CHAPTER ONE
1.0
INTRODUCTION
1.1
INSIGHT
TO ONLINE MARKETPLACE
Online Market, commonly known as e-commerce
or eCommerce, or e-business consists of the buying and selling of
products or services over electronic systems such as the Internet and other
computer networks. The amount of trade conducted electronically has grown
extraordinarily with widespread Internet usage. The use of commerce is
conducted in this way, spurring and drawing on innovations in electronic funds
transfer, supply chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management systems,
and automated data collection systems. Modern electronic commerce typically
uses the World Wide Web at least at some point in the transaction's lifecycle,
although it can encompass a wider range of technologies such as e-mail as well.
A large percentage of electronic commerce is conducted entirely
electronically for virtual items such as access to premium content on a
website, but most electronic commerce involves the transportation of physical
items in some way. Online retailers are sometimes known as e-tailers and online
retail is sometimes known as e-tail. Almost all big retailers have
electronic commerce presence on the World Wide Web.
1.2
HISTORICAL OVERVIEW OF
ONLINE MARKETPLACE
Over the past decade,
there has been an extreme jump in internet sales. For example, in 2006, from
November 1st to December 26th online shopping soared to
$23.1 billion dollars, increasing by 26% from the previous year. Creating a
competitive battle with retail stores, online shopping presents a more
convenient method of shopping without the lines and the crowds, however, buying
online takes away from the social aspect of shopping. Having recognized the
lack of social appeal that e-commerce presents, new navigating tools to ease
decision- making are being implemented as a result, people are becoming more
comfortable with shopping online. As the pressure from online shopping sites
increases, retailers have to focus on better marketing strategies to promote
products and influence customers to shop in their stores instead of online. In
fact, many retailers are now making their products available online. Thus, a new influx of “click and mortar”
retailers are surfacing. The “click and mortar” retailers that provide online
shoppers with easy to use features are increasing their online profits and
becoming strict competitors to the top online-only companies (ie Amazon and
Netflix.
1.3
STATEMENT
OF PROBLEM
In human endeavor,
there is a lot of development which helps to maximize production, income and
operation of businesses at Ogbete main market.
These have brought increase in complexity of marketing system like B2B
(Business to Business) and B2C (Business to Consumers) and its operations.
Based on these, a
number of problems are facing the Ogbete main market system which include
a)
Day-to-Day pressures of selling
b)
Coping with customers
c)
Solving basic business problems
d)
Competitions (a new player enters,
market conditions changes, sales drops, the company introduces a new products
or services).
e)
Most of the leads came from the sales
staff.
f)
Unable to recognize previously visited
customers
g)
Availability of market (sales and
services) to the whole parts of Nigeria
h)
Unstable fixed price
1.4
OBJECTIVE
OF THE STUDY
The aim of this study
is to design and implement a database driven online virtual marketplace with a
particular reference to Ogbete main market. The web based program developed in
this research essentially provides all the necessary marketing services and
operations done at Ogbete main market which will help increase their operations
based on sales and services.
These operations
include general sales and marketing management.
In this study
therefore, the researchers hope to accomplish the following objective:
a)
To design a better pricing mechanism in
the market
b)
To solve the problem of geographical
location
c)
To maximize sales
d)
To help improve customer relationship
e)
Increases social interaction activities
f)
Reduces pressures mounted on sellers
g)
Increases management of stock items
h)
Easy shopping
i)
Introduces bidding system
j)
Accommodates more marketers
k)
To improve quality delivery system
1.5
SIGNIFICANCES
OF THE STUDY
Buying
and selling is very important to our everyday life, its very important that we
humans have to market what we have like goods and services to other people that
needs it, also purchase what we are lacking. Marketing is highly regarded
everywhere in the whole parts of the world. The following are some significance
of this study:
A.
The secured site for electronic commerce
will help the populace people of Nigeria to get rid of risk in carrying cash
around and the convenience of shopping anytime of the day.
B.
It will reduce the risk of transportation,
since the customer does not have to travel far to shop for any items or goods.
C.
It will reduce the risk of
authentication of the product and improved business transaction as customers
are now sure of the originality of the product they purchased.
1.6
SCOPE
OF THE STUDY
This project looks into
the processes involved in marketing of goods and services in the
marketplace. The researchers
concentrated on the operation going on the general marketing activities like
sales, management of stocks, pricing and registering of customers, security and
policy guiding sales.
1.7
LIMITATION
OF THE STUDY
Some of the constraints
that my have in one-way or another affected the outcome of this work include:
a) Resources: Due
to the complex and insecurity associated with human factors during this
research work, personnel who are used to the manual system perhaps for fear of
losing their jobs have been reserved in relinquishing all necessary information
to make this project an enticingly extensive one.
b) Time: Due
to time allowed for this project work, as a student was limited to come up with
a reasonable work within the stipulated time.
c) Power: Availability
of stable, efficient and reliable power supply was also a major limitation of
this project as it had to be suspended several times during design and testing
stages.
1.8 THE ORGANISATION AND HER ENVIRONMENT
Fig
1.0 Organizational structure
1.8
DEFINITION
OF TERMS
E-commerce:
Generally refers to exchange of goods or services over electronic system such
as internet.
B2B:
Refers to selling of products or services to other businesses.
B2C:
Refers to selling of product or services to end consumers.
Credit card:
it is a card entitling its holder to buy goods and service from certain
establishment.
