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Questions 1, 2 and 3 are based on the following scenario Gamers Inc is a local store that sells local games on DVDs. Gamers Inc

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Questions 1, 2 and 3 are based on the following scenario Gamers Inc is a local store that sells local games on DVDs. Gamers Inc current has several physical stores in different geographical zones in the country of operation. Gamers Inc currently only uses brick and mortar stores to serve the customers of the country. They also have an existing website which is used to display the various games available in stock. To expand their customer base, Gamers Inc is considering the development of an E-commerce solution to enable growth of the business. The business targets the young working class, all of which have mobile phones, and are relatively competent with the use of web-based technologies such as social networks. Question 1 a) Explain two business models that Gamers Inc can utilise for its E-commerce offering. For each business model explain the revenue sources that can be used. [4] b) Gamers Inc is considering selling advertisements on their website. Justify three metrics that can be used to determine the effectiveness of video-based advertisements from the usage of their current site. [6] c) Explain how the affiliate strategy can be used for Gamers Inc to raise awareness of its products among its target audience. [4] [Total 141 Question 2 a) Discuss with the use of examples, how the four Ps of marketing can be used to determine the viability of an E-commerce solution for Gamers Inc. b) Describe two advantages and one challenge that Gamers Inc will need to consider while building a business in the online retail sector [6] c) Gamers Inc is investing in an E-commerce presence to reach new customers, describe how Gamers Inc can use personalisation and customisation to build its customer base. [4] [Total 14]

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