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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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P1 Describe the role internet marketing has within a modern marketing context.


In this P, I will be describing the role internet marketing has within a modern marketing context. I will also describe how two selected organizations use internet marketing. The organization I have chosen are Apple and eBay.

Definition of internet marketing.

Internet marketing is when a company introduce the products and services online. Many companies aim to gain a lot of profit intend to bring their products or service to the market using the internet. This is because it's a number of customers. The internet is a simple and quick way for the business to communicate with customers. Businesses can go online because they can easily promote and bond with their customers plus it's also a handy way to increase the company's SMART objectives. A few advantages are:

 That marketing research information can be easily collected through internet surveys.

 It enables new methods of promotion such having links from other sites and banner advertising.

 Organization can become marketing orientated through being more responsive and flexible. The use of email allows better access to key managers for customers to provide their views and pass on comments.

An explanation of the marketing mix (7 P's).

The 7P's of the marketing mix are used by businesses to create a tactical mix designed to achieve the business aims and objectives. The classis marketing mix consist of only 4P's, whiles the extended modern one consist of seven. The seven P's are:

 Product

 Price

 Place

 People

 Processes

 Physical evidence


This instrument covers all factors that affect the tangible product. Make sure that the product is well adapted to the needs of the target group. In addition to the functional and aesthetic characteristics, describe the additional properties such as the brand name, dimensions and warranty conditions.


The price is an important instrument of the marketing mix, because it influences the perception of the product in the eyes of the customer. For example, changes in the price can have a major impact on price elasticity and the entire marketing strategy.


This instrument includes the activities of the organization regarding the distribution of the product. It is important to know the target group well. It helps you determine what the most efficient positioning and distribution channels are, which ultimately results in a larger sales volume.


The promotion activities include the activities to communicate the properties of the product and to persuade the target group to purchase the product.

A good organization for example the sales team, merchandise, advertising, sponsoring, PR, communication with the customer promotes name recognition and marketing of the product.


This instrument relates to the quality, customer-friendliness, remuneration and management of the staff. The staff is important to the company, as employees are the ones who deliver the service and persuade potential customers.


This instrument covers the activities, protocols and procedures that affect the execution of the service. This often focuses on making the purchasing process as smooth as possible.

Physical evidence

This instrument relates to the environment where a service is created, based on interaction between customer and employee, combined with a tangible object that promotes service.

What is relationship marketing?

Relationship marketing is a facet of customer relationship management (CRM) that focuses on customer loyalty and long-term customer engagement rather than shorter-term goals like customer acquisition and individual sales. The goal of relationship marketing (or customer relationship marketing) is to create strong, even emotional, customer connections to a brand that can lead to ongoing business, free word-of-mouth promotion and information from customers that can generate leads.

How does the internet marketing help achieve your goals?

Internet Marketing is a strategy for businesses to help reach their goals. It depends on how the business will use the internet and what their organisation objectives are. Internet Marketing can help in many ways for businesses to achieve the aims and objectives. Internet marketing is focused on three core areas in how they can help business objectives which are:

· Help to grow the business

· Consolidate the business

· And do business more efficiently

When using internet for marketing and helping to accomplish business goals it is important to build the business website in all the different elements needed to reach those goals and to create a system of initiatives that work together to generate results, and confirm those results through ongoing analysis measurement, by doing this they are able to focus on their internet marketing strategy from knowing their strengths and weaknesses.

How internet marketing help with new opportunities?

There are many great features and opportunities of using Internet marketing. One of these is around-the-clock access. Although your retail location may not be open 24/7, the Internet is always open! Shoppers can browse your site at any hour of the day, and as a marketer, you can digitally 'touch' consumers at all hours through email, online, and social media marketing.

Another benefit is greater exposure. When you market online, you are literally introducing your business to thousands of people who may never have heard of your brand due to geography or accessibility. With Internet marketing, you could be based in Ohio and reach consumers on the other side of the world with your brand's message and access to whatever you offer.

Internet marketing is also low cost. Doing business and marketing-related tasks online is a relatively low-cost, high-reward way to promote your business, products, or services. Ads such as sponsored posts on social media or pay-per-click ads inside of search engine results can be had for pennies on the dollars. They can also be targeted more specifically including by gender, location, or age, compared to more expensive, broad-reaching, traditional marketing efforts.

