transfer money from savings and checking accounts into an
online cash account, from which they withdraw to make purchases over the Internet.
This form of payment is particularly well suited to purchases of small, low-cost
items. In addition, it offers consumers the benefit of anonymity in their purchases,
similar to using real cash. The basic technology involved in digital cash transactions
is public-key encryption. Digital signatures are used to authenticate the bank issuing
the note and the individual computer user who is spending the money.
Some people expect digital cash to become the preferred method of online payment
in the near future. "Eventually, people using the Net probably will have digital cash
on their computer much the same as they have bills and coins in their wallet or
purse," Dowling stated. In fact, digital cash accounts could be integrated into
consumers' Web browsers, and companies that provide content on their Web sites
(like online newspapers and magazines) could charge a nominal fee for surfers to
view their sites. But methods still need to be established to standardize the use of
digital cash.
d)Electronic Checks
Small businesses can also allow customers to pay for online purchases by
accepting personal or business checks online. "Although not as popular as credit
cards, electronic checks are also accepted by hundreds of merchants on the Net," .
"While most electronic check schemes require the merchant to use special software,
electronic checks might appeal to you if you do not currently have a credit card
merchant account." Online merchants who accept electronic checks generally set up
a form on a Web page and have their customers enter all the information from their
regular checks. The merchant can submit this information to a bank like a regular
check. A digital signature is used in place of a handwritten one to verify the identity
of the customer. One advantage of electronic checks is that it provides customers
with a familiar method of payment. In addition, a number of services are available to
simplify the process for both consumers and merchants.

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e)Secure Third Parties And Online Banks

Banks have traditionally been reluctant to do business online because of the
perceived security risks. But banks have begun offering an increasing number of
services online in response to customer demands. Secure third parties may be banks
or other institutions that act as middlemen in financial transactions between
merchants and customers. For small businesses, conducting transactions through a
secure third party eliminates the need and expense of setting up a secure Web site.
Secure third parties also provide consumers with added protection from fraud, since
the merchants never handle their credit card numbers. "Secure third parties will
become more popular as smaller merchants with fewer resources continue migrating
on-line," Dowling wrote. "While a small company may want to keep Web operations
in-house, it may not want to purchase or maintain a secure Web server. Third-party
solutions offer an affordable alternative to expensive, secure servers and local
Internet providers that don't offer secure transaction capability."
f)Old-Fashioned Payment Methods
A final alternative for companies that conduct sales over the Internet is to
accept payment via traditional, offline methods by taking orders through an address
or phone number listed on their Web site, for example. However, experts warn that
limiting payment methods in this manner may cost a company some potential sales.
One avenue in which using traditional payment methods may not hurt sales is
business-to-business transactions. Even when sales are made over the Internet, many
businesses choose to use existing methods to bill their customers' accounts. In order
to protect both parties in an online transaction from fraud, businesses may find it
helpful to require all new accounts to be opened in writing via fax or mail. In this
way, the seller has a printed document on hand listing the names of authorized
buyers, along with approved e-mail addresses, shipping addresses, and purchase
amount limits. Any changes to this account information should also be made in
writing. Finally, the seller should verify orders by telephone and send an e-mail
confirmation upon shipment.

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g)Security Efforts
Security remains the main concern about online payment systems,
particularly the use of credit cards for purchases made over the Internet. Although
media reports tend to concentrate on the effect of security breaches on consumers,
credit card fraud affects merchants as well. For example, when hackers infiltrate a
company's computers, steal thousands of customer credit card numbers, and use
them to charge fraudulent purchases, the online retailer's reputation suffers severe
damage. In addition, companies are sometimes left without recourse when they
accept a credit card order and ship the merchandise, only to have the customer claim
that they never ordered or received it.
But many e-commerce analysts claim that transmitting credit card numbers
online does not have to be any less secure than handing a card to a salesperson at
retail store. Within the United States, credit card numbers sent over the Internet can
be protected by sophisticated encryption technology which is often invisible to
parties involved in the sale. In fact, encryption capability is built into many popular
Web browsers used by consumers, and the software needed to decrypt messages is
widely available to online merchants at a reasonable price.
For small businesses that operate their Web sites on a server belonging to an
Internet Service Provider (ISP) or other host, it is still possible to accept credit card
payments online. Many hosts will collect customer financial data and pass it along to
their clients in encrypted form. Small businesses that do not have access to a secure
Web server can also go through a company like Versanet, which allows companies
to call their own secure order page on the Versanet server to process credit card
transactions. Experts recommend that companies unable to use encryption (for
example, companies that are located in countries where encryption is illegal) either
not accept credit card orders online or use a two-stage order process that separates
credit card numbers and expiration dates into chunks or data that would be difficult
for hackers to identify.

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3.1.3 DIGITAL PAYMENT REQUIREMENTS

For any digital payment system to succeed, the criteria are

a)Online Payment Categories:

Online payment can be broadly divided into three categories they are:

E-payment systems are proliferating in banking, retail, healthcare, online

markets and even in government; in fact, anywhere money needs to change hands.
Organizations are motivated by the need to deliver products and services more cost-
effectively and to provide a higher quality of service to customers. Research into e-
payment system for consumers can be traced back to the 1940s, and the first
applications, the credit cards appeared soon later. In the early 1970s the emerging
electronic payment technology was labeled electronic funds transfer (EFT), EFT is
defined as:
Any transfer of funds initiated through an electronic terminal, telephonic
instrument, or computer or magnetic tape so as to order, instruct, or authorize a fine
new institution to debit or credit an account.
EFT utilizes computer and telecommunication components, both to supply
and to transfer money or financial assets. Transfer is information – based and
intangible. Thus EFT stands in market contrast to conventional money and payment

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modes that relay on physical delivery of cash or cheque for other paper orders to pay
by truck, train or airplane. Since 1947, significant changes have taken place in fund
transfer. You can find them listed here:

3.4 DIGITAL TOKEN BASED ELECTRONIC PAYMENT SYSTEM IN E-

COMMERCE

The digital token based payment system is a new form of electronic payment
system which is based on electronic tokens rather than e-cheque or e-cash. The
electronic tokens are generated by the bank or some financial institutions. Hence we
can say that the electronic tokens are equivalent to the cash which are to be made by
the bank.
Categories of Electronic Tokens:-
I. Cash or Real Time:-
In this mode of electronic tokens transactions takes place via the exchange of
electronic currency (e-cash).

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2. Debit or Prepaid:-
In this electronic payment system the prepaid facilities are provided. It means
that for transactions of information user pay in advance. This technology are used in
smart card, electronic purses etc.
3. Credit or Postpaid;-
These types of electronic token based on the identity of customers which issue
a card, their authentication and verification by a third party. In this system the server
authenticate the customers and then verify their identity through the bank. After all
these processing the transaction take place. Example is E-Cheques.
The Digital Token based system have following issues for which they are
established:-
Approach to Security, Anonymity and Authentication:-
Since the electronic token are vary from system to system when the business
transaction take place. So it is necessary to secure it by intruders and hackers. For
this purpose various security features are provided with electronic tokens such as
the method of encryption. The encryption method use the digital signatures of the
customers for verification and authentication.
Risk Factors:-
The electronic tokens may be worthless and if the customer have currency on
token than nobody will accept it, If the transaction has long time between delivery of
products and payments to merchants then merchant exposes to the risk. so it is
important to analysis risk factor in electronic payment system.

