APPLYING CUSTOMER FEEDBACK TO GROUP BUYING DEALS

A system and method for ensuring the quality of a group buying experience includes: receiving a request to sell a product; negotiating a service level agreement with the business; receiving customer feedback on the group buying experience; computing a customer satisfaction score for the group buying experience representing a degree of customer satisfaction; mapping the computed customer satisfaction score to terms in the service level agreement; and providing an instruction related to the customer satisfaction score.

While the invention as claimed can be modified into alternative forms, specific embodiments thereof are shown by way of example in the drawings and will herein be described in detail. It should be understood, however, that the drawings and detailed description thereto are not intended to limit the invention to the particular form disclosed, but on the contrary, the intention is to cover all modifications, equivalents and alternatives falling within the scope of the present invention.

DETAILED DESCRIPTION

We describe a solution to address the inadequacies of the group buying scenario, as presented earlier. Our solution puts a mechanism in place to guarantee and/or improve the quality of group buying deals. With such mechanisms, the benefits of all three parties involved in a group buying deal are protected, which are essential for building a healthy group-buying ecosystem and boosting the group-buying business.

Advantages of the Invention

First, the method for improving the quality of group buying deals points out an important problem facing current group buying markets; namely, how to guarantee/improve customer satisfaction in online group buying. This is deemed to be essential to the sustainable development of the business.

Second, the method addresses the problem with a set of mechanisms to push the business to provide the best quality product or service for the group-buying customers, thus leading to a triple-win situation.

Third, the method emphasizes the protection of customers who benefit by leveraging a set of incentive and refund mechanisms. Satisfied customers are the foundation for a healthy group buying market.

Fourth, the method protects the benefit of good businesses by rewarding them with a lower commission and a higher payment. Meanwhile, the method builds a healthy market environment by penalizing bad deals and finally banning the bad businesses.

Fifth, the method also protects the benefit of the trading platform by ensuring the happiness of customers and businesses, which will bring more deals and users to the trading platform.

In our discussion of the method for guaranteeing and/or improving the quality of group buying deals, we initiate a reward and penalty mechanism for stimulating businesses to deliver high-quality products or services. The mechanism computes a degree of customer satisfaction based on customer reviews and feedback to a group buying deal. According to the computed degree of customer satisfaction, a reward or penalty to the business is applied. The method also involves an incentive mechanism for encouraging customers to provide feedback, as well as some other auxiliary mechanisms, which will be described in detail.

The system for improving the quality of group buying deals.

Referring now specifically to the drawings and toFIG. 1in particular, there is shown a high-level block diagram illustrating an information processing system100upon which an embodiment of the present invention may be implemented. System100includes a bus102or other communication mechanism for communicating information, and one or more processors, such as processor device104coupled with bus102for processing information. System100also includes a main memory106, such as a random access memory (RAM) or other dynamic storage device, coupled with bus102for storing information and instructions to be executed by processor device104for carrying out the steps in the flow chart ofFIG. 2.

Memory106stores logic for performing the method steps discussed with respect toFIG. 2. Memory106can also store the algorithms138and computations for applying customer feedback and customer rewards.

Main memory106also may be used for storing temporary variables or other intermediate information during execution of instructions to be executed by process device104. System100further includes, inter alia, a read only (ROM) memory108or other static storage device, coupled with bus102for storing static information and instructions for processor device104. A storage device110, such as a magnetic disk or optical disk, is provided and coupled with bus102for storing information and instructions.

In an embodiment of the present invention, computer system100is used for implementing the mechanisms for ensuring the quality of the group buying experience. According to one embodiment of the invention, the customer feedback validation is provided by system100in response to processor device104executing one or more sequences of one or more instructions contained in memory106.

System100also includes a communication interface118providing a two-way communication coupling with a network link120for interoperability with a server or servers130. Examples of a communications interface118may include a modem, a network interface (such as an Ethernet card), a communications port, a PCMCIA slot and card, etc. Software and data transferred via communications interface118are in the form of signals which may be, for example, electronic, electromagnetic, optical, or other signals capable of being received by communications interface118. These signals are provided to communications interface118via a communications path (i.e., channel). The communications interface118further is enabled to receive input140(customer feedback) from the group buying customers. Input140such as customer feedback and the Service Level Agreement is received through the interface118.

