U.S. patent application number 11/424289 was filed with the patent office on 2006-10-05 for system and process for local acquisition of products priced online.
Invention is credited to James A. Jorasch, Andrew S. Van Luchene, JAY S. WALKER.
Application Number | 20060224465 11/424289 |
Document ID | / |
Family ID | 25395242 |
Filed Date | 2006-10-05 |
United States Patent
Application |
20060224465 |
Kind Code |
A1 |
WALKER; JAY S. ; et
al. |
October 5, 2006 |
SYSTEM AND PROCESS FOR LOCAL ACQUISITION OF PRODUCTS PRICED
ONLINE
Abstract
A system and process for establishing prices for products on
line and for allowing acquisition of those products from retailers
that honor such prices. The system and process involve a customer
having a credit card account, a computer terminal configured to
access a network, and a central authority coupled to the computer
terminal via the network. The central authority maintains
information about a product and a corresponding price. The price is
established by the central authority and the central authority is
configured to communicate the information about the product and the
price to the customer via the network. Also involved is a credit
card processor that is coupled to the central authority. The credit
card processor is configured to query the information maintained by
the central authority and to receive the price from the central
authority. A retailer is involved and includes a point-of-sale
system coupled to the central authority and to the credit card
processor. The retailer is configured to deliver the product to the
customer after the customer purchases the product from the retailer
via his credit card account or other form of payment at the price
established by the central authority and provided to the retailer
and the point-of-sale system by the credit card processor.
Inventors: |
WALKER; JAY S.; (Ridgefield,
CT) ; Jorasch; James A.; (Stamford, CT) ; Van
Luchene; Andrew S.; (New York, NY) |
Correspondence
Address: |
WALKER DIGITAL
2 HIGH RIDGE PARK
STAMFORD
CT
06905
US
|
Family ID: |
25395242 |
Appl. No.: |
11/424289 |
Filed: |
June 15, 2006 |
Related U.S. Patent Documents
|
|
|
|
|
|
Application
Number |
Filing Date |
Patent Number |
|
|
11410342 |
Apr 24, 2006 |
|
|
|
11424289 |
Jun 15, 2006 |
|
|
|
09591594 |
Jun 9, 2000 |
|
|
|
11410342 |
Apr 24, 2006 |
|
|
|
08889503 |
Jul 8, 1997 |
6249772 |
|
|
09591594 |
Jun 9, 2000 |
|
|
|
Current U.S.
Class: |
705/26.81 |
Current CPC
Class: |
G06Q 30/0609 20130101;
G06Q 30/0613 20130101; G06Q 30/0625 20130101; G06Q 20/04 20130101;
G06Q 30/02 20130101; G06Q 30/0611 20130101; G06Q 20/12 20130101;
G06Q 30/0635 20130101; G06Q 30/0601 20130101; G06Q 20/00 20130101;
G06Q 30/0641 20130101; G07F 7/00 20130101 |
Class at
Publication: |
705/026 |
International
Class: |
G06Q 30/00 20060101
G06Q030/00 |
Claims
1. A system for facilitating the sale and distribution of products,
comprising: a data storage system maintaining information related
to products including sellers of and prices for said products; and
a data processing system operatively coupled to said data storage
system, said data processing system configured to receive a request
from a buyer to acquire a product, to process said request by
querying said data storage system to identify a purchase price and
a seller to sell said product to said buyer at said purchase price,
to send a notice to said buyer indicating said seller and said
purchase price, to receive from said buyer a purchase request
including an account identifier, to establish a data record
including said account identifier, said price, and identifiers for
said seller and said product, and to send a purchase confirmation
notice to said buyer indicating that said buyer can acquire said
product from said seller at said purchase price.
2-114. (canceled)
Description
BACKGROUND OF THE INVENTION
[0001] 1. Field of the Invention
[0002] The present invention relates to a system and method that
enables the establishment of prices for products via a network and
the subsequent acquisition of such products from local retailers
that honor the established prices.
[0003] 2. Description of the Related Art
[0004] The retail system as practiced today represents the
principal system for the sale and distribution of over one trillion
dollars per year in goods and services. It is a process that has
developed over the past several decades with well-defined,
traditional roles for its various participants: manufacturers,
distributors, and retailers.
[0005] As the retail process has developed and is currently
practiced, a manufacturer has the responsibility for designing,
manufacturing (or having made) and selling products to a
distributor/retailer. The manufacturer's price, also known as the
factory price, is typically set sufficient to recoup costs of
manufacturing, plus to return a profit to the manufacturer.
[0006] The distributor function, when utilized, is to efficiently
and cost-effectively move products from the manufacturer to the
retailer. The retailer's responsibilities include product
distribution, retail pricing, and direct customer sales and
services. As will be understood from a further consideration of the
invention as described below, the present invention is directed to
systems and processes which enable the manufacturer to
significantly affect the ultimate price of his products to the
consumer.
[0007] As will be appreciated by those skilled in the art of
retailing, pricing represents one of the most critical aspects of
the retail process. Product pricing directly affects consumer
demand, which in turn affects product movement, profitability, and
the subsequent business directions and strategies of the various
participants in the process. Historically, however, customer
pricing has remained almost totally within the purview of the
retailer. As will be seen below, the ability to affect product
retail prices is highly desirable to and has been the focus of many
different manufacturer efforts over the years.
[0008] Once a product enters into the channel, distributors and
retailers are motivated by their own goals and measurements, which
directly affect product pricing, and which may differ significantly
from those of the manufacturer. As the ultimate determinant of the
retail price, the retailer is typically motivated to sell goods in
a manner that realizes the highest profit margins for his
business.
[0009] Thus, while a manufacturer is constantly striving towards
his own goals, for example to sell more products, improve current
products, develop new products, or distribute newly developed and
manufactured goods, he has been consistently lacking in one of the
key tools most effective in obtaining these goals--the customer
pricing of his product. Not only does a manufacturer lack control
over retail pricing, but his channel often uses their control over
pricing to directly conflicting ends. A manufacturer, for example,
may be lowering a distribution price to motivate the sale of an
expiring product line, while the retailers are maintaining high
customer prices to maximize profit. Such an artificially high
retail price could subsequently result in a glut of highly
discounted, left over old product that is in direct competition
with the subsequently introduced new product. In fact, a typical
retailer carries brands from competing manufacturers, and thus may
work against one manufacturer in favor of a direct competitor.
[0010] In the course of the development of the retail process,
manufacturers have attempted to implement many different methods of
exercising more control over retail pricing. At one time, for
example, manufacturers were permitted to set minimum retail prices,
and to require the sale of tied product combinations. Today, of
course, such practices have been deemed illegal as
anti-competitive. Regardless, they still did not yield the level of
control that manufacturers desired.
[0011] Another attempt to exert control over retail pricing is seen
in manufacturers' efforts to manipulate customer price through the
use of paper discount coupons. In theory, such coupons permit a
manufacturer to affect the final net price to the buyer, thereby
affecting the sale of selected products. Again in theory, such
coupons can not only target selected products, but geographic
regions and even, through appropriate distribution of the coupons,
selected customers.
[0012] In practice, however, coupons have been found to be
extraordinarily ineffective. Tens of billions are often printed to
generate a paltry two or three percent use rate. Coupon
distribution is, as a practical matter, uncontrollable. The
manufacturer coupon represents, at best, an expensive, unwieldy,
and poorly effective method by which the manufacturer can exert
minimal control over the retail price.
[0013] Manufacturer rebates are another program by which
manufacturers attempt to influence retail pricing. Rebates suffer
from the same problems as coupons; they are expensive, untargeted,
and have the further problem of being inconvenient for the consumer
to use. Like coupons, rebates exert a relatively modest affect on
the retail price.
[0014] In more industrious and extensive attempts to manage the
retail process, manufacturers have participated directly as
retailers through activities such as factory outlets and direct
catalog sales. Factory outlets, while of limited success in moving
`seconds` (i.e. defective goods) and expiring product lines, create
very significant problems which limit their further use. In their
most negative aspect, factory outlets place manufacturers into
direct competition with their channels, creating ill will, and
often direct conflict their retail partners.
[0015] Catalog sales suffer the same problem as manufacturer
outlets. Further, both efforts--factory outlets and catalog
sales--require a manufacturer to enter and compete directly in the
field of direct-to-customer sales. Such direct participation in
customer sales requires a significant investment in resources, and
business which manufacturers typically have not been required to
develop. More specifically, manufacturers often do not possess
retail skills in the traditional areas of distribution, marketing,
and direct customer support necessary to compete effectively in
direct customer sales. JCPenney is an example of a retailer who,
through the focused utilization of both retail and direct marketing
skills, has developed a highly successful catalog business. The
success of the JCPenney operation, where catalog orders may be
collected through a local retail outlet, has been credited in large
part-to the application of local store retail skills to the catalog
portion of the business. Such retail skills directly illustrate
what most manufacturers are lacking.