3.5 CLASSIFICATION OF NEW PAYMENT SYSTEMS

Electronic commerce can be broadly categorized into two groups, business-to-

business (B2B) and business to consumer (B2C). B2B normally involve higher value
transactions and predominant payment methods are electronic cheques and bank
transfers, whereas, B2C payments are lower value transactions and payment
methods used are cash and card based payment systems. This section presents an
overview of e-payment classifications.

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a)Payment instruments
There are three common electronic payment instruments, namely cash,
cheque and card. Cash payment systems consist of self-authenticating divisible
tokens that can be processed offline. Cheque payment system is typically linked to a
payer’s account and payment is indivisible. Card payment schemes provide a
payment mechanism through the existing credit card payment infrastructure.
b)Pre-paid, Pay-now and Post-pay
In pre-paid system the payment is debited from the payer’s account before a
payment is processed and hence the term “pre-paid”. Most cash-like systems such as
an electronic-cash system fall in this category. In pay-now system, when an
electronic transaction is processed, the payer’s account is debited and the payee’s
account is credited with the payment amount.
Even though availability of funds depends on the time when inter-bank
settlements are carried out, the payer’s and payee’s account are updated to show the
debited and credited balances immediately after an transaction is carried out. Credit
card based system, like Secure Electronic Transaction (SET) , Verified by Visa (VBV) ,
MasterCard secure-code fall into this category. In post-pay systems the payer’s
account is debited only when the payee’s makes a request for payment settlement
with the acquirer. Most cheque based systems [14] [15] fall into this category.
c)Offline and Online
Based on communicational characteristics, electronic payments systems are
classified as offline and online systems. In an offline system, the communication
does not involve any third party, i.e., an electronic transaction takes place only
between the payer and the payee. The advantages of offline payments are lower
communication cost and less time-critical transaction handling at the banks.
However, they suffer from one serious drawback, the problem of double spending.
Double spending occurs when the payer spends the same electronic money
multiple times. In a digital system the payer could make a backup of electronic
money before each payment and reset his system to this backup after the payment.
In this way, an arbitrary number of payments to different recipients are possible
with the “same” money. Typically, double spending is prevented with the use of

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tamper-resistant hardware e.g. a smart card. In certain cases, the tamper-resistant

hardware is issued by the bank containing a pre-authorized value of money.
However tamper-resistant devices only offer limited protection as they are
vulnerable to attacks. Another way to prevent double spending is pre-authorization.
The payer obtains pre-authorized secure digital money from its bank, thus the payee
is assured of payment e.g. a bank cheque. However, this method can only be used if
the payee is known to the payer before a payment. A weaker solution, rather than
employing prevention techniques is to detect double spending when they occur and
the dishonest payer can be held accountable. This solution is used in most e-cash
implementations. Adequate security can be achieved by a combined approach that
would involve both detection methods and tamper-resisted devices.
In an on-line system, the payee typically connects to the bank to obtain a
payment authorization, thus increasing the communication requirements for the
payment system. The advantage is, the payee obtains a guarantee on the payment, as
the bank is able to authorize and check for availability of funds in the payer’s
account.
d)Basic model of e-cash system
An anonymous off-line e-cash consists of three probabilistic, polynomials-
bounded parties, a bank B, payer P, and payee R, and three main sub protocols:
withdrawal, payment and deposit. Payer and payee maintain their accounts with the
bank. The payer withdraws electronic coins from their account with the bank, by
performing a withdrawal protocol over an authenticated channel. The payer spends
coins by participating in a payment protocol with the payee over an anonymous
channel. In effect, the payee performs a deposit protocol, to deposit the coins into
their account. The e-cash system also includes setup protocols: system setup, payer
setup and payee setup which performs system initialization functions, namely
creating and publishing public keys and opening payer and payee bank accounts.

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e)Pay now or Card based system

The most common method for “on-line” payment is card-based systems. Most
payment systems in this category are specifically designed for transaction conducted
through the Internet. Because of their convenience and omnipresent nature, credit
cards in particular have become a popular method for conducting online payments
over the Internet, but they are insecure, offer no anonymity or protection of payer’s
payment information like card details and account information. To overcome these
drawbacks and make card payment more secure, the two leading credit card
companies VISA and MasterCard have developed various protocols. This section
presents an overview of various card-based systems that have been proposed.
Due to the limited popularity of both STT and SEPP proposals, MasterCard
and Visa in a joint effort proposed Secure Electronic Transaction (SET) system that
would take advantage of the combined customer and merchant base. SET was
published as an open specification for the industry and the development of the
payment system included major companies like GTE, IBM, Microsoft, Netscape,
RSA, SAIC, Terisa and VeriSign. It incorporates digital signatures for not only
authenticating customer but also merchants and banks. SET also included a unique
concept known as dual signatures. The main goal of dual signatures is to protect the
customer’s account information from the merchant and purchase information from
the banks. Dual signatures link purchase information (like order message) sent to the

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merchant with the payment information (like account information) sent to the
acquirer. When the merchant sends an authorisation request to the acquirer, it
includes the payment information sent to it by the cardholder (customer) and the
message digest of the purchase information. The acquirer uses the message digest
from the merchant and computes the message digest of the payment information to
check the dual signature. Even though the advantages of using SET are apparent,
due to the system complexity, and implementation costs for both merchant and
banks, the system has failed gain widespread market acceptance.

Today there are two major proposals for secure electronic payment over the
Internet. They are Visa 3-D Secure (Verified by Visa - VBV) and MasterCard Secure
Code. Both protocols rely on SSL /TLS to encrypt communication over the Internet.
SSL is a client-server protocol that uses public key cryptography and has become the
de facto standard for encrypted communication over the Internet. In SSL, only
servers (merchants) have public key certificates and clients (buyers) remain
anonymous to the servers. Because of the lightweight nature and an existing wider
deployment base of SSL protocol, MasterCard and Visa have implemented a
standard that would allow merchant to incorporate the proposed security features
into their payment acceptance structure.
f)Pay later or Cheque based system
Customers generally tend to use credit card payment methods for low and
middle value payments, whereas, cheque is the preferred method for large value
payments. Various electronic cheque (e-cheque) protocols have been proposed over
the years. Systems like FSTC’s E-Check , Net Cheque and MANDATE II are based
on methods used in traditional paper based checking protocols. Systems like Net Bill
, E-Cheque and PayNow by CyberCash use a central server. Other e-checking
systems are based on modified versions of e-cash protocols . But most promising of
all e-cheque system that has the support of major financial institutions and
government agencies has been the FSTC’s E-Check system.

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g)Micropayments
One of the most promising payment methods is the use of micro payments:
the ability to pay for data or services in small increments. Micro payments can be
seen as a solution to allow low-value payments for purchasing news articles, stock
quotes, index queries, per-click purchase and other services over the Internet.

3.6 PROPERTIES OF E-CASH :TO PURCHASE ITEMS OVER THE INTERNET

People currently use credit cards as the prevailing form of payment. For
years, however, people have asked "Why not use Electronic Cash?" These are the
properties that would be necessary for such a scheme:
1. Financial Infrastructure: There is a big deference between bits and atoms. People
have used atoms, gold, bills, etc. as money. Behind the bits in E-cash, there must be
financial infrastructure that the money represented by the instructions in the bits
from one account to another. A transaction is an instruction to move money from a
consumer's account to a merchant's account.
2. No Double-Spending and Non-forge ability: Bits can be easily duplicated but
atoms cannot. So copies of cash should not be spendable. Nor should one be able to
forge or create e-cash and spend it.
3. Security: Account information should be kept secure. Transfers should be kept
secure.
4. Immediate Verifiability that Payment is OK Online vs. Online systems: Every time
you receive a payment, you could instantly relay it to the bank to verify it. Or there
could be an intrinsic property that lets you know the money is good if a bank is not
readily available.