Merchant:
Refers to as organization (such as an MIT department) accepting credit card
payments for the goods or services they provides.
Order:
A record of a request for goods or services initiated by a customer.
Order ID:
A unique identifier assigned to a customer order in clear commerce.
Banner:
An advertisement or image displayed on one or more websites to attract visitors
to your site.
Shopping cart:
A wheeled cart for purchase of goods in a store or supermarket.
CHAPTER
TWO
2.0 REVIEW OF RELATED LITERATURE
Electronic commerce is about doing business electronically.
It is based on the electronic processing and transmission of data, including
text, sound and video. It encompasses many diverse activities including
electronic trading of goods and services, online delivery of digital content,
electronic fund transfers, electronic share trading, electronic bills of lading,
commercial auctions, collaborative design and engineering, on-line sourcing,
public procurement, direct consumer marketing, and after-sales service. It
involves (e.g. consumer goods, specialized medical
equipment) and services (e.g. information services, financial and legal
services); traditional activities (e.g. healthcare, education) and new
activities (e.g. virtual malls).” (Lincoln, 1997)
Electronic commerce is the exchange of information across
electronic networks, at any stage in the supply chain, whether within an
organization, between businesses, between businesses and consumers, or between
the public and private sectors, whether paid or unpaid (Edward, 1999).
Every
one of the definitions is quite expansive, including not only the actual
commercial transaction between buyer and seller but also the upstream and
downstream activities that made that transaction possible. The need for such an
expansive definition is a reflection of the embryonic state of electronic
commerce today, where it is difficult to quantify the contribution of
electronic commerce totally separated from the traditional activities. Most analysts
include only transactions actually carried out on the Internet; but many
consumers research their purchases online and then buy in some other way.
As a result of different definitions of
electronic commerce, the forecasts presented by various analysts are very
widely spread. “Only 3% of business-to-business Web sites is designed for
direct sales, rather than for marketing and customer service, says (Benjamin, 1997).
Even for consumer businesses, only 9% of sites offer online transactions.”
Another survey carried out by (Nielsen, 1997) found that “whereas 53% of
Internet users in the United States and Canada had used the Internet to reach a
decision on a purchase, just 15% carried out the final transaction on the
Internet”
Despite the
slowing penetration of regular Internet users, the number of consumers using
the Internet to shop for consumer goods and services is still growing
(Forrester, December 2001). Research from the (GFK, 2002) shows that the number
of online shoppers in six key European markets has risen to 31.4 percent from
27.7 percent last year. This means that 59 million
Europeans use
the Internet regularly for shopping purposes. However, not only does the number
of online shoppers grow, the volume of their purchases also increases
over-proportionally. In the US, online sales are forecasted to exceed
$36 billion in
2002, and grow annually by 20.9 percent to reach $81 billion in
2006. Europeans
are spending more money online as well. For instance,
Europe’s largest
discount carrier, easyJet Airline Co., sold $80 million more tickets online in
the six months ended March 31 than it did a year earlier
(Reinhardt and
Passariello, 2002), whereas combined revenues for
Amazon.com’s
European operations grew at more than 70 percent annually in each of the past
three quarters, topping $218 million.
While these
figures show that a large number of consumers in the US and
Europe frequently
use the Internet for shopping purposes, it is not clear what drives them to
shop online and whether these numbers could be even increased if more
attractive online stores were developed. This raises the issue of examining
what factors affect consumers to shop online. Therefore, a framework is needed
to structure the complex system of effects of these different factors, and
develop an in-depth understanding of consumers’ attitudes toward Internet
shopping and their intentions to shop online.
In this study,
we build up such a framework based on previous research on consumer adoption of
new self-service technologies and Internet shopping systems (Dabholkar and
Bagozzi, 2002; O’Cass and Fenech, 2002; Childers et al., 2001; Davis, 1993).
This research suggests that consumers’ attitude toward
Internet
shopping first depends on the direct effects of relevant online shopping features
(Davis, 1993). Online shopping features can be either consumers’ perceptions of
functional and utilitarian dimensions, like “ease of use” and
“Usefulness” or
their perceptions of emotional and hedonic dimensions like
“Enjoyment”
(Menon and Kahn, 2002; Childers et al., 2001; Mathwick et al.,
2001). by
including both utilitarian and hedonic dimensions, aspects from the information
systems or technology literature, as well as the consumer behavior literature
are integrated in our framework. In addition to these relevant online shopping
features, also exogenous factors are considered that moderate the relationships
between the core constructs of the framework. Relevant exogenous factors in
this context are “consumer traits” (Burke, 2002; Dabholkar and Bagozzi, 2002;
Brown et al., 2001; Eastin and LaRose, 2000), “situational factors”
(Wolfinbarger and Gilly, 2001; Avery, 1996), “product characteristics” (Grewal
et al., 2002; Elliot and Fowell, 2000), “previous online shopping experiences”
(Shim et al., 2001; Eastlick and Lotz, 1999), and “trust in online shopping”
(Yoon, 2002; Lee and Turban, 2001). By incorporating these exogenous factors next
to the basic determinants of consumers’ attitude and intention to use a
technology, the framework is applicable in the online shopping context.
Together, these effects and influences on consumers’ attitude toward online
shopping provide a framework for understanding consumers’ intentions to shop on
the Internet. An important note to our proposed framework is that throughout
this paper we will define Internet shopping or online shopping as the use of
online stores by consumers up until the transactional stage of purchasing and
logistics.
