Automated purchase reward accounting system and method

A marketing method for providing manufacturer purchase reward offers by automatically tracking the purchases of member consumers through the use of bar-coded membership cards and using the purchase records in a data processing system to determine if the required purchases have been made to earn a reward. Each member consumer receives a reward booklet disclosing the available reward offers, a periodic status report indicating the member consumer's progress toward earning rewards, and a reward certificate for those rewards earned.

FIELD OF THE INVENTION 
This invention relates generally to automatic tracking of consumer 
purchases and providing fulfillment and redemption of purchase incentives. 
More particularly, this invention relates to computerized redemption 
systems utilizing universal product and consumer identification codes. 
BACKGROUND AND OBJECTS OF THE INVENTION 
Producers of food, drugs, mass merchandising items and related products in 
the packaged goods industry use various marketing techniques to encourage 
consumer purchases and establish brand loyalty. Two of the most commonly 
used purchase incentives are the rebate offer and the discount coupon. 
Both of these purchase incentive media, under current systems, present 
significant problems in distribution, fulfillment and redemption. 
The rebate offer essentially offers a refund from the manufacturer to the 
consumer for the purchase of a specified quantity of a particular product. 
Because the rebate offer often requires the purchase of more than one of 
the rebated product, it serves as an enticement for the consumer to 
continue purchasing the rebated product. This multiple purchase 
requirement has more potential for developing sales volume and brand 
loyalty than incentives, such as the discount coupon, which encourage the 
one-time purchase of a product. However, the incentive created by rebate 
offers is diminished by the inconvenience in fulfilling offer requirements 
and the unreliable nature of the redemption process. These shortcomings 
reduce the value of the rebate offer to both the consumer and the 
manufacturer. 
Regarding the offer requirements, the consumer is typically required to 
save proofs-of-purchase from product packaging and mail them with an 
associated offer form to the manufacturer to earn the rebate. Many 
consumers find it too inconvenient to remember to remove the 
proofs-of-purchase from products purchased over an extended period of time 
and save them with the associated form. Additionally, the postage for 
mailing the proofs of purchase diminishes the value of the rebate to the 
consumer. 
Another disadvantage of the current rebate system is that some consumers 
from different households pool their proofs-of-purchase to submit for 
rebate. Although this practice results in quicker rebate redemptions for 
these consumers, it defeats the purpose of the manufacturer for offering 
multiple purchase rebates. Consumers engaging in this practice will likely 
switch brands to take advantage of other rebate offers when, together, 
each participating consumer has to purchase only one of the rebated 
products. Hence, it is an object of the invention to provide a multiple 
purchase incentive method which assures participating manufacturers that a 
single household purchases the required quantity to earn the purchase 
rebate. 
When a consumer does perform the necessary steps to receive a rebate, he 
must typically wait several weeks to receive the rebate from the 
manufacturer. In addition, manufacturers often delegate rebate redemption 
processing to coupon clearinghouses. These clearinghouses often use 
unskilled labor to process coupons and rebates in large volumes. As a 
result, a substantial percentage of redemption requests are lost or 
improperly processed. In view of the inconvenience and lack of reliability 
to consumers of mailing the necessary documents to the manufacturer to 
receive a rebate, it is still another object of the invention to provide a 
system that automatically credits a consumer's purchases toward a purchase 
reward without the mailing requirements. 
Regarding coupons as purchase incentives, a brief description of the 
current coupon distribution and redemption system and the prior art 
developments in that area will indicate further advantages of the present 
invention as a method for effecting purchase reward offers. Typically, 
coupons are distributed to the public through newspapers, magazines and 
direct mail. The consumer clips the coupon from the publication and 
presents it when purchasing items at the check-out counter of a retail 
store. At least in theory, the check-out clerk inspects the coupon to 
ensure that all the conditions for its redemption are met. A typical 
condition for redemption is the purchase of a specified item before a 
specified expiration date. If the coupon is validly presented, the clerk 
deducts the coupon value from the consumer's bill. 
