Abstract:
The invention is a secondary exchange system attached to an online auction system which provides winners with the ability to extend their play. The online auction system facilitates the sale of goods and services through an auction which offers bidders the potential for purchasing goods and services at huge discounts from retail pricing. The invention enables winning bidders to optionally exchange their purchase for alternative items or credits towards future auctions. This provides the participant a validation for the purchase of the initial item, the option of exchanging for an item of greater perceived personal value, or the means to extend their play and enjoy the excitement of the experience without additional cost.

Description:
CROSS REFERENCE TO RELATED APPLICATION 
       [0001]    This application is a continuation of co-pending application Ser. No. 13/815,696 filed Mar. 14, 2013 entitled “Method and System to Extend Participation in an Online Auction”, the entire disclosure of which is incorporated herein by reference. 
     
    
     FIELD OF INVENTION 
       [0002]    This invention relates to the field of electronic commerce and more particularly, to online auctions in which winning bidders can extend play or receive an exchange of equal or more value, thus to increase enjoyment of auction participation. 
       BACKGROUND OF THE INVENTION 
       [0003]    Auctions conducted online are well known. Generally auctions are conducted so that participant bidders bid on an item and the highest bidder wins. While a winning bidder can exalt in his winning, the winning bidder must stop his or her play after he has won. This in turn limits the entertainment value offered by on-line auctions to winning bidders. Various on-line auctions seek to increase enjoyment for the losing bidder, but there has been no attention paid to the winning bidder and his or her enjoyment. 
         [0004]    By way of background, to provide losing bidders more enjoyment a twist on an auction is an entertainment auction, which sometimes is referred to as a penny auction. In a penny auction, participant bidders must buy a bundle of bids and use one every time they raise their virtual paddle. In some configurations, bids cost 60 cents to $1 each and are bought in packs of 10 to 700, depending on the site. In the case of penny auctions enjoyment is extended by the number of inexpensive bids. 
         [0005]    As an entertainment medium, offering extended play and additional entertainment options is important to unsuccessful bidders to prolong the experience, thereby providing greater value to the consumer. 
         [0006]    Existing Prior art teaches the wisdom of offering multiple methods which may enhance the entertainment experience by extending play by offering incentives for participation. In U.S. Pat. No. 7,461,022 incentive points can be earned in a variety of actions taken by users and later used in the bidding process. The user may be rewarded for viewing an advertisement or providing additional information about themselves or signing up for a service. 
         [0007]    This type of shopping is truly an entertainment experience. Therefore a great deal of effort is employed to mitigate or ease the negative experience of not winning an auction. For losing bidders in US Patent Applications 20120173309 and 20120233011 the losing users are may be provided with discounts and other incentives in relation to the value of unsuccessful bids placed. These incentives may take the form of a stored value to be used with an auction sponsor. Receiving some residual from an unsuccessful auction encourages continued participation. 
         [0008]    In U.S. Pat. No. 8,027,880 the bidder may opt to abandon the bidding process, but still purchase the item at a reduced retail price to avoid the remorse associated with an unsuccessful bidding strategy. In this patent, the bidder utilizes the value of the bids they have placed and applies that value as the discount from the retail price of the item. 
         [0009]    Competition among bidders increases the excitement of the experience as each bidder formulates a strategy for winning the auction. From the above, all of the above references extend play for a losing bidder. On the other hand, US Patent Application 20120278197 teaches that a person who wins an auction may re-auction their item. However, this makes them a seller, at which point the bidder then can no longer play. This is because the auction has been completed and his role as player has ended. 
       SUMMARY OF THE INVENTION 
       [0010]    The present invention relates to providing successful bidders in an online auction with extended play options or an option to an exchange. This permits the player extra auction play or to receive an exchange item of greater or equal perceived value, or both. 
         [0011]    In one embodiment, at the time of purchase of the item that is won, the participant is offered additional options for exchange and extended play. Customer history and preferences are stored and a software exchange logic module determines items to be offered for exchange based upon customer preferences as they relate to the specific item to be exchanged. The items offered for exchange may take the form of a replacement item that may have a higher perceived value by the participant, as determined by their individual preferences, or points/credits that may be used in future auctions. Alternatively, a mystery item or any combination of items may be offered. 
