Computer-based electronic bid, auction and sale system, and a system to teach new/non-registered customers how bidding, auction purchasing works

The computer-based method of selling consumer products and consumer services includes, in one embodiment, the utiltization of a computer system, which maintains the electronic bid, auction and sales records, and a plurality of customer computers interconnected with the computer system via a telecommunications link. The computer system electronically establishes a virtual showroom accessible by the customer's computers which displays consumer goods and services and information regarding the commonly available selling price for each product and service. For example, the system displays the manufacturer's suggested retail price or MSRP, a minimum opening bid price, information regarding the make, model and manufacturer or distributor of the offered product or service, and bid cycle data revealing the open, close and acceptance dates for the bids. The computer-based method electronically posts all bids made by bidders on the products and services during the bid period. The system accepts the highest bid while excluding bids greater than the lowest high bid from a single bidder. The system further electronically consummates the sale. Each bid costs the bidder a predetermined amount of money. The system also provides an electronic bid, auction and sale game. The computer-based method also electronically posts all winning and accepted bids thereby documenting the sale of the plurality of products and services purchased by the bidders.

The present invention relates to a computer-based method of selling or 
purchasing consumer products and consumer services via an electronic bid, 
auction and sale system. 
BACKGROUND OF THE INVENTION 
U.S. Pat. No. 5,561,707 to Katz discloses a telephonic interface 
statistical analysis system which can be utilized in conjunction with 
auction sales. U.S. Pat. No. 4,974,252 to Osborne discloses an interactive 
commercial/entertainment network. The Katz system utilizes a Touch Tone or 
DTMF telephone unit as an input. The Osborne system utilizes a especially 
configured remote control input unit, provided to each patron in a theater 
or a data acquisition location, to select one or more items displayed in 
the theater. U.S. Pat. No. 5,259,023 to Katz discloses another telephonic 
interface statistical analysis system which utilizes a Touch Tone 
telephone as an input. U.S. Pat. No. 4,654,482 to DeAngelis discloses a 
home merchandise ordering telecommunications terminal. U.S. Pat. No. 
5,611,051 to Pirelli discloses a point of supply, use and distribution 
process and apparatus. To dispense inventory to consumers, the Pirelli 
system utilizes a card imprinted with a personal user bar code or optical 
scan code. 
In Israel, a magazine called "The Country Auction" enables purchasers, 
reviewing the magazine, to bid on products and services illustrated in the 
magazine. This Israeli magazine includes photographs of the products 
offered for sale, the suggested retail price for those products, and 
information regarding when bids can be made on those products. Potential 
bidders place a telephone call to a call center in order to place one or 
more bids on certain products or services offered in the Israeli magazine. 
After the close date, the highest bid for the particular product or 
service is accepted by the magazine's operator while excluding bids from a 
single bidder which are greater than the lowest high bid from that single 
bidder. The operators of The Country Auction magazine system collect a fee 
for each bid placed by a caller. 
OBJECTS OF THE INVENTION 
It is an object of the present invention to provide a computer-based method 
of purchasing or selling consumer products and consumer services via an 
electronic bid, auction and sale system. 
It is an additional object of the present invention to provide an 
electronic bid, auction and sale system utilizing a computer system that 
cooperates with a plurality of customer computers, operated by customers, 
whereby the computer system and the customer computers are linked via a 
telecommunications system. The telecommunications system may encompass the 
Internet. 
It is a further object of the present invention to provide an electronic 
bid, auction and sale system wherein the computer system establishes a 
virtual showroom which electronically displays the products and services 
offered for sale and certain other information, such as the manufacturer's 
suggested retail price, minimum opening bid price and bid cycle data which 
enables the potential purchaser or customer to view the product, view 
information regarding the product and place a bid or a number of bids to 
purchase the product. 
