Dynamic Discount Apparatus for Personalized Pricing
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Solution Overview
Problem
Consumers face frustration in finding and applying discounts for products, as current methods require searching for discount codes or vouchers, which can be inconvenient and lack transparency in pricing, leading to suboptimal purchasing experiences.
Innovation Solution
An apparatus and system that determines a consumer's purchasing power score, dynamically generates discount codes based on their behavior and financial capacity, and enables one-click application of discounts and payments, integrating with merchants' checkout systems to provide personalized pricing and optimal payment options.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If consumers search for discount codes from aggregators or use browser extensions to test codes, then they may find available discounts, but the process becomes frustrating and time-consuming
Solution Approach 1:
The system pre-calculates and stores discount codes with their applicability criteria before the consumer needs them. When a consumer makes a purchase, the system automatically matches the consumer's cart contents with pre-validated discount codes, eliminating the need for consumers to search and test multiple codes manually.
Solution Approach 2:
The system enables automatic application of discounts by having the consumer device or merchant system self-determine which discounts apply based on pre-stored criteria and the consumer's purchase details, without requiring manual intervention to search for or enter discount codes.
2Adaptability or versatility
If the system determines a score for the user based on behavior and dynamically generates discount codes, then personalized pricing is achieved, but the system complexity increases
Solution Approach 1:
The system pre-determines consumer scores based on behavior data and pre-associates discount codes with specific score ranges and purchase criteria. This preliminary preparation allows the system to quickly match consumers with appropriate discounts without performing complex real-time analysis during the checkout process.
Solution Approach 2:
The system introduces an intermediary scoring mechanism that translates complex consumer behavior data into simplified score ranges, which then serve as keys to pre-determined discount offerings. This intermediary layer simplifies the overall system architecture by breaking down the complex matching process into manageable stages.
3Productivity
If the traditional six-stage checkout process is used including selecting product, choosing preferences, adding to basket, reviewing basket, inserting promo code, and checkout, then consumers can complete purchases, but each stage reduces customer conversion and causes inconvenience
Solution Approach 1:
The system merges multiple checkout stages by automatically applying discounts during the basket review stage or later, eliminating the need for a separate discount code insertion stage. The system combines product selection, discount application, and payment processing into a more streamlined workflow that reduces the number of discrete consumer actions required.
Solution Approach 2:
The system performs automatic discount application without requiring consumer intervention to insert promo codes. The consumer device or merchant system automatically determines applicable discounts based on pre-stored criteria and the consumer's purchase details, eliminating manual discount code entry and validation steps.
Data Source
AI summary
There is described an apparatus for transmitting a request, the apparatus comprising: a processor arranged to: determine a score for a user in dependence on the behaviour of the user; identify a request from the user, and determine a modifier associated with the request in dependence on one or more of: a feature of the request; and a party (e.g. a merchant) associated with the request; and a communication interface arranged to transmit a transaction to a separate apparatus in dependence on the request, the score, and the modifier.