         [0012]    Greater choices at the end of a winning experience serve to enhance the experience by instilling a degree of anticipation in the participant to discover what option they may be offered. For example, a participant may knowingly bid on an item even though the item is not entirely desirable with the knowledge that at the end of the process the item may be substituted for a more desirable item or the opportunity to receive credits for future play. Offering a mystery item whose exchange may trigger additional options may provide additional interest to players, especially if after the selection of a mystery item the participant is again offered options for exchange and extended play. The decision of when to accept an item for exchange, extend play, or continue to discover mystery items makes the subject on-line auction more appealing. Play continues until the player has either accepted an exchange, opted for extended play or retains the original item. This process adds an additional degree of fascination and mystery to the online auction experience. Even the most experienced in the art of online auction systems will appreciate the application of customer preferences and customer history used in combination with the subject logic that provides not only an experience of greater value to the customer, but higher margins to the operator 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0013]    These and other features of the subject invention will be better understood in connection with the Detailed Description, in conjunction with the Drawings, of which: 
           [0014]      FIG. 1  is a block diagram of the secondary exchange system and components as connected to an online auction system; 
           [0015]      FIG. 2  is a block diagram of the internal components of the secondary exchange system of  FIG. 1  and the communications flow within the secondary exchange system and the online auction system of  FIG. 1 ; 
           [0016]      FIG. 3  is a block diagram of the internal components of the secondary exchange system and the communications flow between the communications module and the online auction system of  FIG. 1 ; 
           [0017]      FIG. 4  is a block diagram detailing the database activity, offer creation, and exchange logic, and data flow between the primary or secondary exchange logic, the offer creation logic and the exchange database module of the system of  FIG. 1 ; and, 
           [0018]      FIG. 5  is a simplified block diagram example of a preferred embodiment of the subject Invention. 
       
    
    
     DETAILED DESCRIPTION 
       [0019]    Referring now to  FIG. 1 , the drawings depict the secondary exchange system and components when taken in combination form an apparatus, or secondary exchange system (SEC) connected to an Online Auction System (OAS)  6  capable of independent operation for the purpose of determining player exchange opportunities based upon player history and preferences. Note throughout the drawings, the terms Customer and Player may be used interchangeably in meaning. 
         [0020]    As shown in  FIG. 1 , the subject unique provides the operator with the ability to increase its margin by appealing to existing, or anticipated customer values. In one embodiment the customer will receive a known high value product and have twice as much bidding power for future products. The net result is that the operator, through a unique combination and utilization of soft costs, can increase its margin significantly when extending play or offering an exchange. 
         [0021]    As to the secondary exchange system and components, the block diagram of  FIG. 1  provides an overview of the manner in which the apparatus is connected to the OAS  6  and how it communicates to the player  2 . The player  2  is connected via the Internet  4  to the OAS  6 . In addition to the logic and operational capabilities of the OAS  6  for the display and tracking of bids, the OAS  6  nominally contains a product database  8  and a customer or player database  10 . A communications interface  11  provides a channel of communications with a secondary exchange system (SEC)  12 . This communications channel may be directly connected via any of a number of commonly available communications mediums and protocols such as web services of XML. These various communications protocols may be configured in the communications module  14  allowing customization of the secondary exchange system  12  for use with any number of OAS  6  types. The secondary exchange system  12  is made up of 5 Modules; a communications module  14 , an exchange logic module  16 , the UI presentation module  18 , administration module  28 , and an exchange database module  20  which consists of a customer database  22  and a product database  24 . An administration module  28  provides the interface for the configuration and operation of each of these components by a secondary exchange system administrator managing the secondary exchange system  12  via an input display  26 . Input display  26  communicates to SEC  12  via any number of commonly available communications mediums and protocols as determined by the producer of the secondary exchange system  12 . The operation components in combination will be described more fully in the following drawings. 