In the reimbursement process, retail store personnel periodically gather 
all redeemed coupons, sort them according to manufacturer, and tally the 
individual totals for reimbursement. The calculated figures and coupon 
groupings are usually audited by a coupon clearinghouse which then sends 
them onto the manufacturers. The manufacturers then reimburse the retail 
store for the redeemed coupons plus a standard handling charge. 
Through the years, members of the packaged goods industry have experienced 
many problems with the coupon distribution and redemption system. For 
example, in the area of distribution, manufacturers have found that few 
consumers will go through all the steps necessary to redeem their coupons. 
More commonly, many consumers forget to bring coupons that they have 
clipped and saved to the store. 
This consumer behavior defeats the manufacturer's purpose for offering the 
purchase incentive. A manufacturer distributes coupons with the 
expectation that the coupons will induce sales of its product by offering 
a discount. However, when the coupon is forgotten or disregarded, the 
consumer is usually not aware of the incentive when he is selecting a 
product among different brands at the retail store. 
Of course, not all consumers forego the benefit of coupons. In fact, some 
bring several coupons to the retail store to take advantage of another 
weakness of the coupon system. Because the verification of redemption 
conditions is performed by the check-out clerk, a consumer can usually 
overwhelm the clerk by presenting so many coupons that it is impractical 
to verify the required purchases for all of them. Typically, the check-out 
clerk does not have the time to verify that the consumer has bought the 
correct size or quantity of the correct brand for each of a dozen coupons. 
As a result, some coupons are misredeemed without the required purchase. 
The auditing and reimbursement stages of the coupon system also present 
several problems. First, unscrupulous persons have used deficiencies in 
the coupon system to fraudulently submit unredeemed coupons to the 
manufacturers for reimbursement. For example, some retail store personnel 
have purchased large quantities of unredeemed coupons from collectors at 
prices below their face value. The store personnel then return these 
coupons to the manufacturers for reimbursement at full face value. 
Although this practice is sometimes used to reap large profits, it is 
commonly used on a smaller scale to cover shrinkage losses of the retail 
store. Nevertheless, these fraudulent practices cost manufacturers 
millions of dollars a year. 
Another source of trouble in the coupon system is the coupon clearinghouse. 
While both the manufacturer and the retail stores rely on the coupon 
clearinghouse to impartially verify the tallied figures for coupon 
reimbursement, the volume of coupons audited often requires the 
clearinghouse to use cheap, unskilled labor, often resulting in erroneous 
totals. 
In the prior art, several methods have been devised to alleviate problems 
in the coupon system. With the integration of computer systems into the 
packaged goods industry, there have been a number of attempts to combat 
the problems in the coupon system through application of available 
computer technology. 
Although equipment used to read machine-readable codes, such as the 
Universal Product Code (UPC) bar-code, was first designed to improve 
inventory control and checkout efficiency, U.S. Pat. No. 3,959,624 to 
Kaslow et al. discloses the use of machine-readable codes on coupons. 
Coupons bar-coded with the UPC can be read accurately by scanning 
equipment. The information picked up from the coupon is compared with 
stored information read from the bar-codes of purchased products. The 
controlling computer system can determine the validity of the coupon 
redemption and either allow or inhibit a discount accordingly. Thus, the 
losses associated with a check-out clerk's failure to verify satisfaction 
of coupon conditions can be avoided. 
In addition, the Kaslow et al. system stores records of the manufacturer 
names and discount amounts of redeemed coupons to be used later for coupon 
auditing and reimbursement purposes. With these computer generated totals, 
the problems associated with fraud and clearinghouse auditing errors are 
greatly reduced. 
In the area of coupon distribution, U.S. Pat. No. 4,554,446 to Murphy et 
al. reveals two purchase incentive techniques employing computer systems. 