It is an additional object of the present invention to permit the user to 
place a reasonable number of bids (up to 8 bids in a preferred embodiment) 
on a single product or service whereby the system accepts (a) the highest 
bid submitted by all bidding customers and (b) excludes all bids greater 
than the lowest high bid from a group of bids submitted by a single bidder 
for the *particular product or service. 
It is an additional object of the present invention to electronically post, 
for public display, all winning and accepted bids and, in a preferred 
embodiment, a predetermined number of non-winning bids proximate to the 
winning and accepted bids. 
It is another object of the present invention to provide a role play or 
game routine which potential customers can play in order to learn the 
rules for the electronic bid, auction and sale system and to provide 
entertainment to actual and potential customers. 
SUMMARY OF THE INVENTION 
The computer-based method of selling consumer products and consumer 
services includes, in one embodiment, the utilization of a computer 
system, which maintains the electronic bid, auction and sales records, and 
a plurality of customer computers interconnected with the computer system 
via a telecommunications link. The computer system electronically 
establishes a virtual showroom accessible by the customer's computers. 
This electronic showroom includes electronic displays of a plurality of 
consumer goods and services which are offered for sale. Further, the 
showroom displays information regarding the commonly available selling 
price for each product and service. For example, the system displays the 
manufacturer's suggested retail price or MSRP, a minimum opening bid 
price, information regarding the make, model and manufacturer or 
distributor of the offered product of service, and bid cycle data 
revealing the open, close and acceptance dates for the bids. The computer 
based method electronically blocks customers from becoming bidders and 
posting bids until those customers have electronically preregistered. 
Preregistration may occur completely electronically or with an audio 
telecommunications link or via a voice communications center. The 
computer-based method electronically posts all bids made by bidders on the 
plurality of products and services during the bid period. The system 
accepts the highest bid submitted for sale of one of the plurality of 
products and services from all bids submitted by all bidders while 
excluding bids greater than the lowest high bid from a single bidder. The 
system further electronically consummates the sale of the product or 
service to the highest bidder via an electronic confirmation to the 
winning bidder or purchaser. Further, the system accepts an electronic 
payment of funds from each bidder for each bid based upon the number of 
bids submitted by the bidder. In other words, each bid costs the bidder a 
predetermined amount of money. For customers who have not preregistered, 
the system provides an electronic bid, auction and sale game wherein 
customers place fictitious bids, the computer system generates a plurality 
of computer generated fictitious bids responsive to the customers' 
fictitious bids, the computer system fictitiously accepts the highest bid 
while excluding all fictitious bids greater than the lowest high 
fictitious bid from a single customer and fictitiously accesses a charge 
for each fictitious bid submitted by the customers during the game. The 
computer-based method also electronically publicly posts all winning and 
accepted bids thereby documenting the sale of the plurality of products 
and services purchased by the bidders. In a preferred embodiment, the 
winning and accepted bids are electronically publicly displayed along with 
a predetermined number (10-20) of non-winning bids proximate to the 
winning and accepted bids.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS 
The present invention relates to a computer-based method of purchasing or 
selling consumer products and consumer services via an electronic bid, 
auction and sale system. 
FIG. 1 diagrammatically illustrates customer computer system 10 
electronically connected via a telecommunications system having 
telecommunications lines 11, 12 to central office I. Telecommunications 
line 12 is connected to a voice communications equipment 13. In the 
illustrated embodiment, this is a Touch Tone or DTMF telephone. 
Alternatively, the voice communications equipment may be integrated into 
customer computer system 10. Computer system 10 includes a central 
processing unit 14 (having a central processor, random access memory, read 
only memory, preferably a hard drive memory, input and output interface 
cards, and other commonly available computer elements equipment), a 
keyboard 15, a monitor 16 and a mouse or track ball 17. Customer computer 
systems 2 and 3 are also interconnected via telecommunications line 19 to 
central office I. The telecommunications system is an interlinked system 
linking central offices I, II, III and IV. Some of these central offices 
are also connected to Internet computer systems A and B. 