         [0022]    Referring now to  FIG. 2 , the secondary exchange system  12  and communications module  14  data flow is as follows. The block diagram of  FIG. 2  gives greater insight to the role of the communications module  14  to govern and route requests and fulfillment between the OAS  6  and the rest of the components of the secondary exchange system  12 . As previously described, the player  2  is connected via the Internet  4  to the OAS  6 . For illustration purposes the communication channel  11  between OAS  6  and the SEC  12  described in  FIG. 1  has been omitted to focus on the information exchange between the two systems, rather than the protocol of the exchange. 
         [0023]    Upon the conclusion of any auction, the OAS  6  passes player auction data to the communications module  14  which first analyzes the data  32  to determine if the result of the player&#39;s auction attempt was successful. If upon conclusion of the auction, the auction information  32  returned a “No” value  34 , the player was not successful, the update exchange history  36  in the communications module  14  sends the updated information to an exchange logic module  16 . The exchange logic module  16  then accesses the exchange database module  20  as will be described. 
         [0024]    If the auction result was successful, “Yes”  40 , communications module  14  passes the auction information to the exchange logic module  16 . Greater detail as to the nature of the information passed will be discussed hereafter. The exchange logic module  16  then queries the exchange database module  20  to determine customer history and preferences as stored in the customer database  22  for the best exchange opportunity to present. The exchange logic module  16  then queries the product database  24  for availability. This process continues until a suitable exchange has been identified. The exchange logic module  16  then requests the UI presentation module  18  for proper page layout and formatting as required by the OAS  6 . Upon receipt of the formatted page, the exchange logic module  16  passes the page to communications module  14  for transmission to the OAS  6 . The formatted exchange offer  46  is communicated  48  to the OAS  6  for display. Player input for the exchange  50  from OAS  6  is received and communications module  14  determines the proper routing of the information. 
         [0025]    If the player input for the exchange is accepted “Yes”,  52  the update exchange history query  54  of the communications module  14  updates  56  the OAS  6  and relays the information  59  to the exchange logic module  16 , which in turn relays the information to the exchange database module  20  which then updates both the customer database  22  and the product database  24 . If the exchange is not accepted a “No” condition at  57  triggers the request new exchange function  58  of the communications module  14  to request another exchange opportunity from exchange logic module  16 . The exchange logic module  16  informs the exchange database module  20  to update the customer database  22  with the declined exchange, then query the exchange database module  20  for a new exchange opportunity. Upon receiving the new exchange opportunity the system proceeds to update OAS  6  and eventual display by the results. 
         [0026]    The exchange process continues until either an exchange has been accepted as shown at  52  or until the exchange logic module  16  determines that there are no other appropriate exchanges available. If there are no appropriate exchanges available, an exchange condition occurs where the player choice is limited to simply receiving the originally purchased item. The secondary exchange system  12  treats this as a “like exchange” for player preference and database tracking purposes. In this condition, the exchange logic module  16  recognizes the like exchange and UI presentation module  18  sends an appropriately formatted page informing the player that there are no other exchanges available, with appropriate messaging as determined by the OAS  6  operator. 
         [0027]    Referring to  FIG. 3  and the secondary exchange system  12  and exchange logic module  16  data flow, this block diagram further explores the components of the SEC  12 . While the interaction between the communications module  14 , the UI presentation module  18  and an exchange database module  20  are depicted, the diagram is intended to provide greater detail on the functions of the exchange logic module  16 . The previous diagram has provided detail regarding the function of the communications module  14  when used in combination of the components of the apparatus, the following diagrams will provide further granularity into the functioning of the combined subsystems to provide the unique capabilities of the secondary exchange system  12 . 