2.1 ELECTRONIC PAYMENT SYSTEM IN B2C
AND C2C EC
Electronic
cash: electronic cash is a method of payment in which a unique identification
number is associated with a specific amount of money. Electronic cash is often
referred to as e-cash or cyber cash (jewson, 2001). This method was developed
as an alternative to the use of credit cards for internet purchases of goods or
services. For using this payment system, customers purchase electronic
digital-cash from the issuing company (Abrazhevich, 2004). The cash may then be
transferred through computers or other telecommunications channels (Hsieh,
2001). The digital-cash method involves a single organization for the issuance
and redemption of cash. The low cost characteristic of electronic cash makes it
one of the most promising methods.
2.2 CLASSIFICATION OF ELECTRONIC
PAYMENT SYSTEMS.
 |
Fig.
2.1 Classification of electronic payment systems
2.2.1 (I) Pre-paid card: pre-paid cards are issued for a
particular value by a particular merchant and are frequently used in store
transactions. The card can be given as a gift or just used as a convenient way
of making purchases. Ease of use and convenience are the primary reasons. Consumers
to use this card, the pre-paid card are also favorable for merchants because
customers tend to spend more freely when using it (Kniberg, 2002).
2.2.1(II) Credit card: credit card payments originate from
offline credit card mechanisms (Lawrence, 2002). Credit cards are the most
frequently used form of e-payment (Hsieh, 2001).
Two
important issues associated with the credit card method involve an irreducibly
complex transaction- structure (Hsieh, 2001). Compared to other EPS, it is not
appropriate for small-value transactions, i.e., transactions involving less
than a dollar (Kalakota and Whinston, 1996).
2.2.1 (III) Debit card: debit card is one of the most widely
used systems for e-payment. The debit card method combines the features of the
Automatic Teller Machine (ATM) card with internet banking. When customers pay
with a debit card, money is automatically deducted from their bank accounts. In
contrast with credit cards, the expended money comes directly from a bank
account. Many banks issue a debit card that can be used in places where credit
cards are not accepted. When users pay with a debit card, the payment is
processed as a debit transaction (Abrazhevich, 2004).
2.3 HISTORY OF CREDIT CARD (EARLY
DEVELOPMENT): This
meaning of electronic commerce has changed over the last 30 years. Originally, electronic
commerce meant the facilitation of commercial transactions electronically,
using technology such as Electronic Data Interchange (EDI) and Electronic Funds
Transfer (EFT). These were both introduced in the late 1970s, allowing
businesses to send commercial documents like purchase orders or invoices
electronically. The growth and acceptance of credit cards, automated taller
machines (ATM) and telephone banking in the 1980s were also forms of electronic
commerce. Another form of e-commerce was
the airline reservation system typified by Sabre in the USA and Travicom in the
UK.
Online
shopping is an important component of electronic commerce. From the 1990s
onwards, electronic commerce would additionally include Enterprise resource
planning systems (ERP), Data mining and Data warehousing.
An
early example of many-to-many electronic commerce in physical goods was the
Boston Computer Exchange, a marketplace for used computers launched in 1982. An
early online information marketplace, include online consulting, was the
American Information Exchange, another pre internet online system introduced in
1991.
In
1990 Tim Berners-Lee invented the World Wide Web browser and transformed an
academic telecommunication network into a world wide everyman everyday communication
system called internet/www. Commercial enterprise on the internet was strictly
prohibited until1991. Although the internet became popular worldwide around
1994 when the first internet online shopping started, it took about five years
to introduce security protocols and DSL allowing continual connection to the
internet. By the end of 2000, many European and American business companies
offered their services through the worldwide web. Since then people began to
associate a word “e-commerce” with the ability of purchasing various goods
through the internet using secure protocols and electronic payment services.
2.4 ADVANTAGES OF E-COMMERCE:
Electronic
commerce is defined simply as commerce that is transacted electronically, as
over the internet (The American Heritage Dictionary of the English Language,
fourth Edition). While technology, consumers and organizations are increasingly
moving in this direction because of the many advantages such as: time saving,
access to wider range of goods and services for the consumer and access to
wider markets for the company. Although there are still a great number of
disadvantages of electronic commerce, of most concern are those associated with
crime. This essay will bring to light the pros and cons of this relatively new
form of commerce.
One
of the most obvious advantages of e-commerce is that it is time saving, (Rutter
& Southernton, 2000) studies show that time saving is the number one reason
for using electronic commerce. People now have access to their money from home
and work all from a desktop computer, paying monthly bills to large
organization that implement electronic transactions no longer requires you to
stand in lines or withdraw large sums of money from your account to carry
around in your wallet and pay at a point of sale. Not only a bills be paid you
can shop online for groceries, clothing and hobbies, the work is endless as
most things these days can be purchased right from a store by engaging yourself
onto an internet site from your home computer. This is why some saving is the
single most reason e-commerce has grown and incorporated in a large
organization in the last few years.
Another
advantage of e-commerce is that consumers have access to a wider range of
products, now that company’s can use internet sites as shop fronts the consumer
can browse and buy from many different sellers, making it easier to and exactly
what they are looking for.
(Keeney,
1999) argues that consumers are no longer restricted to what is available in
their local area; they now have access to a wider range of goods and services
through electronic commerce that also provides them with more competitive
prices and greater value. No longer can a company hold a monopoly with pricing
on a region just because it is remote and there are no competitors near.
