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Assignment 2

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1 219SBEIT30004 Assignment 2 1. Explain two types of jurisdiction on the Internet. Ans. Internet jurisdiction is an area of increasing concern to e-commerce because of the growth in cross-border e-tailing, both within the United States and globally. Therefore, the need for a global solution is also increasing. In response, this article first defines Internet jurisdiction, also known as cyber jurisdiction, and discusses the risks of Internet jurisdiction for retailers and consumers. Drawing from legal research, the authors examine the legal theories for jurisdiction and the application to e-commerce. Their focus is on United States law because both US and foreign businesses must understand US jurisdictional law due to increased globalization from expanding international trade and more frequent contact with US companies and markets brought about by the Internet. Since standards and case law are still developing worldwide, the authors conclude by providing managerial recommendations to reduce the uncertainty of jurisdiction, should legal action be initiated.2 219SBEIT30004 2. Describe types of Revenue Model in Brief. Ans. A revenue model is a conceptual structure that states and explains the revenue earning strategy of the business. It includes the product and/or service of value, the revenue generation techniques, the revenue sources, and the target consumer of the product offered. A revenue model is how a business makes money. Types Of Revenue Models: - Markup Markup is the most common and oldest revenue model seen among the businesses. It involves setting up the selling price of the good by adding profits and overhead charges to its cost price. This revenue model is common among retailers, wholesalers, etc. who act as middlemen and buy the products from manufacturers/other parties before selling it to others. However, manufacturers also use markup model to earn money by selling the good at a price which includes profits over and above the cost involved in manufacturing it. - Arbitrage Arbitrage revenue model makes use of the price difference in two different markets of the same good. It involves buying security, currency, and/or commodity in one market and simultaneously selling the same in another market at a higher price and making profits from the temporary price difference. - Licensing Licencing revenue model is common among inventors, creators, and intellectual property owners which grant a license to use their name, products or services at a predetermined or recurring cost. The revenue model is common among many software companies and legally protected intellectual property (patents, trademarks, copyrights) owners which grant a license limited by time, territory, distribution, volume, etc. to anyone who fulfils their requirements and pays for it. - Commission A commission revenue earning model is a type of transactional revenue model where a party charges commission for every transaction/action it3 219SBEIT30004 mediates between two parties or any lead it provides to the other party. It is one of the most common revenue earning strategy among the online marketplaces and aggregators where they provide a platform for selling items digitally and charge a commission as a percentage or fixed price on every item sold. Affiliates, brokers, and auctioneers are also seen working on a commission-based revenue model. - Rent/Lease Rent/Lease revenue model is common where a physical asset is involved. This revenue earning strategy involves recurring (rent) or one time (lease) payment for temporary use of the asset. - Subscription A subscription model is a great example of recurring revenue strategy. This is a common strategy among SAAS, entertainment services, and online hosting companies like Netflix, Youtube etc. where they provide the specified service for a pre-determined periodic cost. - Advertising An advertising revenue model is usually adopted by media houses and information providers which usually earn money by including advertisements in the content provided. This revenue model is widespread in both offline and online businesses and the company makes money by charging the advertiser: per size of the space offered, thousand impressions or per click on the advertisement. - Fee-For-Service Unlike other service-based models, a fee-for-service model charges the customers for the type of and times the service is provided. This is pay-as-you-go or pay-per-usage revenue model where the customer pays only for the services he actually used. This revenue model is common in telecom and cloud-based services industries. - Interest An interest-based revenue strategy or an investment based revenue strategy is common among banks. Banks usually generate revenue in the form of interest on their offerings (loans). - Donation Many companies provide their products and services free of cost and rely totally on donations paid to them by their customers. These companies hardly make any profits as donations usually cover only their operating costs. Wikipedia is one such company which relies on donations.4 219SBEIT30004 3. Explain Advertising on the web, in detail. Ans. Online advertising is any type of marketing message that shows up with the help of the Internet. That means it could appear in a web browser, search engine, on social media, on mobile devices, and even in email. Savvy advertisers are increasingly making use of this forum for reaching consumers, for a number of reasons: - It's relatively inexpensive - It reaches a wide audience - It can be tracked to measure success (or failure) - It can be personalized for a target audience Indeed, online advertising is only growing in scope, as new avenues for marketers pop up (think ads delivered through text message or marketing messages delivered to users in a certain area, known as geo-targeting). But, while some of the ads are less common or just gaining traction, there are plenty that we're exposed to multiple times every day. Let's take a look at some of the most popular types of online advertising. Types of Online Advertising - Display Ads Probably the oldest form of online ads, display ads, appear as everything from banners of all shapes and sizes to text ads relevant to the content of a page. You might find an AutoZone display ad on a popular car blog or a banner ad promoting the newest products at Sephora on a popular beauty or cosmetics blog. - Email Ads Email ads are such a popular form of online marketing that


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