Tuesday, March 10, 2009

Exercise1: Analysis of the Online Communities Paradigm

1a. Online Community is a computer network approach, which involved a group of peopleby using the email, phone call, newsletter, and message interactively. (wilkipedia, 2009)
1b.i. After visiting three auctions sites , yes, they have the same common thread and local community sense in action, since among three, they have the common layout with the common links show different locations eg. United Kingdom, United States, Australia and Hong Kong .. etc
1b.ii. Ebay accepts PayPal, Credit cards( Mastercard, Visa, Amex), debit cards and bankelectronic payments, they are globally acceptable.Also offline payment methods likepersonal chequest, bankers drafts and postal orders are accepted but they are not have the same level of protection as online payments
1b.iii. Benefits for Buyer, Seller and E-bay Owner
- Buyer can do shopping 24 hours x 7 days , anytime and anywhere they wanted,provided that they are on-line. The price is comparatively since so many sellers are on-line. Payment is easy and flexible with the electronic payment system.Also, no geographical limitation.
- Seller did not need a real physical shop with employees take care of the customers, cost save on that. Market freedom. no geographical limitation, virtual shop can open 24 hours x 7 days to serve different geographical customers.
- E-bay owner earns lots of commissions through the sales transactions.
1c. Thee others examples of an online business using an online community approach.They are ShopinHK-
http://www.shopinhk.com,Yahoo!Shopping-http://shopping.yahoo.com,Amazon-http://www.amazon.com


2a. Amazon is a successful online business store because it provides 24 hours x 7 days services. Also, it provides so many different items for custmomers to choose, convenience and safe payment system and user friendly layout. Steps on purchase a book:
- Search the book title
- Click on the buy a new book link
- Add to a shopping cart
- Sign in a Secure server
- Create a new or sign in an account
- Fill in the shipping address and choose the methods for delivery
- Choose the payment
- Submit the order.
2b.Yes, there is a secure transactions not involving money, SSL is the common security method use on internet.
2c. List of items can be bought under Amazon

3. Price comparison sites can offer a online price information for the customers , rather than in earlier time, customers had to visit different shops phyically to compare the price. It serves the convenience for customers. Nowadays, manufacturers, merchants, retailers has to provide a competition price or discount for their products, in order to "get" a customer because price comparison sites give information on the rise and fall of the prices also with the various of cheap deals (FA Lifestyle, 2008).

Reference:
1. Wilipedia, 2009, 'Virtual Community'
2. Amazon, 2009, 'Amazon.com'
3. FA Lifestyle, 2008, ' Price Comparison Compare to Find Cheap and Best'

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