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5. Persistence: Atoms stick around better than bits do. If your computer crashes, you
should not be bankrupted. A backup of your wallet to record your wealth should not
be spendable.
6. Exclusive Ownership
7. Anonymity: There are different types of anonymity, payer, payee, and even bank
anonymity. The merchant may accept money without knowing who the payer is.
Also you should be able to deposit money without the bank knowing where the
transaction comes from. There are issues of money laundering. People can transfer
money without the bank knowing.
8. Transferability: A can pass money to B and then to C easily and anonymously.
9. Amounts: It would be nice to support a variety of "coin sizes".
10. Traceable to issuer: We should know who backs each bit of money. E.g., We can
tell by inspection that U.S. money is issued by the U.S. treasury.
11. Divisibility and Combination: If you have an instrument worth 1 dollar, you
should be able to divide it into two instruments each worth 50 cents.
12. Compatibility with existing systems: An electronic payment system should
interface smoothly with existing payment systems. (To what extent a monetary
system actually depends on others is an interesting open question; can you have e.g.,
a Galactic System with no central Government authority?)
13. Efficient for small amounts
14. Scalability
15. Competition between Issuers: Free banking before the Gold Standard
3.2 Information systems for Mobile Commerce
3.2.1 Introduction
Mobile commerce (m-commerce, m-business)—any e-commerce done in a wireless
environment, especially via the Internet.
• Can be done via the Internet, private communication lines, smart cards, etc.
• Creates opportunity to deliver new services to existing customers and to
attract new ones
• M-commerce is the buying and selling of goods and services through wireless
handheld devices.

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• M-Commerce is the process of paying for services using a mobile phone or

personal organizer.
• M-Commerce is the use of mobile devices to communicate, inform transact
and entertain using text and data via a connection to public and private networks.
• Is the ability to conduct commerce using a mobile device. such as :
 Mobile phone.
 Personal digital assistant (PDA).
 Smartphone.
a) M-commerce benefit
• Your Internet offerings are easier and more convenient to access.
• You get considerable flexibility while conducting business.
• Transaction and personnel costs are reduced due to widespread automation
of back-office operations.
• Field staff is more effective as they have flexible access to back-office data.
• For a small business could benefit from m-commerce.
• Selling a product or service
• Improving productivity
• Attributes of M-Commerce
 Ubiquity
 Convenience
 Interactivity
 Personalization
 Localization

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a) M-Commerce Services and Applications available:

• Mobile ticketing
• Content purchase and delivery
• Information services
• Mobile banking
• Mobile Browsing
• Auctions
• Mobile Purchase
• Mobile marketing and advertising
b) Mobile ticketing
• Tickets can be sent to mobile phones using a variety of technologies.
Users are then able to use their tickets immediately, by presenting their
phones at the venue.
• Tickets can be booked and cancelled on the mobile device with the help
of simple application downloads
c) Content purchase and delivery
• Mobile content purchase and delivery mainly consists of the sale of ring-
tones, wallpapers, and games for mobile phones.
• The convergence of mobile phones, portable audio players, and video
players into a single device is increasing the purchase and delivery of full-
length music tracks and video.
d) The Drivers
 Widespread availability of devices
 No need for a PC
 Handset culture
 Vendors’ push
 Declining prices
 Improvement of bandwidth
 Explosion of EC in general

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i) Characteristics of M-Commerce

A Example
i) The Problem
•Buses in San Francisco have difficulty keeping to 20 minute schedule during rush
hours
•Posted schedule becomes meaningless
ii) The Solution
•Bus riders carrying Internet-enabled cell phone or PDA helps:
1. Find estimated arrival time at each stop, digitally in real time
2. Soon location-based advertisements will pop up—you have time to get a cup
of coffee before the bus arrives—Starbuck’s is 200 feet to the right
iii) Next Bus Operational Model
iv) The Results
• Passengers in San Francisco are happy with the system
1. Worries about missing the bus are diminished
2. May discover they have time for a cup of coffee before the bus arrives
• Bus company can:
1. Schedule better

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2. Arrange for extra buses when needed

3. Improve operations

v)Classification of M-Commerce Services

 Financial
e.g. Secure banking services
 Entertainment
e.g. Mobile Gambling
 Shopping
e.g. Purchase of goods
 Information
e.g. Local Information
 Payment
e.g. Electronic Wallet
 Advertising
e.g. Intelligent Advertising
 Enabling Technologies

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Introduce two transmission mode, GPRS and W-CDMA

GPRS (General Packet Radio Service)
• A step between GSM and 3G cellular networks.
• Transmission rate via a GSM network within 9.6Kbps ~ 115Kbps.
• GPRS supports the widespread range of bandwidth, it is a effective
application under the limited bandwidth.
• Mobile phone can receive and transmit data at the same time. (e.g. make a
phone call and receives e-mail at the same time)
W-CDMA (Wideband Code-Division Multiple Access)
• the transmission technology for third generation (3G) UMTS mobile
communication.
• The transmission rate is up to 2Mbps, it makes mobile multimedia grows
rapidly.
g) WAP(Protocol) and i-mode(Service)
WAP(Wireless Application Protocol)
• It is a open and standard wireless application software protocol.
• The WAP system are composed of two main factors：
WML（Wireless Markup Language）: similar to HTML
WAP Gateway / Proxy : to change the webpage source code to the suitable
one.
• Need a connecting action
• Payment according to time used.
i-mode
• The first packet-based, always-on, mobile Internet service
• Various services available : Banking, game, wallpaper, music….
• Payment according to packets received.
Other related technologies
• J2ME (Java 2 Micro Edition)
A kind of programming language used in small, connectable consumer and
embedded devices. it makes mobile phones have a ability to execute program.

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• XML（eXtensible Markup Language）

A Standard for structured document interchange on the Web. It makes the
description language used by different browsers can be changed more quickly.
• IPv6
IPv4 use 32bit, this is not enough. IPv6 expand it to 128bit, so that every mobile
phone can get its own IP.
h) Mobile Payment Players

i) Mobile Payment Issues

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ii)Mobile Interfaces

iii) Mobipaysystem

iv)Internet waves

Today

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v)Mobile banking (M-Banking)

• Banks and other financial institutions use mobile commerce to allow their
customers to access account information and make transactions, such as purchasing
stocks, remitting money
vi)Mobile Browsing
• Main article: Mobile browser Using a mobile browser—a World Wide Web
browser on a mobile device—customers can shop online

vii)Mobile Commerce Application

Google Apple
Android Apple store
Google Android Market The App Store is a digital
application distribution platform for iOS developed and maintained by Apple.

a)Advantage and disadvantages of M-commerce

 Offers many payment options
 Push advertising, direct marketing.
 More efficient and extensive service offered.

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 The Internet is going mobile

 Can be easily setup
b)Disadvantage
 Expensive cost
 Larger screens won’t be displayed is clear
 Slow speed
 Limited for longer message
 It hard way to fill the data. Security is not protected
 Meteoric growth of the Internet and mobile communications
 Increasing mobility
 New applications, services and business models
 Enabling technologies
The core of m-commerce is the use of a terminal (telephone, PDA, PC device) and
public mobile network to access information and conduct transactions that result in
the transfer of value in exchange for information, services or goods. Mobile
Commerce refers to any transaction with monetary value that is conducted via a
mobile telecommunications network.

