Anonymized Shopping System Resolving MAP Policy Contradictions
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Brick and mortar retailers face disadvantages due to minimum advertised price (MAP) policies, which restrict their ability to offer lower prices compared to online retailers, despite having the potential for near-instant delivery and pickup, leading to 'showrooming' where customers browse in-store but purchase online.
Innovation Solution
An anonymized online shopping system that identifies local merchants offering a product at competitive prices, estimates delivery fees, and facilitates transactions without revealing the customer's identity, allowing for same-day delivery through a network of drivers while maintaining price parity with online retailers.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If brick and mortar retailers adhere to minimum advertised price (MAP) policies, then they maintain price stability and manufacturer relationships, but they cannot offer lower prices compared to online retailers
Solution Approach 1:
The patent introduces an anonymized online shopping service as an intermediary that connects customers with local brick and mortar retailers. This intermediary allows retailers to compete on price without directly advertising prices, thereby maintaining MAP policies while enabling price-competitive transactions through anonymous bidding and selection processes
Solution Approach 2:
Instead of retailers directly advertising prices (which is constrained by MAP policies), the system inverts the approach by having customers submit anonymous acquisition requests and receive anonymous supply offers. This reversal allows price information to be shared without violating MAP agreements, as neither party's identity is revealed
2Adaptability or versatility
If brick and mortar retailers offer lower prices to compete with online retailers, then they can reduce showrooming, but they violate MAP policies and lose manufacturer support
Solution Approach 1:
The anonymized shopping service acts as a mediator that enables price-competitive transactions while maintaining the appearance of compliance with MAP policies. By anonymizing both customer and merchant identities, the system allows retailers to offer lower prices without directly advertising them, thus preserving manufacturer relationships while gaining price competitiveness
3Ease of operation
If brick and mortar retailers invest in physical store locations, then they provide customer browsing and instant pickup capabilities, but they incur high operating costs that online retailers avoid
Solution Approach 1:
The system makes brick and mortar retailers multi-functional by enabling them to serve both as physical retail locations (for browsing and instant pickup) and as anonymous online sellers (for price-competitive transactions). This allows retailers to leverage their physical infrastructure for additional revenue streams without proportionally increasing operating costs
Solution Approach 2:
The system performs preliminary actions by pre-establishing a network of drivers and anonymized communication channels before transactions occur. This allows brick and mortar retailers to offer instant pickup and delivery services without maintaining expensive in-house delivery fleets, as the driver network is already in place and can be utilized on-demand
4Speed
If online retailers optimize delivery times to compete with brick and mortar retailers, then they improve online shopping attractiveness, but they cannot match near-instant pickup availability
Solution Approach 1:
The system merges the advantages of both online and brick and mortar retailing by combining fast online delivery (through the driver network) with instant in-store pickup capabilities. Customers can choose either option based on their needs, effectively combining the speed benefits of both models into a single hybrid system
Data Source
Figure 1
Figure 2
Figure 3
AI summary
A retail service data center provides client facing web pages to allow users to remotely shop for items to be delivered from local retailers without either the users or the local retailer knowing the identity of each other. A retail service is used by shoppers that searches for items in nearby retail stores' inventory. The retail service allows the retail stores to match, or beat, an advertised price at which a given item is being offered by an online retailer. If the user decides to buy an item, the retail service conducts a first transaction with the retail service, which then uses the funds to buy the item from the local retailer. In addition, the retail service arranges for pick-up and delivery of the item by a local driving service. The identities of the buyer and the retailer are not made known to each other.