         [0028]    With the OAS  6  as the previously described initiator of requests, and recipient of services from the secondary exchange system  12 , the communications link  60  conveys player  2  information regarding auction results and ensuing exchange information. A messaging protocol  62  between the communications module  14  and the exchange logic module  16  transmits the initial auction data  64 . If this is a winning bid, it will include the product  104 . Within the exchange logic module  16 , offer creation logic  66  governs the processing of the exchange. Routines within offer creation logic  66  act in concert to determine exchange opportunities through interaction with exchange database module  20 . Upon entry into the offer creation logic  66  the determination is made if this is the players first exchange request  68 . As described in FIG.  2  this may be either a successful bid,  FIG. 2  at  40 , or an unsuccessful bid,  FIG. 2  at  34 . Regardless of the outcome of the players auction attempt (successful or unsuccessful), if this is the first exchange opportunity a “Yes” condition  70  is recorded, and a new customer exchange history setup function  72  is executed. The customer exchange history setup function  72  creates customer number and populates customer database  22  records accordingly. The customer number may be the same as is used in OAS  6 , or a unique identifier assigned by the customer exchange history setup  72 . Once completed, the new customer data  75  is stored in the customer database  22  and passed within the offer creation logic  66  of the exchange logic module  16  for processing. 
         [0029]    If this is not the first exchange opportunity a “No” condition is posted at  76  and the data continues within the offer creation logic  66  of the exchange logic module  16  bypassing the customer exchange history setup  72 , as there is no requirement to create a new customer record. Initial exchange opportunities are determined by the primary exchange logic  80  function within the offer creation logic  66 . The primary exchange logic  80  executes queries  82  to both the customer database  22  and the product database  24  in order to determine the exchange offer  88 . The exchange offer  88  may consist of one or more products  90  depending on the operator&#39;s guidelines. In this example 90 may represent multiple different exchange product options, but are shown as  90  to simplify the exchange process since an unknown number of exchange options may be identified. Upon exchange offer determination, the offer creation logic  66  will flag the product  90  as being unavailable until final exchange determination. The product is essentially in a holding pattern. The offer creation logic  66  must also ensure that the offer is available as illustrated at  92 . 
         [0030]    Since product database  24  tracks availability of products, it may return an exchange offer with a “No” condition for availability  94 . As previously described, if there are no Exchange Offers available, the exchange offer is processed as a like exchange. Essentially a like exchange is processed in the same way as an offer accepted  96  with a “Yes” condition  98  passed to the offer fulfillment logic  100 . Routines within the offer fulfillment logic  100  will now pass the final exchange information  102  to exchange database module  20  to update the appropriate records in the customer database  22  and the product database  24 . It will decrement the inventory for the quantity of Product  90  that was flagged in the accepted exchange while incrementing the quantity of the Product  104  that was the item in the original winning bid. The product  104  had been taken out of inventory following the winning bid, and now must be returned due to the exchange. With all customer and product records updated, offer fulfillment logic  100  now transmits on  106  the exchange acceptance  108  to communications module  14  where it will be routed on  110  to the UI presentation module  18  for page layout and formatting where, upon completion it will be returned to communications module  14  for transmission to OAS  6  where it will be communicated over the Internet  4  to the player  2 . 
         [0031]    In this instance, the exchange cycle is complete. The main accounting systems on the OAS  6  are updated and the OAS fulfillment process is implemented. This is the basic process that is followed upon any acceptance of an exchange offer, or the lack of availability for subsequent exchange offers. 
         [0032]    If during the offer availability routine  92  the exchange offer is available, a “Yes” condition  114  is recognized, the exchange offer is transmitted on line  116  to communications module  14 , formatted by UI presentation module  18  and finally communicated to OAS  6  for display as previously depicted. The player  2  is then offered a choice between one or more exchange opportunities. If the player accepts an opportunity, the transmission from communication module  14  to the exchange logic module  16  flows into offer creation logic  66  via a route  118  associated directly with offer acceptance  96 . The offer acceptance will now be processed by the offer creation logic  66 . 
         [0033]    If the player does not accept the exchange opportunity, that condition is routed to the offer acceptance logic  96  with a “No” condition  120  where The secondary exchange logic  122  executes queries consistent with the process followed by primary exchange logic  80 , but including the new information regarding the declined exchange at  124 . The product database  24  is updated to show the return to inventory of the current product  104 . Exchange histories are updated in both the customer database  22  and the product database  24  in order to determine the exchange offer  136  and a new item  90  for exchange is selected. secondary exchange logic  122  then routes the offer to the offer availability routine  92  where the availability will decide on the processing attributes previously described for a “Yes”  114  or “No”  94  condition. The process continues until the player either accepts an exchange, or until there are no further exchanges available. In this diagram, the process continues as current product  104  is offered for exchange with exchange product  90  in an iterative fashion until either  90 , or  104  is selected, or there is no  90  to display. 
