Effect of E-commerce on Economic Development of a Nation
Transcript of Effect of E-commerce on Economic Development of a Nation
EFFECTS OF
ELECTRONIC
COMMERCE ON
ECONOMIC
DEVELOPMENT OF A
NATION
COLLEGE OF ACCOUNTANCY AND COMPUTER
TECHNOLOGY
BLOCK B, FLAT 8, MASOJE ESTATE.
P.T.I ROAD, EFFURUN. DELTA STATE. NIGERIA.
A PROJECT WORK SUBMITTED TO THE
DEPARTMENT OF COMPUTER SCIENCE
IN PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD NATIONAL DIPLOMA
IN COMPUTER SCIENCE
AUGUST 2008
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CERTIFICATION PAGE
We certify this work was carried out by
………………………………
……………………………………………………. in the department
of Computer Science, Akwa Ibom State Polytechnic as
meeting the requirement for the award of ordinary diploma
in computer science.
__________________ ________________
(Supervisor) Centre Co-ordinator
Date __________ Date __________
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DEDICATION PAGE
I dedicate this project to Almighty God for his divine
guidance, grace and mercy throughout my academic pursuit.
May all Glory, Honour, Majesty and power be ascribed unto
His Holy Name in Jesus Name.
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ACKNOWLEDGEMENT
First and foremost I give thank to our most high GOD for giving me
the opportunity to attain my present level of education and for seeing
me through this Endeavour.
I want to appreciate the contributions and useful suggestions of my
supervisor MR KOLADE OLUWO who took his time and pain to go
through the volume of the work steadily.
My appreciation also goes to my lecturers and colleagues in the
department of Computer science Akwa Ibom State Polytechnic.
I cannot the contribution and enthusiastic support of Mrs Ogbinaka,
the centre coordinator and the registrar. May the Almighty God
reward you all for your advice, assistance, contributions and support
during this program.
ABSTRACT
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Electronic commerce over the Internet is a new way of
conducting business. Though only few years old, it has the
potential to radically alter economic activities and the social
environment. Already, it affects such large sectors as
communications, finance and retail trade (altogether, about
30 per cent of GDP). It holds promise in areas such as
education, health and government (about 20 per cent of
GDP). The largest effects may be associated not with many
of the impacts that command the most attention (e.g.
customised products, the elimination of middlemen) but with
less visible, but potentially more pervasive, effects on
routine business activities (e.g. ordering office supplies,
paying bills, and estimating demand), that is, on the way
businesses interact.
CHAPTER ONE6
INTRODUCTION
1.0 THE BACKGROUND OF THE STUDY
E-commerce is the process of managing online financial
transactions by individuals and companies. This
includes business-to-business (B2B), business-to-
consumer (B2C) and business-to-government (B2G)
transactions. The focus of e-commerce is on the
systems and procedures whereby financial documents
and information of all types are exchanged. This
includes online credit card transactions, e-cash, e-
billing, e-cheques, electronic invoices, purchase order
and financial statements. E-commerce is particularly
concerned with the technologies that enable EDI-type
functionality on the Internet.
A combination of regulatory reform and technological
innovation enabled e-commerce to evolve as it has.
Although the precursor of the Internet appeared in the 7
late 1960s, Internet e-commerce took off with the
arrival of the World Wide Web and browsers in the early
1990s and the liberalisation of the telecommunications
sector and innovations that greatly expanded the
volume and capacity of communications (optic fibre,
digital subscriber line technologies, satellites). As a
result, barriers to engage in electronic commerce have
progressively fallen for both buyers and sellers. Earlier
forms of e-commerce were mostly custom-made,
complex, expensive and the province of large firms.
Today, for a few thousand dollars, anyone can become
a merchant and reach millions of consumers world-
wide. What used to be business-to-business
transactions between known parties has become a
complex web of commercial activities which can involve
vast numbers of individuals who may never meet. In
this sense, the Internet has done for electronic
commerce what Henry Ford did for the automobile –
converted a luxury for the few into a relatively simple
and inexpensive device for the many.
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This research work is exploring these impacts and
provides a preliminary analytical foundation for further
work. It does not present an exhaustive analysis –but
musters as much information as possible so as to
provide policy makers with a quantitative picture, albeit
blurry, of the current state and likely future direction of
electronic commerce. On this basis, policy makers can
begin to outline the parameters of its impact/effects
and identify areas in need of future research.
1.1 STATEMENT OF RESEARCH PROBLEM
Five broad themes have emerged as important for
understanding the economic and social effect of
electronic commerce on a nation’s economy:
1. The effect on the marketplace... Electronic
commerce transforms the marketplace. E-commerce
will change the way business is conducted: traditional
intermediary functions will be replaced, new products
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and markets will be developed, new and far closer
relationships will be created between business and
consumers. It will change the organisation of work: new
channels of knowledge diffusion and human
interactivity in the workplace will be opened, more
flexibility and adaptability will be needed, and workers’
functions and skills will be redefined.