[0016] In addition to the problems described above, catalog sales
and related indirect sales suffer from the drawback of making the
customer wait for delivery of a product. Associated with any direct
retail sale is the well-recognized feeling of instant gratification
felt by the customer when exiting the store with the product in
hand. When a product is ordered through a paper or electronic
catalog (or other indirect channel such as a catalog store), the
customer is forced to wait from one day to several weeks to receive
delivery of the purchased goods. Not only does this wait diminish
any feelings of instant gratification, but it will almost certainly
discourage impulse purchases, and may even discourage the customer
from purchasing any goods at all.
[0017] The advent of new technologies, such as electronic
communications and the Internet, have enabled substantial
improvements and enhancements to many phases of the retail process
as described above. However, to the best knowledge of applicants,
uses of such enabling technologies are generally limited to
enhancing and improving the conventional retail process paradigm.
No uses that are known to applicants permit or enable a
manufacturer to significantly, or more directly affect customer
price. Further, in most instances known to applicants, enabling
retail technology has been applied to the benefit of the retailer,
and not the manufacturer.
[0018] As one example of the application of technology for the
benefit of the manufacturer, the traditional coupon process
described above has been implemented online to provide electronic
coupons. However, not only do such coupons suffer many of the
drawbacks described above with respect to traditional coupons, but
they require printing by the consumer and hence are less convenient
for most customers to use. They are also easily susceptible to
fraud and counterfeiting, especially by those possessing the
computer systems and expertise necessary to locate and print
them.
[0019] Another application of new technology to an old sales
paradigm for the benefit of the manufacturer is the implementation
of an online sales `site` (i.e. an electronic web page or web
site). As practiced by a manufacturer, such a website typically
takes the form of an on-line catalog or `mall`. While yielding the
manufacturer direct control of the retail process, such activities
subject him to the same drawbacks and problems encountered with
outlets and direct catalog sales as discussed above.
[0020] Examples of retail systems that use Internet technologies to
supplement known sales processes for retailers include CYBERSLICE,
a pizza sales system wherein buyers order pizza on the net at
store-set prices, and subsequently pick up the pizzas at the store.
PEAPOD is an example of an Internet subscription grocery service
wherein orders placed over the net are, for a fee, filled by PEAPOD
and delivered from a local grocery. Further websites exist where
franchisers and franchisees advertise the costs of goods and/or
services, with fulfillment being conventionally through the
franchisee/retailer.
[0021] Another arena where technology has improved the retail
process is that of reservation-type businesses typically practiced
by distributed chains or franchises. Such businesses include, for
example, hotels and automobile rental companies. A customer
wishing, for example, to make a reservation at a Hyatt hotel may
contact a central Hyatt authority, or a local Hyatt hotel. A price
is determined, and the inventory records of both the Hyatt
authority and the local Hyatt hotel are updated to reflect the
reservation. Technology including the Internet and other computer
network and communications systems functions to increase user
access to the goods and services, and to improve inter-company
processes and communications. Such business models permit a central
authority such as a franchiser to have some affect on customer
pricing. However, these business models represent `closed` systems
where product and services prices are agreed upon and limited to
application within the particular franchise arrangement or
company.
[0022] In all systems currently known to applicants, whether
implemented with time-tested processes or state-of-the-art
technologies, the sales paradigm remains traditional; the
manufacturer surrenders substantially all control over the retail
pricing of his products and services in exchange for access to the
skills of the retailer. As discussed above, these skills are
typically focused in the areas of product distribution and
marketing, and customer support.
[0023] There thus exists a need for a truly new and effective sales
and distribution system which permits a manufacturer to legally and
effectively exert control over the ultimate price to the customer
of his goods and services. Such a system should desirably operate
cooperatively with retailers, preferably utilizing the strengths of
the both the manufacturers and retailers. Such a system should
enable a manufacturer to manipulate the customer price sufficiently
to meet his own goals, while preferably maintaining the goodwill
and profitability of the distributors and retailers.
SUMMARY OF THE INVENTION
[0024] It is an object of the present invention to provide new and
improved systems and processes which preferably utilize enabling
technologies to implement a retail process favorable to both a
manufacturer and a retailer.
[0025] In accordance with the present invention, there is provided
a system and process which enables a manufacturer to legally and
effectively control the customer price of goods and services, while
preserving the profitability of the retailer. Effectively, the
current invention establishes systems and methods for enabling a
manufacturer to establish a `private` price between himself and the
customer. This manufacturer-controlled price can be set legally and
without upsetting either the normal pricing structure or profit
margin of the retailer. Because the profitability of and hence good
working relationship is maintained with the retailer, the retailer
remains highly motivated to sell the manufacturer's products.
[0026] By effectively separating out the pricing of goods from the
distribution, sale, and customer support for those goods, the
present invention presents a new retail paradigm favorable to the
manufacturer while motivating and using the best skills of the
retailer. Further, the present invention provides such benefits and
advantages using technologies available to all participants in the
retail process.
[0027] The benefits of the invention flow not only to the channel,
but also to the retailer and the customer. As will be appreciated,
the retailer is enabled to move inventory much more effectively
with the control of pricing established and supported by the
manufacturer. This is accomplished while maintaining both local
store pricing and profit margins. The customer is provided with
competitive pricing established by the manufacturer, ease of use,
and the instant gratification and high level of service that are
provided by the retailer. The invention is preferably enabled by
newly available electronic communications and networking
technologies, which provide features particularly suited for the
practice of the present invention.
[0028] Accordingly, the present invention provides a system and a
process whereby a customer can examine merchandise information
posted on a web site, receive a list of stores which have either
the customer's desired product in stock or that typically stock the
product, and pick up that product at a designated local store. The
system and process allow a customer to log onto a central
controller via the Internet and "lock-in" a price for a product.
The locked in price represents a price established by a
manufacturer and available at the identified stores regardless of
their regular pricing. Such a locked in price is provided by a
pre-established contractual relationship between the manufacturer
and retailer, with an agreement preferably established for
additional compensation from the manufacturer to the retailer as
necessary to make the retailer whole.
[0029] The central controller or processor can be run by a
manufacturer or any appropriate service provider and is configured
to send the customer's credit card number, a product identifier,
and a store identifier number to a credit card processor. When the
customer goes to the designated local store for acquisition of the
product, he alerts the attendant before making his purchase that he
is entitled to a price established with the manufacturer/central
controller via the Internet. The attendant then enters the
customer's credit card number and the product identifier or number
into a point-of-sale (POS) terminal that is coupled to a POS
controller. The POS controller sends the credit card number and the
product identifier to a credit card processor. The credit card
processor retrieves the purchase price established or set by the
central controller and sends that previously established price back
to the POS controller for routing to the POS terminal. The
attendant causes the previously established price to be charged to
the customer, and the credit card processor transfers funds to the
bank account of the store in a conventional way. At the end of a
billing cycle, the manufacturer/central controller and the local
store reach a settlement based upon a pre-negotiated contract.
[0030] The present invention achieves the aforementioned objects
and provides the aforementioned benefits by providing a system for
facilitating the sale and distribution of products that includes a
data storage system maintaining information related to products
including sellers of and prices for the products, and a data
processing system operatively coupled to the data storage system.
The data processing system is configured to receive a request from
a buyer to acquire a product, to process the request by querying
the data storage system to identify a purchase price and a seller
to sell the product to the buyer at the purchase price, to send a
notice to the buyer indicating the seller and the purchase price,
to receive from the buyer a purchase request including an account
identifier identifying an account to be updated based on the
purchase price, and to send a purchase confirmation notice to the
buyer indicating that the buyer can acquire the product from the
seller at the purchase price.
[0031] Another aspect of the present invention includes the
provision of a process for facilitating the sale and distribution
of products that includes the steps of maintaining information
related to products including sellers of and prices for the
products, receiving a request from a buyer to acquire a product,
processing the request by querying the information to identify a
purchase price and a seller to sell the product to the buyer at the
purchase price, sending a notice to the buyer indicating the seller
and the purchase price, receiving from the buyer a purchase request
including an account identifier, and sending a purchase
confirmation notice to the buyer indicating that the buyer can
acquire the product from the seller at the purchase price.
[0032] Additionally, another aspect of the present invention
includes the provision of a system for facilitating the sale and
distribution of a product that includes a data storage system
maintaining a database related to products including sellers of the
products and prices for the products, and a data processing system
operatively coupled to the data storage system. The data processing
system is configured to receive a request to acquire a product from
a buyer located in a geographic area, to processes the request by
querying the data storage system to identify a purchase price and a
seller located in the geographic area to sell the product to the
buyer at the purchase price, to send a notice to the buyer
indicating the seller and the purchase price, to receive from the
buyer a purchase request including an account identifier, and to
send a purchase confirmation notice to the buyer indicating that
the buyer can acquire the product from the seller at the purchase
price.
[0033] Moreover, another aspect of the present invention includes
the provision of an apparatus for processing a sale of a product
adapted for use by a distributor of products and that includes a
data processing system operated by a distributor that is configured
to receive a product purchase request corresponding to a product
and an account identifier from a buyer, to output the product
purchase request and the account identifier to a credit card
processor, and to receive a predetermined price from the credit
card processor. The predetermined price being paid by the buyer to
the seller allows the buyer to acquire the product from the
seller.
