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A Method and Apparatus for Proactively Devising Personalized Pricing Plans

IP.com Disclosure Number: IPCOM000016295D
Original Publication Date: 2002-Oct-06
Included in the Prior Art Database: 2003-Jun-21
Document File: 2 page(s) / 86K

Publishing Venue

IBM

Abstract

Background: In today's environment, consumers have many choices for obtaining products/services with varying pricing structures and rating plans. Usually providers offer packaged plans, consisting of various generic groupings of products and/or services. The plans must be profitable for the provider, and often require that the consumer pay for items/options/services which he does not want, but which are included as part of the package. This invention is intended to automate the creation of personalized pricing plans to the benefit of both consumer and provider. 1. Problem: A. From the consumer's standpoint, the many choices and varieties of rate plans and costs can be difficult and confusing to compare. Competing providers offer different combinations of products and services, often none of which is exactly what the customer desires, and which may not correlate from company to company, making accurate comparisons virtually impossible. Time constraints often preclude customers from 'shopping' out a new contract when an existing one ends, resulting in the customer paying more for products/services than necessary and/or paying for options that he does not use.

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A Method and Apparatus for Proactively Devising Personalized Pricing Plans

Background:

In today's environment, consumers have many choices for obtaining products/services with varying pricing structures and rating plans. Usually providers offer packaged plans, consisting of various generic groupings of products and/or services. The plans must be profitable for the provider, and often require that the consumer pay for items/options/services which he does not want, but which are included as part of the package. This invention is intended to automate the creation of personalized pricing plans to the benefit of both consumer and provider.

1. Problem:

A. From the consumer's standpoint, the many choices and varieties of rate plans and costs can be difficult and confusing to compare. Competing providers offer different combinations of products and services, often none of which is exactly what the customer desires, and which may not correlate from company to company, making accurate comparisons virtually impossible. Time constraints often preclude customers from 'shopping' out a new contract when an existing one ends, resulting in the customer paying more for products/services than necessary and/or paying for options that he does not use.

B. From the product/service provider's standpoint, keen competition and the variety of choices for consumers endanger customer retention. The cost of obtaining a new customer is far greater than that of retaining an existing customer.

2. Solution:

The provider analyzes a customer's usa...