E-commerce gives the remote consumer an option to shop somewhere else therefore
driving prices down and quality of goods up in the local region. Electronic
commerce also has its advantage in that it allows small businesses to mix with
the big business online, for a relatively small cost a new business can set its
self up to conduct transaction s online. (Wood, 2004) explains that for as
little as $2000 a new business can start trading online, the website also goes
on to say that by trading online smaller businesses are often preferred over
the larger well established organizations just because of the level of personal
service the smaller organizations provide.
Another
advantage of e-commerce is that organizations can now target a wider variety of
consumers even take the product or service international, allowing them a means
of supplying their goods to places that were before unreachable. An example of
a company using this method is the computer store cyberian Outpost. (Peck, 1996)
explains how this computer store was able to double its business every 90 days,
where it used to make only $400 a day it was able to make that in twelve
seconds in the online market place.
2.5 DISADVANTAGES OF E-COMMERCE
Fraud
is a big problem on the internet and a careless consumer can be targeted. Web
sites may look legitimate can be deceiving, emails can be nothing but a hoax
hoping to gain a bank account number or credit card information, (Goldsborough,
2003) explains that most email scams originate from Nigeria and all use the
same type of scam, hoping to trick a gullible user into thinking they are
helping a less fortunate person. (Goldsborough, 2003) shows that online auction
sites are the main target of fraudsters and account for 46% of all internet
fraud, the fact is that ‘while it may be convenient and anonymous it does have
its price’ (valentine, 2003). Most of the time you are making a transaction
across the internet you will never see who the other person is selling the
product or service, how do you know that the reviews for a site are legitimate
and secure information you are providing really is secure. The truth is you
won’t ever know for sure that the company or person you are trading with will
actually come through with their part of the deal.
Theft
of credit card and personal information is often all somebody needs to be able
to spend all your money on the internet. Being able to purchase and buy items
with very little proof of your identity is another big downside to e-commerce.
Where as in a shop front using a credit card at least requires a signature as
well as for the offending criminal to show himself. Using a credit card in an
online transaction all you need is what is already printed on the card, and the
offender can cover their tracks a lot easier, no one will have to see them to
make the transaction. (Valentine, 2003)
shows that although there have been many new ideas for improving the security
of online transactions, most have never left the drawing board due to the
increase in cost for the consumer and company.
Losing the information stored on such a valuable piece of plastic can be
a major headache for some unlucky consumers and this is why e-commerce does
have its disadvantages.
As
well as being able to thieve credit card information from the consumer, a lot
of companies that provide some sort of electronic transactions require the
consumer to provide a host of information about themselves. This information is
often stored on databases within the company, so effectively you are entrusting
your personal information to the company. (Gow, 2005) article explains that
this is the information that hackers often try to take, giving them a wealth of
personal information allowing them to set up bogus credit cards and accounts in
your name. Having to entrust your personal information with an organization you
might only deal with once in your lifetime is also another major disadvantage
to electronic commerce.
It
is not only the consumer that is at risk on the internet, extortion is a major
problem for company’s using online transactions from customers. (Gow, 2005)
informs us that recent studies show that it is estimated more then 2/3 of
organizations that have been the victims of computer attacks don’t report the
incident to the federal police or FBI. Instead they just pay the offending
criminal sometimes in the millions of dollars in an attempted to keep the
offender from publicly displaying the consumer’s personal information on other
websites. If such information was ever released it has the potential to destroy
the company’s business and opens the company up to privacy lawsuits, which is
why the FBI is kept in the dark on these, sought of attacks.
While
it is easy to see that there are many advantages to conducting transactions
online to saving time and money by using the ever increasing service of
e-commerce it is clear that consumers and companies need to be vigilant and
cautious. With the emergence of this relatively new form of trading a whole new
type of fraud, theft and extortion has started to exist that consumers now need
to be aware of which is a major disadvantage for online trading. In concluding
it is clear that both the advantages and disadvantages of electronic commerce
need to be taken into consideration, while there are benefits there are also
problems.
2.6 TYPES
OF E-COMMERCE MODELS.
E-commerce
is the use of internet and the web to transact business but when we focus on
digitally enabled commercial transactions between and among organizations and
individuals involving information systems under the control of the firm it
takes the form of e-business. Nowadays, ‘e’ is gaining momentum and most of the
things if not everything is getting digitally enabled. Thus, it becomes very
important to clearly draw the line between different types of commerce or
business integrated with the ‘e’ factor.
There are mainly five types of
e-commerce models:
1) Business
to Customer (B2C): as
the name suggests, it is the model involving business and consumers. This is
the most common e-commerce segment. In this model, online businesses sell to
individual consumers. When B2C started, it had a small share in the market but
after 1995 its growth was exponential. The basic concept behind this type is
that the online retailers and marketers can sell their products to the online
consumer by using crystal clear data which is made available via various online
marketing tools. E.g. an online pharmacy giving free medical consultation and
selling medicines to patients is following B2C model.
2) Business
to Business (B2B): it
is the largest form of e-commerce involving business of trillions of dollars.
In this form, the buyers and sellers are both business entities and do not
involve an individual consumer. It is like the manufacturer supplying goods to
the retailer or wholesaler. E.g. Dell sells computers and other related
accessories online but it is does not manufacture all those products. So, in
order to sell those products, it first purchases them from different businesses
i.e. the manufacturers of those products.
3) Consumer
to Consumer (C2C): it
facilitates the online transaction of goods or services between two people.