Another benefit is that Internet marketing provides a social outlet. Besides the vast array of social media channels from which you can promote your business, you're also better positioned to interact more closely with your customers. You can make subscribers to your email marketing messages, place online ads in targeted locations, and fill a need with content such as blog posts and your website. Social media, on the other hand, is a great place to interact with customers, listen to their concerns, and address them head-on.

P2 Describe how selected organizations use internet marketing.

Within this assignment I will be describing the way in which three businesses use the internet in a range of ways to market their products and services. The business I will be mentioning eBay


The company offer information about their products on their website for every individual product or service to give the customer a bit of detail about the product or service. eBay offer product reviews, warranties on appliances, expert advice, money back guarantees on certain products etc. This allows eBay to reach a wider target audience by using social media and internet marketing to product the ways in which they can cater for customers. eBay use online and offline services which promote their products and services and an example of one of these services is 'click and collect'. Click and collect is where customers are able to purchase through eBay's website and get it delivered to one of their stores for them to pick it up from a physical store. Click and collect was only introduced recently due to the technology not being as advanced as now. Previously, eBay didn't offer home delivery, or collection from store, customers had to buy products there and then from the store.

Customers are able to shop online at any time that is convenient. It is open 24/7 because it has no opening or closing times which means it is appealing for customers. Before this was introduced, customers were only able to purchase products from eBay on a scheduled basis when they were open. This makes it easy for customers to be able to compare eBay's prices with their competitors and decide what product is the most appropriate one for them. eBay also have exclusive deals and offers online which encourages online purchase because people will want to receive the offers which means they have to use their website to receive them. This has a positive impact on eBay because it means their reputation and sales have increased majorly due to a lot of new customers shopping online who before were not able to access the physical stores.

eBay have an iPhone app in which customers can use to purchase products from, same as their website however it offers flexibility and allows customers to use different ways of shopping.

Overall, it is obvious that the use of internet marketing has a positive impact on the business that I have used within my assignment. For the business to carry on being successful, they should try keep up with the market trends and the latest technology in order to compete with their competitors. By doing this, they will be able to generate more sales and increase the brand recognition.

P3 Explain the benefits to customers of a business using internet marketing.

Within this assignment I will be explaining the benefits of internet marketing to customers. The two businesses I will be comparing and contrasting are Apple and eBay.

Apple is a business which does not use Internet marketing as they do not advertise online because they do not have a website. On the other hand, eBay is a business which use Internet marketing very excessively and efficiently.

Internet marketing is extremely beneficial to eBay as it allows them to compare and select providers which mean eBay can check their competitors website to compare their products etc. Price transparency, which means both the customer and the business can see every price a product is on a website because its available for everyone to see. This makes it easy for customers to compare businesses against each other. Prices in a business are stored in a database and robots are used to compare the prices. For example, Compare The Market works to find the cheapest car insurance using its database to find the cheapest. Customers like this because it gives them more bargaining power and allows them to get the cheapest price in one go without them having to search hard on their own. By having internet market, it enables customers the capability to set their own prices such as Amazon. Also, business to business and business to consumer markets the internet which provides comprehensive and up-to-date product information. There are drawbacks of being online though, which are that the internet can be bypassed because the information is available to anyone which may make it not valid. Also, the customers are able to check specifications and make contact with businesses easily because of this.

It is cheaper if customers shop online because they save the cost of having to travel to the store and it will save time. If you go into a shop, you have to look for the product you want or are looking for however, online you just search for the product you want and it comes up straight away. Internet marketing is extremely straightforward and an easy shopping option. As we can see on eBay website it has a catchy and colorful theme which is eye-catching to the customers. eBay have an option for when you can get your delivery delivered to you which makes it easier for the consumer and makes them more cooperative.

Another benefit of using internet marketing is that the information and data on businesses can be updated and changed instantly which means customers can notice if there are any minor or major changes quickly. This information may include stuff like e.g. prices for flights, sale prices etc. eBay adjust their data and information on their website when necessary and customers will notice these changes as soon as they access the website. For example, the first lot of flights that are released are going to be very cheap and released early however, they change and the price differs the nearer the flight gets which means customers can instantly get if the prices have changed by looking online. This is beneficial because customers don't have to constantly go into store or call up, they can simply check on their website or use an app if they have. This will also benefit them because they can decide if they still want to pay the increased price rather than travelling to a store to be surprised and find out the price for something has increased and you may not want to purchase it.