         [0034]    Referring now to  FIG. 4  as to offer creation logic  66  flow for determining exchanges, this block diagram offers additional perspective to the query functions and process of the offer creation logic  66  within the exchange logic module  16  of  FIG. 3 ; and provides a simplistic view of possible database elements which may be contained in a customer database  22  and the product database  24  and components of the exchange database module  20 . For illustration purposes, the offer creation logic  66  is shown between the two Database components to simplify the interchange of query, fulfillment and update functions. 
         [0035]    Database requests  178  are initiated by either the primary  80  or secondary exchange logic programs  122  of the exchange logic module  16  as depicted in  FIG. 3 , and fulfilled by routines within the offer creation logic  66  program,  FIG. 4 . All requests contain either a number passed through the system by the OAS  6 , or a unique identifier generated by the secondary exchange system  12 . A routine  68  determines whether this is the 1st exchange request (ie whether the customer exists in the customer database  22 ) with an initial “Yes” flag  182  that prompts customer history setup  72  programs to query customer database  22  for an existing record. If the Record does not exist, it will signal the SEC  12  to query the OAS  6  for customer information  73 . If the OAS  6  has a record then the setup customer history populates those records in the customer database  22 , if the OAS  6  has no exchange record, the customer setup programs  72  initiates a record entry, then synchronizes the main OAS database  10  with the customer database  22  for all records associated with the identifier originally provided. The customer setup program  72  then populates the customer database  22  with as much information as obtainable and returns the records to the 1st exchange request program  68  where a “No” flag  186  is set. At this point the process continues along the same course as if this was not the first exchange requested by a player  2 . 
         [0036]    The offer creation logic  66  programs will now access customer history  82  to query customer database  22 . Using the customer identifier  192  the program will analyze customer history  194  for previous bid information  196 , previous successful bid information  198  and previous exchange information  200 . For Illustration and simplicity, database fields have been limited to depict the minimum data required for the preferred embodiment of the invention. 
         [0037]    In this figure previous bid information  196  includes: 
         [0000]    Product ID  202  which is a unique identifier for each product; Number of attempts  204  which refers to how many auctions this player has bid for this product ID  202 . Although not depicted, information flow for losing previous bids is also maintained to make the offer creation logic  66  more effective. 
         [0038]    Moreover, number of bids/auction  206  refers to the average number of bids placed for each auction for this product ID  202  and bid frequency value  208  is a value indicating the player&#39;s interest in the product ID  202 . It is a value assigned by taking the number of attempts and bids overall to determine how often the player bids on a particular product ID and how many bids they will place in each auction. 
         [0039]    Next the offer creation logic  66  program will analyze the previous successful bid information  198  including product ID  210  which is a unique identifier for each product, number of attempts  212  which refers to how many successful auctions this player has bid for this product ID  210 , number of bids/auction  214  referring to the average number of bids placed for each successful auction for this product ID  210 , and bid frequency value  216  which is a value indicating the player interest in the product ID  210 . It is a value assigned by taking the number of attempts and bids overall to determine how often the player bids on a particular product ID and how many bids they will place in each successful auction. 
         [0040]    The offer creation logic  66  program now analyzes the previous exchange information  200  including at  218  Exchange Number 1 in which the program compares the original value of the product ID with the new value 1 of the product ID. 
         [0041]    Also analyzed is the success of the exchange with a “Yes” or “No” flag which is appropriately recorded at  220 . 
         [0042]    Moreover, at  222  as seen by Exchange Number 2, the program compares the original value of the product ID with the new value 2 of the product ID. 
         [0043]    The success of the exchange defined as a “Yes” or “No” flag is appropriately recorded  224 . 
