Management Information Systems MIS300 – Summer II- 2020
Weekly Assessment 2 (15%) – Chapter 5
Start Date: 1 September 2020- 8:00 pm
Due Date: 6 September 2020- 11:59 pm
(Note: please upload your answer on Moodle using Weekly Assessment 2 submission Link)
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Answer the following questions:
- Explain how the credit card use represents examples of Business – to – Customer (B2C) and Customer – to – Business (C2B) E-Commerce models. (50 points)
There are different models of doing business in modern times due to evolvement in the market. In the case of the business-to-customer model, it arises when the business and consumer transact directly. A credit card serves as a good example of B2C since companies transact with the end-user, who is a consumer, without involving a middle man. The business ensures the consumer gets services such as paying merchants and bills by accessing the bank account without having to involve a third party. The credit card heavily eliminates a third party in a traditional retail model where a markup of the price is increased. A credit card also represents customer-to-business models in e-commerce that involves consumer creating value, and entrepreneurs focus on consuming the value. The businesses heavily benefit from the willingness of the consumer to utilize a specific service or product. For the consumers, they benefit from flexibility, direct payments, and low price products and services. In this consideration, the banks created credit cards due to the willingness of their consumer to use them due to the flexibility they bring. The issue of effectiveness was a key factor for the banks to adopt the credit card on grounds consumers do not have to queue in bank halls to withdraw money or wait until they are padding their salaries. The consumers were willing to use credit cards due to their needs and the efficiency it brought and solving cost and time. The businesses realized that opportunity and opted to exploit it by making extra profit.
- Explain how YouTube makes money. Provide some facts or statistics that support your answer. (50 points)
In modern times, technology has attracted a wide range of people due to the different opportunities and efficiency it brings in our lives. In some instances, technology has enabled people to earn by creating content with different platforms offering opportunities. For instance, YouTube is a platform where users are making a substantial amount of money by creating and posting content. They earn based on the views they get. For one thousand views, a YouTuber earns $5, and thus, many views guarantee more money with some people making substantial earnings. YouTube makes money from the advert they get from different clients and posts them in different programs posted by YouTuber, making it appear when an audience is watching a video. YouTuber, with many views, earns more since they subject the advert to a larger audience and is a critical factor in the realization of positive results for those who have contracted YouTube to market their products.
Any person can open a YouTube channel and earn specifically if they have the content and can convince as many people to watch and subscribe to their content. During the pandemic period, most people in the entertainment industry have shifted their attention to online platforms to make money, such as becoming YouTubers and using their fame to propel their channel’s growth. For instance, looking at the impact of YouTube on the entertainment industry, it becomes clear that online platforms have provided opportunities for many people. It is also important to acknowledge that only 3% of the Youtubers earn an adequate amount to overcome the U.S poverty line. 96.5% of those trying to become YouTubers will not make enough to exceed the federal poverty line of $12140 for an individual per year. The research shows they exist a group of people who are earning adequately on YouTube, with the top 1% garnering from 2.2 million to 42.1 million per month in 2016. When an individual is a leading creator on YouTube, they earn through sponsorship, making them adequately benefit from the platform. The article pointed out the difference between Youtube earning, where some people earn $5 per 1000 views, while others can get up to 35cents.