2. ... the catalytic role... Electronic commerce has a
catalytic effect. E-commerce will serve to accelerate
and diffuse more widely changes that are already under
way in the economy, such as the reform of regulations,
the establishment of electronic links between
businesses (EDI), the globalisation of economic activity,
and the demand for higher-skilled workers. Likewise,
many sectoral trends already under way, such as
electronic banking, direct booking of travel, and one-to-
one marketing, will be accelerated because of
electronic commerce.
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3. .. the impact on interactivity... E-commerce over
the Internet vastly increases interactivity in the
economy. These linkages now extend down to small
businesses and households and reach out to the world
at large. Access will shift away from relatively
expensive personal computers to cheap and easy-to-
use TVs and telephones to devices yet to be invented.
People will increasingly have the ability to communicate
and transact business anywhere, anytime. This will
have a profound impact, not the least of which will be
the erosion of economic and geographic boundaries.
4. .. and openness... Openness is an underlying
technical and philosophical tenet of the expansion of
electronic commerce. The widespread adoption of the
Internet as a plat-form for business is due to its non-
proprietary standards and open nature as well as to the
huge industry that has evolved to support it.
The economic power that stems from joining a large
network will help to ensure that new standards remain
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open. More importantly, openness has emerged as a
strategy, with many of the most successful e-commerce
ventures granting business partners and consumers
unparalleled access to their inner workings, databases,
and personnel. This has led to a shift in the role of
consumers, who are increasingly implicated as partners
in product design and creation. An expectation of
openness is building on the part of consumers/citizens,
which will cause transformations, for better (e.g.
increased transparency, competition) or for worse (e.g.
potential invasion of privacy), in the economy and
society.
...
5. Electronic commerce alters the relative importance of
time. Many of the routines that help define the “look
and feel” of the economy and society are a function of
time: mass production is the fastest way of producing
at the lowest cost; one’s community tends to be geo-
graphically determined because time is a determinant
of proximity. E-commerce is reducing the importance of
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time by speeding up production cycles, allowing firms
to operate in close co-ordination and enabling
consumers to conduct transactions around the clock. As
the role of time changes, so will the structure of
business and social activities, causing potentially large
impacts.
1.2 OBJECTIVES OF THE STUDY
..To show the Changes brought about by e-
commerce that requires new frameworks for
conducting business and a re-examination of
government policies relating to commerce.
The force that drive e-commerce will require a re-
examination of the framework for conducting business
and a questioning both of the efficacy of government
policies pertaining to commerce and of traditional
commercial practices and procedures, most of which
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were formed with a much different image of commerce
in mind. Beyond these narrower considerations,
electronic commerce is seen by many as having
important implications for consumer protection, tax
collection and trade and competition policies.
1.3 SIGNIFICANCE OF THE STUDY
E-commerce’s most significant impact will be on sectors
that primarily transmit information (postal service,
communications, radio and TV) and those that produce
it (finance, entertainment, travel agents or stock
brokers). Electronically delivered products such as soft-
ware, travel services, entertainment and finance are
leading products in both the business-to-business and
business-to-consumer markets. Because of the
intangible nature of such products, existing rules and
practices will have to be re-examined.
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1.4 HYPOTHESESIt is a conjectural statement of the relationships
between two or more variables. It is testable, tentative
problem explanation of the relationship between two or
more variables that create a state of affairs or
phenomenon.
E,C, Osuola (1986 page 48) said hypothesis should
always be in declarative sentence form, and they
should relate to them generally or specially variable to
variables.
HYPOTHESIS THUS:
1. Explain observed events in a systematic manner
2. Predict the outcome of events and relationships
3. Systematically summarized existing knowledge.
In essence, there exist NULL HYPOTHESIS set up only to
nullify the research hypothesis and the ALTERNATIVE
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HYPOTHESIS for the purpose of the study. For the
efficiency of the study, the hypothesis is as follows:
NULL HYPOTHESIS (HO)
1. Electronic commerce cannot speed up economic
development?
2.` Electronic commerce cannot make doing business
more or less expensive?
ALTERNATIVE HYPOTHESIS
1. Can electronic commerce speed up economic development?
2. Does electronic commerce make doing business
more or less expensive?
1.5 LIMITATIONS OF THE STUDYA research work of this nature cannot come to an end
without limitation. The researcher encountered
numerous problems which affected the smooth running
of the work. These problems includes, difficulty in
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procuring materials for the project, time factor and
financial constraints.
Material Procurement
There was a lot constraints as to getting information
and materials for the job. The researcher made series
of consultations and visit to most renowned institutions
to acquire the needed information. Most materials used
were very difficult to come by, as there is no library
within the town.
Time Constraints
Combining academic work with job is no doubt a
thought provoking issue, as it has to do with time.
Actually, a lot of time was wasted as the researcher
visited the organizations and individuals together with
government agencies to obtain valuable information for
the project.
Financial Constraints17
The researcher would have obtained more information
than what is obtainable here but due to lack of money
to visit some of the firms and government agencies
located a bit farther from the researcher place of
resident.