In the first method, a computerized printer produces machinereadable 
coupons at the supermarket so that a consumer does not have to remember to 
bring them. The system can be controlled by store personnel or adapted to 
receive selections from the consumer directly. Moreover, Murphy et al. 
suggests the use of machine-readable customer identification cards to 
limit those consumers eligible to obtain the computer-generated coupons. 
The second computer-based purchase incentive method disclosed by Murphy et 
al. relates to so-called self-liquidating premiums. A self-liquidating 
premium is essentially an offer from a manufacturer to consumers who 
purchase a particular product to buy a different product at a substantial 
savings. Because the premium is offered to entice purchases of the 
required product, the premium product is usually offered at a break-even 
price; hence, it is self-liquidating. 
In order to take advantage of the premium offer, a consumer buys a 
specified product. The advertisement for the premium product is usually on 
the package of the required product. Under the typical method, the 
consumer must then send the manufacturer some proof of purchase and the 
premium purchase price. These items are usually sent by mail from the 
consumer's home. 
Murphy et al. discloses a computer system for generating machine-readable 
sales vouchers to order the premium product at the retail store. The store 
computer stores files related to the premium offers. When a consumer makes 
the required purchase, he presents the sales voucher and the payment of 
the premium purchase price. The store computer records the transaction so 
that the retail store can order the premium product directly for the 
consumer. The retail store becomes a point of purchase for premium 
products, making the offer more convenient for the consumer and thereby 
increasing the incentive value of the premium offer. 
Another coupon distribution technique utilizing a computer system is 
disclosed in U.S. Pat. No. 4,723,212 to Mindrum et al. Recognizing that a 
manufacturer desires to distribute coupons to consumers who purchase a 
competitor's products, Mindrum et al. teaches a system for generating a 
machine-readable coupon for a product when the bar-code of a competitive 
product is read by the check-out terminal scanner. Hence, the manufacturer 
is able to distribute a coupon directly to the consumer it is targeting, a 
customer of the competition. 
Another system exists in the prior art which uses a computer system to 
offer purchase incentives without distributing coupons. In the system, the 
consumer is issued a customer identification card with an encoded consumer 
identification code in machine-readable format. A list of products subject 
to discounts is distributed at the retail store. When a valid 
identification card is scanned at the check-out terminal, the store 
computer automatically discounts those items on the list according to 
stored product files. 
Each prior art system addresses some of the problems related to the coupon 
distribution and redemption system. However, the prior art devices and 
methods focus on isolated coupon transactions. None of the prior art 
systems provides a method for continuing the purchase incentive after the 
sales transaction involving the coupon is completed. Accordingly, it is 
further object of the invention to provide a method for encouraging 
continued purchases of targeted products beyond the one-time incentive of 
prior coupon systems. 
SUMMARY OF THE INVENTION 
The present invention resides in a marketing program for rewarding specific 
purchase behavior and increasing consumer brand loyalty for manufacturers 
who participate in the program. The present invention also provides the 
system components necessary to implement this marketing program. 
Manufacturers are solicited to provide incentive rewards for purchases of 
specific quantities of their products. The purchase incentives are 
compiled into a reward booklet which is distributed periodically directly 
to consumers at their homes and at participating retail outlets. The 
offers include descriptions of the participating products and the 
conditions for fulfillment of the purchase reward offer requirements. 
A consumer joins the program and receives a consumer identification code 
and a member identification card. This consumer identification code can be 
encoded in machine-readable code on the identification card, in which case 
the code is scanned at the check-out counter when the consumer purchases 
his products. Alternatively, the consumer identification code can be in 
non machinereadable format, in which case the code is entered manually on 
the check-out counter terminal. The consumer identification code is used 
to identify the consumer's purchases in purchase records stored in a 
program data collector at the retail store. 