3.2.2 WIRELESS APPLICATION

WAP (Wireless Application Protocol) is a specification for a set of
communication protocols to standardize the way that wireless devices, such as
cellular telephones and radio transceivers, can be used for Internet access, including
e-mail, the World Wide Web, newsgroups, and instant messaging. While Internet
access has been possible in the past, different manufacturers have used different
technologies. In the future, devices and service systems that use WAP will be able to
interoperate.
WAP incorporates a simple micro browser, designed to work on the limited
platforms of mobile handsets, with a central WAP gateway that performs the more
processor-heavy operations. It defines a standard for data transmission to the
handset, WDP (WAP datagram protocol), which is a variation of the internet
standard transmission protocol, HTTP (Hypertext Transport Protocol), but
redesigned for wireless network characteristics. WDP mostly differs from HTTP by

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stripping out much of the text information, replacing it with more efficient binary
information for the low-bandwidth connection. The WAP data can be sent over any
available network, be it the circuit-switched connection of TDMA (Time Division
Multiple Access) IS-136 or packet-switched GPRS.
Added to this core transmission protocol are several scalable layers that can
develop independently. The wireless transport layer security (WTLS) layer adds
optional encryption facilities that enable secure transactions. WTP (WAP transaction
protocol) adds transaction support, adding to the datagram service of WPD, while
WSP (WAP session protocol) allows efficient data exchange between applications.
WAP also defines an application environment (WAE) that enables third-party
developers to develop more advanced services and applications, along with the
micro browser used to access web pages on the handset itself.
To access internet content, the user's handset sends a request to the WAP
gateway, which retrieves the information in either HTML (Hypertext Markup
Language) or WML (Wireless Markup Language) from the host server. WML is a
variation of HTML, designed specifically to enable viewing on the limited mobile
terminal platform. If the information retrieved is in HTML, a filter in the gateway
will attempt to convert it to WML. The information will then be transmitted to the
handset over whatever network is available, using the transmission protocols
described above.
In some cases, where HTML data is generated using a style sheet to convert
XML data using an XSL processor, a WML style sheet can be added to the system to
generate seamless information in the correct format for wireless viewing.
a)Future Of Wap
Because WAP is a protocol designed to work over any mobile network, its use
will continue to increase as more sophisticated data transmission technologies are
introduced (e.g. GPRS, EDGE (Extended Data for Global Evolution) and W-CDMA
(Wideband-CDMA)). As the bandwidth available to mobile terminals and the
quality of displays improve, WAP can be enhanced to provide as effective an
internet viewing experience as is possible on fixed terminals.

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3.2.3 CELLULAR NETWORKS

A cellular network is a radio network distributed over land through cells
where each cell includes a fixed location transceiver known as base station. These
cells together provide radio coverage over larger geographical areas. User
equipment (UE), such as mobile phones, is therefore able to communicate even if the
equipment .
Cellular networks give subscribers advanced features over alternative
solutions, including increased capacity, small battery power usage, a larger
geographical coverage area and reduced interference from other signals. Popular
cellular technologies include the Global System for Mobile Communication, general
packet radio service, 3GSM and code division multiple access.
Cellular network technology supports a hierarchical structure formed by the base
transceiver station (BTS), mobile switching center (MSC), location registers and
public switched telephone network (PSTN). The BTS enables cellular devices to
make direct communication with mobile phones. The unit acts as a base station to
route calls to the destination base center controller. The base station controller (BSC)
coordinates with the MSC to interface with the landline-based PSTN, visitor location
register (VLR), and home location register (HLR) to route the calls toward different
base center controllers.
Cellular networks maintain information for tracking the location of their
subscribers' mobile devices. In response, cellular devices are also equipped with the
details of appropriate channels for signals from the cellular network systems. These
channels are categorized into two fields:
• Strong Dedicated Control Channel: Used to transmit digital information to a
cellular mobile phone from the base station and vice versa.
• Strong Paging Channel: Used for tracking the mobile phone by MSC when a
call is routed to it.
A typical cell site offers geographical coverage of between nine and 21 miles.
The base station is responsible for monitoring the level of the signals when a call is
made from a mobile phone. When the user moves away from the geographical
coverage area of the base station, the signal level may fall. This can cause a base

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station to make a request to the MSC to transfer the control to another base station
that is receiving the strongest signals without notifying the subscriber; this
phenomenon is called handover. Cellular networks often encounter environmental
interruptions like a moving tower crane, overhead power cables, or the frequencies
of other devices.

a)Cellular networks: From 1G to 3G

 1G: First generation wireless cellular: Early 1980s
o Analog transmission, primarily speech: AMPS (Advanced Mobile
Phone Systems) and others
 2G: Second generation wireless cellular: Late 1980s
o Digital transmission
o Primarily speech and low bit-rate data (9.6 Kbps)
o High-tier: GSM, IS-95 (CDMA), etc
o Low-tier (PCS): Low-cost, low-power, low-mobility e.g. PACS
o 2.5G: 2G evolved to medium rate (< 100kbps) data
 3G: future Broadband multimedia

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o 144 kbps - 384 kbps for high-mobility, high coverage

o 2 Mbps for low-mobility and low coverage
 Beyond 3G: research in 4G

• Handoffs (typically 30 mseconds):

1. At any time, mobile station (MS) is in one cell and under the control of a BS
2. When a MS leaves a cell, BS notices weak signal
3. BS asks surrounding BSs if they are getting a stronger signal
4. BS transfers ownership to one with strongest signal
5. MTSO assigns new channel to the MS and notifies MS of new boss
 Cell-id based location.
o assigned an id of the cell that you are in.
o cell-id is stored in a database.
o As you move from one cell to another, you are assigned a different cell-
id and the location database is updated.
o most commonly used in cellular networks. (HLR, VLR)
 Neighborhood polling: Connected mobile units only move to adjacent cells
 Angle of arrival (AOA). the angle at which radio waves from your device
"attack" an antenna is used to calculate the location of the device.

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 Time taken. In this case, the time taken between the device and the antenna is
used to calculate the location of the device.
 Network assisted Global Positioning System (GPS). a GPS chip is installed
inside a phone and thus the location of the user is tracked.

3.2.4 WIRELESS SPECTRUM

The wireless spectrum consists of electromagnetic radiation and frequency
bands. Respective countries have their own wireless spectra with ranges up to 300
GHz. The wireless spectrum frequencies used in communication are regulated by
national organizations, which specify which frequency ranges can be used by whom
and for Which purpose. Radio-channel and channel-frequency variation is quite
complex because radio propagation characteristics are a result of both man-made
and natural factors. Government entities own frequency channels, which are divided
according to common frequency band characteristics and cause performance breaks
at different frequency levels, where only windows of continuity are available.
The wireless technology boom has created divisions in spectrum allocation.
The International Telecommunications Union (ITU) divides the world into three
different regions that influence wireless signal propagation:
• Region 1 : Europe, Africa, parts of the Middle East and Northern Asia
• Region 2 : The Americas, Caribbean and Hawaii
• Region 3 : Asia, Southeast Asia, the Pacific Islands, Australia and New
Zealand
Radio signals are a form of electromagnetic radiation
Usually thought of as waves with frequency, wavelength and amplitude

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Amplitude is wave height, represents power, decreases with distance