THE STRUCTURE OF THE WORKThis research work is to be organized in five chapters as
follows:
1 Introduction
2 Review of related literature
3 Research method
4 Data presentation and analysis
5 Summary, conclusion and recommendation
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CHAPTER TWO
LITERATURE REVIEW
2.0 GROWTH OF ELECTRONIC COMMERCE: PRESENT AND POTENTIAL
The promise of significant economic growth places
electronic commerce high on many public and private
sector agendas. And to date, the growth has been
impressive.
In order to explore and estimate the socio-economic
impacts of electronic commerce, it is essential to
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define electronic commerce. As with many new
services, this is not a simple matter, as definitions
given by various sources differ significantly. Some
include all financial and commercial transactions that
take place electronically, including electronic data
interchange (EDI), electronic funds transfers (EFT), and
all credit/debit card activity. Others limit electronic
commerce to retail sales to consumers for which the
transaction and payment take place on open networks
like the Internet. The first type refers to forms of
electronic commerce that have existed for decades and
result in trillions of dollars worth of activity every day.
The second type has existed for about three years and
is barely measurable.
Electronic Commerce or e-commerce, the exchange
of goods and services by means of the Internet or other
computer networks. E-commerce follows the same
basic principles as traditional commerce—that is,
buyers and sellers come together to exchange goods
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for money. But rather than conducting business in the
traditional way—in stores and other “brick and mortar”
buildings or through mail order catalogs and telephone
operators—in e-commerce buyers and sellers transact
business over networked computers.
For sellers, e-commerce offers a way to cut costs and
expand their markets. They do not need to build, staff,
or maintain a store or print and distribute mail order
catalogs. Automated order tracking and billing systems
cut additional labor costs, and if the product or service
can be downloaded, e-commerce firms have no
distribution costs. Because they sell over the global
Internet, sellers have the potential to market their
products or services globally and are not limited by the
physical location of a store. Internet technologies also
permit sellers to track the interests and preferences of
their customers with the customer’s permission and
then use this information to build an ongoing
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relationship with the customer by customizing products
and services to meet the customer’s needs.
2.1 TYPES OF E-COMMERCE
A variety of businesses are conducted online, including
retail businesses that sell products to consumers,
service providers that sell services to consumers,
auctioneers that create a marketplace for products and
services, and business-to-business commerce. Retail
transactions make up the largest part of e-commerce.
Consumers can find computers, automobiles, clothing,
books, music, airline and event tickets, food, and just
about anything else for sale on the Internet.
a. Product Transactions
Retail Web sites typically include electronic catalogs
that describe and display products for sale. Consumers
can search for individual items or randomly browse
electronic catalogs, some much larger than their mail
order print counterparts. An Internet book retailer, for
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example, can offer millions of different book titles for
sale on its Web site, far more titles than could fit into a
store or that could be included cost-effectively in a print
catalog.
Many online retailers allow customers to order products
and then track the shipment of their order. Some
computer manufacturers also allow consumers to
choose different combinations of computer
components, selecting the combination that best suits
their budget and needs. Customers can then visit the
company’s Web site to track the progress of their
computer purchase as it is being built and shipped.
Many online retailers also automatically notify their
customers by e-mail when the product has been
shipped.
b. Service Transactions
Other e-commerce businesses offer services. Financial
services represent a large segment of e-commerce. For
a small fee, online investment brokerages trade stocks 23
on behalf of their clients. Online stock brokerages
typically charge customers lower fees than traditional
stock brokerages. Other sites provide consumers with a
way to research and obtain mortgages and other loans
online.
Travel sites offer a method of scheduling airline flights,
renting cars, and booking hotel rooms. Travelers can
plan all the details of their vacation or business trip,
make reservations, and purchase tickets at the same
site. Such sites also offer maps, travel literature, and
booking information for travelers.
c. Auctions
Some e-commerce sites specialize in bringing buyers
and sellers together, rather than selling products from
their own inventories. Online auctioneers provide
sellers a way to list and display items for sale and take
bids from interested buyers. An online auctioneer may
bring together millions of users and feature more than
700,000 items at any given time. In exchange for the 24
auctioneer’s services, sellers pay the auctioneer a small
fixed fee and a portion of the proceeds from the sale.
Other sites invert this model. These sites enable
bidders to name the price they are willing to pay for a
particular product or service and then try to find a seller
who is willing to meet that price.
d. Business-to-Business Transactions
Business-to-business commerce represents one of the
fastest growing segments of e-commerce. Businesses
order supplies and coordinate complicated projects
electronically. For example, construction companies use
e-commerce to order construction materials and
coordinate the work of subcontractors. Before e-
commerce, this work was conducted via telephone,
facsimile, and regular mail. Subcontractors often lost
time waiting for necessary parts to arrive or for another
part of the project to be completed. With e-commerce,
however, software can automatically track the
inventories of manufacturers and suppliers so that both
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have adequate supplies on hand and no longer need to
have excess inventories. Reducing inventories enables
both manufacturers and suppliers to lower costs. The
labor-intensive method of printing and then faxing or
mailing purchase orders can also be avoided because
software can create purchase orders and send them
electronically.