The purchase records of the UPC codes for the products purchased by 
identified consumers at the participating retail outlets are periodically 
transferred to a program management computer system maintained by a 
marketing firm. In the program management computer system, the consumer 
identified purchase information is compared to the offer descriptions of 
the participating products and recorded for each consumer. Each consumer 
is sent a periodic summary of all his purchases of the participating 
products and a reward certificate for the rewards earned. This reward 
certificate can be a negotiable check or can be adapted for redemption at 
a participating retail store. The manufacturers of the participating 
products are invoiced for their portion of the rewards earned. 
Reward certificates that are adapted for redemption at a participating 
retail store are redeemed by the consumer using the identification card 
and consumer identification code. The retail outlet then forwards the 
certificates to the marketing firm for reimbursement. The reward 
certificates may have machine-readable codes, in which case, the retail 
store can record the redemption transactions on the in-store computer 
system.

DESCRIPTION OF THE PREFERRED EMBODIMENTS 
Referring to FIG. 1, the marketing method of the present invention involves 
four groups of participants comprising manufacturers 1 who define purchase 
reward offers 2, consumers 19 who qualify for the reward offers 2 by 
making required purchases which are tracked through a program management 
computer system (PMCS) 4, retail outlets 20 that assist in the tracking of 
required product purchases 28, and a central management firm 3 which 
controls the PMCS 4 and coordinates the interaction of the other 
participants. Each retail outlet 20 may be part of a retail chain, and the 
method of the present invention can be adapted for use at retail outlets 
20 of different retail chains. 
Manufacturers 1 are solicited by the central management firm 3 to define 
purchase reward offers 2. The purchase reward offers 2 can include 
standard rebates, trial rebates, gift offers, and sweepstakes offers. In 
the preferred embodiment of the marketing method, the purchase reward 
offers 2 require multiple purchases of a particular product type or brand, 
but a reward offer 2 may be offered for the purchase of a single item. The 
purchase reward offers 2 may also offer a reward for the combined 
purchases of several different products. 
In the standard rebate offer, the manufacturer offers a refund for the 
purchase of a specified quantity of a particular product. Similarly, in 
the trial rebates, the manufacturer offers a substantial refund for an 
initial purchase of a particular product and reduced discounts on 
subsequent purchases of the same product. 
The gift offers and sweepstakes offers can also be adapted to provide 
continuous purchase incentives. The manufacturer can offer to credit the 
consumer with points for each purchase of a particular product. A gift is 
earned when a particular number of points is attained by the consumer. 
Similarly, the manufacturer can offer an entry into a sweepstakes drawing 
for each product purchase. 
Once the purchase reward offers 2 are defined by the manufacturer 1, the 
central management firm 3 stores records of the purchase reward offers 2 
in an offer file 6, residing in the data bank of the PMCS 4. The products 
that are the subject of the purchase reward offers 2 have associated 
Universal Product Codes (UPC), which are used to access the reward offer 
records in the offer file 6. In the instance when a reward offer applies 
to several products, the UPC of each eligible product for the reward offer 
will access to the reward offer record to which the products apply. Each 
offer record contains an offer description, the offer purchase 
requirements, the offer value, the product UPC(s), and other information 
pertaining to the offer such as the manufacturer of the product(s). 
When a consumer 19 joins the marketing program, the central management firm 
3 issues the consumer 19 a consumer identification code 21a and a member 
identification card 21. In the preferred embodiment, the consumer 
identification code 21a is encoded in machine-readable format on the 
member identification card 21. The 
machine-readable code is preferably UPC bar-coding. Alternatively, the 
consumer identification code 21a can be imprinted in non machine-readable 
format on the member identification card 21. 
In still another embodiment, the consumer identification code 21a is 
encoded on a card used for different purposes. For example, many banks 
issue debit cards to their customers which contain account information on 
a machine-readable magnetic stripe. Some retail stores have magnetic 
stripe scanners installed at their check-out terminals for allowing 
customers to use their debit cards to authorize the debiting of their bank 
accounts for the purchase amount. The consumer identification code 21a 
could be stored on the magnetic stripe of such a debit card, thereby 
providing more convenience to the consumer. Additionally, the consumer 
identification code 21a could be imprinted elsewhere in either 
machine-readable code or non machine-readable code on such a debit card 
and either scanned or read visually. 