Dynamic pricing is a benefit for customers who shop using internet marketing because this is when a price of a product or service changes due to e.g. seasonal changes, economic changes etc. It enables online businesses to adjust prices quickly according to market conditions. For example, when you book a flight, the seats are cheap at the beginning of a sale but the price increase nearer to the time of the flight because fewer seats are available. This allows customers to save money and time. eBay use dynamic pricing when they offer different prices for clothing items that are different sizes e.g. cheaper prices for smaller sizes. eBay have sales where products are on offer and some of these savings will be valid online which would entice customers and make them use the website to purchase their products as well as gaining brand awareness because people will tell their friends. This is especially useful around sale times like the holidays when stores can be busy therefore you don't need to worry about the hassle of going into a store when you can simply order it online. Apple don't use internet marketing which is a disadvantage as they cannot use dynamic pricing which would increase their sales because they could price their products differently which would entice customers.

Responsive transactions are when customers get quick responses which allows eBay to have positive customer feedback. This allows good customer feedback because customers get satisfaction e.g. knowing they have made a booking and receive evidence of doing this or if they have ordered a product and they get an email verifying the delivery has been shipped. This is good because the internet is a convenient place where it can be accessed from any location or area e.g. abroad. An example of this is; Tesco, they have 'click and collect' in which you can do your shopping online. This benefits customers because they do not need to go into a physical store and walk around doing the shopping themselves with a heavy basket or trolley. Instead they can simply search or items online and click one button and this can be done anywhere and at any time. This also benefits customers who cannot physically go into the store or may live far from a physical store. It has many benefits although the biggest benefit is saving time scanning all the products in at the till as oppose to online you click all the products you want and it automatically goes into your basket and is paid for. eBay have many payment methods also to make it more convenient for shoppers whereas Apple just have card and cash payment. If customers wanted a response from Apple they would have to go through the trouble of finding out their opening hours in order to phone them or going into the store in which your query may not be answered there and then or it may take a few days for them to get back to you.

Having good customer service is very important to internet services in order to stay competitive amongst their competitors. This is because, if a store online is clear and easy to understand then this will increase repeat purchases because customers will want to go back onto the website. An example of this is eBay, where they have welcome signs showing when you first click on the website to make customers feel special. Another way customer service is used within eBay is by having a review section where customers who have previously purchased a product or service can comment their feedback. Also, eBay has FAQ which stands for 'Frequently Asked Questions' in which there are the most asked questions that customers have asked eBay before and put them onto the website for customers to look at. Customers like this because they feel like they are getting noticed and that eBay take their feedback into consideration. It will also help with potential customers who are willing to purchase a product or service if they look at the reviews because they can see what other customers thought about it and if it's worth buying. Having internet marketing means it is available 24/7, there is no time limit as eBay websites don't close and no need to worry about it being shut on bank holidays or open certain times a day.

Apple have opening and closing hours which mean they are shut certain times of the day and they are also shut on bank holidays and various other holy days which make it inconvenient for some people. Apple are also only located in one area, which make it hard for people to travel to and it may cost them too much to travel that they don't think it's worth travelling for which makes apple lose out on sales. Whereas, if they used internet marketing people could order what they wanted online and it would get delivered to them and they wouldn't need to worry about travelling or when the store is open.

Customers are able to log their complaints on websites which gives customers a chance to voice their opinions and give their thoughts on the products or services. As well as complaints, they can also log their reviews and provide a collective voice. A fee is paid to a complaints company which contact the business and explains the customers concerns in order for the business to improve their business. The internet enables customers to participate in one to one chats or group chats with other people which enables customers to voice their opinion and get immediate response to questions they may have about products, services, overall business etc.

P4 Describe the benefits and opportunities to the business of using internet marketing within the marketing mix of a selected business.

In this assignment I will be describing and explaining the benefits and opportunities of how eBay use their internet marketing within the marketing mix. The internet is a place which offers many opportunities for businesses, however it also offers challenges due to it being an increasingly global marketplace.


eBay's  benefits

eBay have complete control over how they price their products, this illustrates eBay's value as they depend on the products they choose. For example, eBay can decide to price their fruit at a higher price as this will make their value better compared to their competitors. On the other hand. eBay could decide to reduce their prices for fruit, making them better value for money compared to their competitors. However, eBay have to set fixed prices for some products such as; electronics, make-up products etc. This is because these products are expensive therefore they need to make profit on them still.