[0034] Additionally, another aspect of the present invention
includes the provision of an apparatus for processing a payment for
a sale of a product adapted for use by a credit card processor that
includes a data storage system operated by a credit card processor
that is configured to maintain data about products including a
buyer account identifier, a product identifier, and a predetermined
price corresponding to a particular product. The apparatus also
includes a data processing system operatively coupled to the data
storage system. The data processing system is configured to receive
a purchase request including an account identifier and a selected
product identifier, to determine if the account identifier and the
selected product identifier correspondingly identify the buyer
account identifier and the product identifier to thereby specify
the particular product, and if the particular product is specified,
to output the predetermined price.
[0035] Furthermore, another aspect of the present invention
includes the provision of an apparatus for facilitating the
purchase of a product adapted for use by a buyer of products that
includes a data processing system operated by a buyer and that is
configured to transmit a product purchase request including a
product identifier and an account identifier to a central processor
and to receive from the central processor a purchase ability notice
indicating a retailer identifier, the product identifier and a
predetermined price identified by the central controller. The
purchase ability notice indicates that the central processor
determined that the product is available for purchase and
acquisition from the retailer. The buyer is able to purchase and
acquire the product from the retailer at a distribution center
maintained by the retailer and at the predetermined price
identified by the central controller.
[0036] Finally, an aspect of the present invention includes the
provision of a system for identifying prices for products on line
and for allowing acquisition of those products from outlets that
honor the prices identified on line that includes a customer having
a credit card account and a computer terminal configured to access
a network a central authority coupled to the computer terminal via
the network. The central authority maintains information about a
product and a corresponding price. The price is established by the
central authority and the central authority is configured to
communicate the information about the product and the price to the
customer via the network. Also included is a credit card processor
coupled to the central authority. The credit card processor is
configured to query the information maintained by the central
authority and to receive the price from said central authority. The
system also includes an outlet having a point-of-sale system
coupled to the central authority and to the credit card processor.
The outlet is arranged to deliver the product to the customer after
the customer purchases the product from the outlet via his credit
card account at the price identified by the central authority and
which was provided to the outlet and the point-of-sale system by
the credit card processor.
BRIEF DESCRIPTION OF THE DRAWINGS
[0037] The present invention is described in detail below with
reference to the following drawing figures of which:
[0038] FIG. 1 is a block system diagram according to a preferred
embodiment of the present invention;
[0039] FIG. 2 is a block diagram of the central processor depicted
in FIG. 1;
[0040] FIG. 3 is a block diagram of a POS controller like the POS
systems depicted in FIG. 1;
[0041] FIG. 4 is a block diagram of the credit card processor
depicted in FIG. 1;
[0042] FIG. 5 is a database table storing inventory data maintained
by the POS controller depicted in FIG. 3;
[0043] FIG. 6A illustrates a database table for storing merchandise
data maintained by the central processor depicted in FIG. 2;
[0044] FIG. 6B illustrates a database table for storing POS data
maintained by the central processor depicted in FIG. 2;
[0045] FIG. 6C illustrates a database table for storing customer
data maintained by the central processor depicted in FIG. 2;
[0046] FIG. 6D illustrates a database table for storing transaction
data maintained by central processor depicted in FIG. 2;
[0047] FIG. 7 illustrates a database table for storing reservation
data maintained by the credit card processor depicted in FIG.
2;
[0048] FIG. 8A is a flowchart that illustrates the process carried
out by the system depicted in FIG. 1;
[0049] FIG. 8B is a continuation flowchart of the flowchart started
in FIG. 8A;
[0050] FIG. 8C is a continuation flowchart of the flowchart started
in FIG. 8A;
[0051] FIG. 8D is a continuation flowchart of the flowchart started
in FIG. 8A;
[0052] FIG. 8E is a conclusion flowchart of the flowcharts started
and illustrated in FIGS. 8A, 8B, 8C, and 8D.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
[0053] In this section, the present invention is described in
detail with regard to the drawing figures briefly described
above.
[0054] Accordingly, the following terms are used throughout the
remainder of this section. For purposes of construction, such terms
shall have the following meanings:
[0055] The terms "outlet", "retailer", "merchant", and "store",
unless otherwise specified below, are used interchangeably to refer
to any type of retail merchandising establishment that sales goods
to and processes point-of-sale transactions from customers. The
terms include both walk-in and remote (i.e. catalog) sellers who,
in accordance with the invention, have agreed to honor a price that
is established between a customer and a manufacturer.
[0056] The terms "product", "good", "item", and "service", unless
otherwise specified below, are used interchangeably to refer to any
type of commodity that may be sold or otherwise distributed by a
retailer. It should be readily appreciated that both products and
services may be sold by retailers. An example of a product is a
video cassette recorder. A service may include dry-cleaning
services.
[0057] The term "user", unless otherwise specified below, refers to
a customer who uses a computer or other personal data processing
system to access a world wide web ("web" or "WWW") or network site
to search through electronic product catalogs, receive manufacturer
established prices for selected products, and to pick up and
possibly purchase such products from local retailers.
[0058] The above defined terms are used below to describe the
preferred embodiments of the present invention in reference to the
attached drawing figures. Where appropriate, like parts are
referred to with like reference numerals.
[0059] Referring now to FIG. 1, therein depicted is a block diagram
of a system 100 for allowing product purchases to be initiated
online (e.g., via a distributed data network connection such as via
the Internet and World Wide Web) and products to be purchased and
picked up at a local retailer. In particular, system 100 includes a
user computer 102 operating a web browser or other appropriate
network connection such as Netscape Navigator V.3.0 or Internet
Explorer for Windows 95. Additionally, system 100 involves a
network 106 (preferably the Internet or any appropriate collection
of interconnected computers), a central controller 110 controlling
a data processing system (not shown), at least one POS controller
116, 118, and 120 each disposed in corresponding retailers, a
telephone network 122, a credit card or financial instrument
processor 124 and at least one banking institution 126, 128, and
130.
[0060] Shown in phantom lines is logical part 115. Logical part 115
represents a store including POS controller 116 and at least one
POS terminal 114 which are coupled together via data link 112. Data
link 112 will be readily understood by those skilled in the art as
a network connection or other appropriate data coupling.
[0061] In addition to the preferred configuration of a user and a
personal computer, user 102 may also operate a WEB-TV device, a
telephone, a facsimile or fax machine, a personal digital
assistant, a screen-phone or any appropriate device to communicate
with central controller 110.
[0062] The component parts forming system 100 will be readily
understood by those skilled in the art of credit card processing
and computer data processing systems. Accordingly, for purposes of
brevity, detailed discussions of such component parts are
omitted.
[0063] In terms of the couplings and connections found in system
100, FIG. 1 illustrates many of the interconnections that allow for
the functionality and interoperability of the component parts
forming system 100. In particular, user computer 102 is coupled to
network 106 via a link 104 which is a line such as a telephone
line, an ISDN line, or a modem line or may be any other network
connection or line (e.g., T1 or T3) that will allow data
communications between a network and a host terminal. User computer
102 may further comprise either a dedicated end-user computer, a
network node such as one employing TCP/IP protocols and having a
network IP address, or possibly a network of users-such as a
corporate buying community coupled together in some form of
intranet or mid-net arrangement. Link 108 with central controller
110 performs a similar function to link 104, and may also be a
dedicated telephone line such as a T1 or T3 broad band
communications line.
[0064] Links 104 and 108 allow for the communication of purchase
related information such as customer numbers, product identifiers,
account numbers, account identifiers, or any other information
communicated between terminal ends of links 104 and 108 (i.e., user
computer 102, Internet 106, and central controller 110). The
communication of such information will be detailed throughout the
remainder of this section. It is important to note, however, that
links 104 and 108 may be used to transport information and messages
from the central controller 110 to user computer 102 regarding
transactions and the like as described below. In this way, system
100 now enables an electronic buying club or other such entity that
could be global in nature.
[0065] Links 111-1, -2, and -3 allow bi-directional data
communications of product identifiers and other information between
central controller 110 and POS controllers 11 6, 118, and 120. Like
links 104 and 108, links 111-1, -2, and -3 may be of any variety
that allow data communications. In most instances, such links will
be dedicated or leased telephony lines.
[0066] Links 117-1, -2, and -3 preferably are telephony links or
any appropriate data link enabling POS controllers 116, 118, and
120, respectively, to communicate via telephone network 122 with
credit card processor 124. The establishment of telephonic links
will be readily apparent to those skilled in the art.
[0067] Link 125 also is a data communications line and is
configured to allow for data communications to occur between
central controller 110 and credit card processor 124. Such
communications involve, among other things, the bi-directional
transmission of purchase-related information such as product
identifier, credit card number, purchase price and any other
information that may be used to establish prices on line to
facilitate the purchase of goods and subsequent acquisition of such
goods from a local merchant.
[0068] Credit card processor 124 also communicates with at least
one issuing bank 126, 128, and 130 via appropriate data links
127-1, -2, and -3 which will be readily apparent to those skilled
in the art of credit card processing systems.
