Invented by Jamin Naghmouchi, Hubertus Franke, DoorDash Inc
The DoorDash Inc invention works as followsA method, a system and a computer program product that adjusts prices of goods and services provided over a computer network.” In one embodiment of the invention, data related to goods and service offered by various entities over the computer networks are stored in a data base. Communications are monitored using the network to identify the interest of an individual user. This interest and the data from the database is then used to determine which entity will offer the specified product or services to the user. The database is used in conjunction with the information obtained to calculate an adjusted price of the product or service. In one embodiment, information that the user has regarding a product or service price is used to calculate the adjusted price.
Background for Individual Online Price Adjustments in Real Time
This invention relates in general to determining price adjustment for goods and service based on information about consumers. Specific embodiments of the invention are those that determine such price adjustments during real-time transactions on a computer network, such as the Internet, or any other computer networks.
The purchase of goods and service online, or over the internet, is becoming more common. Internet users are increasingly buying travel-related services, such as airline tickets, hotel rooms and tickets for sporting and concert events. Online shopping is also used to buy many other products from automobiles to T-shirts.
In on-line sources (e.g. shopping forums, advertisements etc. Prices for goods and services can change often. It could be because of many factors, such as the current demand for products or any price differentiation by the manufacturer of a particular good. Prices can also vary from one day to the next or week to week, depending on consumer demand. In some cases the process of goods and services can be changed in real-time, that is, as the consumer shops for the products and services. Currently, online retailing and shopping uses two systems to adjust prices in the real time. These are automated price management systems and on-line bargaining. In Korean Patent Application No. Patent application no. 200000002175 describes an online bargaining system, while U.S. publication No. 2004/0172372 describes a price management system. 2004/0172372.
The online bargaining system is a problem because it presents both parties with non negligible transaction costs. These costs are not just monetary, but include opportunity costs such as time. The potential customer may find that the search costs are lower than the bargaining costs (so they might choose to look for another seller instead of bargaining with a known seller). In an online bargaining system, both the seller and customer must initiate the action. This system does not allow the seller to determine if a potential customer is a free-rider. The price adjustment is not based upon the actual willingness of the customer to pay.
An automated pricing management system is based primarily on competitor analysis.” This analysis allows only for price adjustments to be made for certain groups of customers. This analysis does not allow for perfect differentiation of prices. It does not cover all the market and so there is room for other competitors to lower prices. This system also relies on content analysis, e.g. retail site sales, and assumes the content has not been manipulated during its transfer through the network. A system of this type also does not allow for bot protection mechanisms such as human interfaces. Curly numbers, etc.) are used to represent bot protection mechanisms. These bot protection mechanisms prevent automated price management software from performing competitor analyses based on web crawling. Many ecommerce applications have mechanisms that require humans to understand how to use certain keys (e.g. Curly numbers are required to proceed to the next stage of the application. It is difficult for an automated system detect curly numbers embedded into images or videos, but for a person it is not.
Embodiments” of the invention provide for a system, a program and a method for adjusting prices on goods and services that are offered via a computer network. In one embodiment, a method is provided that involves storing data relating goods and services for sale offered by several entities via a computer network. The data in the database are then used to identify a particular entity to offer the specified product or service. This embodiment also includes obtaining information about a price of the specified service or product, using the information and data in the database, to determine an adjusted product price and then offering the product to the user at the adjusted price.
In one embodiment, goods and/or services can be sold and in another embodiment goods and/or services can be leased. “In an embodiment, goods and services can be made available in conjunction with other types of transactions.
In one embodiment, information obtained about a product or service price includes information that the user already has. This information is then used to calculate the adjusted price of the product or services. In one embodiment information about a product or service price includes information from multiple sources, such as a web site.
In one embodiment, a database contains a set rules for determining the adjusted prices of goods and services that are offered to the users. The adjusted price of the product or service specified is then determined by using the set rules.
In one embodiment, the database contains a set of rules that are specific to each entity for determining the adjusted prices of goods or services provided by each entity.
In one embodiment, a user identification is sent to an identified entity.
In one embodiment, monitored Internet communications are used to create an image of the user?s interests, and then the database is searched using the image for a match.
In one embodiment, the monitored communication includes communications associated with multiple users. The method and system then distinguishes between the monitored communications associated each of the multiple users.
Embodiments” of the invention create price differentiations based on a computer system that determines price adjustments in part based on information provided by a potential customer. In one embodiment, this is done real-time. The potential consumer receives the price adjustment on the spot, without the merchant’s involvement, but according to well-defined prior rules that have been agreed upon between merchant and service provider. This price differentiation can be achieved by determining each customer’s willingness-to-pay separately from the overall traffic.
In one embodiment, the system operator is in a position to adjust the prices of products by negotiating with different commercial entities. The operator uses the invention to profile the user’s current topic of interest, especially the class/model of products the user has intentionally been looking for (e.g., Google query, multiple visits of websites/applications with related/similar content, etc. The operator keeps a record of the user’s interests or adjusted prices.
At any moment, the traffic consumed by an individual user may be checked.” In some embodiments, the invention can be used to manipulate or replace pre-existing product prices offered by merchants with whom the operator has a contract. In embodiments, the invention sends an anonymous ID with the adjusted prices to a host system for the specific parties that are collaborating (e.g. retailer .).
In some embodiments, the invention makes use of a variable/adjustable set of rules to determine the recommended prices, and it allows the operator track the effectiveness of each individual price adjustment. The invention can also insert individually manipulated price into advertisements through the use of traffic.
Embodiments” of the invention can be operated by a telecommunications company, an internet provider, a content-delivery network, or even a private corporation that manages their own corporate network. It is possible to change prices in ecommerce applications or online ads that appear in traffic directed at an individual user based on legal agreements with parties whose content may be manipulated. The invention allows for individual price adjustments as well as the insertion of manipulated prices in network traffic. The tag (which may be a non-anonymous user ID or anonymous) is also sent with the adjusted price to the host of corresponding online advertisement/e-commerce application. The system of the merchant can identify which price is assigned to a customer who has the intention to buy the product.
Embodiments allow for individual price adjustments to be created based on a flexible rule set. The invention allows the operator to verify the rule set and analyze its quality. They can also consult with collaborating companies about improvements. The invention allows a strategical market analysis based on the statistical data analysis of all profiled individuals, and the invention allows detecting/determining new substitutes (i.e., products that might be able to substitute the use of a given product).
Embodiments perform manipulations intelligently, taking into account 1) the content of traffic and 2) the data base of agreements made between the operator with other commercial entities.
These techniques enable price differentiation for 1st class (also known as perfect price differential) by commercial entities (merchants), using a special interface, just by determining what a user will pay based on information that the user has.Click here to view the patent on Google Patents.