Also, the benefit of price in eBay customers is that it can simplify things for customers for example; when looking online, you can use price comparison websites where this compares eBay's products and similar products, to find the best budgeted price for them. Using their website to stand out is another benefit for eBay, seeing as the supermarket industry is huge and extremely competitive. They are able to use this to their ability and update their website accordingly to their competitors and customers and keep it modern and up to date. This is beneficial for eBay because they will attract more customers than their rivalries and this will increase profit for eBay.

eBay's opportunities

eBay offer the availability of food to buy immediately which is to maximize their shelf life. The longer the shelf life, the better quality the product is however, this depends on the type of products as some products run out quicker than others such as; fruit, meat.

If eBay didn't use internet marketing strategies like updating their website frequently to keep it modern, then eBay's competitors will be less interested in buying from eBay because they will go to the supermarket which has the most up to date website because they feel they are more appealing. Additionally, it will be hard for customers to compare prices and find the best bargained price for a product because it is not easy to do, it is time consuming and expensive. Whereas, online is easier, quicker and not expensive.


eBay's benefits

Using internet marketing allows extra and additional product information online so that customers can make an easier decision. Customers like this because, obviously when buying online you can't see the product, however if there is additional information on all of eBay's products this will help customers to understand the products more which is more useful for customers and beneficial for eBay because they will get more sales. If all the products are available online, then this will improve the number of products sold because e.g. when someone runs out of something they can just order it online which is easier and takes no time to go out and get it physically.

eBay's opportunities

Being online allow eBay to display their products easier and appealing, because in store there is always a risk of not having enough space, being too cluttered, not having enough stock to fill the store etc. Whereas online, there is enough space to be able to display all of Tesco's products. Products such as clothes or jewelry can be modelled online to show people wearing them to entice customers which is a benefit for eBay because people like to see the product on and what it actually looks like on before they buy a product.

eBay could use a stock checking device in order to check for different sizes of an item if people needed. It scans the product and then checks the sizes that are available in store. This is positive for eBay because it allows customers to be able to ask staff in store for another size and they will be able to buy it if its available. This allows more items to be sold because if they didn't have this system then customers wouldn't be able to purchase another size.


eBay's benefits

Having internet marketing is essential now a days for businesses if they want to be successful because mostly everyone is using the internet now which is how things get spread almost instantly. Social media sites e.g. Twitter, Facebook, Instagram are commonly used by businesses to get people to be aware of their business. This is a benefit because eBay will be able to use social media to interact with their customers and other businesses to see what their competitors are like. By having social medias accounts, customers are more likely to want to purchase from that business because customers know they will be able to interact and contact eBay if they have social media pages compared to businesses who don't use social media. Another benefit for eBay by using social media sites is that customers can leave reviews, complaints and feedbacks on their page for the business to see and this can help them to improve their business. This is beneficial for eBay because they will be able to know specific problems that their business face from a customer's point of view.

eBay's opportunities

The opportunities arise for eBay's fan base to get wider and reach a greater field of more people. This will mean eBay will gain more customers and a wider target audience. They will do this is by using social media to target different target audiences from different types of people who use different social medias for various purposes. Additionally, eBay could seek to create a 24 hour availability of their services and products, which makes them more easily available. This is a great opportunity to benefit eBay because their store is not open 24 hours which means people cannot access certain things they may need to purchase which means they are losing out on sales. However, if they have a 24 hour website open, then customers can purchase them online at any time they need.


eBay's benefits

Operating eBay's website is much cheaper than maintaining the physical store because you have to pay for the up keeping of the physical store as well as various things such as electricity, rent etc. Also, with a store you would have to pay for individual advertising although, eBay's advertise within their website which saves them a lot of money. If there are any promotions they want to offer, it is easier to spot out on their website because it's all in one place because people may miss the offers in store because eBay's have a big store.

eBay's opportunities

To get more promotion and advertising across their website, they could use banners across the website to catch people's attention. Seeing as the supermarket industry is extremely competitive, keeping up with trends and the current market is important which is why eBay could introduce an app which is available on iPhone, iPad, Samsung etc. This is beneficial for eBay because they will gain more sales as this is an easier and more accessible option to shop from peoples mobile phones or tablets. It makes it a lot easier for people and they can purchase anytime and anywhere therefore it won't be a hassle to buy from eBay. Other ways eBay could advertise their products is by using online websites like YouTube, where they can pay to have their advert play at the beginning of specific videos which are compulsory to watch, which makes people watch the adverts. By using banners, or adverts people will recognize that it is eBay because people will familiarize with eBay's logo and brand which will help them associate with the business.