[0069] As will be seen, the structural elements and arrangement of
system 100 enable a new product sale and distribution paradigm. In
particular, system 100 allows a customer through a user computer
102 to browse through merchandise information posted on a network
or web site or on some other commercial on line service such as
AMERICA ON LINE or COMPUSERVE. The merchandise information could be
displayed as an electronic catalog which is hosted by central
controller 110. Central controller 110, for example, is equipped
(FIG. 2) and configured to provide user 102 with a list of
retailers which either have the customer's desired product(s) or
that typically stock such product(s).
[0070] The formation of a list of candidate retailers by central
controller 110 is achieved by a data processing system (FIG. 2)
that is configured to allow searching and criteria setting via a
network interface. Such a system for allowing searching and
criteria setting via the world wide web and the Internet is the
VERITY SEARCH ENGINE designed and implemented by VERITY SOFTWARE,
INC. Such a search engine allows user computer 102 to specify a
geographic location, product choices, product feature sets, price
ranges, etc. The search engine scans appropriate database tables
such as those depicted in FIGS. 6A-6D to produce and provide lists
of retailers in a particular geographic location (e.g., the
specified location of user computer 102) normally stocking products
having particular traits selected by the user and which are sold at
identified prices as set and established by a manufacturer and
stored in and displayed by central controller 110. The
implementation of such web-enabled search and database systems will
be readily apparent to those skilled in the art of database
management systems.
[0071] In system 100, when user computer 102 identifies a product
online via an interactive web-browser, user computer 102 is then
provided a price established by a manufacturer and transmitted from
central controller 110. Thereafter, user/customer can purchase and
pick up the selected product from a retailer, selected from the
list of retailers who have agreed to honor the price set by the
manufacturer and transmitted to user computer 102, regardless of
the retailer's normal price for such product. Accordingly, system
100 allows user computer 102 to log onto a central controller via
network 106 and "lock-in" a price for an item which may be
different from the shelf price posted at the local store from which
the customer chooses to subsequently purchase that item.
[0072] Of course, it should be appreciated that system 100 and the
present invention may be configured to allow purchases, in addition
to prices establishment, to occur via on line means such as by way
of an electronic commerce package (e.g., NETSCAPE COMMUNICATIONS'
COMMERCE SERVER software package). In such an embodiment, user 102
transmits payment data to central controller 110, or directly to
the merchant. Payment may take the form of a credit card purchase
or other electronic payment such as a wire transfer or other form
of digital or electronic cash.
[0073] In addition to the notion of selecting goods and products
and establishing prices for the same online, system 100 allows for
local store inventory checking and inventory reservations so that a
customer knows and is assured that he may acquire a particular
product for which he received a price online. Accordingly, after a
consumer negotiates a price for a selected product, the consumer is
assured that he will actually receive the product when he goes to a
selected retailer to acquire that product. As such, system 100 can
allow a hold or reservation to be made to reserve an inventory item
at a local store.
[0074] Such reservations of goods can occur by having central
controller 110 send a message to the selected local store that
causes the local store to place a hold on the inventory item. Such
a message is preferably sent electronically in the form of a
database instruction and, in particular, an automatic
computer-to-computer communication that causes the local store's
database management and computer data processing system to create a
reservation hold record in an appropriate database to reference a
reserved product. For example, electronic data interchange (EDI)
messages may be used to communicate inventory holds and
reservations. Additionally, an automated voice messaging system
could be configured to be operated by central controller 110 to
cause a voice-based message to be sent to an attendant, possibly an
automated attendant, for appropriate routing and inventory holding.
As such, by causing a reservation to be made via some form of
communication between central controller 110 and a local store,
user 102 can be assured that his product will be set aside for his
purchase and pickup.
[0075] The actual process of reserving an inventory item can occur
by setting a flag in an appropriate database management system that
corresponds to a particular inventory item that is maintained by a
local store's data processing system. The setting of flags and the
recordation of data items and controls necessary to indicate a
state relative to a particular field in a database management
system will be readily understood by those skilled in the art of
computer programming and, in particular, database management
systems.
[0076] The aforementioned functionality is achieved, in large part,
by central controller 110 and its data processing systems (FIG. 2).
Central controller 110 preferably is operated by any appropriate
party capable of receiving data from one or more manufacturer and
operating and maintaining the controller as described below. In any
case, central controller 110 is configured to send a customer's
credit card number, a product number or identifier, and a store or
merchant ID to credit card processor 124 who also maintains a data
processing system that carries out certain functionality of system
100 (FIG. 4).
[0077] In system 100, after user 102 computer receives a purchase
price from central controller 110, the customer may then go to a
store of his choice for pick up or acquisition of his selected
product. At the store (designated by logical part 115 in phantom
lines), user 102 alerts a cashier or point-of-sale attendant that
he has established a price for a selected product with central
controller 110 via network or Internet 106. Thereafter the cashier
enters user 102's credit card number and an appropriate product
identifier (e.g., a part number, SKU, UPC or other bar-code
identifier) into a point-of-sale (POS) terminal (e.g., POS terminal
114) such as one manufactured by VERIFONE (e.g., the VERIFONE TRANZ
Model No. 380) and that is coupled to a POS controller (e.g., POS
controller 116).
[0078] The operative POS controller (e.g., POS controller 116 for
sake of discussion) is configured to thereafter send user 102's
credit card number and the product number or identifier via link
117-1 and telephone network 122 to credit card processor 124 for
processing. In system 100, credit card processor 124 can retrieve
the purchase price from its data store which was earlier provided
with corresponding pricing data by central controller 110.
[0079] Thereafter, in system 100, the aforementioned cashier causes
the price retrieved from credit card processor 124 and displayed by
point of sale terminal 114 to be charged to user 102 and the credit
card processor transfers funds to the bank account of the store (in
this case logical part or logical store 115). At the end of the
billing cycle, the manufacturer who established the price and the
local store reach a settlement based upon a previously established
contract between the parties.
[0080] The aforementioned discussions about the structure and
operations of system 100, make clear that a customer with a user
computer 102 can now access a network containing product
information to receive a manufacturer set price for an item on line
from a central authority to facilitate a purchase of that item.
Thereafter, the customer can purchase and pick up that item from a
merchant or other local retail outlet that will honor the
manufacturer set price. In this way, system 100, in effect, removes
the element of price establishment from the typical product sale
process or merchandising paradigm and places it with the
manufacturer.
[0081] By removing the price establishment element from the typical
merchandising paradigm and placing the same in the hands of a
manufacturer, buyers will be able to take advantage of better
pricing while allowing manufacturers and other central authorities
to realize greater volumes of sales via electronic commerce and the
like. Moreover, by allowing manufacturers and other central
authorities to set and display prices for goods online while having
local merchants support and service purchased goods, buyers both
receive favorable pricing and excellent service. Such direct
marketing on line will allow manufacturers and other central
authorities to run sales campaigns that are managed directly by
such manufacturers, while continuing to use partner retailers for
servicing of goods. Further, since the retailers will subsequently
be reimbursed or otherwise made whole under contract with the
manufacturer, they are motivated to provide quality sales and
service support to the customer.
[0082] In addition to the foregoing comments, it should be noted
that the present invention is primarily concerned with establishing
prices for goods and products on line and allowing customers to
acquire and purchase such goods and products from local retailers
of their choice. The present invention further contemplates the
establishment of prices for services and the like.
[0083] Referring now to FIG. 2, central controller 110 includes a
processor 202 and a data storage system 204. Processor 202 is
conventional and for example may comprise one like those
manufactured by SUN (e.g., the Sun Sparc 1000 running the Solaris
Operating System). Processor 202 is a computer system adapted to
run software programs and that is configured with communications
equipment such as telephony communications and network
communications equipment to communicate with credit card processor
124 via communications link 206, user 102 via communications link
208, and at least one POS controller 116, 118, and 120 via
communications link 210. Data storage system 204 is preferably any
form of mass storage device configured to read and write data in a
file store (e.g., magnetic and/or optical disk data storage
devices). Of course, it will be readily appreciated that data
storage system 204 may be one that consists of multiple disk
sub-systems which may be geographically dispersed and coupled via a
network architecture. There is no requirement that data storage
system 204 be maintained in one facility; to the contrary, the
volume of information stored therein may dictate geographical
dispersion and the like. All that is required is that data storage
system 204 be logically addressable across a networked system. The
implementation of local and wide-area database management systems
to achieve the functionality of data storage system 204 will be
readily understood by those skilled in the art of computer
technologies.
[0084] Processor 202 and data storage system 204 are coupled
together in a conventional way via a link 212. Communications link
212 is a high-speed data transfer medium which may include a bus or
network architecture as indicated above. As such, communications
link 212 will be readily understood by those skilled in the art of
computer architecture.
[0085] Stored within data storage system 204 are database tables
forming a database management system maintained by central
controller 110. In particular, data storage system 204 stores a
merchandise database 216, a POS controller database 218, a customer
database 220, and a transaction database 222 which are managed by a
relational database management system software package such as the
Oracle System 7 database management system. The creation of such
databases and the management and manipulation of such tables will
be readily apparent to those skilled in the art of database
management systems and, especially, relational database management
systems. The database tables stored within data storage system 204
are addressed in detail below with regard to FIGS. 6A-6D.