• Frequency is how long to complete 1 cycle, then repeat
• Unit of frequency is Hertz (Hz), cycles per second
• 1000 Hz = 1 kiloHertz (kHz)
• 1000000 Hz = 1 megaHertz (MHz)
• 109 = 1 gigaHertz (GHz)
• 1012 = 1 teraHertz (THz)
• All waves travel at speed of light in vacuum = 3 x 108 m/s
• Speed = lf, inverse relationship, high freq = short wavelength
• Most media (e.g. air, clouds) slow down wave speed by a factor
• Radio waves also suffer from attenuation (reduction in power) over distance
• Can classify radio waves based on either wavelength or frequency
• Infra-red also used for data transmission, LOS, affected by sun

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a)Physical Layer – Transmission Types

• Infrared light spectrum
• Radio wave spectrum
• Microwave spectrum
b)Infrared Light - Positive Options
• Inexpensive
• Compatible with fiber-optic links
• Not bandwidth limited
• No licensing required (FCC)
• Transmissions may be aimed (1 to 2 kilometers)
• Transmissions may be Omni-directional (30-60 feet)
• Amplitude driven – little interference
• Range of 1-2 kilometers (approximately ½ to 1 ½ miles)
• Highest bandwidth and throughput
• Infra LAN – product with infrared transmission
c)Infrared Light – Negative Aspects
Spectrum is shared with the sun and other lighting sources
LAN may become “useless” with enough interference
Signals will not permeate opaque objects (walls, dividers, etc)

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d)Microwaves

e)Microwave - Positive Options

• Higher throughput without spread spectrum
• 5.8ghz band – using a narrow-band transmission
• Radio LAN - product using microwave transmission
f)Microwave – Negative Aspects
• Expensive to build infrastructure
• Must operate at less than 500 milli watts (strict FCC regulations)
• Not commonly used – less available knowledge pool
g)Radio Waves – Spectrum

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i)Radio Waves - Positive Options

• Commonly understood technology
• Not subject to interference of light waves like infrared
• Less expensive than microwave
• Long-range medium – several architectures exist
• Commonly used – larger knowledge pool
• WaveLAN, BreezeNet pro, Proxim Rangelan2, & RadioLAN
ii)Radio Waves – Negative Aspects
• Spread spectrum technology – high overhead
• Lower rates of data transmissions – due to overhead required
• Subject to some interference – causing delays in transmission
iii)Radio Waves – Spread Spectrum Methods
• Direct Sequence Spread Spectrum (DSSS)
• Transmission signal is spread over an allowed band
• Frequency Hopping Spread Spectrum (FHSS)
• Splits the band into subchannels – signal then hops to transmit
iv)Radio Waves – Direct Sequence Spread Spectrum (DSSS)
• Random Binary String Modulates the Transmission Signal
• Spreads signal over a band (Example, 50 MHz)
• String is known as a “Spreading Code”
• Bits are mapped out as “chips” and mapped back as “bits”
• Spreading Ratio – The number of “chips” per bit
h)DSSS Spreading Ratios
• Higher Ratios Resist Interference Better
• Lower ratios allow for use of more bandwidth
• FCC dictates spreading ratios must be more than ten
• IEEE 802.1 standard requires a spreading ratio of eleven
• Sender & Receiver must synchronize to the spreading code
• Orthogonal spreading codes allow sharing of the band between LANs
• DSSS systems use wide subchannels, limiting LANs possible

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• Recovery is faster with DSSS due to ability to spread the signal over a wider
band
• Example Product = WaveLAN
i)Radio Waves – Frequency Hopping Spread Spectrum (FHSS)
• Splits the band into many subchannels (1-2MHz)
• Signal “hops” from subchannel to subchannel
• Uses short bursts of data on each channel
• Bursts are within a “dwell” time (very short time)
• FCC requires at least 75 subchannels
• FCC requires “dwell” time of no longer than 400ms
• Less interference than DSSS due to hopping
• Security is higher due to the hopping
j)Wave Bands
• Radio spectrum can be sub-divided into regions called wavebands

 Higher freq.,
o shorter wavelength, more bandwidth

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o More blockage
 Lower freq.,
o attenuated more
o Can bend round obstacles
 Example:
o AM radio can span entire country with 1 transmitter
o VHF can only span 1 city

3.2.5 TECHNOLOGIES FOR MOBILE COMMERCE

Buying and selling of products or services using a mobile device
Mobile/smart phones

a)PDAs
i)Emerging mobile equipment Dashtop mobile devices
Commerce: be able to buy/sell..
eCommerce: ...using a computer network...
mCommerce: ...anytime & anywhere
ii)Device Platforms for m Commerce
[Link]
Mobility
Graphical user interface
Network connectivity
Good input capability

[Link]
Low bandwidth
Limited resources: CPU, RAM, battery, screen,
small/inconvenient keyboard
b)Mobile Phones
Primary feature:
voice communication
SMS (text messages)

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MMS (photo and video)

Micro browsers
Java support
Top 5 manufacturers:
Nokia, Samsung, Motorola, Sony Ericsson, LG
c)Smart Phones
Symbian, Linux, Windows Mobile, RIM Blackberry, Palm OS
Apple OS X
d)Smart Phones: iPhone
TIME Magazine’s 2007 invention of the year
The iPhone is pretty

It's touchy feely

It will make other phones better

It's not a phone, it's a platform

It is but the ghost of i Phones yet to come

3.2.6 WIRELESS TECHNOLOGIES

While electronic commerce (e-commerce) continues to have a profound
impact on the global business environment, technologies and applications have
begun to focus more on mobile computing and the wireless Web. With this trend
comes a new set of issues and problems specifically related to wireless e -commerce.
Ultimately, researchers and developers must determine what tasks users really want
to perform anytime from anywhere and decide how to ensure that information and
functionality to support those tasks are readily available and easily accessible.
This paper provides an overview of some of the relevant technologies,
applications, and issues in the relatively new field of wireless e-commerce. Wireless
e-commerce (also called mobile commerce or m-commerce) is the promotion,
buying, and selling of goods and services through electronic data communication

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networks that interface with wireless (or mobile) devices. Wireless e-commerce is a
subset of wireless computing, which is the accessing of information systems by
wireless means. Many of the issues that affect wireless computing in general also
affect wireless e-commerce. Mobile e-commerce also includes the use of devices such
handheld and laptop computers that interface with computing resources through
wired synchronization. We do not consider this wired form of mobile e-commerce in
this paper principally because it is likely to be replaced by wireless devices in the
future. Our focus here is on the wireless forms of mobile commerce.
a)Technologies
Wireless technologies for mobile commerce can be roughly categorized into
mobile client devices for interactivity (or m-commerce terminals) and
communications infrastructure.
b)Mobile Client Device Technologies and Issues
The interactivity devices or mobile client devices currently most important to
wireless e-commerce are mobile telephones, handheld computers, laptop computers,
and vehicle-mounted interfaces. Hybrid devices are now appearing, such as the
crosses Between mobile phones and handheld devices (sometimes called smart
phones), but the question remains as to what form the devices will ultimately take,
which is an important issue for mobile system developers Usability will become
more critical with handheld and phone devices, which differ from desktop and
laptop computers in terms of their smaller screen sizes, less available memory, and
limited input devices.
Many handheld devices are limited to a few lines of text, and do not have
traditional keyboards. One usability issue is the need for organizations to determine
how people can best use applications and access information through different
devices. Wireless devices have forced developers to carefully revisit both operating
systems and applications software on a variety of platforms. Operating systems such
as Microsoft’s Pocket PC and Palm’s Palm OS have been developed for handheld
devices. Although this software meets some of the current needs, it has limited
functionality. The creation of system software with increased functionality for
devices with limited capabilities will be an ongoing challenge.

