System, method, and computer program product for calculating an accepted value for a promotion
AssigneeGroupon, Inc.
InventorNikhil Ranjan Garge
Life of this patent
Estimating the term…
Abstract
Provided herein are method, apparatus, and computer program products for facilitating the determination of an ideal discount rate or an ideal accepted value for a promotion based on a plurality of model-based decision trees. The decision trees may be generated based on a set of original data, which may include information from a set of past promotions. The trees may branch into smaller, more homogenous subgroups of the original data until a model is generated for each resulting node of the tree. The plurality of trees may be applied to a current promotion with a set of possible predetermined discount rates in order to determine an ideal discount rate or an ideal accepted value for the promotion.
Claims36
A method for generating a promotion to be offered by a promotion and marketing service via a promotion and marketing system, the method comprising:
- receiving, via a provider interface on a provider device of the promotion and marketing system, promotion information about the promotion, wherein the promotion information includes a plurality of promotion variables including at least a promotional value;
- receiving, at the provider device from the promotion and marketing service, a plurality of model-based decision trees;
- calculating, via a processor, for each of the plurality of model-based decision trees, a demand value for the promotion for each of at least one predetermined discount rate by applying the promotion variables with each predetermined discount rate to each decision tree, wherein each decision tree comprises a plurality of decision points connected by a plurality of branches and ending at a plurality of leaves, the decision points being conditional filters that indicate one of the plurality of possible branches based on a value of at least one predictor variable, and wherein each leaf defines a statistical model;
- aggregating the demand values for each discount rate for each decision tree for the promotion variables to produce an aggregated price elasticity of demand;
- and
- presenting a discount recommendation to a provider via the provider interface based on the aggregated price elasticity of demand;
- applying the discount recommendation to the promotional value to generate the promotion based on approval of the discount recommendation;
- and
- transmitting the promotion to a consumer device via the promotion and marketing system.
A promotion and marketing system comprising at least a processor, and a memory associated with the processor having computer coded instructions therein, with the computer instructions configured to, when executed by the processor, cause the system to:
- receive, via a provider interface on a provider device of the promotion and marketing system, promotion information about a promotion, wherein the promotion information includes a plurality of promotion variables including at least a promotional value;
- receive, at the provider device from the promotion and marketing service, a plurality of model-based decision trees;
- calculate for each of the plurality of model-based decision trees, a demand value for the promotion for each of at least one predetermined discount rate by applying the promotion variables with each predetermined discount rate to each decision tree, wherein each decision tree comprises a plurality of decision points connected by a plurality of branches and ending at a plurality of leaves, the decision points being conditional filters that indicate one of the plurality of possible branches based on a value of at least one predictor variable, and wherein each leaf defines a statistical model;
- aggregate the demand values for each discount rate for each decision tree for the promotion variables to produce an aggregated price elasticity of demand;
- present a discount recommendation to a provider via the provider interface based on the aggregated price elasticity of demand;
- apply the discount recommendation to the promotional value to generate the promotion based on approval of the discount recommendation;
- and
- transmit the promotion to a consumer device with the promotion and marketing system.
Dependencies are inferred from the claim text.