CASE STUDY 1
1. Explain what is meant by the term E-commerce. Your answer should use two examples
from the case study.
E-commerce, also referred to as electronic commerce, is the purchase and sale of goods,
products, or services over the internet. E-commerce is also identified as electronic commerce or
internet commerce. These services are accessible via the internet network. The exchange of
money, funds, and data is also included in e-commerce. Business to Business (B2B), Business to
Customer (B2C), Customer to Customer (C2C), and Customer to Business (C2B) are the four types
of business transactions (C2B). The most commonly used definition of E-commerce is a
commercial transaction that occurs over the internet.
Argo, for example, sells general merchandise and home products from over 690 stores across the
UK, as well as online and over the phone. Argos serves over 130 million customers per year
through its stores and accepts four million customer orders online or by phone.
Argos is part of Home Retail Group, the UK’s leading home and general merchandise retailer. It
is committed to making its stores and ensure efficiency to all customers, including those who are
disabled. Argos provides a visually impaired audio CD version of its services, which includes many
of the products in the catalogue and is available by dialling a special number.
2. Explain four terms/conditions of the Consumer Credit Act that must be addressed when
a customer is applying for an Argos credit card.
In consumer credit transaction that can customer apply is as consumer credit is a part of
commercial law, some argue that the law should not distinguish between a person who borrows
money for his personal use or for his business because of the difficulty of distinguishing the loan,
regardless of whether they are individuals or companies.
The Hire-Purchase Act 1967 it provides the definition of the word “consumer goods”. Under
section 2 of Hire-Purchase Act 1967 “consumer goods” is defined as goods purchased for
personal, family or household purposes. The definition may sound simple, but in reality, it poses
difficulties in distinguishing the intention of the person, especially when the person buys the
goods for personal, family or household purposes but later uses it for business purposes. The
amendment in the Hire-Purchase Act had provided an alternative to the consumer and also the
owner as to how the term charges will be calculated during hire-purchase period. The recent
amendments had somehow enhanced the protection and also flexibility of consumer credit law.
According to the Committee on Consumer Credit under the Chairmanship of Lord Crowther Cmnd
4596 (1971), the law ought to distinguish between consumer and commercial transactions. The
Committee is of the view that the purpose of the loan is an inadequate test, being too vague and
subjective. The Committee seems to prefer the approach of excluding bodies corporate from the
protection afforded to consumers
The main amendments involved the Pawnbroker Act 1972 (Act 81) and the Moneylender Act
1951 (Act 400). Both Acts do not distinguish the purpose of the loan, whether it is for personal
use or for business purposes. Pawn broking transactions in Malaysia are regulated by way of a
loan limit allowed for each transaction. The protection provided by Pawnbroker Act 1972 only
applies to pawn broking transaction if the amount of money borrowed does not exceed ten
thousand ringgit. For money lending, there is no financial limit for the transaction to be governed
by the Moneylender Act 1951
3. Discuss four reasons why potential customers of Argos might be reluctant to purchase
goods on-line.
The reason potential customer of Argos may be hesitant to purchase goods online is because the
main reason to make purchases in-store, is the opportunity to experience the product. The
experience that consumers have had in physical stores cannot be replicated in online stores.
Many consumers want to go shopping and discover new things. Walking around a store and
enjoying the products on display enables consumers to understand about newer products. To
inspect the products in person. There’s something to be said for touching and seeing items in
person. Customers can virtually view items in their homes or on their bodies using augmented
reality, but they will still want to touch and feel them in the store.
However, the most significant speed-related reason why consumers hesitate to purchase from
online is that the shipment takes too long to accomplish. Speed and time reduction lead to higher
consumer satisfaction, that’s why web shops often offer same day delivery. This is yet one more
reason why physical stores have a comparative advantage. Their local inventory ensures that
consumers can take their products straight home.
Next, the reason customer do not interest in buying online is because there are no shipping if
buying in stores. When shop in the nearest shop, customer might immediately take the goods
and proceed home. This cannot be the issue whether the same products were purchased online.
This is due to the fact that the customer would be required to pay for shipping charges. The cost
will increase if they buy from another country. They will eventually have to pay more for the
products. The majority of shoppers are put off from making online purchases due to the high
shipping costs. As a result, shopping in physical stores saves customers money.
Last, many customers find the return process for online orders too complex or time consuming.
So, if they go shopping in a physical store, they already save yourself the hassle of a return. The
customer immediately choose what they want and they don’t have to worry about a potential
return. Instead, just take the desired products home.
4. Evaluate four ways in which Argos might benefit from trading on-line
The first way that Argos may benefit from online trading is that it may improve the company’s
image. Nowadays, it is essential for a company to have a website, blog, or other online presence.
A company’s online presence can also help to extend and increase brand awareness on a global
scale, approaching potential customers in other countries and continents. Fortunately, creating
an online business allows you to publicize the company to a broad range of potential customers.
Following that, internet transactions enable you to collect data. When a customer makes a
purchase from a company’s website, data is collected. The Argos Company can use this data in a
variety of ways, along with analysing the data to ascertain whether the products or services sell
regularly. Furthermore, the collected data can be used to segment customers, enabling Argos
Company to send them online ads and other marketing materials regarding purchase habits and