E-commerce helps trucking and shipping companies
match shipments with shippers. Before e-commerce, it
was not uncommon for trucks or ships to drop off a
shipment and then return to their base of operations
empty. This practice was inefficient and cost the
trucking or shipping company money. Specialized e-
commerce software, along with the Global Positioning
System (GPS), enables trucking firms to track the
whereabouts of their trucks at all times and make
better decisions as to how their trucks are routed so
they can respond efficiently and cost-effectively to
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companies that need their services, dramatically
reducing the number of trucks returning empty.
2.2 ISSUES AFFECTING THE DEVELOPMENT OF E-
COMMERCE
Internet sales and transactions in the retail and services
sectors increased significantly from 1999 to 2002.
According to the United States Bureau of the Census,
retail e-commerce sales increased from $15 billion in
1999 to $44 billion in 2002. The Census Bureau noted
that in 2002 retail e-commerce sales represented only
1.5 percent of total retail sales. However, studies have
shown that e-commerce has become very significant in
certain product categories. For example, in 2002, 32
percent of computer hardware and software sales were
transacted online, 17 percent of ticket sales were done
over the Internet, and 12 percent of book sales were
completed electronically, according to a study by the
National Retail Federation and Forrester Research.
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A number of unresolved issues have unfolded as e-
commerce transactions have grown in number and
value. Among these issues are taxation, security,
privacy, and profitability.
Taxation
Because the Internet transcends national boundaries
and also state or provincial boundaries within a nation,
the issue of sales taxes on goods or services purchased
over the Internet poses a problem for many
governments that rely on sales tax revenue to fund
government programs and services. The Internet is a
largely tax-free zone. One study reported in 2001 found
that state and local governments in the United States
lost an estimated $13.3 billion in uncollected sales
taxes on Internet purchases made that year. State and
local governments have been lobbying the U.S.
Congress to impose some kind of uniform sales tax that
all e-commerce businesses would be required to pay. E-
commerce businesses, however, have lobbied against
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such measures, arguing that it would impose a heavy
burden on them.
Security
Established encryption methods such as Secure Sockets
Layer (SSL), a protocol developed by Netscape
Communications Corporation, encode credit card
numbers and other information to foil would-be thieves.
Shoppers can determine if the site they are using is
secure by noting the “secure
” icon at the bottom of their browser window. Also, the
address bar of Internet browsers will carry the “https”
prefix instead of the standard “http” prefix when the
site is secured. Nevertheless, some consumers are
reluctant to divulge credit card information over the
Internet, and this reluctance has hindered the growth of
e-commerce.
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An alternative to credit card information is digital cash,
or e-cash. In this arrangement, shoppers pay for a
number of virtual credits through a single source, then
use those credits as dollars when shopping. After
checkout, the online retailer ships the goods to the
buyer and adds shipping costs to the purchase price.
Few e-commerce sites, however, offer e-cash.
Privacy
In addition to credit card security, many shoppers worry
about privacy. To put them at ease, many Internet
stores post “privacy statements” that explain their
policy of sharing or not sharing customer information
with other businesses. This privacy policy may include
refusing to give the customer’s name and e-mail
address to companies that send unsolicited and
unwanted commercial e-mail messages, often known as
junk mail or spam.
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Profitability
A large percentage of e-commerce businesses went
bankrupt in 2000 and 2001, mostly due to inadequate
business plans and excessive spending on advertising
and marketing to attract customers to their Web sites.
The dot-com boom of the late 1990s had largely turned
into a dot-com bust as the 21st century began. An
estimated 520 e-commerce businesses either ceased
operation or declared bankruptcy from 1999 to 2001,
resulting in the layoffs of nearly 100,000 employees,
according to Fortune Magazine. However, a number of
e-commerce sites began to report profits in 2001 and
2002. Notable among them were based in Seattle,
Washington, which pioneered many of the tools and
procedures now commonplace in online retailing,
Expedia, an online travel site, and eBay, a popular
auction site.
estimates
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E-commerce or electronic commerce is the way of the
future. E-commerce is an emerging industry following
the same development the pattern that the automobile
industry experienced 100 years ago, only faster. By the
time we reach the year 2010 consumers are expected
to be spending much money per year through the
internet for goods and services they are now
purchasing through retail outlets. Wow how would like
to be part of such great transfer of wealth? I think this
might happen before then.
Three primary processes are enhanced in e-business:
1. Production processes, which include procurement,
ordering and replenishment of stocks; processing of
payments; electronic links with suppliers; and
production control processes, among others;
2. Customer-focused processes, which include
promotional and marketing efforts, selling over the
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Internet, processing of customers’ purchase orders and
payments, and customer support, among others; and
3. Internal management processes, which include
employee services, training, internal information-
sharing, video-conferencing, and recruiting. Electronic
applications enhance information flow between
production and sales forces to improve sales force
productivity. Workgroup communications and electronic
publishing of internal business information are likewise
made more efficient.
