Dynamic Pricing System for Physical Retail Using Biometric and Network Data

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Solution Overview

Problem

The integration of network and physical consumption environments to provide personalized promotions and increase sales volume in physical stores is challenging due to fixed prices in physical environments and the lack of tailored offers, leading to declining sales in physical retail.

Innovation Solution

An integrated system that captures biological characteristics of consumers in physical environments, identifies their identity and behavior, combines this data with network behavior information to dynamically adjust product prices, and provides personalized offers through an image capture unit, identity database, activity detection, product identification, behavior analysis, and dynamic pricing unit.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If fixed prices are used in physical consumption environment, then price management is simple, but personalized promotions cannot be provided to individual consumers

Engineering Contradiction:

Improvepersonalized promotion capabilityVSAvoidpricing system complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent implements dynamic pricing by integrating online and offline consumer behavior data to automatically adjust prices in real-time. The system transitions from static fixed pricing to dynamic pricing that adapts to individual consumer characteristics, purchase history, and current behavior, enabling personalized promotions while managing complexity through automated algorithms

Inventive Principle:

Principle #15Dynamics

Solution Approach 2:

The patent merges online and offline consumption environments into an integrated system that combines data from both channels. By unifying consumer behavior tracking across digital and physical retail spaces, the system enables personalized pricing strategies that leverage comprehensive consumer insights while centralizing pricing management

Inventive Principle:

Principle #5Merging (Combining)

2Productivity

If consumers go to physical consumption environment for real experience, then product experience is improved, but sales volume in physical environment declines due to online purchases

Engineering Contradiction:

Improvephysical store sales volumeVSAvoidshopping flexibility

Core Design Contradiction:

ProductivityVSAdaptability or versatility

Solution Approach 1:

The patent implements feedback mechanisms that track consumer behavior in both physical and online environments. By monitoring purchase patterns, product interactions, and consumption preferences across channels, the system provides real-time feedback to adjust pricing and promotions, incentivizing physical store visits while maintaining online shopping flexibility

Inventive Principle:

Principle #23Feedback

Solution Approach 2:

The system performs preliminary actions by pre-calculating personalized prices and promotions based on consumer profiles before consumers arrive at physical stores. This advance preparation enables immediate personalized pricing upon customer arrival, capturing sales that might otherwise occur online while maintaining shopping flexibility

Inventive Principle:

Principle #10Preliminary action

3Adaptability or versatility

If network behavior information is used for personalized promotions, then consumer engagement increases, but data integration complexity increases

Engineering Contradiction:

Improvepersonalized offer capabilityVSAvoiddata integration complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent creates a universal data integration platform that handles multiple data sources (online behavior, offline purchases, demographic information) through a single integrated system. This multi-functional platform standardizes data processing across different channels, enabling personalized promotions while managing data integration complexity through unified architecture

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The patent introduces an intermediary layer that mediates between diverse data sources and the pricing engine. This intermediary component standardizes data formats, filters relevant information, and prepares data for analysis, simplifying the integration of network behavior information while enabling sophisticated personalized offer capabilities

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS11756085B2Integrated system of physical consumption environment and network consumption environment and control method thereof

Publication Date: 2023.09.12 IND TECH RES INST

AI summary

An integrated system of a physical consumption environment and a network consumption environment and a control method thereof are provided. The control method of the integrated system of the physical consumption environment and the network consumption environment includes the following steps. A biological characteristic image of a consumer in the physical consumer environment is obtained. The biological characteristic image is identified to obtain an identity information from an identity database. An activity of the consumer in the physical consumption environment is detected. A product followed by the consumer and/or a physical behavior information are obtained according to the activity of the consumer in the physical consumption environment. A network behavior information of the consumer in the network consumer environment is obtained according to the identity information. A price of the product is dynamically adjusted according to the physical behavior information and the network behavior information.