[0086] Referring now to FIG. 3, therein depicted is a block diagram
of POS controller 116. In particular, POS controller 116 includes a
processor 302 and a data storage system 304. Processor 302 is
preferably like processor 202 (FIG. 2) and, accordingly, a detailed
discussion of the computer system forming processor 202 is omitted
for purposes of brevity. The construction and operation of
processor 302 will be readily appreciated by those skilled in the
art.
[0087] In addition to processor 302, POS controller 116 includes a
data storage system 304 like data storage system 204. Accordingly,
a detailed discussion of data storage system 304 is omitted for
purposes of brevity. Data storage system 304 is shown to maintain a
database table identified as an inventory database 306 which is
discussed in detail below in regard to FIG. 5.
[0088] As in FIG. 2, processor 302 and data storage system 304 are
coupled via a link 303 such as a bus or network architecture. Link
303 will be apparent to those skilled in the art of computer design
and a detailed discussion of the same is therefore omitted.
[0089] Processor 302 is configured with a conventional
communications section (not shown) to communicate with three POS
terminals 308, 310, and 312 via links 314, 316, and 318,
respectively, as was originally illustrated in regard to the
structures shown in FIG. 1. A box 313 shown in phantom lines
includes POS terminal 308 and is intended to identify a merchant or
retailer that maintains POS terminal 308. The nature of
communications links 314, 316, and 318 will be readily apparent to
those skilled in the art.
[0090] In addition to communicating with POS terminals 308, 310,
and 312, processor 302 is configured to communicate with a central
controller and a credit card processor via communications links
111, 117, respectively, as was illustrated in FIG. 1.
[0091] Referring now to FIG. 4, therein depicted is a data
processing system of a credit card processor of the type originally
illustrated in FIG. 1. In particular, credit card processor 124
includes a data processing system having a processor 402 and a data
storage system 404. Processor 402 is preferably like processors 202
(FIG. 2) and 302 (FIG. 3) and, accordingly, a detailed discussion
of the computer system forming processor 402 is omitted for
purposes of brevity. The construction and operation of processor
402 will be readily appreciated by those skilled in the art.
[0092] In addition to processor 402, credit card processor 124
includes a data storage system 404 like data storage system 204
(FIG. 2) and 304 (FIG. 3). Accordingly, a detailed discussion of
the construction and operation of data storage system 404 is
omitted for purposes of brevity. Data storage system 404, however,
is shown to maintain a database table identified as a reservation
database 406 which is discussed in detail below in regard to FIG.
7.
[0093] As in FIGS. 2 and 3, processor 402 and data storage system
404 are coupled together via a communications link 403 such as a
high-speed bus or network architecture. The nature of link 403 will
be apparent to those skilled in the art of computer design and a
detailed discussion of the same is therefore omitted.
[0094] Processor 402 is configured with a conventional
communications section (not shown) to communicate with a central
controller and at least one retail outlet via a point-of-sale
controller such as the one depicted in FIG. 3 that was originally
illustrated in FIG. 1.
[0095] The aforementioned and described systems shown in FIGS. 2-4
are illustrative of preferred embodiments of systems that may be
used to carry out the functions of the system depicted in FIG. 1.
Moreover, the data stored in the tables maintained by the systems
depicted in FIGS. 24 may change and vary to suit particular
implementation details and requirements. Such changes will be
readily appreciated by those skilled in the art of computer system
design and implementation.
[0096] The following paragraphs describe the database tables that
are used in the present invention to allow users through a user
computer 102 (FIG. 1) to receive prices for selected products on
line and to pick up such products from local outlets. The database
tables depicted in FIGS. 5, 6A, 6B, 6C, 6D, and 7 are preferred
embodiments and are intended to be operational in a computerized
data processing system adapted to manage table relationships
established by common fields and proper table joins and related
queries. In particular, a relational database management system is
well-suited to manage the flow of information within a system such
as system 100 (FIG. 1) and the processing of data and the tables
illustrated in FIGS. 5, 6A, 6B, 6C, 6D, and 7. Preferably, the
database management system that is used to manage the database
tables illustrated in FIGS. 5, 6A, 6B, 6C, 6D, and 7 is ORACLE 7
produced by ORACLE CORPORATION or a product of similar function. Of
course, many changes and alterations may be made to such tables to
effect certain functionality depending on particular design and
implementation details. Such changes and alterations will be
apparent to those skilled in the art of computer programming and
database management system design and implementation. Moreover, the
use of a database management system such as ORACLE 7 will be
readily apparent to those skilled in the art of database design and
implementation.
[0097] In addition to the foregoing comments, certain records in
the database tables that are discussed below have asterisks next to
certain record identifiers. The asterisks are intended to identify
the records among the tables that are related by way of a
subsequently described transaction, and are meant to illustrate the
benefits associated with the present invention. The records marked
with asterisks will also be referenced in the flowcharts of FIGS.
8A-8D to clarify the operations carried out by the various
components of system 100 (FIG. 1).
[0098] Referring now to FIG. 5, therein depicted is a database
table for storing records related to inventory items on hand at a
given retailer that maintains a POS controller system such as POS
controller 116 (FIG. 3). INVENTORY DATABASE table 306 (hereinafter
"table 306") has a column and row arrangement whereby columns
define fields and rows define data records stored according to the
field specification of the columns. In table 306 there are two
columns--one for storing ITEM or PRODUCT NUMBERS and another for
storing QUANTITY AVAILABLE. Table 306 illustrates three
records.
[0099] Record R1 contains information related to an item or product
having an ITEM NUMBER of 4956323. Record R1 has been marked with an
asterisk next to its record identifier to indicate that it is
related to other records in other tables that will be discussed in
detail in the following paragraphs. The store to which table 306
pertains (i.e., the store or retailer that maintains a POS
controller that manages table 306), currently has 45 pieces on hand
in inventory as indicated by the QUANTITY AVAILABLE. Accordingly,
the store or retailer to which table 306 (and a corresponding POS
controller) pertain, can allow for a guaranteed local pick up of
item or product number 4956323 if a user or customer uses a system
like system 100 (FIG. 1) to lock-in a price and a guarantee for
local pick up.
[0100] Records R2 and R3 have the same record format as record R1
and indicate similar information related to other products
available for sale by a store or retailer that maintains a POS
controller that manages table 306. Accordingly, for purposes of
brevity, a detailed review of records R2 and R3 is omitted.
[0101] The relationship of table 306 to other data processing
systems and databases utilized in system 100 (FIG. 1) will be clear
from the discussions of the same that follow in regard to FIGS.
6A-6D, and 7 and the subsequent discussions in this section
regarding FIGS. 8A-8D. It is important to note, however, that the
structure and arrangement of table 306, including its columns and
fields, may change to suit particular design requirements. Many
columns may be added to table 306 to carry our certain
functionality and control within a data processing system employing
a database table like table 306. Such additions and changes will be
apparent to those skilled in the art.
[0102] Referring now to FIG. 6A therein depicted is MERCHANDISE
DATABASE table 216 (hereinafter "table 216") which is maintained by
a central controller 110 in system 100 in a data storage system 204
as illustrated in FIG. 2. Table 216 has a column and row
arrangement wherein columns form the fields and rows form the
records. In particular, table 216 stores information about ITEM
NUMBERs, ITEM DESCRIPTIONs, MANUFACTURERs, MODEL NUMBERs, PRICEs
set by the manufacturer, STORE ID NUMBERs, and QUANTITY AVAILABLE
relative to particular products.
[0103] In table 216, record R1 has been marked with an asterisk
next to its record identifier to indicate that it is related to
other records in other tables and will be discussed in detail in
the following paragraphs. Record R1 stores information related to
an ITEM NUMBER 4956323 for a FOUR HEAD VCR manufactured by SONY
having a model number of TS-131 and which is to be sold by a store
having an identification number of 32449 which has 45 such VCRs on
hand in its inventory. Store number 32449 will honor the price of
$349.99 as set and established by the manufacturer regardless of
whether the store usually or regularly sells such a VCR at that
price or not. Accordingly, as will be discussed in detail below,
table 216 allows system 100 to establish a price with a buyer for
the VCR and allows the buyer to go to a local store (in this case
store number 32449) for purchase and pick up of that VCR.
[0104] Records R2 and R3 illustrate other products that may be
offered to buyers on line and for which prices have been
established and will be honored by local merchants. Accordingly,
for purposes of brevity, a detailed review of records R2 and R3 is
omitted. It is important to note, however, that table 216 stores
information about products offered by different stores, thereby
illustrating a key aspect of the present invention. That is, the
operator of the central controller that maintains table 216 need
not necessarily be a member of the organization that owns a
particular store such as store number 32449 (CALDORS as indicated
and discussed below in regard to FIG. 6B). Rather, at a minimum,
all that is required is a contractual relationship between the
manufacturer who sets the prices and the retailers who sell the
goods. Such a contract should typically involve the requirement
that the price (e.g., $349.99 for the Four Head VCR sold by store
number 32449 as indicated in record R1) that is displayed through
the central controller is to be honored by a contractually
obligated store or outlet.