The central management firm 3 produces a reward booklet 16 to inform the 
consumer 19 of the reward offers 2 that are available. This reward booklet 
16 is sent periodically to participating consumers 19. The booklet is also 
distributed to various other potential members through in-store display 
stands and target-market direct mail. In the preferred embodiment, the 
reward booklet 16 contains descriptions of the reward products 28 and 
details of the reward offer 2, purchase requirements, and rewards. 
Additionally, a list summarizing the product names and reward amounts is 
included. 
When shopping, the consumer 19 uses the information in the reward booklet 
16 to select reward products 28 at a participating retail store 20. In a 
preferred embodiment of the invention, the reward products 28 are also 
distinctively identified on the shelves at the retail store 20. This 
identification could be performed by use of stickers displaying a 
distinctive marketing program symbol or by signs located near the 
products. 
After making his product selections 27 and 28, the consumer 19 presents 
identification card 21 and consumer identification code 21a at the 
check-out counter 25 of the retail store 20. In the preferred embodiment, 
the bar-coded identification card 21 is read by a bar-code scanner 26 
installed at the check-out counter 25. Alternatively, the consumer 
identification code 21a is in one of the above-described non 
machine-readable formats and is entered manually either by the check-out 
clerk or the consumer 19. By requiring the presentation of the member 
identification card 21 and the consumer identification code 21a at the 
time of purchase, the present invention ensures that consumers 19 from 
different households do not combine their purchases towards earning 
rewards. 
After the consumer 19 has been identified at the check-out terminal 25, the 
bar-codes for the consumer's 19 selected products 27 and 28 are read by 
the scanner 26. The scanner 26 transmits the information from these 
bar-codes to a program data collector 23 located in the retail store 20. 
Preferably, the program data collector 23 is a computer system supplied by 
the central management firm 3 to the retail store 20. The program data 
collector 23 comprises a data processor and a memory unit for receiving 
and storing the consumer identification code for the consumer 19 in 
association with the UPC coding information for the products purchased by 
the consumer 19 in purchases records 30. 
Alternatively, the program data collector 23 can be a component part of the 
in-store computer 22 of the retail store 20. In this embodiment, the 
in-store computer 22 typically receives purchase information from the 
scanner 26 for accumulating sales data for the retail store 20. When the 
retail store 20 participates in the marketing program, the in-store 
computer 22 is programmed to additionally store the purchase records 30 
for the marketing program. Each purchase record 30 contains consumer 
identification code 21a of the consumer 19 and the bar-code information of 
the products 27 and 28 purchased by the consumer 19. 
At the end of each business day, the purchase records 30 are transferred 
from the participating retail store 20 to a PMCS data receiver 7 in the 
PMCS 4. The PMCS data receiver 7 includes a telecommunication system for 
communicating with the program data collector 23 and a data concentration 
file for storing the purchase records 30. Because the PMCS 4 stores the 
consumer identification codes for all participating consumers 19 and the 
UPC codes for the reward products 28, the marketing program can be 
provided to consumers 19 through a plurality of retail stores associated 
with different retail chains. In the preferred embodiment, the consumer 19 
is able to make reward product 28 purchases at more than one retail store 
20 and have the purchase credits combined in the PMCS 4. 
Periodically, usually weekly, the purchase records 30 residing in the PMCS 
data receiver 7 are compared with the offer records in the offer file 6 to 
determine which purchases correspond to an available purchase reward offer 
2. The reward product transaction data 30a is extracted from the purchase 
records 30. Using control files 5, the reward product transaction data 30a 
is sorted according to the consumer identification codes 21a and according 
to reward products 28 purchased. Additionally, the control files 5 provide 
consumer linking information for grouping the reward product transaction 
data for consumers 19 who have a consumer relationship and request to have 
their purchases combined for the satisfaction of the reward offer 
requirements. 