The electronic bid, auction and sale system primarily resides on computer 
system 20 which is linked to the telecommunications system via 
telecommunications line 21. Line 21 may be a T1 or larger 
telecommunications line. Computer system 20 includes a central processing 
unit 22 including a processor 24, memory 26 and an input/output device 28. 
Memory 26 includes random access memory, read only memory, hard drive 
memory, removable drive memory and backup memory. Input/output interface 
28 is connected to telecommunications line 21 and computer work station 
30. Printer 32 is also coupled to input/output unit 28. 
Memory 26, by way of example, captures various data generally identified 
and located in membership data base DB 34, bid data base 36 and 
merchandise data base 38. In general, potential customers become members 
by registering with the member data base 34. Prior to becoming members, 
these customers may be permitted to role play or game play the electronic 
bid, auction and sale system. The bid, auction and sale system is 
generally handled by bid data base 36. Merchandise data base 38 includes 
information regarding consumer products as well as information regarding 
consumer services. As such, when used herein, the term "merchandise" 
refers to both consumer products as well as consumer services. 
The telecommunications system links computer system 20 to one or more 
manufacturer's computer system 60, to call center computer system 62, to 
credit card computer system 64 and to electronic or E-bank computer system 
66. 
Call center or voice communications center computer system 62 includes work 
station 63 and voice communications equipment 65. Voice communications 
equipment 65 enables the operator at call center computer system 62 to 
provide an audio telecommunications link with the customer, member or user 
as necessary. Of course, call center computer system 62 could be 
integrated with the electronic bid, auction and sale computer system 20 
rather than being electronically linked together via the 
telecommunications system. 
The following Definitions Table may assist in the understanding of the 
present invention. 
DEFINITIONS TABLE 
______________________________________ 
web.com Internet address on the web 
SKU Standard inventory - manufacturer 
number used to track sales of product 
(optical scan code) 
MSRP Manufacturer's suggested retail price 
DB data base (or similarly configured spread sheet) 
Scn Screen or displayed elements 
Co. e-mail Company electronic mail box 
Mrch. Merchandise (also refers to services) 
Member Pse Member pseudonym (also Mbr. Pse) 
a-bid accepted bid 
Mbr member 
e-sig. electronic signature 
______________________________________ 
One of the primary embodiments of the present invention is the 
implementation of the electronic bid, auction and sale system on the 
Internet. As it is well known, the Internet is a relatively large number 
of substantially independent computer systems (A and B) linked together 
via a telecommunications system. This telecommunications system consists 
of a large number of telephone lines but also includes long distance 
telephone lines, satellite communications and other telecommunications 
routes. The telecommunications system not only handles the electronic data 
transfer between various computer systems, but also handles voice or audio 
communications. When certain aspects of the present invention can be 
carried out via an audio telecommunications link or a voice 
telecommunications link, that feature of the present invention will be 
discussed in an appropriate manner. However, most of the electronic bid, 
auction and sale system can be implemented in a completely electronic 
environment. Certain additional enhancements can be added such as computer 
generated voice annunciations from the system 20 to guide the user through 
various programs. 
FIG. 2 diagrammatically illustrates the Website, home page or introduction 
screen 110 electronically presenting the bid, auction and sale system 
which generally resides in computer system 20 in FIG. 1. Sometimes, 
introduction screen 110 is identified as a "home page". Users, customers 
and members of the bid, auction and sale system can access certain 
computer programs, data and routines via introduction screen 110. These 
programs and data are accessed by placing and activating a cursor on a 
selected location on the display screen. Transfers between programs or 
data are sometimes called "inter-links" or "cross-links" herein. 
In a preferred embodiment, certain programs can be accessed by all users or 
customers. Other programs can only be accessed with a password. The 
password control in FIG. 2, is diagrammatically illustrated as P. The bid 
program and the member account activity program are not open to all 
customers or members unless they have password P111 and password P113. 