[0105] Moreover, the prices shown in table 216 are prices that,
when accepted by a buyer via an on line request, are considered as
the set prices. When a buyer visits a local retailer for
acquisition of a product selected on line, the set price will be
the purchase price and will be honored by the merchant. The
merchant may charge sales or other taxes during the course of a
transaction, but such taxes do not affect the sales price
established by the central controller.
[0106] In table 216, the prices displayed are in U.S. dollars. The
present invention, however, is not so limited. In fact any form of
currency may be used and a system such as system 100 employing any
of the database tables described herein may be configured to allow
conversions from one form of currency to another. Such conversions
may be necessary when a buyer wishes to pick up or acquire goods
from an outlet overseas after negotiating the price for such goods
from the comfort of his home or office.
[0107] Referring now to FIG. 6B, therein depicted is POS CONTROLLER
DATABASE table 218 (hereinafter "table 218") which is maintained by
a central controller 110 (FIG. 1 and FIG. 2). Table 218 has a
column and row arrangement wherein columns form the fields and rows
form the records. In particular, table 218 stores information
related to POS CONTROLLER IDs,; STORE NAMES, ADDRESSes, and STORE
ID NUMBERs. In this case, the store identification numbers are the
same as the POS controller identification numbers, but the
invention is not so limited.
[0108] In table 218, record R3 has been marked with an asterisk
next to its record identifier to indicate that it is related to
other records in other tables and will be discussed in detail in
the following paragraphs. Record R3 stores information related to a
POS CONTROLLER that is maintained by CALDORS, a retailer at 1297
Hard Road in Phoenix, Aria., and which has a store identification
number of 32449.
[0109] The other records in table 218 contain information similar
to record R3. Accordingly, detailed discussions of records R1, R2,
and R4 are omitted for purposes of brevity. It is important to
note, however, that table 218 is related to table 216 via a common
column or field such as STORE ID NUMBER and that table 218 allows a
central controller to display store names to a buyer on line by
performing a database query on table 218 or a join to relate tables
216 and 218 so as to relate store names to store identification
numbers.
[0110] Referring now to FIG. 6C, therein depicted is CUSTOMER
DATABASE table 220 (hereinafter "table 220") which is maintained by
central controller 110 in system 100 (FIG. 1 and FIG. 2). Table 220
has a column and row arrangement wherein columns form the fields
and rows form the records. In particular, table 220 stores
information about customers of a central controller who have
registered to use the services provided by the central controller.
In particular, table 220 stores information relating to CUSTOMER
NAMEs, REGISTERED USER ID NUMBERs, CREDIT CARD NUMBERs, EXPIRATION
DATEs, TELEPHONE NUMBERs, E-MAIL ADDRESSES, and ADDRESSES.
[0111] In table 220, record R3 has been marked with an asterisk
next to its record identifier to indicate that it is related to
other records in other tables and will be discussed in detail in
the following paragraphs. Record R3 stores information related to a
customer named Betty Cardow who has a customer identification
number of 123546215, a credit card number of 3333-3333-3333-3333, a
credit card expiration date of 2/98, a telephone number of (343)
899-0099, an e-mail address of card@web.tv.net, and a street
address of 1191 Anvil Drive in Norwalk, Conn. In this case, Ms.
Cardow is a WEB-TV user who apparently uses her television set
configured with world wide web navigating technology to allow her
to visit a web site maintained by the central controller to receive
manufacturer-set prices for goods that she can acquire at stores
near her home in Norwalk, Conn.
[0112] Records R1 and R2 illustrate other customers and registered
user of the central controller that maintains and manages table
220. Accordingly, for purposes of brevity, a detailed review of
records R1 and R2 is omitted.
[0113] Referring now to FIG. 6D, therein depicted is a COMPLETED
TRANSACTION DATABASE table 222 (hereinafter "table 222") which is
maintained by central controller 110 in system 100 (FIG. 1 and FIG.
2). Table 222 has a column and row arrangement wherein columns form
the fields and rows form the records. In particular, table 222
stores information used by a central controller to record
transactions in which it has established the manufactuer-set prices
and for which customers may have acquired corresponding goods from
local stores in relation thereto. Table 222, as will be discussed
below in regard to FIGS. 8A-8D, is used by a central controller to
settle transactions with local stores based on pre-negotiated
contracts between such local stores and manufacturers. In the case
of a transaction where a buyer actually acquires a product from a
local store after the buyer has received a set price for the same
from the central processor, the local store may have an arrangement
(i.e., by way of a pre-negotiated contract like those discussed
above in regard to table 218) whereby the manufacturer may pay a
portion of the difference between the set price and the local
store's normal shelf price to the local store. Such arrangements
are mentioned to illustrate the nature and purpose of table
222.
[0114] In table 222, record R3 has been marked with an asterisk
next to its record identifier to indicate that it is related to
other records in other tables and will be discussed in detail in
the following paragraphs. Record R3 stores information related to a
transaction involving an item having number 4956323, and a credit
card number 3333-3333-3333-3333 and that occurred at a store having
a POS controller ID number 32449 on 5/26/97. As noted in record R3,
the transaction or the established price is set to expire or
otherwise cease to be valid on 5/29/97; after 5/29/97, the customer
having credit card number 3333-3333-3333-3333 will not necessarily
be guaranteed to receive item number 4956323 at the
manufacturer-set price of $329.99 as indicated in table 406
(discussed below). As should be readily apparent, record R3 is
related to records in other tables. For example, record R3 relates
to Ms. Cardow (from table 220) who visited a SHARPER IMAGE store in
Stamford, Conn.
[0115] Records R1 and R2 illustrate other transactions stored by a
central controller in table 222. Accordingly, for purposes of
brevity, a detailed review of records R1 and R2 is omitted.
[0116] Referring now to FIG. 7, therein depicted is RESERVATION
DATABASE table 406 (hereinafter "table 406") which is maintained by
credit card processor 124 in system 100 (FIG. 1 and FIG. 4). Table
406 has a column and row arrangement wherein columns form the
fields and rows form the records. Table 406 is shown to store data
relating to three reservations. For each reservation, a CREDIT CARD
NUMBER, a POS CONTROLLER ID, an ITEM NUMBER, a PRICE from the
central controller, a TRANSACTION DATE, an EXPIRATION DATE, and a
STORE ID NUMBER are stored. Each record in table 406 stores a
reservation that can be used by a POS controller and a POS terminal
to determine a price for a given product that was set online and
which a local merchant will honor. A reservation allows system 100
to enable a buyer to "lock-in" a price for a product and pick up or
acquire that product from a local merchant who will honor the price
previously negotiated. Table 406 can also be used to drive systems
within a store to place holds on inventory items.
[0117] For purposes of discussion, record R3 has been marked with
an asterisk next to its record identifier to indicate that it is
related to other records in other tables and will be discussed in
detail in the following paragraphs. Record R3 stores information
about a reservation which was created by a central controller 110
(FIG. 1). Moreover, record R3 stores information related to a
transaction involving a credit card having a credit card identifier
of 3333-3333-3333-3333 and which occurred at a store having an
identification number or code of 32449. Additionally, the
reservation was processed by a POS controller having an
identification number of 32449 and involves the sale and local pick
up of a product having an item number of 4956323 which is to be
sold for $329.99. The date of the transaction was 5/26/97 and the
price was good until the expiration date of 5/29/97.
[0118] Accordingly, table 406 illustrates how, after a buyer
received the sale price of $329.99 from central controller 10, a
reservation was recorded by a credit card processor (as indicated
by the user's credit card number stored in table 220) in table 406.
That reservation will enable the buyer to visit store number 32449
(in this case CALDORS as identified by table 218) to pick up her
four head VCR (as indicated by table 216) by 5/29/97 at the price
of $329.99 which may be significantly lower than the price store
number 32449 normally charges (i.e., shelf price).
[0119] Records R1 and R2 illustrate other reservations stored by a
credit card processor in table 406. Accordingly, for purposes of
brevity, a detailed review of records R1 and R2 is omitted.
[0120] The systems shown in FIGS. 14 including the database tables
illustrated in FIGS. 5, 6A, 6B, 6C, 6D, and 7 have been designed to
operate together The flowcharts illustrated in FIGS. 8A-8D and
described below outline the steps carried out by a system such as
system 100 in manipulating the aforementioned database tables to
allow customers to receive established prices for goods on line and
to acquire or obtain such goods from local retailers that will
honor such prices.