CHAPTER THREE
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RESEARCH METHODS AND PROCEDURES
3.1 RESEARCH DESIGNThe research method selected for the study is a
combination of a survey and an industrial study. The
survey research method is described hereunder that:
(i) It is a design in which primary data is gathered from
members of the sample that represents a specific
population;
(ii) It is a design in which a structure and systematic
research instrument like a questionnaire or an interview
schedule is utilized together with the primary data;
(ii) It is a method in which the researcher manipulates no
explanatory variables because they have already
occurred and so they cannot be manipulated;
(iii) Data are got directly from the subjects;
The subjects give the data the natural settings of their
workplaces;
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(iv) The answers of the respondents are assumed to be
largely unaffected of the content in which they are
brought;
(v) The impacts of the confounding factors are “controlled”
statistically; and
(vi) The aim of the research may span from the exploration
phenomena to hypotheses testing (stone 1995).
The survey research method has some merit, which are
to be articulated hereunder: In the survey research
method, the sample of the respondents are selected in
such a way as to make it low due to the utilization of
big sample sizes, which results in generally low sample
errors.
The survey research method also has the merit that
data collection takes place in the “natural” settings of
the workplace rather than an activated laboratory. Data
are got directly from the respondents. The advantage
that the survey yields data that suggests new
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hypothesis is very illuminating. There is also the merit
that a set of systematic data collection instruments
such as questionnaire interview schedules and
observation gadgets can either be used alone or in
conjunction with other instruments (stone, 1995).
3.2 Sampling
Spiegel (1992) observes that sampling theory is a study
of the relationship existing between a population or
universe and the samples drawn from it. The population
in this study is from the senior junior staff of the firms.
In order to make conclusions of sample theory and
statistical references to be valid, a sample must be
selected as to be representative of the population
(Spiegel,1992). One way in which a representative
sample may be got, is by the process of stratified
random sampling. In this research work, the technique
of simple random sampling is used to select the sample
of 100 respondents from each group of the personnel,
making a total sample size of 200.
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The list of all senior and junior staff of the firm is from
the personnel department of the company. The
numbers were written on a piece of paper,
put in a basket and the papers were folded to cover the
numbers and one of the pieces of paper was selected at
a time without replacing it and any name corresponding
to the number becomes a number of the sample. This
method of sampling without replacement was done
until the sample of 100 respondents per group of
personnel was arrived at.
3.3 Population
The population, in this study is the totality of the senior
and junior staff of ZBX INFOTEC GLOBAL LTD. SAPELE.
The sample size is 200 and this number of respondents
was chosen from the population. The rationale for
studying a sample rather than the population includes
that:
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1. Most empirical research work in the social
science involves studying a sample in place of the
population.
2. Statistical Laws reveal that statistics composed
from the sample data are usually reasonably accurate.
3. Luckily, it is usually possible to estimate the
level of confidence that can be placed on the results.
We should note that above is only possible if the
probability sample size is large enough.
3.4 Data Collection
Questionnaire
As earlier stated, the primary data collection instrument
in this study is the questionnaire. In the questionnaire
method of primary data collection, heavy dependence
is placed on verbal reports from the subjects to get
information on the earnings per share and standard set.
The questionnaire has a lot of merits. It needs less skill
to administer. Questionnaire can be administered to a
big number of individuals at the same time. Also with a
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specific research budget, it is usually possible to cover
a broader area. The impersonal nature of a
questionnaire, its structure and standardized wording,
its order of question, its standardized instructions for
recording answers might make one to conclude that it
offers some uniformity from one measurement occasion
to another (Selltiz et al, 1976).
Another merit of questionnaire is that subjects may
have a bigger confidence in their anonymity, and thus
feel freer to express views they feel might be
disapproved.
Another attribute of the questionnaire that is
sometimes, though not always desirable is that it might
place less pressure on the subjects for immediate
response (Selltiz et al, 1976).
The questionnaire also has some demerits. It has noted
that for purpose of giving dependable responses to a
questionnaire, respondents must be considerably
educated. Thus one of the demerits of the usual
questionnaire is that it is appropriate only for with a
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considerable amount of education. There is also
demerit that subject may be reluctant and unable.
To report on the particular subject matter. Also, if a
subject misinterprets a question or give his or her
answer in a batting manner, there is often a little that
can be done to ameliorate the situation. In a
questionnaire, the information the researcher gets is
limited to the fixed alternative answer format, when a
specific answer is not available, it can lead to error
(Selltiz, 1976).
There is also limitation of memory in reporting on past
facts. The researcher is not a policeman that can
compel answers. That is, the information may not be
readily accessible to subject and thus the subject may
be reluctant to put forth enough alternative information
that he or she is only barely conscious of (Selltiz et al,
1996).
In this research project, a structured and undisguised
questionnaire is utilized which is made up of two parts
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namely, the personal data section and the section on
the data on the actual subject matter of the work. The
questionnaire was undisguised in the sense that the
purpose of the data collection which was to collect
primary data for writing up the researcher’s ND project
was made know to the 200 respondents. The
questionnaire is structured in the sense the questions
are logically sequenced and are to be asked to the
respondents in the same manner and no follow up
questions are to be allowed. Some of the questions are
of the fixed alternative answer format type.
Ten (10) of the questions have yes or no answers,
Ten (10) of the questions have alternative answer for
the respondents to tick.
The structured questionnaire has the merit that it yields
data that is easier to analysis than data produced by an
unstructured questionnaire. Also the structured nature
diminishes both researcher’s and research instrument
biases. It however has the demerit that the rigidity of
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the research instrument diminishes the amount of
information that could be got.
