Technical Report TR-CS-03-27 Intelligent Ad Hoc Marketing within Hotspot Networks

In recent years, the growth of Mobile Computing, Electronic Commerce and Mobile Electronic Commerce has created a new concept of Mobile Electronic Marketing. New marketing models are being explored and used by small businesses and merchants to target mobile users in ever-changing ad hoc environments. Utilization of network infrastructure like hotspots networks can assist these small businesses and merchants in addressing challenges of local advertising in theses dynamic environments. This paper proposes a framework, called eNcentive, which addresses issues of dissemination of promotional information in ad hoc environments within hotspot networks. Our framework employs an intelligent peer-to-peer marketing scheme, by providing users the capability to collect promotional information disseminated by hotspots on behalf of small businesses and merchants. Users can propagate these sales promotions and discounts to other users in the ad hoc network. Participating users benefit from such circulation since merchants and small businesses that originally created the promotions reward the active distributors with additional promotions and other compensations. Participating businesses and merchants benefit from this promotion distribution as they effectively reach a wider set of potential customers in their local neighborhoods. Our framework also offers merchants and businesses a mechanism for targeted promotions, which help them customize promotions accordingly.