[0121] Referring now to FIG. 8A, depicted therein is a flowchart
that illustrates the salient steps of a preferred process for
allowing a system such as system 100 to enable buyers to receive
manufacturer set prices for goods and products online and to
acquire such goods and products from local stores that will honor
such prices. Many of the steps depicted in FIG. 8A illustrate the
sequence of operations carried out by a data processing system
maintained by a central controller such as central controller 110
(FIG. 1). The computer programming necessary to carry out the
functions stated below will be readily apparent to those skilled in
the art of computer programming. Additionally, the use of
web-enabled technologies to allow data entry on web site screens
and the querying and searching of web-enabled database systems
(including the systems described herein) will be readily apparent
to those skilled in the art. For example, it is quite common for
users of the Web to visit a web site that allows HTML (hypertext
markup language) data entry screens to be filled-in on line and to
drive search engine systems such as the VERITY SEARCH ENGINE by
Verity Software to provide users with lists of matching data. One
such on line search and retrieval system is maintained by the U.S.
Patent and Trademark office at http://www.uspto.gov and is used to
specify search criteria which is processed to derive lists of
matching U.S. patent abstracts. Such data search and retrieval
systems will be immediately understood by web developers and the
like.
[0122] Processing starts at Step S8-1 and immediately proceeds to
Step S8-2 where a customer or user logs into a web site maintained
by a central controller via web enabled browser such as one
manufactured by Netscape (i.e., the Netscape Navigator). Of course,
the term "logging in" in this context is used loosely as the world
wide web on the Internet is a stateless and anonymous environment.
Those skilled in the art of web enabled computer systems will
appreciate how to provide a "log in" setting and the like.
[0123] After accessing the central controller, the customer is
queried to enter his telephone number, e-mail address, and street
address to the central controller at Step S8-3.
[0124] It should be understood that although the web and the
Internet are the preferred modes by which the customer logs into or
accesses the central controller, the present invention contemplates
and covers other communications approaches. For example, the
present invention can accommodate the case where the customer uses
his telephone to dial into a central controller to speak with an
operator. Alternatively, a voice response unit could prompt the
user for input of information such as catalog information.
Additionally, the present invention can accommodate the case where
the customer uses a facsimile machine or device to send requests to
the central controller.
[0125] At step S84, the central controller stores the customer
information in the customer database (see FIG. 6C at Record R3) and
assigns the customer a customer identifier number which is also
stored in the customer database.
[0126] Thereafter, at step S8-5, the customer may be queried about
the type and nature of the products that the customer desires to
purchase. Additionally, the customer may be queried to provide
preferences relating to tradeoffs for distance to a local merchant
and price. For example, the customer might indicate that he will
travel ten or more miles beyond his home or office to acquire a
desired product if he can find a price that is 25% lower than the
best price he has seen. Alternatively, the customer may specify
that he is willing to pay more, say 10% more, for a particular
product if he can acquire the same from a local merchant within one
or just a few miles from his home or office. And, the customer
might also specify preferences as to desired stores such as a
willingness to pay more to shop at a NORDSTROM store versus a
requirement to pay less if he is willing to shop at a CALDOR
store.
[0127] In any case, it is also important to note that the central
controller could be operated as a web site accessible via the
Internet and world wide web. The central controller could be
operated by a credit card issuer such as AMERICAN EXPRESS who could
offer an Internet-based price establishment service as a benefit
program for use only by its card holders. Such a card issuer based
system could be configured, in addition to establishing prices on
line, to allow purchasing of products on line. In that case, price
establishment could be restricted by requiring use of the
card-issuer's credit card and the like.
[0128] In any case, processing proceeds to Step S8-6, where the
central controller queries its POS controller database (see FIG. 6B
at Record R3) to determine retail stores in the customer's locality
and, possibly, based on the customer's preferences as discussed
above. Of course, the present invention may be configured in such a
way that the central controller automatically generates location
data based on the customer's zip code or on the customer's
telephone number which may be obtained via well-known automatic
systems such as caller-ID systems and the like.
[0129] In any case, at Step S8-7, the central controller queries a
merchandise database (see FIG. 6A at Record R1) to determine the
inventory available to the customer from the retail stores in the
customer's locality and displays inventory data to the
customer.
[0130] Of course, in producing and providing the virtual inventory
to the customer, the central controller could be configured to
display, possibly at the option of the customer, functional
equivalents to customer choices. For example, a customer may enter
a product such as a SONY 2-Head VCR having model or item number
AR456 and the central controller could search its merchandise
databases to determine other models from SONY or from other
manufacturers that perform substantially the same functions as the
customer's original request. Such other models can be included and
displayed by the central controller in a list of inventory search
results thereby broadening the purchase options available to the
customer.
[0131] In addition to searching through the merchandise database
maintained by the central controller to produce the virtual
inventory listing to be presented to the customer on line, the
present invention also contemplates and covers the case where
real-time, store-based inventory queries may be implemented. In
such a case, the central controller, after being presented with
merchandise search criteria, could be configured to search the
inventories of local stores to build the virtual inventory. Such
inventory queries could be established as database queries (e.g.,
SQL queries) to be run against store-based inventories maintained
by store or merchant systems such as a system connected to a POS
controller and the like for a given store. The system shown in FIG.
1 can allow transfer of such queries and reception of inventory
data related to the same via links 111-1, -2, and -3 coupling
central controller 10 and POS controllers 116, 118, and 120,
respectively.
[0132] In any case, at Step S8-8, the customer may browse the
virtual inventory provided by the central controller, choose
desired merchandise and agree to prices set by the manufacturer and
displayed by the central controller.
[0133] In addition to displaying the virtual inventory, the central
controller can also present corresponding stock-out statistics
(i.e., projected future inventory levels based on historic sales
rates) to the customer so that the customer knows, for example,
that a certain store has eight VCRs left in inventory but that the
same will probably be sold out by a certain time. Accordingly, the
presentation of such stock-out statistics to the customer can
motivate the customer to make a purchase on line thereby increasing
impulse buying.
[0134] The prices set by the manufacturer and provided by the
central controller and provided to the customer online are intended
to be the price that a local store will honor without exception. It
is important to reiterate that it is the central controller that
establishes the price that the local store, as described below,
will honor when the customer visits the store for acquisition of
his selected product(s). Additionally, the present invention allows
the central controller to process a bid or counter-offer price from
the customer on line. In such a case, the central controller can
determine if the manufacturer will accept the customer's price and
can establish the price based on the customer's bid or
counter-offer price.
[0135] Thereafter, at Step S8-9, the customer can then send his
credit card number (possibly via an SSL security enabled browser
such as in the Netscape Navigator client). And, at Step S8-10, the
customer may choose a local store or retail outlet from which to
pick up his earlier selected merchandise.
[0136] Accordingly, at Step 8-11, the central controller creates a
record in its transaction database (see FIG. 6D at Record R3).
[0137] Processing then proceeds as illustrated at the top of FIG.
8B.
[0138] At Step S8-12, the central controller transmits a pick up
expiration notice including a valid price expiration date to the
customer by displaying it on the web site or transmitting it to the
user via electronic mail.
[0139] At Step S8-13, the central controller transmits the
customer's credit card number, the store ID number, and the
merchandise item number to a credit card processor for appropriate
processing (see FIG. 7). This transmission, as described below,
allows a credit card processor to create a record in its
reservation database (FIG. 7). The reservation database can be used
to drive an-inventory holding system maintained by a merchant.
[0140] Of course, the transmission of the customer's credit card
number could be replaced with another identifier such as a central
controller assigned customer number as is shown in FIG. 6B
(CUSTOMER ID NUMBER). Accordingly, the following references to
credit card number for identification purposes also contemplate the
use of another customer identification number. Further, the credit
card processor could alternately comprise any appropriate service
provider capable of storing the requisite information and
transmitting it for use at the POS. The central controller for
example may provide this service in lieu of the credit card
processor.
[0141] It should also be noted that the use of a credit card to
establish prices and to reserve an inventory item at a particular
local store does not necessarily imply that the ultimate purchase
transaction that may occur at the local store will utilize the
customer's credit card number. The present invention uses the
customer's credit card number as a reservation vehicle much like
hotels use in reserving rooms in advance. At the time that the
customer actually visits a store to purchase a particular item for
which he received a set price from a central authority, the
customer may present any form of tender (e.g., a personal check, a
debit card, cash, or any other payment vehicle such as a store
credit, gift certificate, etc.) to pay for the subject product.
Additionally, the present invention contemplates the situation that
a reservation of a product and the establishment of a price in one
form of currency (e.g., U.S. dollars) does not require that the
ultimate purchase transaction involve the same form of currency.
For example, a U.S. customer or user may access a web site, receive
a published, established price for a particular product, select a
point of local pick up (e.g., at an airport in a foreign country),
and pay for the product at the point of local pick up in a
different, exchanged currency. Accordingly, it should be readily
appreciated that the present invention contemplates a multiple or
mixed payment modal type transaction. And, it should be clearly
understood that the transaction involving the set price for a
product can be treated separately and distinctly from the actual
purchase transaction.
[0142] Next, at Step S8-14, the central controller conveys a
reservation notice such as an electronic mail item or the like to
the local store indicating that the item is to be reserved by the
local store. That reservation notice may also take the form of an
electronic message such as an electronic-data-interchange (EDI)
document that notifies the merchant to place a hold on an inventory
item and to keep it from general consumption and, specifically,
held for the customer Additionally, the reservation notice may also
take the form of a electronic voice message produced from a voice
notification unit or a facsimile message produced from an automatic
facsimile device (e.g., a fax server).
