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A Price Alarm for a wish list

IP.com Disclosure Number: IPCOM000032462D
Original Publication Date: 2004-Nov-05
Included in the Prior Art Database: 2004-Nov-05
Document File: 2 page(s) / 56K

Publishing Venue

IBM

Abstract

This disclosure describes a business process which allows a customer to register the price they are willing to pay for a product with the retailer. This then allows the retailer to set the price of a product based on its customers' registered prices. This provides a more certain estimate of profit for the retailer and a perceived "fairer" price for the customer.

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A Price Alarm for a wish list

A business process is disclosed to allow both a retailer to directly analyse the price its customers are willing to pay for a product, and a customer to purchase a product at that price. The customer is allowed to register an interest in a product, and to attach a preferred price to that registration. The retailer uses this information to set the price of the product, and the customer is notified when the product reaches their preferred price.

    Retailers often spend a lot of resources in researching the sales vs. pricing profile for a product or service so they can set the optimal price on that product or service, thus allowing them to maximize their profits. This relies on the accuracy and reliability of the retailer's market research and does not take into account changes in the market caused by the presence of this or other competing products.

    Customers often spend a lot of time searching for the lowest price on a product or service and spend time checking back to see if a product's price has fallen. There are, currently, third party tools for comparing prices.

    Using the proposed business process, the customer visits a retailer's website and finds a product that they may wish to purchase. They can then add that product to a "wishlist" (this is nothing new). The customer can then specify a price they are willing to pay for the product, and request notification from the retailer when the price reaches a point close to their specified price.

    This provides the retailer with a direct assessment of their potential market and their willingness to buy a product. The retailer can then make a more educated calculation of whether setting a certain price on a product will be profitable. The customer also receives the product or service at a price they are willing to pay without having to search extensively.

    The retailer can also send carefully targeted advertising to the customer with knowledge of exactly what the customer is looking to purchase, rather than a product type.

    The business process is most ideally applicable to a business with the following criteria:

  The retailer (not necessarily an on-line retailer) has a catalogue of products with a relatively volatile price level, I.e. the price of a product at the time of removal from market may fall to less than 25% of it...