Interview
The method of communication of the research
instrument is by means of the personal interview. The
method has the merit that it produces a better sample
of the population than either mail or the telephone
methods. It also has the merit that it gives a very high
completion and response rates. It has the merit that the
interview has a bigger sensitively misunderstandings by
the respondents and gives a chance for clarification of
misunderstood questions. It has the merit that it is a
very feasible method (Selltiz et al, 1976). The personal
interview method has the demerit that it is more costly
than the mail or the telephone methods of
communication of a questionnaire.
Observations
In addition to questionnaire and face-to face interviews,
observation was also carried out. This was to enable the
researcher to witness by himself the officers of this firm
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and to interact with these people to and from them
about the issue of combating internet in banking
industry.
3.5 Field Work
The researcher and three other field data collectors did
the fieldwork. The field data collectors were other
classmates also offering the part-time ND program, who
have also offered research methodology. They had no
problem gaining entrance into the office under
consideration since one of them has a friend working
there. They were to be trained by the researcher on
how to greet the respondents and how to tick the
questionnaire correctly and honestly.
3.6 Description of Data Presentation and Analysis
Tools
the data presentation tools are simple bar charts,
histograms, and pictorial tables. The most important
parts of a table include;
(a) Table numbers
(b) Title of the table
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(c) Caption
(d) Stub or the designation of the rows and columns
(e) The body of the table.
(f) The head note or prefatory note or explanatory just
before the title.
(g) Source note, which refers to the literally or scientific
source of the table (Mills and Walter 1995)
anyiwe (1994) has observed that a table has the
following merits over a prose information that;
(f) A table ensure an easy location of the required figure;
(g) Comparisons are easily made utilizing a table than a
prose information;
(h) Patterns or trends within the figures which cannot be
visualized in the prose information can be revealed and
better depicted by a table; and
A table is more concise and takes up a less space than
a prose formation:
The data is to be analysed by means of percentage,
cross tabulation and the chi-square test of population
proportions for testing the two hypothesis. Percentages
44
express the ratio of two sets of data to a common base
of 100.
3.7 limitation of The Study
Research work is subject to one form of limitation or the
other, mine is not an exemption.
It was the initial though of the researcher that the
execise was easy but the contrary was the case. As a
student, several academic demands compete with the
limited but precious time available.
This implies that none of the competing exercise could
be effectively handled without the others being worse
off.
This was my situation. Although the time expended was
too small to do justice to the study. The opportunity
cost in terms of other equally important activities
forgone or cursorily attended to, was made.
The researcher faces some embarrassment arising from
low-level educated staff who could not understand the
essence of the research work as this.
45
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 INTRODUCTION
In the previous chapter, the research methods and
procedures have been handled. In this chapter the data
presentation and analysis are to be done. The data is to
be presented by means of tables, two simple bar
charts, one histogram and one pie chart to make it
amenable for further analysis. By analysis is meant the
act of noting relationship and aggregating the set of
variables with similar attributes and also breaking the
unit of their components (Mills and Walters 1995).
46
In this research work, the research accepts the
contention of Podsakoff and Dalton (1995) that the
factual information from the data can be used as a
basis for reasoning, calculation and discussion.
Apart from the heading above, the other headings in
this chapter includes:
Data Presentation,
Percentage analysis
Cross-tabulated analysis
Hypothesis testing
47
4.2 DATA PRESENTATION
TABLE1THE SUMMARY OF THE PERSONAL DATA OF THE
RESPONDENTS
1
2
3
4
SEXMale
FemaleTotal
Marital StatusMarriedSingleTotalAGE
21-30 years31-40 years41-50 years51-60 years
TotalHIGHER
EDUCATIONALQUALIFICATION
DIPLOMAONDHND
FIRST DEGREESECOND DEGREE
NIMTOTAL
FREQUENCY15050200
13070200
90901010200
103080204020200
Anglessuspendedin degree
1854144363236360
48
The marital statuses of the 200 respondents it is found
that 130 of them are married while 70 of them are
single. For the ages of the 200 respondents they are 21-
30 years, 31-40 years, 51-60 years with frequency of 90
and 10 respectively. For the highest educational
qualification of the 200 respondents they are diploma,
OND,
HND, First Degree, Second Degree, NIM. and they have
frequencies of 10, 30, 80, 20, 40 and 20 respectively.
Figure 4.1 below shows the simple bar chart of the data
on the sex of the respondents.
FIGURE 4.1: THE SIMPLE BAR CHART OF THE DATA ON THE
SEX OF THE RESPONDENTS
GENDER OF THE RESPONDENTS
49
160
140
120
100
80
60
40
20
0
-
-
-
-
-
-
-
-
-
MAIL FEMALE
GENDER OF THE RESPONDENTS
GENDER OF THE RESPONDENTS
Source: from data in table 1
From figure 4.1 above, it is shown that male
respondents have the modal frequency of 150 of the
200 respondents while the female respondents have
the frequency of 50 of them.