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Another important building block for this emerging infrastructure landscape

may be the Wireless Application Protocol (WAP), which enables wireless devices
such as mobile phones to access the Internet. Many WAP-enabled devices have
already appeared, although there is doubt as to whether WAP will become a
globally accepted standard, especially with the popularity of Japan’s i-mode.
Developers ultimately face the issue of deciding which set of protocols to accept, or
risk the potential problems of working with multiple standards and/or choosing to
ignore some.
Communications Infrastructure Technologies and Issues The communications
infrastructure necessary for the wireless Internet environment is quite complex.
Wireless devices are likely to remain at a disadvantage over their wired counterparts
in terms of bandwidth. Limited bandwidth is a significant problem that requires
organizations to rethink how users interact through a wireless device with an
information system. An important issue show to create efficient applications that can
realistically work with current technology.
c)Local Area Network Technologies
IEEE 802.11 and IEEE 802.11b are established wireless standards commonly
used with laptops or personal computers for wireless local area networks. This
technology provides speeds of 1 to 11 megabits per second (Mbps). Bluetooth is a
relatively new,
inexpensive short-range wireless standard that allows different devices (such as
laptops and mobile phones) to communicate with each other. The maximum
distance between devices is about 100 meters, and data exchange rates are 1 to 2
Mbps. Hiper LANis a set of wireless LAN standards, primarily used in Europe,
which provides speeds up to 20 Mbps.
Issues that must be addressed concerning local area network technologies
include a lack of compatibility between the different standards and the related
difficulties involved with devices trying to interface with more than one
communications environment. Frequencies used for wireless LANs are expected to
become very crowded very fast. There has also been recent concern about possible
interference problems between different signals of different standards.

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d)Telecommunications Technology
There are three basic “second-generation” (2G) digital wireless telephone
technologies – time division multiple access, Global System for Mobile
communication (GSM), and code-division multiple access. All these are circuit-
switched services, where a user must dial-in and maintain a connection when data
communications are desired. GSM is the most widely used of the three technologies,
especially in Europe; its current speed is only 9.6 kilobits per second (Kbps). General
Packet Radio Service (GPRS), based on GSM, is a continuous packet data service.
Using this technology, network connections are “always-on”, and mobile users need
not dial into the Internet each time they need to access an application.
GPRS promises data rates from 56 to 114 Kbps. GPRS communication
channels are used on a shared basis, only sending or receiving packets as needed,
rather than maintaining a continuous dedicated line as with circuit-switched
services. UMTS (Universal Mobile Telecommunications System) is a so-called “third-
generation” (3G) technology. It offers broadband, packet-based transmission at rates
that will exceed 2 Mbps. Based on GSM, UMTS is the planned global standard for
mobile users.
Once UMTS is fully implemented, computer and phone users can be
constantly attached to the Internet and have access to a consistent set of services
worldwide. Many of the issues with telecommunications technologies are similar to
those found with LANs. There are distinct bandwidth limitations with the older
generation technologies, which make it difficult to develop efficient applications for
all technologies. Standards vary from country to country, making it difficult for
devices to interface to networks in different locations. An additional issue is the high
initial cost of establishing a wireless network that uses these technologies.
e)Other Wireless Technology Issues
Security of wireless information is another important technical issue in m-
commerce. Users and organizations will want assurance that their wireless
communications and transaction s are not intercepted. Organizations that set up
wireless LANs must realize that there are no physical boundaries limiting their

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networks, and that people and devices outside the organization may have
(inadvertent) access to their systems. Frequency hopping can make it more difficult
to intercept data communications. Encryption technologies can also help, but will
need to be made more efficient and more foolproof.
The increased use of wireless devices for e-commerce makes the issue of
positive identity verification even more important yet more difficult to ensure. One
consequence of this need is the increasing importance of biometrics. Location
technologies, especially the Global Positioning System (GPS), will also play a large
part in wireless communications. However, privacy issues must be addressed, such
as how personally-identifiable data and location data should be used.
f)Applications
Some of the applications of wireless technologies to e-commerce activities that
have started to appear across the globe are summarized here. Many of these are
currently constrained by technology limitations and issues described previously.
Two fundamental application issues that researchers and developers must address
are what tasks do users want to do without regard for temporal or spatial constraints
and how to provide support for these tasks through wireless applications.
E-commerce payment systems can also benefit from wireless technology. One
scenario involves a consumer not having to stand in line to make a purchase, but
simply paying for an item though a wireless device. Final payments might even be
billed to a telephone company. Bluetooth technology may enable a list of available
services to be generated automatically on a device when a user walks close to a
Bluetooth-equipped cash register.
Wireless technology is well suited for bringing e-commerce to automobiles
and other forms of transportation. Traffic advisory systems can warn of impending
traffic jams. Cars will eventually be able to report potential problems to service
centers themselves. The service center might even make minor adjustments to the
car online. Car-mounted devices will eventually allow regular Internet access,
although safety issues of “browsing while driving” must be addressed. While most
initial mobile commerce applications seem to be aimed at the business-to-consumer
market, business-to-business and intranet applications are also appearing.

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Service technicians can be dynamically assigned new tasks and sent problem
information while they are traveling. Sales people can go literally anywhere in the
field and access product information and customer accounts, although the
applications right now are still subject to the constraints of current wireless devices.
Organizations must address the issue of designing complex, robust applications that
work well within these current (and any foreseeable) device limitations. Flexibility
can be integrated into designs to enable future functionality.
g)Global M-Commerce
The global use of wireless technologies and applications adds another layer to
the problems and issues in m-commerce. One important issue is the current lack of
standardization throughout the world. Mobile phone standards vary from country
to country and even within a country. A global initiative for universal standards
would foster greater growth in m-commerce. A significant issue is the disparity in
the adoption of wireless technologies and applications in different regions of the
world. Japan will probably be the first to implement 3G technologies, followed by
Europe and the United States.
The primary reason for the U.S. lag is that the United States has not had the
same demand for increased mobile capacity as Europe and Japan. Fewer Americans
use wireless devices than individuals living in Asia or Europe, and current American
users exhibit lower usage rates than Asians and Europeans. Therefore, the overall
demand for 3G will be slower to reach critical levels Wireless devices continue to
change rapidly. While no one is quite sure what the ultimate wireless device(s) will
be, there is definitely a need to ensure that devices can function with one another.
There is also the need for a truly global wireless communication
infrastructure with sufficiently high bandwidth to satisfy the needs of wireless and
m-commerce applications. The establishment of a wireless infrastructure costs a
great deal, and there will be many difficulties ahead for the companies paving the
way for m-commerce, but the long-term prospects look good for the companies that
survive.

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UNIT - IV
4.1 HTML AND WEB DESIGNING
4.1.1 BRIEF HISTORY OF HTML

 HTML stands for Hyper Text Markup Language

 An HTML file is a text file containing small markup tags
 The markup tags tell the Web browser how to display the page
 An HTML file must have an htm or html file extension
 An HTML file can be created using a simple text editor
 The <!DOCTYPE html> declaration defines this document to be HTML
 The <html> element is the root element of an HTML page
 The <head> element contains meta information about the document
 The <title> element specifies a title for the document
 The <body> element contains the visible page content
 The <h1> element defines a large heading
 The <p> element defines a paragraph

HTML Markup

HTML pages are created by tagging textual information with HTML markup.
HTML markup consists of tags, which appear inside angled brackets < and > An
example of an HTML tag is <B>, which causes text to appear in bold. <B> only notes
where text should begin to appear in bold, while the tag </B> marks the end of the
emboldening. Most HTML tags have a corresponding end tag, which is specified by
the name of the tag preceded by the / character. So, to create the text:

Internet Commerce is great

<B>Internet Commerce is great!</B>

Another example of an HTML tag is <I>, which causes text to appear in italic. In
HTML 4.01, the <I> tag was used to render text in italics. However, this is not
necessarily the case with HTML5. Style sheets can be used to format the text inside
the <I> element. This will be demonstrated later. Note that tags are not case-
sensitive. In other words, <B> or <b> are the same tag, both specifying bold text.