Also, rules regarding the bid, auction and sale of products and services 
are periodically displayed to the users or customers accessing the system. 
In FIG. 2, these rule displays are diagrammatically illustrated with R. 
For example, bid program and review merchandise program are accessed only 
after rules R114 are displayed to the customer. The foregoing password 
control and rule display is only exemplary in nature. 
The customer, after retrieving the introductory screen via the Internet or 
telecommunications system, can enter the electronic bid, auction and sale 
system by accessing the membership-new account program, the bid program, 
the review merchandise program, the member account activity program, the 
communications program, the interactive role play or game play program, or 
the company profile/example sales program. 
Certain of these programs or data displays enable the customer to jump from 
one program to another program. For example, the membership program 
enables the customer to jump or cross-link from the membership or 
registration system into the review merchandise program. As discussed 
later, the review merchandise program provides the user or customer with 
an electronic display of merchandise. This electronic display of 
merchandise includes illustrations of the products and, where appropriate, 
illustrations of the services. For example, the customer or member may 
purchase a vacation from the bid, auction and sale provider. This vacation 
package can be illustrated by photographs of the destination or 
destinations, the hotels, restaurants and other facilities. As described 
earlier, the term "merchandise" refers to consumer products or goods as 
well as consumer services. 
A new member or a registered customer may jump or cross-link from the 
membership routine to the review merchandise routine if he or she wants to 
purchase or bid on one or more products or services offered by the system 
operator on computer system 20. From the review merchandise routine, the 
member, user or customer may jump to the bid program. In the bid program, 
the customer places one or more bids on a particular product or service. 
Since the customer may want to bid on more than one product, a cross-link 
from the bid program to the review merchandise program is diagrammatically 
illustrated in FIG. 2. 
From the review merchandise program, the user may want to access his or her 
member account activity screen or file. As described later, this activity 
file is unique to each member and shows the current status of all 
outstanding bids and certain historic data. Historic data includes, for 
example, bids not accepted as winning bids by the system and bids which 
were accepted. Access to the member account activity program is provided 
from the bid program as well as the review merchandise program after the 
user supplies an appropriate password or access control data. After 
reviewing his or her account, the customer or user may want to return to 
the review merchandise program or the bid program to make a bid on a 
particular product or service. The temporary bid file (described later) 
may be compiled as part of the bid program or the member account routine. 
The membership-new account program interacts with the member or customer 
data base. Further, the member data base may be interactively connected to 
the call center 62. As explained later in conjunction with FIG. 3, the 
call center may be activated to gather membership or customer information, 
gather or obtain credit card data from customers, clear credit card 
transactions with customers and with the credit card clearinghouse, and 
audibly confirm winning bids and consummate the sales of products and 
services via an electronic charge to a credit card or to electronic E-bank 
account. 
The bid program interacts with bid data base 36. Bid data base 36, as 
explained later, accesses credit card computer system 64 and/or electronic 
bank computer system 66. Each bid placed by each customer or member has a 
charge associated with it. This bid charge, although small ($2.00-$10.00 
per bid) is automatically charged to the customer's credit card or 
electronic bank account. Dependent upon the traffic on the system and the 
value of goods and services sold thereon, the bid charges may be higher or 
lower than currently estimated. 
The review merchandise routine interacts with the merchandise data base. 
The merchandise data base has a large amount of data describing the 
products and services offered by the system. Merchandise data base 38, 
under the control of the system operator, electronically interacts with 
the computer systems of various manufacturers 60a as well as the computer 
system for various suppliers 60b. In an expanded version, after a winning 
bid or bids have been awarded and electronically confirmed with the 
bidders, computer system 20 will generate electronic "ship merchandise" 
orders to the suppliers' computers 60a and 60b. Electronic payment for 
these goods is also accomplished with computer systems 20, 60a, 60b, 64, 
66. 
