Methods and apparatus wherein a buyer arranges to purchase a first product using a communication network and subsequently takes possession of a substitute product at a retailer

• US 6,970,837 B1
• Filed: 10/05/1999
• Issued: 11/29/2005
• Est. Priority Date: 09/04/1996
• Status: Expired due to Fees

• Current Assignee: Groupon Incorporated
• Original Assignee: Walker Digital LLC (Walker Innovation Inc. (f/k/a Patent Properties, Inc.))
• Inventors: Shepardson, John, Bemer, Keith, Van Luchene, Andrew S., Mik, Magdalena, Walker, Jay S.
• Primary Examiner(s): Fadok, Mark
• Application Number:
  US09/412,930
• Time in Patent Office: 2,247 Days
• Field of Search: 705/26, 705/27
• US Class Current: 705/50
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/201 Price look-up processing, e.g. updating
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 30/0225 Avoiding frauds
• CPC Class Codes: G06Q 30/0234 Rebates after completed purchase
• CPC Class Codes: G06Q 30/0238 at point-of-sale [POS]
• CPC Class Codes: G06Q 30/0273 Determination of fees for advertising
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0613 Third-party assisted
• CPC Class Codes: G06Q 30/0631 Item recommendations

Abstract

Purchasing system methods and apparatus are provided wherein a buyer purchases a first product through a purchasing system, such as by submitting a buyer offer. A retailer receives product redemption information from a buyer, the product redemption information enabling the buyer to take possession of the first product. The retailer determines a substitute product to provide to the buyer, the substitute product being different than the first product. The determination may be based on information contained in the buyer offer, such as a product category, a product class and one or more product features.

Claims

1. A method of operating a retailer system, comprising:

receiving product redemption information, the product redemption information enabling a buyer to take possession of a first product, purchased by the buyer through a purchasing system, at a retailer, wherein

the buyer takes possession of the first product at a retailer that is a different entity from the purchasing system,

the buyer had purchased the first product through the purchasing system by establishing with the purchasing system a first price for the product,

the retailer offers, to buyers who do not purchase the first product through the purchasing system, the first product for sale at a second price that is different than the first price, and

the buyer provides a payment, based on the first price, to the purchasing system; and

determining, by a computing device, a substitute product to provide to the buyer, the substitute product being different than the first product.

2. The method of claim 1, further comprising:

providing the substitute product to the buyer.

3. The method of claim 1, wherein said determination of the substitute product is based at least in part on the product redemption information.

4. The method of claim 1, wherein said determination of the substitute product is based at least in part on the first product.

5. The method of claim 1, wherein said determination of the substitute product is based at least in part on a comparison of an identifier associated with the first product and a set of identifiers associated with acceptable substitute products.

6. The method of claim 5, wherein said determination of the substitute product is further based at least in part on:

(i) a Universal Product Code associated with the first product;

(ii) a Stock Keeping Unit number associated with the first product; and

(iii) a manufacturer associated with the first product.

7. The method of claim 1, wherein said determination of the substitute product is based at least in part on a settlement price the retailer has agreed to accept in exchange for providing to the buyer one of:

(i) the first product; and

(ii) the substitute product.

8. The method of claim 1, wherein said determination of the substitute product is based at least in part on a price the buyer has agreed to provide to the purchasing system in exchange for the right to take possession of the first product at the retailer.

9. The method of claim 1, wherein said determination of the substitute product is based at least in part on inventory information associated with at least one of:

(i) the first product; and

(ii) the substitute product.

10. The method of claim 1, wherein said determination of the substitute product is based at least in part on sales history information associated with at least one of:

(i) the first product; and

(ii) the substitute product.

11. The method of claim 1, wherein said determination of the substitute product is based at least in part on, with respect to the first product, at least one of:

(i) an actual or forecast product demand;

(ii) a product age or perishability;

(iii) a product life cycle;

(iv) information about a competing product; and

(v) an actual or forecast profitability of the product.

12. The method of claim 1, wherein said determination of the substitute product is based at least in part on, with respect to the substitute product, at least one of:

(i) an actual or forecast product demand;

(ii) a product age or perishability;

(iii) a product life cycle; and

(iv) an actual or forecast profitability of the product.

13. The method of claim 1, wherein said determination of the substitute product is based at least in part on a comparison of:

(i) a settlement price associated with the first product less the cost of the first product to the retailer; and

(ii) a settlement price associated with the substitute product less the cost of the substitute product to the retailer.

14. The method of claim 1, wherein the buyer the arranged to purchase the first product through a purchasing system by submitting a buyer offer, and wherein said determination of the substitute product is based at least in part on said buyer offer.

15. The method of claim 14, wherein the buyer offer comprises at least one of:

(i) a buyer-defined price;

(ii) a product category;

(iii) a product class; and

(iv) a product features.

16. The method of claim 1, wherein said determination of the substitute product comprises:

comparing a set of features associated with a buyer offer with a set of features associated with the substitute product, wherein the substitute product may be selected if a predetermined number of matches are found by said comparison.

17. The method of claim 1, wherein said determination of the substitute product comprises:

presenting a group of substitute product choices, the group containing at least one substitute product choice, to the buyer; and

receiving from the buyer a selection from the group.

18. The method of claim 1, further comprising:

determining if the first product is available to be provided to the buyer,

wherein said determination of the substitute product is only performed if the first product is not available.

19. The method of claim 1, wherein said determination of the substitute product comprises:

receiving substitute product information from the purchasing system.

20. The method of claim 1, wherein said determination of the substitute product comprises:

locally determining the substitute product at the retailer system.

21. The method of claim 1, further comprising:

sending information about the substitute product to the purchasing system.

22. The method of claim 21, further comprising:

receiving from the purchasing system verification information enabling the retailer to authorize the buyer to take possession of the substitute product.

23. The method of claim 1, further comprising:

sending to the purchasing system a request to offer the substitute product to the buyer; and

receiving from the purchasing system information approving the request to offer the substitute product to the buyer.

24. The method of claim 1, further comprising:

receiving payment of an additional amount in exchange for providing the substitute product to the buyer, the payment of the additional amount being received from at least one of;

(i) the buyer;

(ii) the purchasing system; and

(iii) a manufacturer of the product.

25. The method of claim 1, further comprising:

receiving from the purchasing system payment of a settlement amount in exchange for providing the substitute product to the buyer, the settlement amount being an amount the retailer has agreed to accept in exchange for providing to the buyer one of;

(i) the first product; and

(ii) the substitute product.

26. The method of claim 1, further comprising:

receiving from the purchasing system payment of an amount, associated with the price paid by the buyer to the purchasing system, in exchange for providing the substitute product to the buyer.

27. The method of claim 1, further comprising:

providing credit of a difference amount in exchange for providing the substitute product, the credit of the difference amount being provided to at least one of;

(i) the buyer;

(ii) the purchasing system; and

(iii) a manufacturer of the product.

28. The method of claim 27, wherein the difference amount is based at least in part on the difference between a price the buyer agrees to provide for the first product and a price the buyer agrees to provide for the substitute product.

29. The method of claim 1, wherein the buyer arranged through a communication network to purchase the first product from a first seller at a first price.

30. The method of claim 29, wherein the first seller is the retailer, and the retailer arranges to provide the substitute product to the buyer for the first price.

31. The method of claim 29, wherein the first seller is a party other than the retailer, and the retailer arranges to provide the substitute product to the buyer for a settlement price associated with at least one of:

(i) the first product; and

(ii) the substitute product.

32. The method of claim 31, wherein the retailer sells the substitute product to the buyer.

33. The method of claim 31, wherein the first seller sells the substitute product to the buyer.

34. The method of claim 31, wherein a second seller, different than the first seller, sells the substitute product to the buyer.

35. The method of claim 31, wherein the buyer agrees to purchase the substitute product for a second price.

36. The method of claim 35, wherein the second price is less than the first price.

37. The method of claim 35, wherein the second price is greater than the first price.

38. The method of claim 1, further comprising:

receiving from the purchasing system verification information enabling the retailer to authorize the buyer to take possession of the substitute product.

39. The method of claim 38, wherein said receiving verification information comprises:

receiving a one way hash function such that the retailer can determine, using the one way hash function, if redemption information possessed by the buyer authorizes the buyer to take possession of either (i) the first product; and

(ii) the substitute product.

40. The method of claim 38, wherein said receiving verification information comprises:

sending to the purchasing system information about an attempt to take possession of the substitute product; and

receiving from the purchasing system verification information authorizing the buyer to take possession of one of;

(i) the first product; and

(ii) the substitute product.

41. The method of claim 38, wherein said receiving verification information comprises:

receiving from the purchasing system verification information authorizing a plurality of buyers to take possession of a plurality of products or a plurality of substitute products.

42. The method of claim 1, wherein the retailer system provides a payment to the purchasing system such that amount of profit made by the purchasing system is the same as it would have been had the retailer provided the first product to the buyer instead of the substitute product.

43. The method of claim 1, wherein the retailer receives information from the purchasing system associated with an amount of profit that will be made by the purchasing system if the retailer provides to the buyer one of:

(i) the first product; and

(ii) the substitute product.

44. The method of claim 1, further comprising:

receiving from the buyer a request for a substitute product.

45. A method of operating a retailer system, comprising:

receiving product redemption information from a buyer, the product redemption information enabling the buyer to take possession of a first product, purchased by the buyer through a purchasing system, at a retailer that is a different entity from the purchasing system, wherein

the buyer had purchased the first product through the purchasing system by establishing with the purchasing system a first price for the product,

the retailer offers, to buyers who do not purchase the first product through the purchasing system, the first product for sale at a second price that is different than the first price, and

the buyer provides a payment, based on the first price, to the purchasing system;

determining if the first product is available to be provided to the buyer,

determining a substitute product to provide to the buyer, the substitute product being different than the first product;

sending to the purchasing system information about an attempt to provide the substitute product to the buyer;

receiving from the purchasing system verification information enabling the retailer to authorize the buyer to take possession of the substitute product; and

providing the substitute product to the buyer.

46. The method of claim 45, wherein said determination of a substitute product is based at least in part on a buyer offer provided from the buyer to the purchasing system.

47. A method of operating a purchasing system, comprising:

arranging through a communication network for a buyer to purchase a first product from a seller;

sending product redemption information to the buyer, the product redemption information enabling the buyer to take possession of the first product at a retailer that is a different entity from the seller, wherein

the buyer had purchased the first product from the seller by establishing with the purchasing system a first price for the product,

the retailer offers, to buyers who do not purchase the first product from the seller, the first product for sale at a second price that is different than the first price, and

the buyer provides a payment, based on the first price, to the seller;

receiving from the retailer information related to an attempt to provide a substitute product to the buyer; and

sending to the retailer verification information enabling the retailer to authorize the buyer to take possession of the substitute product.

48. The method of claim 47, further comprising:

voiding the product redemption information associated with the first product.

49. The method of claim 47, further comprising:

determining an amount to be provided to the retailer in exchange for providing the substitute product to the buyer, the amount being different than settlement amounts associated with the first product and the substitute product.

50. The method of claim 47, wherein the amount provided to the retailer is an amount based on a price the buyer agreed to provide in exchange for one of:

(i) the first product; and

(ii) the substitute product.

51. The method of claim 47, wherein the product redemption information further comprises substitution condition information.

52. The method of claim 47, wherein the product redemption information further comprises substitution penalty information.

53. The method of claim 47, further comprising the step of:

updating a purchasing system database to indicate that the buyer has taken possession of the substitute product instead of the first product at the retailer.

54. The method of claim 47, further comprising:

receiving payment in exchange for allowing the retailer to provide a substitute product to the buyer, the payment being received from at least one of;

(i) the retailer;

(ii) the buyer;

(iii) a seller of the substitute product;

(iv) a manufacturer of the substitute product; and

(v) a third party.

55. A method of operating a purchasing system, comprising:

arranging through a communication network for a buyer to purchase a first product from a seller;

sending product redemption information to the buyer, the product redemption information enabling the buyer to take possession of the first product at a retailer that is a different entity from the seller, wherein

the buyer had purchased the first product from the seller by establishing with the seller a first price for the product,

the retailer offers, to buyers who do not purchase the first product from the seller, the first product for sale at a second price that is different than the first price, and

the buyer provides a payment, based on the first price, to the seller;

receiving from the retailer a request to offer a substitute product to the buyer;

determining if the retailer request will be approved; and

sending to the retailer information approving the request to offer the substitute product to the buyer.

56. The method of claim 55, wherein said determination is based at least in part on:

(i) an amount of profit to be made by the purchasing system if the request is approved; and

(ii) an amount of profit to be made by the purchasing system if the request is not approved.

57. The method of claim 55, wherein said determination is based at least in part on a comparison between:

(i) a price the buyer agreed to pay for the first product less a settlement price associated with the first product plus a first product subsidy amount; and

(ii) a price the buyer agreed to pay for the first product less a settlement price associated with the substitute product plus a substitute product subsidy amount.

58. The method of claim 55, wherein said determination is based at least in part on a comparison of an identifier associated with the first product and a set of identifiers associated with acceptable substitute products.

59. The method of claim 55, wherein said determination is based at least in part on the first product.

60. The method of claim 55, wherein said determination is further based at least in part on:

(i) a Universal Product Code associated with the first product;

(ii) a Stock Keeping Unit number associated with the first product; and

(iii) a manufacturer associated with the first product.

61. The method of claim 55, wherein said determination is based at least in part on a price the buyer has agreed to provide to the purchasing system in exchange for the right to take possession of the first product at the retailer.

62. The method of claim 55, wherein said determination is based at least in part on inventory information associated with at least one of:

(i) the first product; and

(ii) the substitute product.

63. The method of claim 55, wherein said determination is based at least in part on sales history information associated with at least one of:

(i) the first product; and

(ii) the substitute product.

64. The method of claim 55, wherein said determination is based at least in part on, with respect to the first product, at least one of:

(i) an actual or forecast product demand;

(ii) a product age or perishability;

(iii) a product life cycle;

(iv) information about a competing product; and

(v) an actual or forecast profitability of the product.

65. The method of claim 55, wherein said determination is based at least in part on, with respect to the substitute product, at least one of:

(i) an actual or forecast product demand;

(ii) a product age or perishability;

(iii) a product life cycle; and

(iv) an actual or forecast profitability of the product.

66. The method of claim 55, wherein the buyer the arranged to purchase the first product through a purchasing system by submitting a buyer offer, and wherein said determination is based at least in part on said buyer offer.

67. The method of claim 55, wherein the buyer offer comprises at least one of:

(i) a buyer-defined price;

(ii) a product category;

(iii) a product class; and

(iv) a product features.

68. A method of operating a purchasing system, comprising:

arranging through a communication network for a buyer to purchase a first product from a seller;

sending product redemption information to the buyer, the product redemption information enabling the buyer to take possession of the first product at a retailer that is a different entity from the seller, wherein

the buyer had purchased the first product from the seller by establishing with the purchasing system a first price for the product,

the retailer offers, to buyers who do not purchase the first product from the seller, the first product for sale at a second price that is different than the first price, and

the buyer provides a payment, based on the first price, to the seller;

receiving a request to identify a substitute product;

determining a substitute product to provide to the buyer; and

sending to the retailer information about the substitute product.

69. The method of claim 68, wherein said determination is based at least in part on:

(i) an amount of profit to be made by the purchasing system if the request is approved; and

(ii) an amount of profit to be made by the purchasing system if the request is not approved.

70. The method of claim 68, wherein said determination is based at least in part on a comparison between:

(i) a price the buyer agreed to pay for the first product less a settlement price associated with the first product plus a first product subsidy amount; and

(ii) a price the buyer agreed to pay for the first product less a settlement price associated with the substitute product plus a substitute product subsidy amount.

71. The method of claim 68, wherein said determination is based at least in part on a comparison of an identifier associated with the first product and a set of identifiers associated with acceptable substitute products.

72. The method of claim 68, wherein said determination is based at least in part on the first product.

73. The method of claim 68, wherein said determination is further based at least in part on:

(i) a Universal Product Code associated with the first product;

(ii) a Stock Keeping Unit number associated with the first product; and

(iii) a manufacturer associated with the first product.

74. The method of claim 68, wherein said determination is based at least in part on a price the buyer has agreed to provide to the purchasing system in exchange for the right to take possession of the first product at the retailer.

75. The method of claim 68, wherein said determination is based at least in part on inventory information associated with at least one of:

(i) the first product; and

(ii) the substitute product.

76. The method of claim 68, wherein said determination is based at least in part on sales history information associated with at least one of:

(i) the first product; and

(ii) the substitute product.

77. The method of claim 68, wherein said determination is based at least in part on, with respect to the first product, at least one of:

(i) an actual or forecast product demand;

(ii) a product age or perishability;

(iii) a product life cycle;

(iv) information about a competing product; and

(v) an actual or forecast profitability of the product.

78. The method of claim 68, wherein said determination is based at least in part on, with respect to the substitute product, at least one of:

(i) an actual or forecast product demand;

(ii) a product age or perishability;

(iii) a product life cycle; and

(iv) an actual or forecast profitability of the product.

79. The method of claim 68, wherein the buyer the arranged to purchase the first product through a purchasing system by submitting a buyer offer, and wherein said determination is based at least in part on said buyer offer.

80. The method of claim 68, wherein the buyer offer comprises at least one of:

(i) a buyer-defined price;

(ii) a product category;

(iii) a product class; and

(iv) a product features.

81. A method of operating a purchasing system, comprising:

arranging through a communication network for a buyer to purchase one of a plurality of products from a seller;

sending product redemption information to the buyer, the product redemption information enabling the buyer to take possession of one of the plurality of products at a retailer that is a different entity from the seller, wherein

the buyer had purchased the first product from the seller by establishing with the seller a first price for the product,

the retailer offers, to buyers who do not purchase the first product from the seller, the first product for sale at a second price that is different than the first price, and

the buyer provides a payment, based on the first price, to the seller;

receiving from the retailer information related to an attempt to provide to the buyer a particular product of the plurality of products; and

sending to the retailer verification information enabling the retailer to authorize the buyer to take possession of the particular product.

82. A method of operating a purchasing system, comprising:

arranging through a communication network for a buyer to purchase a type of product from a seller;

sending product redemption information to the buyer, the product redemption information enabling the buyer to take possession of the type of product at a retailer that is a different entity from the seller, wherein

the buyer had purchased the first product from the seller by establishing with the seller a first price for the product,

the retailer offers, to buyers who do not purchase the first product from the seller, the first product for sale at a second price that is different than the first price, and

the buyer provides a payment, based on the first price, to the seller;

receiving from the retailer information related to an attempt to provide to the buyer a particular product; and

sending to the retailer verification information authorizing the buyer to take possession of the particular product.

83. A method of operating a purchasing system, comprising:

receiving a buyer offer through a communication network, including a buyer-defined price and product requirements, from the buyer;

determining if the buyer offer will be accepted by a seller;

sending product redemption information to the buyer, the product redemption information enabling the buyer to take possession of a product in accordance with the product requirements, wherein

the buyer takes possession of the product at a retailer that is a different entity from the seller,

the buyer had purchased the first product from the seller by establishing with the seller a first price for the product,

the retailer offers, to buyers who do not purchase the first product from the seller, the first product for sale at a second price that is different than the first price, and

the buyer provides a payment, based on the first price, to the seller;

receiving from the retailer information related to an attempt to provide a product to the buyer; and

sending to the retailer verification information authorizing the buyer to take possession of the product.

84. The method of claim 83, wherein the product requirements comprises at least one of:

(i) a product class;

(ii) a product category; and

(iii) a product feature.

85. A retailer system device, comprising:

a processor; and

a storage device coupled to said processor and storing instructions adapted to be executed by said processor to;

receive product redemption information from a buyer, the product redemption information enabling the buyer to take possession of a first product, purchased by the buyer through a purchasing system, at a retailer that is a different entity from the purchasing system, wherein

the buyer had purchased the first product through the purchasing system by establishing with the purchasing system a first price for the product,

the retailer offers, to buyers who do not purchase the first product through the purchasing system, the first product for sale at a second price that is different than the first price, and

the buyer provides a payment, based on the first price, to the purchasing system; and

determine a substitute product to provide to the buyer, the substitute product being different than the first product.

86. A retailer system apparatus, comprising:

means for receiving product redemption information from a buyer, the product redemption information enabling the buyer to take possession of a first product, purchased by the buyer through a purchasing system, at a retailer that is a different entity from the purchasing system, wherein

the buyer had purchased the first product through the purchasing system by establishing with the purchasing system a first price for the product,

the retailer offers, to buyers who do not purchase the first product through the purchasing system, the first product for sale at a second price that is different than the first price, and

the buyer provides a payment, based on the first price, to the purchasing system; and

means for determining a substitute product to provide to the buyer, the substitute product being different than the first product.

87. A medium storing instructions adapted to be executed by a processor to perform a method for operating a retailer system, said method comprising:

receiving product redemption information from a buyer, the product redemption information enabling the buyer to take possession of a first product, purchased by the buyer through a purchasing system, at a retailer that is a different entity from the purchasing system, wherein

the buyer had purchased the first product through the purchasing system by establishing with the purchasing system a first price for the product,

the retailer offers, to buyers who do not purchase the first product through the purchasing system, the first product for sale at a second price that is different than the first price, and

the buyer provides a payment, based on the first price, to the purchasing system; and

determining a substitute product to provide to the buyer, the substitute product being different than the first product.

88. A method of using a purchasing system, comprising:

arranging through a communication network to purchase a first product from a seller;

receiving product redemption information, the product redemption information enabling a buyer to take possession of the first product at a retailer that is a different entity from the seller, wherein

the first product had been purchased from the seller by establishing with the seller a first price for the product,

the retailer offers, to buyers who do not purchase the first product from the seller, the first product for sale at a second price that is different than the first price, and

a payment, based on the first price, is provided to the seller;

providing the product redemption information to the retailer; and

taking possession of a substitute product at the retailer.

89. A method of using a purchasing system, comprising:

arranging through a communication network to purchase a first product from a seller;

receiving product redemption information, the product redemption information enabling a buyer to take possession of the first product at a retailer that is a different entity from the seller, wherein

the first product is purchased from the seller by establishing with the seller a first price for the product,

the retailer offers, to buyers who do not purchase the first product from the seller, the first product for sale at a second price that is different than the first price, and

a payment, based on the first price, is provided to the seller;

providing a request to take possession of a substitute product; and

taking possession of the substitute product at the retailer.