Network link120typically provides data communication through one or more networks to other devices. Network link120may provide a connection through a local network or to web browser providing access, through the Internet.

The group buying process flow.

The present invention will now be described with respect toFIGS. 2,3, and4which are block diagrams and flowchart illustrations of embodiments of the present invention. It will be understood that each block of the flowchart illustrations and/or block diagrams, and combinations of blocks in the flowchart illustrations and/or block diagrams, can be implemented by computer program instructions.

FIG. 2shows the process flow among the three main entities involved in a group buying paradigm. The Trading Platform210receives a request from the Business240to offer goods and/or services for sale on a group buying website. The Trading Platform210in turn negotiates with the Business240to set up guidelines for providing and delivering the goods and/or services offered for sale. The result of this negotiation is the Service Level Agreement260. The Business240then sets up the group buying deal using the Trading Platform210. Customers250view the group buying site and bid on and/or purchase the products offered for sale by the Business240. Note that the term “product” as used herein can refer to both tangible goods (shoes, bicycles) and services (massages, haircuts).

The method for promoting a quality group buying experience.

The disclosed method includes:

1) a mechanism for negotiating a SLA (Service Level Agreement) between the business and the trading platform for a specific group buying deal;

2) a mechanism for customers to provide feedback about a group buying deal and a corresponding customer incentive mechanism;

3) a mechanism for computing the degree of customer satisfaction based on customer feedback;

4) a mechanism for rewarding/penalizing a business according to the negotiated SLA and the computed degree of customer satisfaction; and

5) a mechanism for refunding customers for low-quality deals.

In addition, the method according to an embodiment of the invention also includes the existing mechanisms for implementing group buying deals, e.g., for the business to publish a deal to the trading platform, and for the customer to buy a deal from the trading platform.

With reference now toFIG. 3we show a flowchart300of an embodiment according to the present invention. The method steps described here are discussed from the point of view of the Trading Platform210. The first step302involves negotiating the Service Level Agreement (SLA)260. In this step, the Trading Platform210negotiates with the Business240concerning the quality of products or services to be delivered to Customers250in a group buying deal, resulting in an executed SLA260. The purpose is to cause (or push) the Business240to deliver high-quality products or services to the group-buying Customers250and prevent unethical businesses from deceiving customers. Typically, the negotiated SLA260will specify the amount of payment that the Business240can ultimately receive from the group-buying deal according to different levels of quality. The higher the quality level, the more the payment.

The SLA260will also specify other terms and conditions of the sale. For example, the SLA260may disclose terms describing the expected quality of the product and/or the expected delivery of the product. For example, in a group buying deal where the Business240is a restaurant and the product is a discounted meal, the SLA260may mandate that the meal offered for sale on the Trading Platform210is expected to be of the same quality as the same meal served in the restaurant outside of the group buying deal. Things such as portion size and whether or not dessert is provided can be specified. Also, the SLA260may mandate the manner in which the product is delivered. This can involve the type of packaging for the product, whether or not the product is delivered assembled, and delivery fees.

Note that fees paid by group-buying Customers250are usually charged by the Trading Platform210, and a portion of the fees is then transferred to the Business240according to a negotiated ratio. Under the guidance of the SLA260, the Business240will try to deliver the best service in order to get a larger share of the payment. Because the Trading Platform210acts as an intermediary, it will refund Customers250a sum of money for low-quality or bad deals. In an optional step304, the Trading Platform210may ask a Business240to pay a sum of guarantee money in order to prevent malicious deals, much like a security deposit is used today. The guarantee money may be a percentage of expected sales or some other amount negotiated between the Business240and the Trading Platform210.

