Computers in Retail Industry (Cambridge (CIE) IGCSE ICT)

Revision Note

Robert Hampton

Written by: Robert Hampton

Reviewed by: James Woodhouse

POS & EFTPOS

What is POS & EFTPOS?

  • Point of Sale (POS) is a computer terminal used to read product barcodes

  • Barcodes are used in an automatic stock control system in shops

  • A barcode is part of a process that involves:

    • Every barcode being assigned to a product in stock

    • Each product record contains its price, stock level and a description

    • When a barcode is matched with a record the information is transferred to the POS terminal and the price is displayed on the screen

    • The stock level is reduced by one

    • If the current stock level falls below a minimum reorder stock level it triggers a restocking process automatically

  • Electronic Funds Transfer at the Point of Sale (EFTPOS) is how a payment is made to purchase good or services using a card or electronic devices such as smartphones

  • Examples of EFTPOS include:

    • Chip and Pin

    • Contactless

    • Near field communication devices (NFC)

Chip and Pin

Contactless

NFC

  • Enhance security with two-factor authentication

  • Require customers to enter a personal identification number (PIN)

  • Allow for faster transactions

  • Enable customers to tap their card on the terminal

  • Facilitate payments through smartphones and other devices

  • Increase convenience for customers

Internet Shopping

What are the advantages and disadvantages of internet shopping?

  • Internet shopping is the act of purchasing good or services online through a website or mobile application

  • Characteristics of Internet Shopping

    • Online stores accessible through web browsers

    • Wide variety of products and services are available

    • Convenient and often open 24/7

Advantages and disadvantages to the customer

Advantages

Disadvantages

  • Time-saving and convenient

    • Shop from home or on the go

    • Avoid queues and busy stores

  • Greater product variety

    • Access to the global market

    • Compare products and prices easily

  • Customisation options

    • Personalise items or services

    • Tailor purchases to individual preferences

  • Potential cost savings

    • Competitive pricing due to lower overheads

    • Take advantage of online sales and promotions

  • Security concerns

    • Risk of fraud or identity theft

    • Need to provide personal and financial information

  • Limited physical interaction

    • Can't touch or try products before purchasing

    • This may lead to dissatisfaction or returns

  • Delivery delays and fees

    • Wait for items to be shipped and delivered

    • Additional costs for shipping and handling

  • Impersonal customer service

    • Difficulty resolving issues or returning items

    • Lack of face-to-face interaction with staff

Advantages and disadvantages to the business

Advantages

Disadvantages

  • Can target prices, products and services at specific groups based on buying data

  • Can update stock availability and prices more quickly than a physical store through their website

  • Cheaper to publicise special offers rather than mail shots

  • International customer base

  • Increased profits due to lower overheads (e.g. fewer staff)

  • Increased Competition

  • Digital Fraud and Security Concerns

  • Technical Issues and Downtime

  • Costs of Delivery and Returns

  • Customer Trust

  • Inventory Management

  • Depersonalisation

  • Online Reviews

  • Dependency on Internet Infrastructure

  • Logistical Challenges

  • Legal and Regulatory Compliance

  • Increased Customer Expectations

Worked Example

Modern supermarkets have automated stock control systems, which use data from the checkouts.
Describe how food items can be ordered by an automated stock control system so they are delivered before the stock in the supermarket runs out.

[4]

Answer

four of:

Each item is scanned/bar code is read at the POS terminal [1]
Bar code is searched in the database [1]
The quantity of products is reduced [1]
The stock database is updated [1]
When the minimum stock number/level/reorder level is reached [1]
Reads re-order quantity [1]
Goods flagged as ordered [1]
The automated stock system sends a signal to the warehouse computer to order new items [1]
The warehouse sends the items to the supermarket [1]
Re-order quantity is found in the database [1]
Flags removed [1]
The stock control system updates the stock levels in the stock control database with the new stock [1]

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Robert Hampton

Author: Robert Hampton

Expertise: Computer Science Content Creator

Rob has over 16 years' experience teaching Computer Science and ICT at KS3 & GCSE levels. Rob has demonstrated strong leadership as Head of Department since 2012 and previously supported teacher development as a Specialist Leader of Education, empowering departments to excel in Computer Science. Beyond his tech expertise, Robert embraces the virtual world as an avid gamer, conquering digital battlefields when he's not coding.

James Woodhouse

Author: James Woodhouse

Expertise: Computer Science

James graduated from the University of Sunderland with a degree in ICT and Computing education. He has over 14 years of experience both teaching and leading in Computer Science, specialising in teaching GCSE and A-level. James has held various leadership roles, including Head of Computer Science and coordinator positions for Key Stage 3 and Key Stage 4. James has a keen interest in networking security and technologies aimed at preventing security breaches.