         [0044]    Records continue appropriately until there is a final exchange where the original value is compared to the final value at  226 . 
         [0045]    Based upon this information the programs will pass the information  228  to additional logic where customer preferences are identified at  230 . After identifying customer preferences the information will be passed at  232  to a routine that will direct processing dependent upon whether or not this is the first exchange  68 . In the case where this is the first exchange as shown at  68 , a “Yes” condition at  236  prompts the program to query the product database  24  for the initial exchange default value  240  for that product ID  242 . 
         [0046]    In the case where this is not the first exchange, a “No” flag  244  is set, and the program analyzes the customer preferences to identify an exchange offer  88 . The product database  24  is then queried at  82 ; the first update will flag the original value of the exchange so it is not available in inventory. 
         [0047]    Based on customer preferences and history, the program will now query the product database  24  for matching exchange offers. As previously illustrated in this diagram, an initial exchange default product will be allocated as the offer for the first exchange. For subsequent offers, the offer creation logic  66  will attempt to locate the best opportunity as dictated by customer preference and history. The exchange offer  250  will be cataloged containing the product ID  242 , the product description  252 , the product retail value  254  and the inventory availability  256 . 
         [0048]    The process continues as the customer and product databases are updated at  124  to reflect the new exchange information and according to availability  92 . If the product ID(s) are available a “Yes” condition  264  prompts the program to return the exchange opportunity to the primary  80  or secondary logic  122  programs for processing. 
         [0049]    If one or more of the product ID(s) are not available, the exchange is processed through offer creation logic  66  as if it were not the 1st exchange request and the offer creation logic  66  will attempt to identify a new exchange offer based upon the updated values. This process continues until there is an available exchange offer, or the original value equals the new value; a condition for which the inventory will always reflect availability and process the exchange offer to the primary  80  or secondary exchange logic program  122 . 
         [0050]    Referring to  FIG. 5 : A simplified example of the operation of the components described in  FIG. 4  is presented. In this block diagram, it is assumed that the customer is a returning customer with existing records in the customer database  22 . For this example, the customer name  202  is Jane Byer and her ID number  203  is 43217 which may be mapped to a different customer identifier  192  (value not shown). She has participated in several previous bids which are recorded in the previous bid information  196 . Her history shows that she has bid on three separate items; namely product ID (PID)  737  which relates to the description of a $100 Visa Card, the product ID (PID)  254  relates to the description of a $100 Wal-Mart Card, the next product ID (PID)  789  relates to the description of a $100 Amazon Card. As used herein, Wal-Mart and Amazon are registered trademarks of their respective companies. Although she has only bid on three different items, she has tried multiple times. In the case of the Visa Card she has made 2 total bid attempts, has placed 120 total bids and averages a bid frequency value of 60. Correspondingly for her other auction attempts, the Wal-Mart Card she has made 8 total bid attempts, has placed 384 total bids equating to a bid frequency value of 48; and for the Amazon Card she has made 3 total bid attempts, has placed 145 total bids equating to a bid frequency value of 48.3. 
         [0051]    The winning bid information  232  is routed from the communications module  14  (not depicted) to the offer creation logic  66  through the primary  80  or secondary  122  exchange logic programs. An exchange request  68  has been initiated from the online auction system  8  that Jane has the winning bid. With a “Yes” flag  182 , the offer creation module  66  now sends a request to the customer set up programs  72  to query  228  the customer database  22 . Since Jane already exists, a “No” flag  229  is set which directs the program to access the customer history  82 . This program analyzes the winning bid information  232  and compares it to the previous bid information  196  in conjunction with the successful bid information  198  and the previous exchange information  200 . Prior to this winning bid, Jane has had 2 prior successful bids for Wal-Mart Cards, product ID  254 . Her total bids were 92, so her average bids, or bid frequency value is 46. Jane also had one successful bid for a $100 Visa Card, product ID  737 . Her total bids were 51, so her average bid, or bid frequency value is also  51 . Jane has just won a $100 Amazon Card, product ID  789 . It was her third attempt, but it was her first successful time bidding for an Amazon Card, so her total successful bids is 1, her total bids on this auction is 61, but her bid frequency value is 48.3 because she has had a total of 3 bids, and her successful bid is averaged in with her unsuccessful bids. So although the information contained in the winning bid information  232  reflects 61 bids, since her bid frequency value is 48.3, Jane bid much higher than her normal bidding style for this item. 
