Initial product offering system and method

• US 20070061220A1
• Filed: 09/01/2006
• Published: 03/15/2007
• Est. Priority Date: 08/27/1999
• Status: Active Grant

• Current Assignee: Tech Venture Associates Incorporated
• Original Assignee: Tech Venture Associates Incorporated
• Inventors: Vaid, Rahul
• Granted Patent: US 7,912,761 B2
• Time in Patent Office: Days
• US Class Current: 705/26
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0254 based on statistics
• CPC Class Codes: G06Q 30/0278 Product appraisal
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0605 Supply or demand aggregation
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

A system and method for making an initial product offering of tangible products and services. A price for a product may be determined by calculating an aggregate customer history factor by aggregating customer history factors of potential purchasers in a buying group, calculating a cumulative demand for a product as a function of (i) expected purchase quantities of the product indicated by the potential purchasers in the buying group and (ii) the aggregate customer history factor, and setting a price of the product as a function of the cumulative demand for the buying group. The tangible products and services may be offered at the determined price.

Claims

1. A method for determining a price for a product, said method comprising:

calculating an aggregate customer history factor by aggregating customer history factors of potential purchasers in a buying group, the customer history factors including at least one of the following customer related parameters;

customer rating parameter, customer transaction parameter, customer demographics parameter, customer geographies parameter, customer psychographic parameter, and customer behavioral parameter;

calculating a cumulative demand for a product as a function of (i) expected purchase quantities of the product indicated by the potential purchasers in the buying group and (ii) the aggregate customer history factor; and

setting a price of the product as a function of the cumulative demand for the buying group.

2. The method according to claim 1, wherein the customer rating parameter is a customer feedback score.

3. The method according to claim 1, wherein the customer transaction parameter is a function of at least one of most recent purchase, highest monetary transaction, average monetary transaction, buy rate, sell rate, return rate, indication rate, indication-to-buy rate, transaction frequency, transaction initiation rate, and transaction close rate.

4. The method according to claim 1, further comprising calculating an economic related parameter as a function of at least one of the following parameters:

household debt service burden, unemployment, consumer confidence index, producer price index, productivity report, retail sales index, durable goods orders, employment cost index, personal bankruptcy filings, inflation rate, GDP growth rate, and S&

P 500 stock market index.

5. The method according to claim 4, further comprising calculating the aggregate customer history factor as a function of the economic related parameter.

6. The method according to claim 5, wherein calculating the aggregate customer history factor includes utilizing a linear mathematical computation including at least one customer related parameter and at least one economic related parameter.

7. The method according to claim 5, wherein calculating the aggregate customer history factor includes utilizing a non-linear mathematical computation including at least one customer related parameter and at least one economic related parameter.

8. A system for determining a price for a product, said system comprising:

a memory configured to store historical purchasing information associated with potential purchasers of a product; and

a processor in communication with said memory and configured;

(i) to calculate an aggregate customer history factor by aggregating customer history factors of potential purchasers in a buying group, the customer history factors including at least one of the following customer related parameters;

customer rating parameter, customer transaction parameter, customer demographics parameter, customer geographies parameter, customer psychographic parameter, and customer behavioral parameter;

(ii) to compute cumulative demand for a product as a function of;

(a) expected purchase quantities of the product indicated by the potential purchasers in the buying group and

(b) the aggregate customer history factor, and

(iii) to compute the price of the product as a function of the computed cumulative demand for the buying group.

9. The system according to claim 8, wherein the customer rating parameter is a customer feedback score.

10. The method according to claim 8, wherein the customer transaction parameter is a function of at least one of most recent purchase, highest monetary transaction, average monetary transaction, buy rate, sell rate, return rate, indication rate, indication-to-buy rate, transaction frequency, transaction initiation rate, and transaction close rate.

11. The method according to claim 8, further comprising calculating an economic related parameter as a function of at least one of the following parameters:

household debt service burden, unemployment, consumer confidence index, producer price index, productivity report, retail sales index, durable goods orders, employment cost index, personal bankruptcy filings, inflation rate, GDP growth rate, and S&

P 500 stock market index.

12. The method according to claim 11, further comprising calculating the aggregate customer history factor as a function of the economic related parameter.

13. The method according to claim 12, wherein calculating the aggregate customer history factor includes utilizing a linear mathematical computation including at least one customer related parameter and at least one economic related parameter.

14. The method according to claim 12, wherein calculating the aggregate customer history factor includes utilizing a non-linear mathematical computation including at least one customer related parameter and at least one economic related parameter.

15. A system for determining a price for a product, said system comprising:

means for computing an aggregate customer history factor by aggregating customer history factors of potential purchasers in a buying group, the customer history factors including at least one of the following customer related parameters;

customer rating parameter, customer transaction parameter, customer demographics parameter, customer geographics parameter, customer psychographic parameter, and customer behavioral parameter;

means for determining a cumulative demand for a product as a function of (i) expected purchase quantities of the product indicated by the potential purchasers in the buying group and (ii) the aggregate customer history factor; and

means for setting a price of the product as a function of the cumulative demand for the buying group.

16. The system according to claim 15, wherein the product is available for purchase at the price at a future date and further comprising means for updating the customer history factors for the potential purchasers based on actual purchase quantities of the product on or after the future date and the expected purchase quantities for the product prior to the future date.

17. The system according to claim 15, further comprising means for updating the customer history factors for the potential purchasers based on actual purchase of at least one previously sold other product.

18. The system according to claim 15, further comprising means for setting an expected purchase quantity to a value in response to an indication of interest from a potential purchaser in purchasing the product.

19. The system according to claim 15, wherein the customer rating parameter is a customer feedback score.

20. The system according to claim 15, further comprising means for calculating an economic related parameter as a function of at least one of the following parameters:

household debt service burden, unemployment, consumer confidence index, producer price index, productivity report, retail sales index, durable goods orders, employment cost index, personal bankruptcy filings, inflation rate, GDP growth rate, and S&

P 500 stock market index.

21. The system according to claim 20, further comprising means for calculating the aggregate customer history factor as a function of the economic related parameter.