Method for customer-choice-based bundling of product options

Abstract

A method and system for customer-choice-based bundling of product options collects data from previous orders about customer component choices, computes a pairwise distance between any pair of components that capture how much the probability of a choice pair P(a.b) deviates from the expected probability under the null hypothesis of independence P(a)*P(b), and clusters the components. The methodology can be implemented as instructions implemented in a computer readable medium. In this way, the need for a method to permit bundles of product options to be configured through the use of business processes reflecting choices based on the preferences of customers rather than the preferences of product designers is fulfilled.

1 . A method for customer-choice-based bundling of product options, comprising the steps of:
 using a computer to define one or a plurality of groups of product components exhibiting strong customer-choice interdependencies by
 collecting customer choice data relating to a plurality of product components, 
 grouping said product components as elements in one or a plurality of sets of product components by computing distances between choice pairs of said product components and, based on said distances, determining the extent to which the probability of a choice pair P(a.b) deviates from the expected probability under a null hypothesis of independence P(a)*P(b), and 
 determining one or a plurality of bundles of product components by the application of said clustering approach; and 
   generating as output one or a plurality of lists of clustered product components comprising said one or a plurality of bundles of product components.   
     
     
         2 . The method of  claim 1 , wherein the computer is connected to a network. 
     
     
         3 . The method of  claim 2 , wherein the network is the Internet. 
     
     
         4 . The method of  claim 2 , wherein said customer choice data is obtained from a database connected to said network. 
     
     
         5 . A system for customer-choice-based bundling of product options, comprising:
 a computer defining one or a plurality of groups of product components exhibiting strong customer-choice interdependencies by
 collecting customer choice data relating to a plurality of product components, 
 grouping said product components as elements in one or a plurality of sets of product components by computing distances between choice pairs of said product components and, based on said distances, determining the extent to which the probability of a choice pair P(a.b) deviates from the expected probability under a null hypothesis of independence P(a)*P(b), and 
 determining one or a plurality of bundles of product components by the application of said clustering approach; and 
   generating as output one or a plurality of lists of clustered product components comprising said one or a plurality of bundles of product components.   
     
     
         6 . The system of  claim 5 , wherein the computer is connected to a network. 
     
     
         7 . The system of  claim 6 , wherein the network is the Internet. 
     
     
         8 . The system of  claim 6 , wherein said customer choice data is obtained from a database connected to said network. 
     
     
         9 . A computer-readable medium for customer-choice-based bundling of product options, on which is provided:
 instructions for using a computer to define one or a plurality of groups of product components exhibiting strong customer-choice interdependencies by
 collecting customer choice data relating to a plurality of product components, 
 grouping said product components as elements in one or a plurality of sets of product components by computing distances between choice pairs of said product components and, based on said distances, determining the extent to which the probability of a choice pair P(a.b) deviates from the expected probability under a null hypothesis of independence P(a)*P(b), and 
 determining one or a plurality of bundles of product components by the application of said clustering approach; and 
   generating as output one or a plurality of lists of clustered product components comprising said one or a plurality of bundles of product components.   
     
     
         10 . The machine-readable medium of  claim 9 , wherein the computer is connected to a network. 
     
     
         11 . The machine-readable medium of  claim 10 , wherein the network is the Internet. 
     
     
         12 . The machine-readable medium of  claim 11 , wherein said customer choice data is obtained from a database connected to said network.