Virtual Currency Discount System with Third-Party Administrator
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Solution Overview
Problem
Existing discount methods using virtual currencies incur costs for providers and may lead to customer perception of decreased product value, as they require managing liability and expenses for redemption.
Innovation Solution
A system that calculates a margin value between daily and base prices, allocating a portion to an entity other than the end-user, allowing the end-user to pay an adjusted base price in actual currency while receiving a virtual currency savings value, thereby providing a discount without incurring costs for the provider.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a provider delivers virtual currency to a customer for discount purposes, then customer loyalty and perceived value are improved, but the provider incurs expenses and liability costs
Solution Approach 1:
The patent introduces a third-party administrator as an intermediary who issues and manages the virtual currency. The administrator assumes the liability and expense burden of virtual currency redemption, while the provider only needs to display discounted prices and process transactions. This separates the loyalty-building function from the cost-bearing function, allowing the provider to improve customer loyalty without incurring virtual currency expenses.
Solution Approach 2:
The patent extracts the virtual currency liability and expense burden from the provider's business model and transfers it to a separate administrator entity. The provider removes the problematic element (virtual currency redemption liability) from its own financial statements while retaining the beneficial element (customer loyalty and perceived value) through the discounted pricing display.
2Productivity
If a provider frequently discounts products, then sales and market visibility are improved, but customer perception of product value decreases
Solution Approach 1:
The patent segments the pricing information into three distinct components: list price, discounted price, and virtual currency savings. This segmentation allows the provider to display frequent discounts while simultaneously showing the list price and savings amount, which reinforces the perception of product value. The customer sees both the discount benefit and the original value, preventing devaluation.
3Reliability
If a provider manages virtual currency accounts directly, then customer loyalty programs are implemented, but operational costs and complexity increase
Solution Approach 1:
The patent introduces an administrator as an intermediary that handles all virtual currency account management operations. The administrator issues virtual currency to customers, tracks balances, and processes redemptions. The provider simply displays discounted prices and processes transactions without needing to manage virtual currency accounts directly, significantly reducing operational complexity while maintaining the loyalty program.
Data Source
AI summary
In particular, systems and methods are provided for delivering a discount using a virtual currency. Inventive systems and methods offer a high perceived savings value to an end-user while maintaining the perception of product value. Further, systems and methods for providing a discount are described which impose little or no cost on the service or product provider. An embodiment of an inventive method includes presenting a display of a price paid by a consumer without access to the virtual currency along with a display of an amount payable by the end-user in actual currency in combination with an amount payable in virtual currency by an end-user of an inventive system. The end-user perceives a benefit to using the virtual currency since the price paid in actual currency is less than the displayed price to be paid by a consumer without access to the virtual currency.