Evaluating the Use of Digital Technology in Business

What is one of the main benefits of e-commerce for businesses?

• Higher setup costs

• Decreased brand loyalty

• Increased reliance on physical stores

• Expansion into international markets

Which of the following is a potential drawback of e-commerce platforms?

• Guaranteed customer satisfaction

• High setup and maintenance costs

• Decreased market reach

• Increased face-to-face interactions

How can big data and data mining benefit businesses?

• By eliminating the need for marketing

• By ignoring customer preferences

• By understanding consumer trends and market differences

• By reducing the need for digital technology

What ethical concern is associated with data mining?

• Increased physical store presence

• Guaranteed customer privacy

• Monitoring customer activities without consent

• Decreased use of digital technology

What is a key advantage of ERP systems?

• They increase inefficiency in operations

• They eliminate the need for digital technology

• They guarantee lower costs

• They integrate business processes for improved efficiency

What is a potential risk of relying heavily on ERP systems?

• Decreased need for digital technology

• System failure impacting the entire business

• Increased manual processes

• Guaranteed system stability

In a saturated market, what challenge do businesses face with digital technology?

• Guaranteed market dominance

• Eliminating the need for technology

• Decreasing competitiveness

• Achieving a unique selling point