Additionally, the central management firm 3 uses the purchase records 30 
stored in the PMCS data receiver 7 to analyze consumer purchase behavior. 
This information is critical to manufacturers and retailers for 
determining how to improve marketing strategies and inventory 
optimization. The purchase records 30 are processed according to 
parameters set in consumer behavior processing programs 14. The output of 
the consumer behavior processing 14 is used to prepare consumer behavior 
reports 14a which are sent to manufacturers 1 and retailers 20. The 
consumer behavior processing can be performed for the purchase records 30 
which contain information regarding both reward and non-reward products. 
In addition, the purchase records 30 can be compared with the reward 
information stored in the offer file 6 to produce purchase data related 
only to reward products 28, which is processed for consumer behavior 
reports 14a. 
The sorted reward product transaction data is then stored in a transaction 
data file 11. In a history product transaction data 30a according to 
consumer identification code 21a, and product history records 13 to the 
UPC information. 
The PMCS 4 provides terminals for consumer service support 8. 
Representatives communicate with consumers 19 through 800 number telephone 
lines. The representatives use the terminals for receiving information 
from the consumer hi story records 12, the transaction data file 11, and 
the control files 5. The representatives in the customer service support 8 
can make transaction corrections to the transaction data file 11 and 
consumer information corrections in the consumer history records 12. 
Additionally, the representatives can modify the consumer linking 
information stored in the control files 5 according to consumer requests. 
Periodically, usually monthly, the consumer history files are used to 
create statement records 10a. The information in the statement records 10a 
is processed according to a mailer program 10b and sent to a printer 10c. 
With the formatted information, the printer produces a status report 17 
for the consumer 19. 
The status report 17 informs the consumer 19 of all his purchases of reward 
products 28. The status report 17 also indicates the number of additional 
purchases of each reward product 28 necessary to receive a reward as well 
as the reward amounts that have already been earned. In addition, the 
status report 17 informs the consumer 19 of the other product rewards 
available toward which the consumer 19 has made no purchases. 
The consumer history records 12 store all the reward product transaction 
data 30a for each consumer 19. Using the control files 5 and the offer 
files 6, each consumer history record is processed to determine if the 
consumer 19 has made the required purchases to receive rewards. From this 
information, a reward certificate 18 is produced for the amount of all the 
rewards earned by the consumer 19. 
The reward certificate 18 is sent to the consumer 19 with the monthly 
status report 17. The reward certificate 18 can be a negotiable check or a 
voucher to be redeemed at a participating retail store 20 for cash or 
credit toward product purchases. In the preferred embodiment, the reward 
certificates are bar-coded so that they may be read by the scanner 26 at 
the retail store 20. Redemption records 30 for the reward certificates 18 
could then be stored in the program data collector 23 and periodically 
transferred to the PMCS 4. The central management firm 3 uses the 
redemption records 30 to audit the amount reimbursed to the retail store. 
The product history records 13 are used to prepare reward product invoices 
15 according to reward offer for the manufacturer 1. Based upon the reward 
product invoices 15, the manufacturer pays the central management firm 3 
for those rewards earned and paid to consumers 19. 
Through the status report 17 and the reward certificate 18, the marketing 
program of the present invention completely automates the purchase reward 
system from the consumer viewpoint and creates a convenient inducement for 
the consumer 19 to continue to purchase the reward products 28 over an 
extended period unlike the single purchase enticements of the prior art. 
The present invention also improves over the prior art reward systems by 
removing the need for the consumer 19 to collect proofs of purchase to be 
mailed to the manufacturers for refunds. 
Referring to FIG. 2, an alternative embodiment of the automated purchase 
reward system utilizes the in-store computer system 22 of the retail store 
20 to perform some of the data processing of the purchase records 30a. 