Figure 4.2 below shows the simple bar chart of the data
on the merital statuses of the respondents.
FIGURE 4.2: THE SIMPLE BAR CHART OF THE DATA ON THE MARITAL STATUSES OF THE RESPONDENTS
Frequency
percentage
Valid Percent
Cumulative Percent
MAIL 150 75.0 75.0 75.0FEMAL
E50 25.0 25.0 100.0
Total 200 100.0 100.0
50
140
120
100
80
60
40
20
0
-
-
-
-
-
-
-
-MARRIED SINGLE
MARITAL STATUS OF THE RESPONDENTS
From figure 4.2 above, it is shown that the married
respondents have the modal frequency of 130 out of the 200
respondents while the single respondents have the
frequency of 70 of them.
FIGURE 4.3: THE HISTOGRAM OF THE DATA ON THE AGES OF THE RESPONDENTS.
AGES OF THE RESPONDENTS
Status frequency
Percentage
Valid Percent
Cumulative Percent
MARRIED 130 65.0 65.0 65.0SINGLE 70 35.0 35.0 100.0Total 200 100.0 100.0
51
020
4060
8010
0
1.0 2.0 3.0 4.0
Std. Dev = 78 Mean = 1.7 N = 200.00
SOURCE: From the data in Table 1.
From figure 4.3 above, it is shown that the age classes limit
are 20. 5-30.5 years, 30.5-40.5 years, 40.5-50.5 years and
50.5-60.5 years with frequencies of 90, 90, 10, and 10 out of
200 respectively. This shows that this is bi-modal distribution
as the age classes of 20.5-30.5 years and 30. 5-40.5 years
have a frequency of 10.
Figure 4.4 below shows the pie chart of the data on the
highest educational qualifications of the 200 respondents.
FIG.4.4 THE PIE CHART OF THE DATA ON THE HIGHEST
EDUCATIONAL52
Categories
Frequency
Percentage
ValidPercentag
e
Cumulative Percent
21 TO 30YEARS
90 45.0 45.0 45.0
31 TO 40YEARS
90 45.0 45.0 90.0
41 TO 50YEARS
10 5.0 5.0 95.0
51 TO 60YEARS
10 5.0 5.0 100.0
Total 200 100.0 100.0
EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
QUALIFICATIONS OF THE 200 RESPONDENTS
Educational level
Frequenc
y
Percentag
e
Valid Percentag
e
Cumulative
Percentag
53
15%
5%
10%
40%
10%
20%
NIM DIPLOMA
OND
SECOND DEGREE
eDIPLOMA 10 5.0 5.0 5.0
OND 30 15.0 15.0 20.0
HND 80 40.0 40.0 60.0
FIRST DEGREE
20 10.0 10.0 70.0
SECOND DEGREE
40 20.0 20.0 90.0
NIM 20 10.0 10.0 100.0
Total 200 100.0 100.0
SOURCE: from the data in table 1.
From figure 4.4 above, the Highest Educational Qualifications
are Diploma,
O.N.D, First Degree, Second Degree and NIM and the
sustained angles in degree is equal to 180, 540, 1440,
360, 720 and 360 and respectively at the center of the
circle.
4.4 CROSS-TABULATED ANALYSIS
Table: 3 below show the analysis of the statuses of the 200
respondents
54
Cross tabulation
The above table shows that the total of 100
respondents (out of 200 said no. this proved that
electronic commerce can speed up economic
development.
Crosstabulation
The above table indicates that electronic commerce can
make doing business more or less expensive. 104
55
DIPLOMA OND HND
FIRST DEGREE SECOND DEGREE NIM
Total
DOES ELECTRONIC COMMERCE SPEED UPECONOMIC DEVELOPMENT?
YES NO DON’TKNOW
NOANSWER
Total
61914
-4021100
2
3110
43
2
39
39
22
79
18
39
101991
19
4021200
39
EDUCATIONAL DIPLOMA 10 10 QUALIFICATION OF THE OND 19 19RESPONDENTS HND 14 30 47 91
FIRST DEGREE 10 9 19 SECOND DEGREE 40 40 NIM 21 21
Total 104 40 47 9 200
DOES ELECTRONIC COMMERCE SPEED UPECONOMIC DEVELOPMENT?
YES NODON’TKNOW
NOANSWER Total
respondents out of 200 said yes. While 40 did not agree
with the fact.
Chi-Square Test (1)
DOES ELECTRONIC COMMERCE SPEED UP ECONOMIC DEVELOPMENT?
Observed
N
ExpectedN Residual
Decision
YESNO DON’TKNOW NOANSWERTotal
100 43
39
18 200
50.0 50.0
50.0
50.0
50.0 -7.0
-11.0
-32.0
AcceptReject
Reject
Reject
Chi-Square Test (2)
DOES ELECTRONIC COMMERCE MAKE DOINGBUSINESS MORE OR LESS EXPENSIVE
56
Residuals
The observed value of the dependent variable minus
the value predicated by the regression equation, for
each case. Large absolute values for the residuals
indicate that the observed values are very different
from the predicted values.
SOURCE: From the questionnaires administered.