The member account activity program generally interacts with information 
stored in the member or customers data base 34. 
The communications program generally gathers information from the member or 
customer and funnels this information through the membership data base to 
either the system operator or the call center 62. 
The interactive role play or game play routine provides existing members 
and potential members or customers with the rules explaining the bid, 
auction and sale of merchandise as well as enables the potential member to 
game play by bidding on one or more items. Although not shown in FIG. 2, 
the interactive role or game play routine is cross-linked to the 
membership routine and the review merchandise routine. If the potential 
member likes the game, he or she is prompted to become a registered member 
and place actual bids on the products and services. 
Lastly, the customer or member accessing the introductory screen or Website 
of the system can select the company profile. The company profile displays 
the credentials of the system operator. In addition, this program may 
provide the potential customer with a list of goods and services recently 
sold to customers. Critical acclaim or reviews can also be posted with the 
company profile. Of course, cross-links from the company profile routine 
are provided to the membership routine, the bid program, the review 
merchandise and the communications program. The data path flow illustrated 
in FIG. 2 provides an example of the type of data flow in the system. 
Although separate data bases for membership and merchandise have been 
illustrated herein, a single integrated system may be utilized. The data 
structure set forth herein is an example of the necessary data management 
protocol. 
FIG. 3 diagrammatically illustrates the membership or customer program. 
Step 120 welcomes the customer or member to the Website. Voice as well as 
text and visual or video information may be presented to the potential 
customer or member. Decision step 122 determines whether the customer 
wishes to review the rules regarding the bid, auction and sale system. For 
example, one of the rules provides that only consumers may access this 
system. Further, a consumer may only buy one unit offered for sale. As an 
example, the system may offer for sale 200 pairs of NIKE shoes. However, 
the customer or member can only bid on and can only purchase one pair of 
the 200 pairs of NIKE shoes offered for sale. If the YES branch is taken 
from decision step 122, the system explains rules in step 124. If the NO 
branch is taken, the system in step 126 logs in and electronically records 
member information. At this time, the system may activate an automated 
membership or customer routine or may pass control to the call center 62. 
The Membership Data Base File-Screen Table provided below indicates some 
general information that may be collected on each new member or customer. 
Membership DB File-Screen 
Member name 
Member nickname/pseudonym 
Member electronic signature 
Member ID (assigned by system) 
Special password data 
Address, phone 
E-mail address 
Sign-on date (sys.) 
Log-on count (sys.) 
Credit card no. 
- expiration date 
- approved credit limit 
E-Bank data 
- Bank name 
- Account no. 
- Web address 
- Clearance code 
Cross Links: Co. e-mail; merchandise showroom program; bid program 
If the automated route is taken, in step 128, the system confirms the 
membership data input by the user. In a sophisticated system, the new 
member would type in his or her name, provide the system operator with a 
nickname or pseudonym PSE and would provide the system operator with a 
member electronic signature e-sig. With the advent of electronic signature 
laws, individuals are capable of utilizing a specific electronic signature 
which has the same legal effect as his or her hand written signature. In 
addition to this name and recognition information, the system requires, in 
a preferred embodiment, special password data. This special password data 
may include the customer's mother's maiden name. This special password 
data is utilized by the system to safeguard very critical information. 
Critical information in this regard is the member account activity 
information. Further, this special password data can be utilized to 
further confirm the validity of a member if the member seeks to change his 
or her address or password in the appropriate data base. The member's 
address, telephone, e-mail address, credit card information, and 
electronic bank (E-bank) data is also requested and obtained by the 
system. In step 130, the system encrypts credit card data and financial 
data exchanged during the input and confirmation routines. Common 
encryption routines can be utilized (PGP, etc.). Financial data includes, 
among other things, information regarding the bank account for the 
electronic bank E-bank. 
In step 132, the system assigns and encrypts the member identification. 