eBay's benefits

Being online means that they need less staff to run it which is saving eBay money, which results in fewer employees being needed in the physical stores due to the increase in online shopping because of eBay's website. eBay can use their money on other things within the business such as improving the website, creating better customer service, more training for staff etc.

eBay's opportunities

Setting up online chat rooms that are connected to eBay's website would be super beneficial for eBay along with their customers because this allows customers to give their feedback, opinion and general information about eBay as well as eBay being able to access this information and can improve their business based on the information received.

Physical evidence

eBay's benefits

eBay have their website set out really clearly and everything is on display which is beneficial because customers can make an informed decision and whilst doing this, they can scan through every product and could possibly purchase another item they weren't expecting to buy just because they came across it on the website. On eBay's website, they have directions to each physical store they have which helps people locate which store is nearest to them and makes it easier for people. If they live too far away from a store, then they can just purchase online which is beneficial for having an online store. This is beneficial and good because customers can plan their journey to get to eBay's physical store.

eBay's opportunities

Something that would be beneficial and worthwhile for such a large store like eBay, is having a store plan, showing where the different departments and where products you want are. There could be a search button where you type in the product you want and it shades the area in which the product is located on the store plan. This is beneficial because it will save customers time as they can just go directly to the location in the store where the product they want is. Also, this is useful for repeat customers because they will be able to know for future where everything is in the store, this is especially good for customers who do big food shops at Tesco as it saves them a lot of time.


eBay's benefits

eBay have a ordering system online for product stock which allows the stock level to never go below a certain level. This means the stock level will never run out which means customers can't purchase products. It will automatically top up the stock from the factory which means customers will consistently be able to buy products. eBay are saving a lot of money by using technology rather than hiring multiple different employees to run the physical stores.

eBay's opportunities

New and quicker ways for delivery options and delivering should be thought off. Delivery is usually the main time consuming part of shopping online which is why eBay should find a new method to stand out from their competitors which will make customers that shop from their competitors shift to eBay. One way they could improve the delivery option is by having customers to enter their card payment details once and it automatically stores the details and saves it securely into a database where it registers back in every time the same customer go to purchase something. This saves a lot of time and is very efficient and safe. It is beneficial because it encourages customers to purchase from eBay because they know the buying process is easy.

P5 Explain how internet marketing has made a selected business more efficient, effective and successful.

Efficiency and efficacy

Internet marketing has helped to improve the efficiency and efficacy of eBay majorly. eBay's has drastically changed because of internet marketing in many ways. I will be explaining the various changes that have been made to eBay and whether they were successful or not. When businesses use internet marketing, they need to think about if the internet is going to add value to their business through; acquiring materials, storing materials and working with materials to product something.

Efficiency is the comparison of what is actually produced with what can be achieved with the same consumption of resources such as; time, money etc. eBay use their website to promote their business as well as using our promotional methods like YouTube, banners, websites, advertisements etc. This allows eBay to reach out to a wide audience in a short amount of time. Efficiency has increased by using internet marketing because, eBay can email or post updates, information, deals etc. to their customers which are filtered to pick the appropriate customers. This is to increase opportunities for sales from their existing customers as they are keeping customers up to date with latest news and updates. This has increased efficiency because for example, a customer got an email about eBay's ovens being on sale, customers will think 'maybe we should get a new oven whilst there on sale because there really expensive' so then they will go purchase a discounted oven. They would only have known about this offer because of eBay's email or post. The sale is instant as well as it being easy and convenient to purchase online.

eBay's efficiency is shown by ordering loads of the same product at the same time which means they get a better price for this, compared to if they were buying a lower quantity. This allows them to make the most profit they can as well as ordering a large amount of stock so that the online store never runs out of stock. This improves the customer service last end delivery will be quicker and the customers will have positive feedback and hopefully repeat purchase. This is mass production, it is effective because eBay get all the stock at one time rather than getting different products in dribs and drabs.