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HTML Page Structure

4.1.2 HTML TAGS

The most important tags in HTML are tags that define headings, paragraphs
and line breaks.

Headings
Headings are defined with the <h1> to <h6> tags. <h1> defines the largest
heading. <h6> defines the smallest heading.
<h1>This is a heading</h1>
<h2>This is a heading</h2>

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<h3>This is a heading</h3>
<h4>This is a heading</h4>
<h5>This is a heading</h5>
<h6>This is a heading</h6>
Paragraphs
Paragraphs are defined with the <p> tag.
<p>This is a paragraph</p>
<p>This is another paragraph</p>
HTML automatically adds an extra blank line before and after a paragraph.
Line Breaks
The <br> tag is used when you want to end a line, but don't want to start a new
paragraph. The <br> tag forces a line break wherever you place it.

<p>This <br> is a para<br>graph with line breaks</p>

The <br> tag is an empty tag. It has no closing tag.
Comments in HTML
The comment tag is used to insert a comment in the HTML source code. A
comment will be ignored by the browser. You can use comments to explain your
code, which can help you when you edit the source code at a later date.
<!-- This is a comment -->
4.1.3 TABLE CREATION
Tables are defined with the <table> tag. A table is divided into rows (with the
<tr> tag), and each row is divided into data cells (with the <td> tag). The letters td
stands for "table data," which is the content of a data cell. A data cell can contain text,
images, lists, paragraphs, forms, horizontal rules, tables, etc.

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Tables and the Border Attribute

If you do not specify a border attribute the table will be displayed without
any borders. Sometimes this can be useful, but most of the time, you want the
borders to show. To display a table with borders, you will have to use the border
attribute.
<table border="1">
<tr>
<td>Row 1, cell 1</td>
<td>Row 1, cell 2</td>
</tr>
</table>

Headings in a Table
Headings in a table are defined with the <th> tag.
<table border="1">
<tr>
<th>Heading</th>
<th>Another Heading</th>

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</tr>

<tr>
<td>row 1, cell 1</td>
<td>row 1, cell 2</td>
</tr>
<tr>
<td>row 2, cell 1</td>
<td>row 2, cell 2</td>
</tr>
</table>

4.1.4 HYPERLINK
HTML links are hyperlinks. You can click on a link and jump to another
document. When you move the mouse over a link, the mouse arrow will turn into a
little hand. Hypertext is text with hyperlinks. The text that is linked from is
called anchor text. A software system that is used for viewing and creating hypertext
is a hypertext system, and to create a hyperlink is to hyperlink (or simply to link). A
user following hyperlinks is said to navigate or browse the hypertext.
Syntax

In HTML, links are defined with the <a> tag:

<a href="url">link text</a>
Example
<a href="[Link] our HTML tutorial</a>

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4.1.5 REFERENCE
<a href="[Link] our HTML tutorial</a>

4.1.6 HEADINGS
Headings are defined with the <h1> to <h6> tags.
<h1> defines the most important heading. <h6> defines the least important heading.

<h1>Heading1</h1>
<h2>Heading2</h2>
<h3>Heading3</h3>
<h4>Heading4</h4>
<h5>Heading5</h5>
<h6>Heading 6</h6>
4.1.7 ALIGNMENT
 Open your HTML document. Double-click the HTML document to open it in
your computer's default text (or HTML) editor.
 Find the text you want to center. Scroll down until you find the header,
paragraph, or other text that you want to center.
 Add the "center" tag to each side of the text. ...
 Review your HTML document.
Example

<p align="center">This is some text in a paragraph.</p>

4.1.8 SIMPLE WEB PAGE CREATION
If you are running Windows, start [Link] in the following text:
<html>
<head>
<title>Title of page</title>
</head>
<body>
This is my first homepage. <b>This text is bold</b>
</body>
</html>

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Save the file as "[Link]". Start your Internet browser. Select "Open" (or
"Open Page") in the File menu of your browser. A dialog box will appear. Select
"Browse" (or "Choose File") and locate the HTML file you just created -
"[Link]" - select it and click "Open". Now you should see an address in the
dialog box, for example
"C:\MyDocuments\[Link]". Click OK, and the browser will display the page.

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UNIT - V
5.1 E-MAIL

5.1.1 E-MAIL

E-mail is short for electronic mail, mail you can send or receive directly on
your computer. Yes, with e-mail people can actually write you letters and send them
to your computer, and you can turn on your computer and go pick up your mail
whenever it's convenient. Many a love affair has begun through e-mail. I know. It's
really fun, too. And useful, of course. E-mail can be a verb too, as in "I e-mailed my
lover a letter from Lhasa."

Although basically a method of passing messages from one computer to

another email is becoming increasingly popular, in part because those computers
sending messages to each other could be in adjacent offices or on opposite sides of
the world. In fact the ability to send a letter or memo halfway across the world at the
speed of electricity instead of the more traditional postal services is one of the
strengths of the Internet. Because of email even the remotest office can maintain
practically instant communication with headquarters, or even another remote office.

E-mail may not be as personal as a handwritten note, but it's the quickest and most
convenient way yet to communicate written information. If something absolutely
positively has to be there in ten minutes, e-mail can get it there on time. I write for
magazines and corporations all over the country, but I never leave my room. If an
article has to be in by Friday at noon, I can finish it Friday at 11:45 and e-mail the
computer file to New York before the deadline.

E-mail is also great for taking care of business without having to go through
all the social pleasantries we endure in phone conversations you can get straight to
the point without having to ask how the kids are doing. "Attached is the file on the
DeVere controversy. Tell me what you think." Contrast e-mail with snailmail.

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To send or receive e-mail, you must have a modem or your computer has to
be on a network (connected to other computers). Your company or organization may
have its own e-mail system with its own software-in which case you'll run a version
of that software on your machine. Lotus' CC:Mail is probably still the most popular
e-mail software around for PCs. Alternatively, e-mail services are available on
many bulletin boards and online services) and there are specialized services such as
MCI Mail whose primary mission is to distribute e-mail.
5.1.2 EMAIL COMPONENTS
E-mail message comprises of different components: E-mail Header, Greeting,
Text, and Signature. These components are described in the following diagram

E-mail Header

The first five lines of an E-mail message is called E-mail header. The
header part comprises of following fields:
 From
 Date
 To
 Subject

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 CC
 BCC
FROM

The From field indicates the sender’s address i.e. who sent the e-mail.

DATE

The Date field indicates the date when the e-mail was sent.

TO

The To field indicates the recipient’s address i.e. to whom the e-mail is sent.

SUBJECT

The Subject field indicates the purpose of e-mail. It should be precise and to the
point.

CC

CC stands for Carbon copy. It includes those recipient addresses whom we want to
keep informed but not exactly the intended recipient.

BCC

BCC stands for Black Carbon Copy. It is used when we do not want one or more of
the recipients to know that someone else was copied on the message.

