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SAI INTERNATIONAL SCHOOL
CLASSS XI
SUBJECT: BUSINESS STUDIES
CHAPTER -5, EMERGING MODES OF BUSINESS
Topics: online transaction, security and safety of business transaction,
resources required for e-business.
(Lesson-note-23)
ONLINE TRANSACTIONS
Process of online trading from a customer’s standpoint
i. Operationally, one may visualize three stages involved in online
transactions. Firstly, the pre-purchase/sale stage including
advertising and information- seeking; secondly, the
purchase/sale stage comprised of steps such as price
negotiation, closing of purchase/sales deal and payment; and
thirdly, the delivery stage.
ii. The information is exchanged in the traditional business
mode too, but at severe time and cost constraints. In face- to-face
interaction in traditional business mode, for example, one
needs to travel to be able to talk to the other party, requiring
travel effort, greater time and costs.
iii. It requires simultaneous presence of both the parties for verbal
exchange of information. Information can be transmitted by post
too, but this again is quite a time consuming and expensive
process. In the case of information-intensive products and
services such as software and music, even delivery can take place
online.