         [0052]    The program will also look at her previous exchange information  200 . Jane won a $100 Visa Card with a bid frequency value of 51. The System previously calculated an exchange offer  226  that consisted of a $50 Wal-Mart Card with a bid frequency value of 23 and a 100 Bid Pack with a bid frequency value of 50. Although Jane had not bid on a 100 Bid Pack, the system administrator may have either assigned a value, or the system itself may be programmed to determine a bid frequency value. The combination of the two products now has a relative value of 73. 
         [0053]    In arriving at this combination of products, the program takes into account that Jane most often bids on Wal-Mart Cards, making this product of more value to her. The program also recognizes that Jane&#39;s overall bid frequency value is 48, the total number of bids divided by the total bid attempts even though her successful bids have a bid frequency value of 46, Jane loses bids pushing her average bid frequency value to  48 . The program correctly surmises with a previous bid frequency value of 48.3 for $100 Amazon cards that offering her a combination of products with a bid frequency value of 73, and by fulfilling Jane&#39;s desire for a Wal-Mart Card, while providing her with nearly double her usual per auction bid amount in additional bids, that Jane will see more value in the exchange offer than in her $100 Amazon Card. 
         [0054]    If this were the first exchange offer shown at  68 , the program would query  82  the product database  24  for the initial exchange default product  240  associated with her winning bid  232  as an initial starting point for the exchange process. In checking the offer availability at  92 , if the product is not available, the program would attempt to analyze the loop back through the series to ID customer preferences  230  and ID an offer  88  to define an appropriate offer. If the product were available, the process would proceed with a “yes” flag  264 . 
         [0055]    In analyzing Jane&#39;s preferences, the program takes into account that the new winning bid  232 , carries a higher bid frequency value of 61 vs. the previous Amazon card value of 48. However, tolerances programmed in the logic will test the elasticity of her desire for the more valuable Wal-Mart Card with an exchange offer  250  once again consisting of the Wal-Mart $50 Card and 00 a 100 Bid Pack. The relative value of this combination is 73. If Jane accepts this offer, the system will rely on Jane&#39;s perceived value of the Wal-Mart Card in future offers. 
         [0056]    Having identified the offer  88 , the program will now query  82  the product database  24  at  258 . With the combination of product ID  242 , and inventory availability  256  the program determines that the Wal-Mart Card is on record  244 . Inventory is available  246 . The program determines that the 100 Bid Pack is available  270 . The program will now associate the corresponding product retail values found in  254  for display. Once cataloged  250  a “yes” flag  254  is set and the program will update the customer and product database  124 . The customer history is accessed at  82  so that the offer can update the previous exchange information  200  with the new exchange offer  250 . The product database  24  is updated to flag the offered product so it will not be available from Inventory  256 . Jane&#39;s current product will remain in inventory until she has made a decision about the exchange. Once updated, the offer is checked once more for availability  92 . If it is not available then the program will route the offer through the request system as previously depicted. If the product is available it will be routed to the communications module  14  where it will be routed to the UI presentation module  18  for formatting and layout (not shown) and then for presentation to Jane. 
         [0057]    Should Jane accept this exchange, the operator will reduce the hard cost of the cards by 33% while incurring the much lower soft cost of the 100 Bid Pack, which will simply be reused in the system. Jane receives higher perceived value, the operator retains greater margin. 
         [0058]    While the present invention has been described in connection with the preferred embodiments of the various figures, it is to be understood that other similar embodiments may be used or modifications or additions may be made to the described embodiment for performing the same function of the present invention without deviating therefrom. Therefore, the present invention should not be limited to any single embodiment, but rather construed in breadth and scope in accordance with the recitation of the appended claims.