GREETING

Greeting is the opening of the actual message. Eg. Hi Sir or Hi Guys etc.

TEXT

It represents the actual content of the message.

SIGNATURE

This is the final part of an e-mail message. It includes Name of Sender, Address, and
Contact Number.

5.1.3 USE OF EMAIL

E-mail has prooved to be powerful and reliable medium of commmunication.
Here are the benefits of E-mail.

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Reliable

Many of the mail systems notify the sender if e-mail message was
undeliverable.

Convenience

There is no requirement of stationary and stamps. One does not have to go to

post office. But all these things are not required for sending or receiving an mail.

Speed

E-mail is very fast. However, the speed also depends upon the underlying
network.

Inexpensive

The cost of sending e-mail is very low.

Printable

It is easy to obtain a hardcopy of an e-mail. Also an electronic copy of an e-

mail can also be saved for records.

Global

E-mail can be sent and received by a person sitting across the globe.

Generality. It is also possible to send graphics, programs and sounds with an e-

mail.

5.1.4 EMAIL CREATION

 Visit Create your Google Account for Gmail.
 Enter your first and last name in the Name section.
 Type your desired username under Choose your username.
 Your Gmail email address will be your username followed by "@[Link]."
If your Gmail username is "example," for instance, your Gmail address is
"example@[Link]."
 Enter a password for your Gmail account under both Create a
passwordand Confirm your password. Pick an email password that is
difficult to guess.

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 For enhanced security, you should later enable two-factor authenticationfor

your Gmail account.
 Click Next.

You are asked to verify your phone number. You can skip this step if you prefer.

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 Enter your mobile phone number and an alternate email address for account
verification and authorization. Google uses this information to protect your
privacy and to allow you to recover a lost password.
 Enter your birth date and gender in the fields provided.
 Click Next

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Read and the Privacy and Terms and then click I Agree to continue.

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That's it. You're done. Once you click I Agree you're taken to the My Account page
for the email address you just created. From there, you can sign into your account,
manage your personal information, and set your account preferences.

5.1.5 BROWSING
Browsing is a quick examination of the relevance of a number of objects
which may or may not lead to a closer examination or acquisition/selection of (some
of) these objects. It is a kind of orienting strategy that is formed by our “theories,”
expectations and subjectivity".
A web browser is a software program that allows a user to locate, access, and
display web pages. Browsers are used primarily for displaying and accessing
websites on the internet, as well as other content created using languages such as
Hypertext Markup Language (HTML) and Extensible Markup Language (XML).

The most popular web browsers that are used today are Mozilla Firefox,
Google Chrome, Microsoft Internet Explorer, Apple Safari and the Opera browser. ...
These files, or web pages as they're commonly known, are pulled from the web
server and then translated by the web browser for the user to view.
5.1.6 SEARCH ENGINES
A web search engine is a software system that is designed to search for
information on the World Wide Web. The search results are generally presented in a
line of results, often referred to as search engine results pages (SERPs). The
information may be a mix of web pages, images and other types of files. Some search
engines also mine data available in databases or open directories. Unlike web
directories, which are maintained only by human editors, search engines also
maintain real-time information by running an algorithm on a web crawler. Internet
content that is not capable of being searched by a web search engine is generally
described as the deep web.

It is a database or website which contains links to all web pages on the

Internet which help in search of information. Example is google.

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com, [Link] and [Link]. A search engine refers to a web software used to
search for information on the internet using keywords.

5.1.7 DOWNLOADS

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In computer networks, to download (abbreviation DL) is to receive

data from a remote system, typically a server such as a web server, an FTP server,
an email server, or other similar systems. This contrasts with uploading, where data
is sent to a remote server. A download is a file offered for downloading or that has
been downloaded, or the process of receiving such a file.

Downloading generally transfers entire files for local storage and later use, as
contrasted with streaming, where the data is used nearly immediately, while the
transmission is still in progress, and which may not be stored long-term. Websites
that offer streaming media or media displayed in-browser, such as YouTube,
increasingly place restrictions on the ability of users to save these materials to their
computers after they have been received. Downloading is not the same as data
transfer; moving or copying data between two storage devices would be data
transfer, but receiving data from the Internet is downloading.

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MODEL QUESTION PAPERS

II BSC (BT)
Fourth semester
Ecommerce
Time : Three hours Maximum : 75 marks
Part – A - ( 10 X 2 = 20 )
Answer ALL questions
1. Define E-Commerce.
2. What are the Transition to E-Commerce in India?
3. Define Networks and Internets with Example.
4. Write the E-advertising?
5. Define E-advertising.
6. What are the Cyber stalking?
7. What are the Skimming?
8. Define e-Payment Systems
9. Define Designing e-payment Systems
10. Define Cellular Network.

Part – B - ( 5 X 5 = 25 )
Answer ALL questions
11.a). Explain about the Transition to E-Commerce in India–The Internet.
(OR)
b).Write about India–E-transition Challenges for Indian Corporate.
12.a). Explain the Internets–Software Agents Internet Standards
(OR)
b). Explain about the and Specifications–ISP. e-Marketing.
13.a). Explain the Information Security Environment in India.
(OR)
b). Explain how to protect Legal and Ethical Issues Functional Dependency.

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14.a). Explain about properties of Electronic Cash Cheque Payment Systems on the
Internet–Risk
(OR)
b). Write about and e-Payment Systems
15.a).Explain about how to initialize Cellular Network
(OR)
b).Explain the following –Wireless Spectrum

Part-C - ( 3 X 10 = 30 )
Answer any three questions
16. Explain briefly about Business Model–E-business Models Based on the
Relationship of Transaction Parties.
17. Explain the Internet Client-Server Applications with examples
18. Describe Privacy is at Risk in the Internet Age briefly.
19. Explain the Designing e-payment Systems with Examples.
20. Explain about the Security Issues Pertaining to Cellular Technology in detail.

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OBJECTIVE TEST
E-COMMERCE TECHNIQUE
1. Which of the following is not a building block in the infrastructure of e-commerce? a) Common
business services b) Messaging and information distribution
c) Public policy d) Situational standards
2. …... is a mesh of interconnected data highways of many forms.
a) Computer b) I- way C) E-commerce d) Business service
3. …………….. is the use of digital data in more than one format such combination of text, audio,
video, graphics in computer file.
a) Multimedia b) Digitalization
c) Media serving d) Information delivery
4. Which of the following is not an application of e-commerce?
a) Multimedia storage servers b) Consumer access devices
c) Electronic commerce d) Global interference
5. Which of the following is not included in electronic commerce applications related to digital
video?
a) Telecommunicating and video conferencing
b) Corporate multimedia servers
c) Video-on-demand d) Postproduction studios
6. Which of the following is not an information delivery method?
a) Long distance telephones lines b) Cable TV-coaxial
c) Cellular and radio networks d) Wireless communications
7. Expansion of EDI………….
a) Electronic data information b) electronic data interchange
c) Electrical data information d) electronic direct interchange
8. ………….. viewed as an integrated management system consisting of a number of different
management practices dependent on the characteristics of specific plants
a) Just –in- time manufacturing b) quick response retailing
c) Channel management d) supply chain management
9. ……………. the goal is to shorten the order-ship-bill cycle. When a majority of partners are
electronically linked, information faxed or mailed
a) Channel management b) inventory management
c) Sales production d) payment management

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10 …………… the goal is to improve the communication flow of information among the sales,
customer & production functions
a) Channel management b) distribution management
c) Sales force productivity d) payment management

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