Some retail stores equipped with scanners 26 and in-store computer systems 
22 provide consumers 19 with bar-coded identification cards 21 so that 
transactions such as check-cashing may be recorded in the in-store 
computer 22. For retail stores 20 having a so-called frequent shopper 
program 24 in which bar-coded identification cards 21 are distributed, the 
preliminary preparation of the reward product purchase data 30a can be 
performed at the retail store 20 according to the method set forth below. 
The principal components of the automated reward system in this embodiment 
are the program management computer system (PMCS) 4, maintained by the 
central management firm 3, and an in-store computer system 22 located in a 
retail store 20. The PMCS 4 is linked to the in-store computer system 22 
so that periodic exchanges of data may occur between the two computer 
systems. 
The in-store computer system 22 comprises an instore data bank 22a for 
storing a plurality of files. These files comprise product files 30 
containing information related to store inventory, customer files 31 
containing information related to consumers participating in a frequent 
shopper program 24, and reward files 32 containing information related to 
the purchase reward offers 2. 
The in-store computer system 2 receives outputs from the check-out scanners 
26 positioned near the checkout terminals 25. Each check-out terminal 25 
comprises the conventional components of a keyboard for manual entries, a 
display, a cash register for storing payments, and a printer for producing 
receipts. 
The PMCS 4 includes a program data bank 4a which stores reward files 42 and 
customer files 43 identical to those stored by the in-store data bank 22a 
as well as manufacturer files 41 containing information related to 
participating manufacturers 1 and their reward products 28. 
When the consumer 19 joins the frequent shopper program 24, a customer file 
31 is created for that consumer 19 in the in-store data bank 22a, and the 
consumer 19 receives a member identification card 21 and a consumer 
identification code 21a, which may be encoded on the member identification 
card 21 in machine-readable format. A copy of the customer file 31 is 
transferred to the program data bank 4a and stored in the customer file 
43. 
When the consumer 19 brings his products 27 and 28 to the check-out 
terminal 25, he presents his member identification card 21 for scanning. 
The in-store computer system 22 uses the consumer identification code 21a 
read by the scanner 26 to access his customer file 31 so that if any 
reward items 28 are purchased, a record of the purchase will be stored in 
the customer file 31. 
Reward product purchase records 30 are transferred from the customer files 
31 of the in-store data bank 22a to the customer files 43 in the program 
data bank 4a. From the reward product purchase records 30, the central 
management firm 3 prepares a status report 17 to be sent to the consumer 
19. 
The redemption and reimbursement process for the purchase reward program 
begins with the periodic transfer of reward product purchase records 30a 
from the in-store data bank 22a to the program data bank 4a. From these 
reward product purchase records 30a, the central management firm 3 
determines the consumer's 19 earned rewards and sends a reward certificate 
18 to the consumer 19 for those rewards earned. 
The consumer 19 redeems the reward certificate 18 at the retail store 20. 
The reward certificate redemption transaction is recorded in the customer 
record 31 of the consumer 19. A member identification card 21 is required 
for the redemption transaction, giving the consumer 19 added security 
against fraudulent redemption by another. 
Periodically, records of redemption transactions 44 are transferred to the 
program data bank 4a from the in-store data bank 22a. From these 
redemption records 44, the central management firm 3 determines the 
redemption amounts and reimburses the retail store 20. Finally, the 
central management firm 3 uses the reward files 42 to prepare a report of 
reward items sold 45 to send to the manufacturer 1. 
In this embodiment of the purchase reward system, the retail store 20 can 
simultaneously offer purchase incentives with the purchase reward program 
administered by the central management firm 3. For instance, the retail 
store 20 may offer points according to the volume of purchases a consumer 
19 makes at the retail store 20. Hence, the retail store 20 and the 
participating manufacturers 1 can increase consumer loyalty through the 
marketing method of the present invention. 
While preferred embodiments of the invention have been shown and described, 
several other modifications and improvements to these preferred 
embodiments will be suggested to those skilled in the art. Accordingly, 
the invention should not be limited by the disclosure above, but only by 
the following claims: