Method and system for forming a list-based value discovery network

• US 7,624,051 B2
• Filed: 09/12/2001
• Issued: 11/24/2009
• Est. Priority Date: 09/18/2000
• Status: Active Grant

• Current Assignee: Knapp Investment Company Limited
• Original Assignee: Icon One, Inc.
• Inventors: Gellman, Peter
• Primary Examiner(s): Hamilton, Lalita M
• Application Number:
  US09/949,915
• Publication Number:
  US 20020035536A1
• Time in Patent Office: 2,995 Days
• Field of Search: 705/35, 705/37
• US Class Current: 705/35
• CPC Class Codes: G06Q 30/0633 Lists, e.g. purchase orders, compilation or processing
• CPC Class Codes: G06Q 30/0641 Shopping interfaces
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Embodiments of the present invention describe a network-based reverse auction system value discovery system including at least four major customers: consumers, and the three sell-side customers bidder/sellers, product manufacturers, and advertisers who are not also product manufacturers. Initially, a shopping list is constructed containing e.g., widely available goods (WAGs). The shopping list is the base of the value discovery network and ads significant value for each of the four key customers. For consumers, the value discovery system is an easy and convenient way to obtain and feel assured that they have obtained the best deal possible, consistent with their own definition of value. For bidder/sellers, the value discovery system offers a chance to sell products effectively, e.g., in a manner that maximizes profits while building consumer relationships one by one. For product manufacturers, the value discovery system offers a buying channel where marketing and trade promotion of brands, categories, and relationships can be nurtured in direct relationships with consumers and their shopping lists, unmediated by the conflicts and inefficiencies of conventional retail channels. For other advertisers, the data-rich value discovery facilitates communication with those who make important household spending decisions, enabling crafted, precise, messages to be delivered to the right audience.

Claims

1. A method performed by a bid engine computer system, the method comprising

presenting, to a consumer, by the bid engine computer system, types of goods available for sale including at least one of milk, bread, eggs, beef and olives,

receiving, from the consumer, by the bid engine computer system, selections from among said types of goods,

causing, by the bid engine computer system, a list comprising the consumer'"'"'s selections to be presented to the consumer,

automatically formulating, by the bid engine computer system, at least two bids for the list of items in response to the list being submitted to the bid engine computer system for auction by said consumer, each of said bids including terms under which the bidder is willing to sell the list of items to the consumer, at least one of the terms of each bid a) being different from any term in each other bid, b) being other than the price of the list of items, and c) being other than a delivery term,

presenting, by the bid engine computer system, the bids concurrently to the consumer, and

receiving, by the bid engine computer system, an indication from the consumer as to which of the concurrently presented bids the consumer wishes to accept.

2. The invention of claim 1 wherein said list comprising the consumer'"'"'s selections includes at least one product brand preferred by the consumer for a particular type of goods and wherein at least one of said at least two bids includes a product brand for said particular type of goods that is other than said product brand preferred by the consumer.

3. The invention of claim 1 wherein another one of said terms of said formulated bids is delivery time.

4. The invention of claim 1 wherein one of the terms of one of said at least two bids is a location to which the consumer must go to pick up the items and one of the terms of another one of said at least two bids is that the items will be delivered.

5. The invention of claim 1 wherein said at least one of the terms of a particular one of the bids is a particular incentive and wherein the terms of at least one of the other bids does not include that particular incentive.

6. The invention of claim 5 wherein said incentive is a one of:

a coupon, a free item, loyalty points and cash.

7. The invention of claim 1 wherein said formulating is performed as a function of at least one fulfillment preference specified by the consumer that relates to other than item price and to other than delivery.

8. The invention of claim 7 wherein said at least one fulfillment preference is a product brand.

9. The invention of claim 7 wherein said at least one fulfillment preference is delivery time.

10. The invention of claim 7 wherein said at least one fulfillment preference is a store preference.

11. The invention of claim 7 wherein said at least one fulfillment preference is that the items are to be delivered to a location specified by the consumer.

12. The invention of claim 7 wherein said at least one fulfillment preference is the identity of at least one of a) the bidder, and b) a retail establishment from which at least ones of the items are to be provided.

13. The invention of claim 7 wherein said at least one fulfillment preference is a distance from a specified location that said consumer is willing to travel to pick up the items.

14. The invention of claim 7 wherein said at least one fulfillment preference is that the consumer wishes to have the items on the list pre-packaged for pick-up by the consumer.

15. The invention of claim 7 wherein said formulating is performed as a further function of at least one criterion specified by the consumer other than a criterion relating to item price.

16. The invention of claim 15 wherein said criterion is a willingness on the part of the consumer to waive at least one fulfillment preference.

17. The invention of claim 16 wherein said criterion is the willingness to waive at least one brand preference specified by said consumer.

18. The invention of claim 1 wherein said formulating is performed as a function of bidding rules previously specified by each said bidder.

19. The invention of claim 18 wherein at least one of said bidding rules specified by a bidder is a predetermined default brand to be included in a bid for non-brand-specified items on the item list.

20. The invention of claim 18 wherein at least one of said bidding rules specified by a bidder indicates the willingness of that bidder to accommodate particular fulfillment preferences that might be specified by the consumer.

