03-02.
Bidding fee auction
Pattern description
A bidding fee auction, also called a penny auction, is a type of all-pay auction in which all participants must pay a non-refundable fee to place each small incremental bid. The auction ends after a period of time, typically ten to twenty seconds. Without new bids the last participant to have placed a bid wins the item and also pays the final bid price. The auctioneer makes money in two ways: the fees for each bid and the payment for the winning bid, totalling typically significantly more than the value of the item. Such auctions are typically held over the Internet, rather than in person.
Inventive problems
The company should constantly keep in touch with customers to attract them and to encourage customers to re-purchase.
The company should minimize communication with consumers in order to reduce costs.