[0143] Thereafter, the credit card processor stores a record in its
reservation database (see FIG. 7 at Record R3) at Step S8-15.
[0144] After the customer confirms his desire to complete a
purchase transaction at the local store (e.g., a purchase request
notice), as noted at Step S8-16, the customer may then visit the
local store he selected on line via the web to purchase and acquire
his selected merchandise.
[0145] Of course, it should be noted that the present invention and
the process depicted in the flowcharts now being described can
accommodate real time or on line processing to effectuate an actual
charge to the customer's credit card for the purchase of the
selected merchandise at the price set in advance of pick up or
acquisition of such merchandise from a local outlet. Additionally,
rather than charging the customer the established price in real
time, the difference between a store price and the established
price could be made to appear as either a rebate on the customer's
credit card bill or as a check that the central controller mails or
otherwise delivers to the customer. In such a case, the central
controller would post the purchase price, the store ID, and the
customer's credit card number with the credit card processor and,
in particular, in the credit card processor's reservation database
(FIG. 7). When a transaction is made that matches a record in the
reservation database of the credit card processor, the central
controller could bill the store for the difference in price and
possibly charge a transaction fee to either the customer's account
or the store's account, and thereafter credit the difference to the
customer and indicate the same on the customer's bill.
[0146] The preferred approach to concluding a credit card
transaction according to the present invention is to have the
merchant or local store process the charge at the point of sale to
thereby allow the local store to realize an immediate revenue
stream.
[0147] Once at the local store, the customer brings the merchandise
(e.g., a new shirt) to a point-of-sale (POS) terminal (e.g., POS
Terminal 114--FIG. 1) for purchase in the local store as indicated
at Step S8-17. At Step S8-18, once at the POS terminal, the
customer alerts the attendant that the customer made a purchase
agreement in which he received a set price that was published by
the central controller.
[0148] Thereafter, at Step S8-19, the attendant enters the
customer's credit card number or other transaction identifier along
with the merchandise item number (together "transaction data") into
the POS terminal (e.g., card number 3333-3333-3333-3333 for Ms.
Cardow who intended to purchase a Four Head VCR made by Sony having
a product number of 4956323). And, at Step S8-20, the POS terminal
transmits the transaction data to a POS controller maintained by
the local store or some other authority.
[0149] It will be appreciated that the processes being described
may be structured such that the attendant only enters the
customer's credit card number and the store ID number into the POS
terminal for processing and routing via the POS controller. The
credit card number and the store ID number are sufficient to
identify a reservation in the credit card processor's reservation
database (FIG. 7). However, if more than one reservation exists for
the customer (potentially at different stores), a credit card
processor may operate to send a query for a merchandise item
identifier to the store for display at the POS terminal and for
specifying a particular reservation in the credit card processor's
reservation database. Such options and implementation details will
be readily appreciated by those skilled in the art of database
design and implementation.
[0150] At Step S8-21, the POS controller sends the transaction data
to the credit card processor for processing.
[0151] At Step S8-22, the credit card processor processes the
transaction data by querying the credit card number field of its
reservation database (FIG. 7) to see if the credit card number sent
from the POS terminal and POS controller match any credit card
numbers stored in the reservation database.
[0152] Processing proceeds as indicated at the top of FIG. 8C.
[0153] At Step S8-23, the credit card processor queries the
reservation database (FIG. 7) to determine if the credit card
number sent from the POS controller matches any of the credit card
numbers in the reservation database. If not, processing proceeds to
Step S8-30 at the top of FIG. 8D.
[0154] If there is a match (i.e., the credit card number sent from
the POS controller matches a reserved transaction in which the sale
price was established on line by the central controller), then
processing proceeds to Step S8-24.
[0155] At Step S8-24, the credit card processor queries the
reservation database (FIG. 7) to determine if the store
identification number in the reservation database matches the store
identifier number sent from the POS controller. If not, processing
proceeds to Step S8-30 at the top of FIG. 8D.
[0156] If there is a match (i.e., the store identification numbers
match), then processing proceeds to Step S8-25.
[0157] At Step S8-25, the credit card processor queries the
reservation database (FIG. 7) to determine if the item number in
the reservation database matches the item number sent from the POS
controller. If not, processing proceeds to Step S8-30 at the top of
FIG. 8E.
[0158] If there is a match (i.e., the item numbers match), then
processing proceeds to Step S8-26 at the top of FIG. 8D.
[0159] At Step 8-26, it has been determined that a reservation
exists and, accordingly, the product purchase is to occur at the
local store via the credit card processor and at the price that was
established on line with the central controller. Accordingly, the
credit card processor retrieves the previously established price
for the item in question from the price field or column of the
reservation database (FIG. 7).
[0160] The price retrieved from the credit card processor (i.e.,
the earlier established price) is sent by the credit card processor
via the merchant's POS controller (or the POS controller that
services the merchant) to the POS terminal.
[0161] Next, at Step S8-27, the credit card processor updates the
transaction date field of the reservation database (FIG. 7) and
sends the transaction date to the central controller.
[0162] Thereafter, processing proceeds to Step S8-28, where the
central controller updates the transaction date field of its
transaction database (FIG. 6D) indicating that the transaction has
been completed.
[0163] Additionally, the process occurring after the execution of
Step S8-26 requires that the credit card processor send the
established price to the POS controller maintained by the local
store as indicated at Step S8-29. Such communication is indicated
in FIG. 1 via links 123 and 117-1, and phone network 122.
[0164] Also, at Step S8-29-A, the POS controller sends the
established price to the POS terminal for processing and display.
Such display will be done by the POS terminal if the same is
equipped with a display device (e.g., the VERIFON TRANZ unit
discussed above in regard to FIG. 1).
[0165] And, at Step S8-29-B, the cashier charges the customer the
established price received from the POS controller maintained by
the local store.
[0166] Next, processing proceeds to Step S8-34, where at the close
of a business day, the POS controller transmits authorizations to
the credit card processor. Thereafter, at Step S8-35, processing
proceeds to Step S8-35, where at the close of a business day, the
POS controller uploads quantity available data of each merchandise
item number to the central controller.
[0167] And, finally, at Step S8-36 and at the end of a billing
cycle, the central controller prompts the manufacturer to reconcile
or settle for each item priced by the central controller and
delivered by the local store based on a previously established
contract between the manufacturer and the local store. Such a
settlement will be readily understood and may include the payment
of a price adjustment by the manufacturer to the local retailer.
The previously negotiated contract may alternately allow for the
provision of replacement inventory from the manufacturer to the
retailer. In any case, the settlement as prompted is made from the
manufacturer to the retailer so as to allow the local retailer to
accept prices displayed by the central controller online.
[0168] If the transaction was determined to be one not involving a
reservation at Step S8-25 (i.e., one in which the price was not
established by a central controller on line, but instead was set by
the local store), processing proceeds to Step S8-30 at the top of
FIG. 8E where the credit card processor executes the transaction in
a conventional manner and based on the following steps being
carried out within a system such as system 100.
[0169] FIG. 8E includes many of the process steps depicted in FIG.
8D. FIG. 8E represents a process carried out as a result of a
decisional branch that occurred at Step S8-25 as shown in FIG. 8C.
Accordingly, for sake of brevity duplicative process steps will not
be mentioned nor described again.
[0170] At Step S8-31, the price is retrieved at the POS terminal
and, at Step S8-31, the price for the merchandise is established at
the point-of-sale.
[0171] Next, at Step S8-32, the POS processor receives the price
established at the point-of-sale and routes the same for processing
in a conventional manner.
[0172] At Step S8-33, the attendant or cashier presents a charge
slip to the customer indicating the price established at the point
of sale and processed in a conventional manner.
[0173] Thereafter, processing proceeds to the sequence found at
Steps S8-34, S8-35, and S8-36 which were described above.
[0174] Processing ends at Step S8-37.
[0175] In view of the foregoing discussions pertaining to the
flowchart illustrated in FIGS. 8A-8E, It will be understood that a
system such as system 100 enables the manufacturer to establish
product prices online independently of the retail process. The
prices established online are then honored by local merchants of a
customer's choice to allow local purchase and pickup of products.
As such, the retailer will realize a valuable cash flow as a result
of the transaction.
[0176] Moreover, it will now be readily appreciated that the
present invention provides a system and a process that enables a
customer to search and examine electronic, virtual product
inventories on line, receive a price for a particular product that
was established by a manufacturer, and purchase and acquire that
product from a retailer or outlet of the customer's choice at the
price received on line. Moreover, the customer can pick up the item
without waiting for shipment or delivery. This new paradigm for the
sale and distribution of products will benefit manufactures,
distributors, and consumers in ways not heretofore realized.
[0177] Thus, having fully described the present invention by way of
example with reference to the attached drawing figures, it will be
readily appreciated that many changes and modifications may be made
to the invention and to any of the exemplary embodiments shown
and/or described herein without departing from the spirit or scope
of the invention which is defined in the appended claims.
* * * * *
References