Using internet marketing is effective because it allows eBay to not have to have any more stores which saves them a massive amount of money which can be put into the customer service, quality of products, delivery etc. Being online reaches a wider and new audience because they will be able to offer delivery for people who may not have been able to access or travel to one of the physical stores. Additionally, using internet marketing reduces the cost for staff because they do not that many staff as the business will be half run online. This means that eBay are saving money because it takes a few seconds to communicate through electronic devices which saves time and money for eBay.


As well as eBay using internet marketing to be efficient, it's also made eBay become the successful well-known business we know. This is due to multiple factors which I will be explaining.

eBay are an extremely successful and well know business, which is due to multiple reasons. One of the reasons is due to their efficient pricing, as they are consistently offering new deals and offers on products to constantly entice customers on products that aren't selling so well as they would like. eBay does this by using web analytics to look at what products most customers purchase and what products are the most popular and which aren't selling at all. They then do an appealing deal/offer on this product that they feel will entice customers. This is successful because eBay's profits will increase as well as getting products more known about. eBay offer cultures attitudes towards payment methods, where they offer different way to pay e.g. credit card, debit card, cash etc. It differs for different countries which is something that customers will like.

Being online makes the whole process a lot cheaper because they do not have a physical store to maintain and pay for. Also they need less staff for the overall business as more online transactions have come about. It also means eBay can use disintermediation, which is when a business can cut out the 'middle man' in the process. The products that people order will go straight to the customer and no retailer is involved in the process now as it is unnecessary. Disintermediation makes eBay's successful because it saves money for eBay's due to them not having to deliver the products to retailers first, then onto the customer. This allows eBay's to make more profit and allows a faster delivery process for the customer which will result in better customer service. Although, this could be a problem as some retailers may refuse to sell products to eBay and then they will become redundant. On the other hand, if eBay's introduces a new online distributional channel, this could cause problems such as channel conflict.

Challenges of internet marketing


This is the process of the world becoming interconnected as a result of massively increased trade which the world is becoming increased the production of goods and services.

Managing overload of market feedback

One challenge that eBay face from being global, is that their website can have information fatigue. It may not be 100% accurate and trustful all the time which is misleading to the customers and eBay can get sued for providing inaccurate information and data. eBay will need to decide which information is useful which is done through data systems and market segmentation. As well as this, the information and data is analyzed to make sure it makes sense. Being online means Tesco receive a lot more customer feedback than other businesses who don't use internet marketing. Feedback includes things such as opinions, concerns, praises, reviews, questions etc. eBay can manage their feedback by having a FAQ page on their website, which is frequently asked questions by customers to give the most asked and most popular questions on one page to save customers from constantly asking the same questions.

Meeting higher customer expectations

By eBay having a website and using internet marketing, it has increased the customer service eBay's offers and the expectations of the businesses. There are various factors that eBay have to think about though such as; secure payment, communication, quick delivery, competitive pricing etc. eBay need to keep up with their competitors and keep on top of the other successful supermarkets otherwise they will lose their customers to their competitors because it is a constantly changing market. Customers are able to compare prices online which means eBay have to ensure they beat their competitors' prices otherwise customers will go elsewhere and get a bad reputation. Also, eBay should make sure they have quick delivery to entice repeat customers because customers love quick delivery service. eBay offer customers the chance to email them or give feedback about any problems or concerns they have which means eBay have the chance to reply instantly which will improve customer service. Personalization is something eBay's customer are getting more demanding over because a lot of people want personalized products. eBay's customers are now expecting more personal attention and for other products to be able to personalize, the causes a lot of pressure on the business.

Security and payment methods

This is a huge problem for some customers, as they are unaware of whether it is safe to give their bank details out online. They are concerned about payment security due to the amount of hackers, fraud and scams that are occurring now a days. They feel hackers can access their information through viruses which can put some customers off from purchasing products online as they would rather go into store than give their security details out online which can stop eBay's from receiving online purchases. eBay's should include clearly on their website policies to reassure customers and to ensure that their details are safe and secure when entered onto eBay's website and no one else can access this information. This could be expensive to imply however, if eBay wants to keep up with their competitors this is a good way because this will draw in a lot more customers who are holding back to purchase online because of payment security. Over this, they could plan security by using authorization which is when eBay determines who has access to application and information establishing a policy which is maintained. Encryption is when data is changed into a hidden format which makes data unrecognizable unless the person accessing it has a data key. This is done by using SSL (Secure Sockets Layer) and SET (Secure Electronic Transactions). Passwords and logins should be applied in order to identify a customer accusing the website from a hacker.

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