Though there is no visible intermediary involved but the parties cannot carry
out the transactions without the platform which is provided by the online
market maker such as eBay.
4) Peer
to Peer (P2P): though
it is an e-commerce model. But it is more than that. It is a technology in
itself which helps people to directly share computer file and computer
resources without having to go through a central web server. To use this, both
sides need to install the required software so that they can communicate on the
common platform. This type of e-commerce has quite low revenue generation as
from the beginning it has been inclined to the free usage due to which it
sometimes got entangled in cyber laws.
5) M-Commerce:
it refers to the use of mobile
devices for conducting the transactions. The mobile device holders can contact
each other and can conduct the business. Even the web design and development
companies optimize the websites to be viewed correctly on mobile devices.
2.7 E-COMMERCE
SECURITY
“The
unique nature of the threats to e-commerce companies requires new technologies
and systems to provide a secure transaction environment.” (James, 2004) Trying
in with many payment issues, the security of websites can never be 100%
assured, however several technologies can be employed to help reduce the risk
of information being compromised when conducting e-commerce transactions.
1) Passwords:
password protection is the most
common form of security found online. There are passwords for email accounts,
bank accounts, store account, eBay account and more. Passwords are used to
protect information which is stored online, and allows or prevents access to
secured areas by asking users for a Username/ID and password before entering
the site. By setting up accounts, customers can store personal details and
information to avoid having to enter it in for every single transaction. The
main disadvantage of this is that passwords are often not protected people tell
others their password, write them down or choose ones that are easy for others
to guess (birth date, name spelt backwards, etc). Even if the person trying to
hack into your account doesn’t know you that well, clues like Hotmail as a
secret question it can make it easier to obtain or change the current password.
2) Encryption:
To ensure information is kept
private whilst it is being transferred across the internet, the data is encoded
or encrypted into another language (some form of mathematical formula usually)
and is then decoded at the receivers end. Most encryption software uses
formulas so complex that it would take most powerful computers years to decode
the messages. (James, 2004)
3) Public
key infrastructure: PKI
is an added form of security which prevents a third party who steals encrypted
information from decrypting it with any type of software. Encryption software
uses pieces of additional software known as keys to ensure that only the
creators and recipients of information are able to access it. A set of two
keys, a public key and a private key are required to transmit encrypted data
from one computer to another. Firstly the public key encrypts the data, and it
is sent to the computer with the corresponding private key for decryption. In e-commerce,
these keys are installed on web servers and then sent to users of websites
(browsers) automatically. The only involvement the user has in the process is
agreeing that he or she trusts the web server. A tunnel is established between
the browser and the server (called the secure sockets layer, or ssl) and the
user can then confidently send encrypted information that only that server can
decrypt. (School of International Business, 2004, p. 87)
4) Securing
Companies from External Attack: It is not only consumers that potentially suffer from fraud
or viruses online and through e-commerce. Companies need to protect themselves
against a host of criminals’ worldwide thieves, hackers and virus makers to
name a few. To prevent against these threats companies use several tools.
5) Firewalls:
A firewall is a computer and a
software combination that is installed at the entry point of networked system.
The firewall provides a defense, sometimes the first line of defense, between a
network to be protected and the internet or other network that could pose a
threat, all corporate access to and from the internet flows through firewall.
The network and computers being protected are inside the firewall. Firewalls
are computers that have the following characteristics:
·
Only
authorized, as defined by the local security policy is allowed to pass through
it.
·
All
traffic from inside to outside and from outside to inside the network must pass
through it.
·
The
firewall itself is immune to penetration.
·
Those
networks inside the firewall are often called trusted, whereas networks outside
the firewall are called untrusted.
CHAPTER
THREE
3.0 RESEARCH METHODOLOGY AND
ANALYSIS OF THE PRESENT SYSTEM
3.1 METHODOLOGY
A
research methodology is a systematic programming approach of well defined procedure
that should be followed in carrying out a thorough research project or defined
as the analysis of the principles of methods, rules and postulates employed by
a discipline. An adequately suitable
methodology would ensure a very detailed research work and ensure that a higher
degree of accuracy and efficiency is adopted.
The research methodology used helps to ensure that a thorough study of
the present system is effectively carried out, thus helping the project
research team to completely understand the modus operandi of the present
existing system so as to know how the new system should be structured and the
functionalities needed in it to address the seemingly, existing problems
discovered. This helps to know if there should b e a total over hailing of the
existing system or if only improvements should be made. Hence, after duly
considering the above reasons, out of the whole software engineering standard
for transforming ideas into a inference Engine which includes prototyping,
experts system methodology and usability Engineering methodology, this work
will exploit the step of structured system analysis and design methodology
(SSDM). SSDM is a methodology used in the analysis of design stages of system
development.
The
step includes:
a)
Problem
identification
b)
System
design
c)
System
implementation and maintenance.
3.1.1 METHOD OF DATA COLLECTION
The
above methodology was augmented using interviews, Observation, and Review of
problem manuals.
A) Interview:
is said to face to face
interpersonal role situations in which questions are raised and answers are
supplied. Personal interview seems to be the most powerful and useful tool in
the method of obtaining information. It is most common, continuous process and
through it a better understanding of the system problem was achieved.
Similarly, basic flows associated with the manual system were made known. It
also gave an insight as to certain operational activities that cannot be mere
observation.