In step306the group buying program is implemented by the Trading Platform210. The group buying program proceeds for a negotiated length of time at the negotiated terms. Next, in step308customer feedback is sought. The quality level of a deal is measured according to the feedback of Customers250who have participated in the deal. The customer feedback may include numerical ratings on various aspects of the group buying experience, and on the whole experience. The feedback may also include textual comments. Ideally the interface for the Customers250to provide the feedback is organized in such a manner that the negotiated terms of the SLA260are presented as interrogatories.

The customer feedback can be in various forms. For example, in a very simple case, a 5-star rating system can be used with each customer providing a rating between 1 (or zero) and 5 to reflect her/his overall satisfaction with the deal. See the customer satisfaction survey420ofFIG. 4reflecting a mapping430of the negotiated terms of the SLA260. The average rating is then computed based on all feedback ratings. In a case where no feedback is received from some customers, a default rating is used in the average rating calculation. Because the customers who don't provide feedback are usually known to be happy customers, the default rating can be set to a large value, such as 4 or 5 out of 5. It should be noted that the customer satisfaction survey420ofFIG. 4is provided here as an example and to show one embodiment of a forum wherein Customers250are able to provide feedback on the group buying experience. The customer satisfaction survey can be implemented in different formats within the spirit and scope of the invention.

Correspondingly, the SLA260may contain negotiated terms mapped to customer satisfaction such as “if the average overall satisfaction score is above 4, the negotiated lowest commission rate will be applied,” or “if the average overall satisfaction score is below 2, the customers will be fully refunded and the security deposit will not be returned.” In this manner a customer satisfaction score can be easily mapped to a term in the SLA260. Of course, more complicated customer feedback forms can be used in a real system and the terms in the SLA260can be more complicated to cover various fine-grained conditions. For example, besides the overall satisfaction rating, a Customer250can be asked to rate various aspects/features of the deal, e.g. food, ambience, service, and value for a restaurant deal. Correspondingly, a term in the SLA260can cover the average satisfaction score for the various aspects.

Customers250are not always willing to provide feedback. In order to encourage Customers250to provide feedback, a customer incentive may be offered. In order to stimulate Customers250to provide feedback, the Trading Platform210may provide some incentives to Customers250who provide feedback. The incentive may be electronic money (e-money), which can be used to purchase future deals, and/or a virtual symbol of reputation in the online customer community. Other incentives are contemplated within the spirit and scope of the invention.

Once the customer feedback from multiple Customers250has been received and aggregated, in step310the Trading Platform210performs a Customer Satisfaction Computation. According to the customer feedback, a customer satisfaction degree will be computed and mapped to an item in the negotiated SLA260, which will be used to reward or penalize the Business240. As not all the Customers250participate in providing feedback, and some dishonest Customers250may provide false feedback, the customer satisfaction computation may utilize some complicated methods in order to derive an accurate estimation of the actual customer satisfaction. Note that there may also exist a mechanism for the Business240to prove that the actual customer satisfaction should be higher than the estimated one. This may involve a third-party survey of a set of randomly sampled Customers250by some sophisticated statistical methods.

Lastly, in step312we apply rewards and penalties, as appropriate. The Business240can be rewarded or penalized according to the quality level of delivered service or product. The reward and penalty are typically fulfilled in the form of the final payment that is received by the Business240. The higher the quality level, the greater the payment. Besides, the historical behaviors of a Business240will be recorded and visible to future Customers250, which may have a heavy impact on the reputation of the Business240.

Customer Refund: The Trading Platform210will refund the Customers250a sum of money for any low-quality or bad deals. The refund is usually less than or equal to what a customer has paid for the deal. In some cases, the Trading Platform210may refund a small sum of money additionally as a self-penalty for a bad deal to show its sincerity to customers.

Therefore, while there has been described what is presently considered to be the preferred embodiment, it will understood by those skilled in the art that other modifications can be made within the spirit of the invention. The above description(s) of embodiment(s) is not intended to be exhaustive or limiting in scope. The embodiment(s), as described, were chosen in order to explain the principles of the invention, show its practical application, and enable those with ordinary skill in the art to understand how to make and use the invention. It should be understood that the invention is not limited to the embodiment(s) described above, but rather should be interpreted within the full meaning and scope of the appended claims.