TEST STATISTICS
note: df = degree of freedom
Observed
N
ExpectedN Residual
Decision
YESNO DON’TKNOW NOANSWERTotal
104 40
47
9 200
50.0 50.0
50.0
50.0
54.0 -10.0
-3.0
-41.0
AcceptRejected
Rejected
Rejected
DOESELECRONICCOMMERCESPEED UPECONOMIC
DEVELOPMENT?
DOESELECRONIC COMMERCE
MAKE DOINGBUSINESSMORE OR
LESSEXPENSIVE?
Chi-Square 73.880 3
94.120 3
57
ALTERNATIVE HYPOTHESIS
1. Can electronic commerce speed up economic
development?
Looking at the chi-square test 1 above, the computer
program of the observed number or frequency is 100,
expected number or frequency is 50 making Large
absolute value for the residual and from the statistics,
we have the chi-square of 73.880 at 3% degree of
freedom. We accept the hypothesis.
2. Does electronic commerce make doing business
more or less expensive?
The chi-square test 2 above, the computer program of
the observed number or frequency is 104, expected
number or frequency is 50 making Large absolute value
for the residual and from the test statistics, we have the
chi-square of 94.120 at 3% degree of freedom. We
accept the hypothesis.
NULL HYPOTHESIS
58
1. Electronic commerce cannot speed up economic
development?
Looking at the hypothesis 1 above, the computer
program of the observed number or frequency is 43,
expected number or frequency is 50 making a negative
absolute value for the residual. We reject the
hypothesis.
2. Electronic commerce cannot make doing business
more or less expensive?
The chi-square test 2 above, the computer program of
the observed number or frequency is 40, expected
number or frequency is 50 making negative absolute
value for the residual so we reject the hypothesis.
CHAPTER FIVE
FINDINGS, SUMMARY AND
CONCLUSION59
5.0 INTRODUCTION
In this chapter, the researcher deals with the findings
as regards the effects of e-commerce on economic
development of a nation. The work is summarized with
the conclusion drawn
5.1 FINDINGS
During the research work, the researcher found out
that………………..
Electronic commerce is an emerging model of new
selling and merchandising tools in which buyers are
able to participate in all phases of a purchase decision,
while stepping through those processes electronically
rather than in a physical store or by phone ()with a
physical catalog). The processes in electronic
commerce include enabling a customer to access
product information, select items to purchase, purchase
items securely, and have the purchase settled
financially. It also discovered that E-commerce will
affect services trade more strongly than trade in goods.
60
If we take the data available for cross-border supply of
services, the mode of provision where electronic trade
takes place, we observe that 30 per cent of world
services trade currently takes place through this mode
of supply. This represents 6 per cent of total world
trade. However, trade in services is significantly less
than trade in goods.
5.2 SUMMARY
|The expansion of electronic commerce has been
fuelled by the fall in prices for IT technology. This has
prompted enterprises to make substantial investments.
All in all, electronic commerce can generate socio-
economic benefits as a result of the considerable cost
savings that can be achieved within an enterprise and
in transactions between enterprises, even if transaction
costs are not fully eliminated. Savings are reflected in
the changes in corporate cost structure, market
conditions and pricing strategies. To some extent this
61
seems to have the effect of intensifying competition in
the economy.
There seems to be three main reasons why electronic
commerce is not used:
Enterprises have strategies that give priority to the
use of electronic commerce in the their business
activity.
The current technical solutions in use are not fully
competitive in relation to traditional trading.
Confidence in electronic commerce has been
lacking, with regard to payment services and the
protection of privacy and consumers.
An active policy is required to provide additional
impetus to realize the positive effects of electronic
commerce, increase the pace in an area that is
important from a national perspective, and contribute
to realizing the benefits for the public sector and
society as a whole.
62
For many actors the effects of the development of
electronic commerce may prove to be dramatic.
Electronic commerce may intensify competition and
entail centralization. As electronic commerce is
conducted on the internet, other criteria than
geographic may determine who the key operators will
be and their location. But geography is not without
significance, and we can already see a concentration of
activity and businesses in certain countries, regions
cities.
Efforts must be made so that as many agents as
possible are able to use electronic commerce. The
threshold for being a supplier or user should be as low
as possible, with accessibility throughout the country.
In order to prevent new social and geographic
disparities, developments must be monitored and the
need for measures in response to market failure must
be evaluated. The negative social effects of electronic
commerce must be identified and addresses. Against
63
this background, an offensive and coherent policy is
necessary.
5.3 CONCLUSION
We cannot imagine exactly what the 21st century will
look like, but we know that its science and technology
and its unprecedented fusions of cultures and
economies will be shaped in large measure by the
Internet.
One of the most revolutionary uses of the Internet is in
the world of commerce. Already, we can buy books and
clothing, obtain business advice, purchase everything
from garden tools to hot sauce to high-tech
communications equipment over the Internet. But we it
is just the beginning. Trade on the Internet is doubling
or tripling every single year.
In just a few years, it will generate hundreds of billions
of naira in goods and services.
64
If we establish an environment in which electronic
commerce can grow and flourish, then every computer
will be a window open to every business, large and
small, everywhere in the world.
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