Discuss the limitations of electronic mode of business.
The limitations of electronic mode are as follows:
- Less personal touch: There is a lack of interpersonal interactions and personal touch in e-business for satisfaction of the consumer. Hence, it is not appropriate to deal with business categories where personal touch to convince the consumers is necessary.
- Incongruence between order taking and giving and order fulfilment speed: In e-business, an order can be placed within a second but the delivery of the product takes time. The customers do not have patience to bear with this incongruence. Also, customers can get frustrated because of technical problems at the time of placing an order through website.
- High transaction risk: During an internet transaction, it is difficult to know the parties involved and their location. Also, there are risk factors included such as impersonation and leakage of confidential information. The virus attacks and hacking also pose security concerns in this business.
- Ethical fallouts: Generally, companies use an ‘electronic eye’ to monitor the computer files, the websites visited and email account. However, this is not considered right on ethical base.
- Require technology capability and competence of parties to e-business: In this business, the parties should find it easy to handle computer and internet access. Hence, the digital divide has limited the use of e-business.
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