ESE101 E-Commerce Fundamentals Sample Exam Questions

ESE101 E-Commerce Fundamentals Sample Exams

Format: Mixed (MCQ, Short Answer, Matching, Scenario-Based, Comprehension)
Total Questions: 50
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1. (MCQ) Which of the following best defines e-commerce?
A. Buying and selling goods over the Internet
B. Electronic banking transactions only
C. Social media marketing
D. Traditional in-store retailing

2. (MCQ) What is the key difference between e-commerce and e-business?
A. E-commerce includes non-commercial activities
B. E-business covers all online business activities, while e-commerce focuses on buying and selling
C. E-business requires physical stores
D. E-commerce excludes electronic data interchange

3. (Short Answer) Briefly describe one reason why e-commerce has grown rapidly in recent years.

4. (MCQ) Which of the following was among the earliest forms of e-commerce?
A. Social media commerce
B. Online auctions
C. Virtual reality shopping
D. Influencer marketing

5. (Matching) Match the e-commerce milestone with its decade:
a. Launch of Amazon
b. Introduction of mobile payments
c. Growth of AI-driven personalisation
i. 2010s
ii. 1990s
iii. 2000s

6. (MCQ) Which of the following best represents the significance of e-commerce?
A. It limits global trade
B. It reduces competition
C. It enables businesses to reach a global audience efficiently
D. It increases transaction costs

7. (Short Answer) What is the relationship between technology advancement and the growth of e-commerce?

8. (Scenario) A small bookstore decides to start selling books online through its website. Explain how this transition reflects the evolution of commerce.

9. (MCQ) Which e-commerce model involves transactions between businesses and individual consumers?
A. B2B
B. B2C
C. C2C
D. B2G

10. (MCQ) Which model is best represented by Alibaba.com?
A. B2C
B. C2C
C. B2B
D. G2C

11. (MCQ) Which e-commerce model involves government agencies purchasing goods or services online?
A. B2G
B. C2C
C. B2C
D. D2C

12. (MCQ) Which of these is an example of a C2C e-commerce platform?
A. eBay
B. Amazon
C. Shopify
D. Walmart

13. (Short Answer) Define the B2B model in e-commerce.

14. (Matching) Match each business model with an example:
a. B2C
b. B2B
c. C2C
i. Amazon
ii. eBay
iii. Alibaba

15. (Scenario) A local craft maker sells products on Etsy to buyers worldwide. Which e-commerce model is this and why?

16. (MCQ) What is one advantage of B2C e-commerce for customers?
A. Increased retail prices
B. Limited product selection
C. 24/7 access to products and services
D. Restricted delivery areas

17. (MCQ) What distinguishes B2B transactions from B2C?
A. Smaller purchase volumes
B. Direct customer interaction
C. Larger order sizes and long-term contracts
D. Focus on entertainment value

18. (Short Answer) Give one example of a subscription-based e-commerce model.
Answer: Netflix or Spotify’s monthly subscription model.

19. (MCQ) What is the digital economy primarily driven by?
A. Physical infrastructure
B. Digital technologies and data
C. Industrial machinery
D. Traditional media

20. (MCQ) Which of these technologies is central to digital commerce?
A. Steam engines
B. Cloud computing
C. Typewriters
D. Postal mail

21. (Short Answer) What does the term “digital transformation” mean?

22. (MCQ) Which of these best describes how the digital economy impacts businesses?
A. Reduces data accessibility
B. Encourages offline-only trade
C. Increases connectivity and global competition
D. Decreases automation

23. (Scenario) A retail chain adopts AI tools to recommend products to customers. How does this contribute to the digital economy?

24. (MCQ) Which of the following is NOT a feature of the digital economy?
A. Cloud storage
B. Online transactions
C. Manual bookkeeping
D. Mobile commerce

25. (Matching) Match the technology with its impact:
a. AI
b. Mobile Apps
c. Cloud Computing
i. Scalability
ii. Automation
iii. Accessibility

26. (Short Answer) Name one benefit of the digital economy for small businesses.

27. (MCQ) Which of the following helps attract visitors to an e-commerce site?
A. Ignoring SEO
B. Optimising search keywords
C. Reducing online visibility
D. Avoiding social media

28. (Short Answer) Define customer retention.

29. (Scenario) A business uses personalised email campaigns and loyalty points to keep customers engaged. Identify two strategies used.

30. (MCQ) Which of these metrics measures how many visitors make a purchase?
A. Traffic rate
B. Conversion rate
C. Bounce rate
D. Abandonment rate

31. (MCQ) Customer acquisition mainly focuses on:
A. Keeping existing customers satisfied
B. Reducing product prices
C. Attracting new customers to the business
D. Selling to government agencies

32. (Matching) Match the strategy with its purpose:
a. SEO
b. Social Media Marketing
c. Email Campaigns
i. Retention
ii. Visibility
iii. Engagement

33. (MCQ) Which KPI is most useful in measuring the effectiveness of online marketing?
A. Customer satisfaction
B. Conversion rate
C. Employee attendance
D. Stock turnover

34. (Short Answer) Suggest one way an online business can improve customer experience.

35. (MCQ) Which of the following is a function of a payment gateway?
A. Product delivery
B. Payment authorisation and transaction security
C. Marketing automation
D. Data storage only

36. (MCQ) Which is an example of a hosted payment gateway?
A. Stripe
B. Paystack
C. PayPal Standard
D. Manual bank transfer

37. (Short Answer) Define PCI compliance.

38. (Matching) Match each payment gateway with its region/popularity:
a. Paystack
b. Stripe
c. PayPal
i. Africa
ii. Global
iii. North America

39. (Scenario) A business integrates Paystack for online payments. What type of payment gateway integration is this?

40. (MCQ) What is SSL encryption used for?
A. Increasing website traffic
B. Protecting sensitive data during transactions
C. Enhancing marketing emails
D. Improving site speed only

41. (MCQ) Which step occurs first during online payment processing?
A. Payment settlement
B. Order shipping
C. Payment authorisation
D. Customer authentication

42. (Short Answer) State one advantage of using integrated payment gateways over hosted ones.

43. (MCQ) Which of the following laws protects consumer data privacy in the EU?
A. GDPR
B. PCI DSS
C. DMCA
D. CCPA

44. (Short Answer) Why is transparency important in online business ethics?

45. (MCQ) What is one ethical issue related to e-commerce?
A. Fast delivery
B. Misleading advertising
C. Competitive pricing
D. Product variety

46. (Scenario) A business uses customer data without consent for marketing. Which principle has been violated?
Answer: Data privacy and informed consent.

47. (Matching) Match the concept with its example:
a. Consumer Protection
b. Intellectual Property
c. Data Privacy
i. Copyright laws
ii. Product warranty
iii. Secure handling of personal data

48. (MCQ) What should an e-commerce company do to comply with data protection regulations?
A. Sell user data to advertisers
B. Request consent before collecting personal data
C. Ignore customer complaints
D. Store data unencrypted

49. (Short Answer) Mention one reason ethical conduct is crucial in e-commerce.
Answer: It enhances customer trust and long-term loyalty.

50. (Comprehension) Read the short case: “An online retailer displays fake reviews to increase sales.” Identify the ethical violation and suggest one corrective measure.