How do e-business and m-business change the way firms reach and sell to customers?
E-business and m-business: selling and trading online and through mobile devices, the advantages and disadvantages for the business and the customer, and the impact on the marketing mix and on growth.
A CCEA GCSE Business Studies guide to e-business and m-business. Covers selling and trading online and through mobile devices, the advantages and disadvantages for the business and the customer, and how e-business and m-business affect the marketing mix and a firm's potential for growth.
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What this dot point is asking
You need to explain e-business and m-business, the advantages and disadvantages for both the business and the customer, and the impact on the marketing mix and on a firm's potential for growth. CCEA examiners reward precise definitions, balanced points, and the ability to judge how suitable online and mobile selling are for a particular business. This topic matters because trading online has transformed how firms reach customers, and it gives even tiny businesses access to a national or global market.
What e-business and m-business mean
The two terms describe trading using technology, and they overlap.
Advantages for the business
Trading online and through mobiles brings clear benefits for the business.
Disadvantages for the business
There are also drawbacks and risks the business must manage.
- Strong competition - customers can easily compare prices online, so competition is intense and global.
- Set-up and running costs - a good website or app, plus delivery and returns, cost money and need maintenance.
- Security and trust - the business must protect customer data and payments, and a technical failure or data breach damages trust.
- Delivery and returns - the business must handle postage and deal with returned goods, which can be costly.
The impact on customers and on the marketing mix
For customers, online and mobile selling means convenience (shop anytime, anywhere), choice and easy price comparison, but also drawbacks: they cannot physically see the product, must wait for delivery, and may worry about security.
E-business also changes the marketing mix: place becomes the website or app rather than a shop; promotion shifts to social media, search adverts and email; price is more transparent and competitive; and even the product can change, for example digital downloads. This links directly to the marketing mix and to competition.
Worked example: judging whether to sell online
A common exam task is to advise a business on moving online.
Why this matters
E-business and m-business have changed who a business can reach and how it competes, lowering the barriers for small firms to sell nationally and globally. They reshape the marketing mix, especially place and promotion, and open a major route to growth, which links forward to methods of business growth. In the exam, the most valuable skill is to weigh the advantages and disadvantages for a specific business and to judge whether online or mobile selling truly suits its product and customers.
Try this
Q1. What is meant by e-commerce? [2 marks]
- Cue. Buying and selling goods and services online, a part of e-business.
Q2. State one benefit and one drawback of e-business for the business. [2 marks]
- Cue. Benefit: wider market, lower costs or open 24 hours. Drawback: strong competition, set-up costs or security risks.
Q3. How does e-business change the place element of the marketing mix? [2 marks]
- Cue. Place becomes a website or app rather than a physical shop, so the product reaches customers online.
Exam-style practice questions
Practice questions written in the style of CCEA exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
CCEA Unit 1 (style)4 marksExplain two benefits to a business of selling online (e-business).Show worked answer →
An explain question testing AO1 and AO2. Give a benefit, then say why it helps, for two marks each.
Wider market: an online business can sell to customers anywhere, not just locally, so it can reach far more people and increase sales.
Lower costs: an online-only business may not need an expensive shop or as many staff, reducing overheads and allowing lower prices or higher profit.
Other valid answers: open 24 hours a day, easy to collect customer data, and cheaper to start. The mark is for the benefit plus a developed reason.
CCEA Unit 1 (style)6 marksDiscuss the impact of m-business on how customers shop.Show worked answer →
A discussion question testing AO2 and AO3.
For customers: m-business (shopping on mobile devices) lets them buy anytime and anywhere, compare prices instantly, and receive offers and notifications, making shopping more convenient.
Drawbacks: customers cannot physically see the product, must wait for delivery, and may worry about online security or sharing data on a phone.
Judgement: argue that m-business has made shopping far more convenient and is now expected by many customers, but it suits some products (digital, standard items) better than others (where customers want to try before they buy). A balanced answer reaches the higher marks.
Related dot points
- Market research: the difference between primary and secondary research and between quantitative and qualitative data, common research methods, the idea of a sample, and how research reduces risk.
A CCEA GCSE Business Studies guide to market research. Covers the difference between primary and secondary research and between quantitative and qualitative data, common methods such as questionnaires, interviews and surveys, the idea of a sample, and how market research helps a business reduce risk.
- The marketing mix (the four Ps): product, price, place and promotion, the main pricing methods and promotion methods, and how the four Ps must work together and suit the target market.
A CCEA GCSE Business Studies guide to the marketing mix, the four Ps. Covers product, price, place and promotion, the main pricing methods such as cost-plus, competitive, penetration and skimming, common promotion methods, and how the four Ps must work together and suit the target market.
- Competition and customer service: how a business competes (on price and on non-price factors), the effect of competition on a business, and the importance and benefits of good customer service.
A CCEA GCSE Business Studies guide to competition and customer service. Covers how businesses compete on price and on non-price factors such as quality and service, the effect of competition on a business, and why good customer service matters, with its benefits for sales and reputation.
- Business location: the factors that influence where a business locates, including nearness to the market, costs, labour, suppliers and transport, and how the best location depends on the type of business.
A CCEA GCSE Business Studies guide to business location. Covers the main factors that influence where a business locates, nearness to the market, costs of premises, availability of labour, nearness to suppliers and good transport links, and how the best location depends on the type of business.
- Methods of business growth: internal (organic) growth and external growth through merger and takeover, the types of integration, and the benefits and drawbacks of growth including economies of scale.
A CCEA GCSE Business Studies guide to methods of business growth. Covers internal or organic growth and external growth through mergers and takeovers, the types of integration, economies of scale, and the benefits and drawbacks of a business getting bigger.
Sources & how we know this
- CCEA GCSE Business Studies specification — CCEA (2017)