Unit 1.5.2 Technology and Business

If a business transaction takes place using electronic devices via the internet, this process is known as?

• Social media

• E-commerce

• Digital communication

• Internet payment systems

Identify the examples of social media platforms which businesses can use to communicate with customers from the options below.

• Facebook

• Twitter

• Gmail

• TikTok

Identify the digital communication tools listed below.

• Mobile apps

• Email

• Letter

• Social media

Cash is a digital payment method.

• True

• False

The positive impacts of e-commerce on sales include?

• Automated sales process

• Less competition

• Businesses can sell 24/7

• Businesses can reach a wide audience

How can technology help to decrease business costs?

• More employees can work remotely from home, meaning businesses can operate from smaller office spaces and reduce rent/mortgage payments.

• It doesn't cost anything to run an online website, so the business saves money a lot of money if they are located online only.

• Meetings can take place virtually online which eliminates the cost of travel and accommodation.

• Communication is now completed mainly using digital methods which is more efficient and cost effective.

There are three main ways in which technology influences business activity, these are?

• Influence on sales

• Influence on profit

• Influence on costs

• Influence on the marketing mix

How can advancements in technology influence a business' marketing mix?

• Customers can shop around more easily online, therefore businesses may have to be more competitive on price.

• Businesses can choose to use digital methods of promotion such as an email campaign which is often much cheaper than using traditional methods such as a TV advert or billboard.

• Technological advancements often present new and efficient ways of manufacturing products which reduces production costs and helps businesses to reduce their selling price.

• Customers always prefer to shop online so sales revenue increases.

E-commerce allows a business to operate 24/7.

• True

• False

Sending a text message is a form of digital communication.

• True

• False