The following question are drawn
1. Management
Officials
a)
What
is the brand name of this market?
b)
How
many people or marketers can the marketplace accommodate?
c)
Do
sellers/marketers register before starts marketing their goods and services?
d)
It’s
their any general sales policy agreement?
e)
What
time do you close the market?
2. Sellers
(Questionnaires)
a)
What
the number is of items you sale in a day?
b)
Do
you recognize your customer when they come again to buy goods?
c)
How
do you manage your stocks?
d)
How
do you keep records of sales?
e)
Do
you inform buyers about sales policy?
3. Buyers
(questionnaire)
a)
What
do you came to purchase?
b)
Where
do you come from to purchase goods in this market?
c)
Do
sellers recognize you when you comes back to purchase item again?
d)
Do
you request for sales policy before making payment?
B) Observation
Method: Due to the
importance attached to the collection of accurate information from the right,
authentic and reliable source. It is embarked on observing the mode of carrying
out activities and project implementation in the staffs. This method was
adopted for the following reasons.
a)
To
have a firsthand knowledge about Ogbete main market and its project implementation
and avoid exaggeration form the sellers and buyers.
b)
To
allow organization see the whole details needs for the now system and its
structure.
 |
FRAMEWORK FOR CONSUMERS’ INTENTION TO SHOP ON THE INTERNET
Fig 3.1 Customers Intention Analysis to Shop online
3.2 STUDYING
OF PROCEDURAL MANUALS
Written
documents about the organization and the procedure manuals seen showed the
different portfolios obtainable in the project, each with its designated
functions and duties and their inter-relationship in the project. This method
of data collection was very useful in that, it served as an eye. Opener for
asking reliable questions pertaining to the act ivies of the project.
3.3 SYSTEM
ANALYSIS
Systems
analysis is a process of designing the most effective and reliable procedure to
accomplish a given task within an establishment. It is necessary that new
system should be devoid of clogs and iota of errors, that’s why it expedient
that the system analysis should understand the weakness of the present system
and strive to alleviated it. It can also be the method of determining how best
to use computer with other resources to perform tasks, which meet the
information needs of an establishment.
System analysis extends form examining an existing to design and
implementation of new system entirely. The analysis stage describes the process
of collecting and analyzing facts in respect to the existing operations,
procedures and systems in order to obtain a full picture of the situation
prevailing so that efficient and effective computerized system may be designed
and implemented if proved feasible.
3.4
OBJECTIVES OF THE DESIGN: The
secured site for online marketplace at its completion is expected to place the
board for
·
Immediate
delivery of goods once the transaction is completed.
·
Reduce
the risk of carrying money as buyers can register their money online or trade
with their credit card.
·
Fast
update and retrieval of information.
·
Accessibility
irrespective of location.
3.5 DESCRIPTION
OF THE EXISTING SYSTEM
All
commerce activities require buying and selling. This can be done in two ways i.e.
through the traditional mode or modern mode. The traditional mode of commerce
involves the display of goods on shelves, hawking of goods etc. The modern mode of commerce is done
electronically over the internet.
Presently,
Ogbete main market uses the traditional mode of commerce which display of their
goods on shelves, where people come for shopping, pick what they want then pay
the cashier for the goods. The customers have to or usually demand for
description about the goods before making payment and most often, try to
bargain for reduction of price. Payment is done directly to the cashier who
issues a receipt to customers. The cashier records the sales into an invoice
for administrative use, and at the end of the days activities, the
organization’s account is balanced using the total amount of goods sold and the
physical cash present. There must be a balance between the two to show a
success business day. The cash is then
kept in the safe waiting to be deposited into bank the following day.
 |
Structure of the existing system
Fig
3.2 existing system analysis
3.6
PROBLEMS OF THE EXISTING SYSTEM: Marketers face a very big and
tasking job attending to their customers and offering them satisfactory
services. Some of the problem facing the existing system can be put as follows;
1.
Difficulty
marketing or advertising their products to their prospective customer as it is
very expensive to do so through the print and broadcast media.
2.
Having a lot of customers to attend at the
same time
3.
Exposure
to attacks by armed bandits as they deal directly with cash and sometimes have
to leave such money In saves till the following day.
4.
Time
wasting in sorting of goods.
5.
Accommodating
a lot of marketer in Ogbete main market.
On
the customer’s hand, he or she faces some difficulty also. Notable among them
are:
1.
Having
to wait on queue to get orders processed as a result of the many customers the
administration (cashier) has to attend to.
2.
Not
being able to shop at their convenient time as shopping hours are set by the
business organization.
3.
Not
getting adequate information as to what stocks or goods the shop has before
coming for shopping etc.
3.7 JUSTIFICATION
OF THE NEW SYSTEM
This
new system will be able to proffer solutions or address the problems of the
existing system. This system being a computerized one has the computational
ability to handle customers’ questions and demand for information and also
process their orders. It issues a shopping card to customers so that they no
longer need to make cash payments, allows shopping from the comfort of their
homes, therefore going a long way to protect the business organization from
falling prey to armed bandits.
CHAPTER
FOUR
4.0 SYSTEM
DESIGN AND IMPLEMENTATION
4.1 OVERVIEW
OF THE SYSTEM DESIGN
Systems
design is simply concerned with how to provide an efficient (economical) and
effective (relevant and useful) system. It is an integral part of software
development which embarked after a detail analysis of the system has been done,
and the project feasibility study undertaken. The purpose of the design is to
meet the user’s specification of the system software, determine flexible system
alternative that will achieve the recommended result and make optimum use of
the hardware, software and other processing resources that may be used in
implementing the solution for there to be good system design, top-down
development was used so as to achieve a structure programming that is directed
in developing programmed in orderly way, decomposing the requirement into well
specified high level model. The design will be done in modules and then
interfaced to a secured site for online marketplace using E-transact facilities.
An architectural design is first made to break the system into modules and then
a detailed design of all the modules carried out as well as the system
development methodology used in this work for developing computer-based
information system is popular traditional method called structural
analysis. Structural analysis is a
traditional system development technique that is time-tested and easy to
understand. Because it describes the process that transforms data into useful
information, structural analysis is called a process- centered technique.
In
addition to modeling the process, structural analysis includes data
organization and structure, relational database design and user interface
issues. Structural analysis uses a series of phases called the system
development lifecycle (SDLC) to plan, analyze, design, implement and support an
information system structural analysis relies on a set process model.
4.1 SYSTEM DESIGN
The
system is logically divided into two (2). They are
a)
The
web store/ e-shop (Ogbete main market customers interface)
b)
The
Database
4.1.1 The web stores/ e-shops
The
web store has a welcome page with Home, FAQ, Contact us, shopping cart. The
marketer and items needs to purchase can be accessed from the home page. The
catalogue contains information about the product to be sold and the price. It
offers a link to the database where the transaction can be processed. Apart
from these functions, the web stores also help to advertise the product of the
marketers or sellers.
·
Website
Editor: The site is edited with software called Microsoft Expression Web 4and
Microsoft Expression Design 4.
·
Graphic
Design: The graphical appearance is achieved with graphic editor called Corel
Draw 12.
4.2 THE DATABASE (SPECIFICATION)
This
involves specifying the nature and the structure of the database, the data
being stored in the database and the data security measures enforced. It also
specifies the data type and size. The system is dynamic when you can be able to
change or update the system. These are known as scalable systems. A scalable
system is one whose design can handle a large database or ant number of users.
Scalable systems are desirable because they can be implemented at one level,
and then expanded to keep up with growth or changes. Any alternation can be
stored in the system’s database.
The
system has an up datable database. The database consists of tables that offer
relational attributes with both primary and foreign keys. The database could be created as a
project.mdf file. The database consist of tables that include
a)
Buyer
registered table
b)
Seller
registered table
c)
Shopping
cart table
d)
Sellers
items table
e)
E-transact
pin code table
f)
Product
order table
4.3 INPUT/OUTPUT SPECIFICATION
The
database “project database” is created with MYSQL and it consist of several
tables holding different data items
Buyer
register table
|
Name
|
username
|
password
|
Conf-password
|
sex
|
address
|
DOB
|
Security
question
|
Terms/cond
|
|
BEN
|
bejailo
|
recall
|
recall
|
M
|
hillview
|
1986
|
My name
|
yes
|
|
uchenna
|
uche
|
uchee
|
uchee
|
M
|
newhea
|
1987
|
wife
|
yes
|
Table 4.1: Buyer reg. records
Seller
registration table
|
Marketer name
|
username
|
password
|
Goods to sell
|
Contact address
|
sex
|
Shop No
|
|
|
|
|
|
|
|
|
Table 4.2: Seller reg. records
Shopping
cart table
|
Items name
|
Price
|
Quality
|
Item No
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 4.3: Shopping cart
4.4 INPUT/ OUTPUT FORMAT
Every
program has input as well as output data. They are used mainly to achieve the
specific objectives of verifying the processing operation being performed.
4.4.1 Input format
The
input format is used essentially to state the data elements requested to serve
as input to the system, computer is designed in such a way that sometimes it is
called GIGO- denoting that what goes in is what comes out. The input forms are
designs generally based on the necessary data that needs to be entered into the
system. The data are captured through the keyboard and stored on a magnetic
disk in MYSQL database.
4.5 SYSTEM REQUIREMENT
This
system requires hardware, software, people ware and the internet which enable
the system to work.
4.5.1 Hardware Requirement
Hardware
is the physical equipment or component that makes up a computer system. it
refers to the physical interface of the component that can be seen and touched.
Every software has a minimum hardware requirement needed for its operation
which consist of the following; Pentium iii processor of at least 700MHZ, 512MB
of RAM. It also needs a 3.5’’ FDDL with SVGA monitor, mouse and mouse pad,
Enhanced keyboard. There is also need for external storage devices for backup.
4.5.2 Software Requirements
Software
is a program used by computers to facilitate their operation and utilization.
It gives the computer the capability of doing whatever the users wants. A computer without software is like an empty
box. It also refers to the software that
will be installed into the system to enable it to work, and that are;
·
Windows
98/2000/xp (pro) Vista
·
MYSQL
(Database)
·
Finally,
the system requires a host.
For
people ware, the personnel that have been working with the old system can be
trained in the use of the new system because of experience. A cooling system
should also be provided for the computer systems, the dedicated server system
running the software and workers in order to avoid damages and accident.
CHAPTER
FIVE
5.0 SUMMARY,
CONLUSION AND RECOMMENDATIONS
5.1 SUMMARY
As
business activities increasingly adopt information technology into their
operations, it has become important for them to move their operations and
services to a new paradigm by wholly embracing the use of (electronic commerce
e-commerce) for handling and processing their transactions. The benefits of such move is substantial and
significant in terms of convenience, transaction speed, effectiveness,
flexibility, reliability, cost reduction, security among a host of others. Also, since virtual world operations where
e-commerce falls are in a continuum, it provides unlimited opportunity for
business interaction and helps create instant response by satisfying the
unlimited demand of customers for information and services. The deployment of
e-commerce solutions to business organizations makes the services offered by
staffs very effective and enables customers obtain information in conducive
atmosphere without hustle and bustle.
