Question

1. Revenue model is a number revenue model that e-commerce is adopted to generator revenue and profits?

2. The types of revenue model, describe each one?

3. What are the benefit of Internet options to the seller to the buyer.?Benefit and the cost of online options.?

4. What are the five steps a social marking, describe each one?

5. What is the five step of analyzing ethical dilemmas, And describe each one?

Answer 1

1. Revenue refers to the total amount earned by a company by selling its goods and services during a certain period of time. Revenue models are an integral part of a company's model. It impacts all the areas of business including sales, finance, operations and brand, but does not equal to the business model. It focuses on the earning strategy of the business and includes the sources of revenue, revenue making techniques, product or service value and the target market or customers. It projects the procedure a company makes money. It is important to a company's long-term planning and business projections.

2. There are different types of revenue models:

a. Subscription - Many businesses run over websites and some businesses even include videos over Youtube. The more the number of subscribers, the more revenues are earned.
b. Markup - It is the most common way of increasing revenues. This process involves setting up the increased SP(selling Price) of the goods or services after adding the profits and other overhead charges so it generates more marginal revenue for the company. It is a common practice among the retailers, wholesalers etc.
c. Arbitrage - This is the process of taking advantage of the price difference of the same good or service in two different markets. It includes buying the good or service from one market where its price is lower and selling it in another market where the selling price of the same good or service is higher.
e. Advertising - The advertisements are the most common money making strategy. The company charges the advertiser and makes money from it. Advertisements can be offline or online and include the criteria like per click on the ad, per unit size for the space offered, etc.
f. Commission - The charges above the set charges of provision of any good or service is called commission on that item. Most sellers earn from the commission charged for selling these, over and above their original selling price.
h. Lease/Rent - It involves renting or leasing a physical asset of the company. The rent is recurring in nature and is a constant source of revenue.

3. E-commerce has played an important role in running, expanding of the business and making profits from the online business opportunities. The benefits of online business to the sellers and buyers are:

a. Competition to a large spectrum of businesses by being available and operating for about 24 hours a day.
b. Payments and transactions are processed and reflected in less time as compared to the offline procedure. Thus, for any adverse action, things can be acted upon immediately.
c. Being able to reach a larger global audience and increase sales.
d. Record more data safely and use the gathered data by keeping a track of consumer's transactions.
e. Low cost high investment for installing a software or making a website which records all processing costs, efficient customer relationship management and better order management.
f. Easy provision of information to the sellers and buyers.

The cost of setting an online business involves registering and setting costs for the business structure, marketing, finding sellers, updating the stock, etc. The capital investment is very less compared to the overall costs of setting up an offline business. Along with, there comes the costs of training and the costs of establishing and growing business overtime in an e-commerce business.

4. The five steps in social marketing are:

a. Planning and acquisition
b. Engagement
c, Amplification and pretesting of the proposed idea
d. Building community, materials dissemination and implementation
e. Building brand strength, collecting feedback and working on the same

5. The five steps in solving ethical dilemmas are:

a. The first and foremost step is facts and information gathering - Gather all the possible facts about the topic and the situation, Even distorted information can work in favor, hence, information gathering is the most important step.
b. Prediction - Make a guess about the future or proposed situation.
c. Consciously analyse the situation, make predictions based on self-analysis and intuition.
d. Go through the decision once again, this time with the possible reasoning.
e. Explanation and putting forward the reasons - This involves hypothesis testing and reaching a conclusion. In real life, it involves advancing knowledge about the topic or the situation.