21. The invention of claim 18 further comprising formulating at least one further bid for the list of items based on prices of the items on said list specified by at least one on-line vendor who has not specified any bidding rules to said bid engine computer system.

22. The invention of claim 1 wherein said formulating is performed as a function of at least one of a) a bidding history of said consumer, and b) a purchasing history of said consumer.

23. The invention of claim 1 wherein said formulating is performed as a joint function of a) fulfillment preferences specified by the consumer, at least one of the fulfillment preferences being other than item price and other than a delivery preference, and b) criteria previously specified by each said bidder, at least one of said criteria being other than item price.

24. The invention of claim 1 wherein said list of items is pre-stored by said bid engine computer system and wherein said bid formulating is undertaken in response to an indication from said consumer that bids are desired for said pre-stored list or for a version thereof modified by said consumer.

25. The invention of claim 1 wherein at least two of said bids are from the same bidder.

26. The method of claim 1 wherein said list includes at least twenty different consumable items.

27. Apparatus comprising

a database arranged to store product and price information from bidder/sellers, the store product and price information being for goods including at least one of milk, bread, eggs, beef and olives,

a customer interface arranged to receive a request from a consumer for bids on a list of items specified by the consumer, said list of items including at least one of said milk, bread, eggs, beef and olives, and

a bid engine computer system arranged to use said product and price information and pre-defined bidding rules that have been placed by the bidder/sellers to formulate at least two bids responsive to said consumer request, each of said at least two bids including terms under which the bidder is willing to sell the list of items to the consumer, each bid having at least one non-price term that is different from any term in each other bid, said at least one non-price term being other than a delivery term,

said customer interface being further adapted to concurrently present said bids to said consumer and to receive an indication from the consumer as to which of the concurrently presented bids the consumer wishes to accept.

28. The apparatus of claim 27 wherein said bid engine computer system is further arranged to use fulfillment preferences specified by said consumer in formulating at least one of said bids.

29. The apparatus of claim 27 further comprising a database arranged to store at least one sample shopping list and wherein at least a part of said request is the identification of said sample shopping list by said consumer.

30. The apparatus of claim 27 wherein said list of items specified by said consumer includes at least one item identified from a shopping list that includes at least twenty different consumable consumer items, at least a portion of said stored shopping list having been created on a day previous to the day on which said request for bids was received.

31. The apparatus of claim 30 wherein said identification of said shopping list by said consumer is via selection of a sell-side icon.

32. The apparatus of claim 30 further comprising augmenting said list to include a particular item in response to an indication received from said consumer by a means other than an on-line session between the consumer and the apparatus.

33. The apparatus of claim 32 wherein said indication is received from said consumer via a sell-side icon.

34. The apparatus of claim 32 wherein said indication is received from said consumer via a website.

35. The invention of claim 32 wherein said indication is received from said consumer via an interactive TV system.

36. The invention of claim 32 wherein said indication is provided by said consumer by scanning a barcode.

37. The apparatus of claim 30 further comprising a master product database containing information about products that said consumer may wish to place on said list and wherein said customer interface is arranged to allow the consumer to add items from said master product database to said list.

38. The apparatus of claim 30 further comprising a database containing incentives that can be included in said bids and wherein said bid engine computer system is further adapted to include a selected one or more of said incentives in at least one of said bids while not including at least one of the selected incentives in at least one other of said bids.

39. The apparatus of claim 38 wherein said incentives include at least one of:

coupons, free goods, cash and loyalty incentives.

40. The apparatus of claim 38 wherein said one or more incentives is individualized to said consumer based on at least one list of items that had been previously specified by said consumer.

41. A method comprising conducting an on-line reverse auction wherein bidder/sellers submit reverse bids for a list of at least twenty different consumable consumer goods specified by a consumer, wherein the reverse bids differ in at least one term other than the price of the goods and other than a delivery term, the on-line reverse auction being conducted by a bid engine computer system that formulates bids on behalf of bidder/sellers based on product information, product prices and bidding rules previously provided to said bid engine computer system by each bidder/seller and that concurrently presents the formulated bids to the consumer.

45. The method of claim 41 wherein at least certain ones of the twenty consumable goods are refrigerated food items.

46. The invention of claim 41 wherein at least two of said reverse bids are from the same bidder.

42. A method for use by a bid engine computer system to conduct a reverse auction for a list of at least twenty different consumable consumer items specified by a consumer, the method comprising

formulating, by the bid engine computer system, at least two reverse bids for the list of items on behalf of a single bidder/seller, each said bid including a price for the list of items, the reverse bids differing in the price of the items and also differing in at least one term other than the total price of the items, one of the reverse bids specifying a first brand for a particular one of the items and another one of the reverse bids specifying a second brand for said particular one of the items, and

causing, by the bid engine computer system, each of the reverse bids to be delivered to the consumer.

43. The method of claim 42 wherein said bid engine computer system further formulates said bids based on product information, product prices and bidding rules previously provided to said bid engine computer system by the bidder/seller.

44. The method of claim 43 wherein said bid engine computer system further formulates said bids as a function of fulfillment preferences associated with said list specified by said consumer, at least one of the fulfillment preferences being as to other than price.