5.2 CONCLUSION
In
Nigeria, electronic commerce (e-commerce) which is a part of information
technology is just being embraced and not yet fully utilized. Most business
organizations or set-ups of the art equipments need to send their work force on
training in order to sati factoring utilize the solutions equipments they have.
The
need to have a winning tool to maintain leadership in this current harsh and
very competitive business climate can over emphasized, neither can it be undermined.
In the past, the possession of appropriate technology was sufficient to confer
competitive advantage on business organizations that have them over those that
did not, even for normal operations.
Today,
however, with the continuing technology breakthrough, coupled with the decline
in the longer confers any special advantage any more. What distinguishes a
leading business organization from a lagging one is the way and speed with
which technology is applied to deliver superior customer services and until
e-commerce becomes a natural business partner serving as a twin deliver of value
and satisfaction to customers, a business organization will not be able to
derive optimum benefits from it. Business organizations need to employ a lot of
creativity, right complements of strategies and business processes, people and
technology in a sufficiently elastic manner in order to increase profitability
and reduce cost while pursuing real growth and this is what e-commerce has come
to offer but because many business organization in Nigeria fails short of
utilizing his dynamic tool of e-commerce their avenues for profitability and
service delivery is underutilized. The time for business in Nigeria to evaluate
alternative choices with a special focus one-commerce satisfactions cost
reduction, profitability and real growth is now that they faced with the
challenge of corporate survival and recognition or never.
5.3 RECOMMENDATIONS
Electronic
commerce lets people goods and exchange information on business transaction
online. The most popular e-commerce channel is the internet, although the
internet’s role as business channel is fairly re cent phenomenon, its impact,
financial are otherwise has been substantially greater than that of business
channel in existence for several decades. The challenges therefore, is for
Nigeria business environment is embrace the business to consumer (B2C) business
model where payee can make use of electronic means of communication to sell
products or services to consumers, typically using credit cards. This will usher in the use of credit card
based purchased in the business scene.
The
question is how many Nigerian organizations or individuals have access to
internet? The percentage must be low; this could be pragmatic approach to
minimize our cash based payment system. Government must create the enabling
environment to support e-commerce so that organizations or individuals can
afford to have access to the internet. We hope that as Nigeria moves from
Government to private driven economy, we shall experience a dramatic change in
terms of the provision and access to internet.
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M. A. (2002). Collaboration in the
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APPENDIX 1
 |
Main Menu Display
APPENDIX
II
ALGORITHM OF EACH MODULE
 |
HOME PAGE MODULE
(Item searching, purchasing,
shopping cart)
 |
SUPPORT
SERVICES MODULE
SELLERS ACCOUNT MODULE
 |
SELLER/BUYER LOGIN MODULE |
APPENDIX III
PROCEDURAL CHART/DESIGN
 |
APPENDIX IV
PROGRAM SOURCE CODES
Member
Login
<?php
// Connects to your Database
require_once('data/consee.php');
//if the login form is submitted
if (isset($_POST['submit'])) { // if
form has been submitted
// makes sure they filled it in
if(!$_POST['username'] |
!$_POST['password']) {
header("Location:
loginerr.php");
}
// checks it against the database
$check = mysql_query("SELECT *
FROM member WHERE username = '".$_POST['username']."'")or
die(mysql_error());
//Gives error if user dosen't exist
$check2 = mysql_num_rows($check);
if ($check2 == 0) {
header("Location:
loginerr.php");
}
while($info = mysql_fetch_array(
$check ))
{
//gives error if the password is
wrong
if ($_POST['pin'] != $info['pin']) {
header("Location:
loginerr.php");
}
else
{
session_start();
// if login is ok then we add a
session
$_SESSION['obe'] =
$_POST['username'];
$_SESSION['tim'] = time() + 900;
$fcart = mysql_query("SELECT * from cart
WHERE user = '".$_POST['username']."'");
$cim = 0;
$cqnt = 0;
while ($carrt = mysql_fetch_array($fcart))
{
$cim = $cim + $carrt['amount'];
$cqnt = $cqnt + $carrt['quantity'];
}
$_SESSION['cart'] =
"cart";
$_SESSION['camount'] = $cim;
$_SESSION['cquantity'] = $cqnt;
//then redirect them to the members
area
header("Location: my_account.php");
}
}
}
else
{
header("Location:
login.htm");
}
?>
Purchasing
code
<?php
session_start();
require_once('data/consee.php');
if (empty($_GET['rest']) ||
!isset($_GET['ress']))
{
header('Location: view_cart.php');
}
else
{
$amount = $_GET['rest'];
$balance = $_GET['ress'];
if ($balance > $amount )
{
$newbal = $balance - $amount;
$twr = mysql_query("UPDATE
`shops`.`member` SET `amount` = '".$newbal."' WHERE
`member`.`username` = '".$_SESSION['obe']."' LIMIT 1");
$del = mysql_query("DELETE FROM
`shops`.`cart` WHERE `cart`.`user` = '".$_SESSION['obe']."' ");
header('Location:
checkoutc.php?endss=3');
}
else
{
header('Location:
checkoutc.php?endss=2');
}
}
?>