After the member has completed the input of this information, the system 
assigns a sign-in date in the membership data base as well as increments 
the log-on count. This log-on count data indicates the number of times the 
member has logged into the system 20. In step 134, the member or 
registered customer can jump to other programs. In the membership DB 
file-screen, this is indicated by cross-links to the company e-mail (the 
communications program), the merchandise showroom program or the bid 
program. In the absence of selecting a cross-link to another program, the 
membership program ends. As a default, the customer could be linked to the 
merchandise program. 
If an audio system or live operator system is implemented, system 20 after 
step 126, activates the call center system routine. In step 128, the 
potential customer or potential new member leaves his or her name and a 
responsive telephone number with the system operator at system 20. In step 
131, this information is uploaded to the call center computer system 62. 
In step 133, a live operator at call center computer system 62 calls the 
potential customer or new member. This voice link then obtains the credit 
card and other financial information from the customer. In step 135, the 
call center computer system 62 downloads this information into computer 
system 20 after the call center confirms the assignment of a member 
identification number, member electronic signature, special password and 
member nickname or pseudonym. In step 137, this information is downloaded 
to computer system 20. 
An important aspect of the present invention is the merchandising program 
diagrammatically illustrated in FIGS. 4A and 4B. In step 200, the system 
operator, operating computer system 20 (FIG. 1), locates suppliers and 
manufacturers for the products and services to be offered by the 
electronic bid, auction and sale program. The system operator compiles the 
merchandising data base primary file. The Merchandise Data Base Primary 
File-Screen Table, or an example of such a file or data compilation is set 
forth below. 
Merchandise DB Primary File-Screen 
Supplier 
Name, contact person 
address 
phone 
web.com 
e-mail 
Manufacturer 
Name, contact person 
address 
phone 
web.com 
e-mail 
Warranty Provider 
Location 
phone, e-mail 
Hyper Links: supp-web.com; mfg-web.com; warr-e-mail 
In order to properly operate the present computer system, information must 
be gathered regarding the manufacturer of each product, as well as the 
supplier or distributor of the product. Since the present invention relies 
heavily on a computerized system, warranty information can also be 
compiled and associated with the products and services offered for sale on 
the system. Not only details regarding the warranty, but also the location 
of the company who will fulfill and correct any warranty problem. The 
merchandise primary file also includes Internet addresses (web.com) and 
e-mail addresses. The merchandise primary file may enable the system 
operator to hyperlink to the supplier or manufacturer's website. Also, the 
system operator should be able to send e-mail to the warranty provider. In 
a highly integrated system, the user or customer may be provided with an 
inter-link to the manufacturer's website from the Item Description Screen 
Table (described later). 
In step 202, the system operator electronically assembles photographs or 
illustrations of the goods or products, vacation destination, textual 
information or data describing the goods, the SKU or optical scan track 
information, purchase restrictions and options, warranties, and generally 
compiles the Merchandise Data Base Secondary File Screen Table set forth 
below. 
Merchandise DB Secondary File-Screen 
Supplier-Manufacturer data in horizontal format: 
a. item description (short form) 
b. SKU No. 
c. Number of available items 
d. MSRP 
e. opening bid 
f. cost 
g. shipping and handling cost 
h. opening date 
i. close date 
j. total bid count-this bid cycle 
k. average accepted bid 
The merchandise secondary file is a management tool which enables the 
system operator to quickly identify the item, the SKU number, the number 
of items available for sale (number of units available for sale), the 
manufacturer's suggested retail price (MSRP), opening and closing bids, 
shipping and handling data, cost to the system operator for those goods, 
the close date for the bids, the total bid count for this bid cycle and 
the average accepted bid. The merchandise secondary file is an internal 
management tool and is not open to the public. This information is 
important in order to monitor how many products have been sold (if 500 
units or pairs of shoes are to be sold, how many pairs have been sold to 
date) as well as the average bid posted and the average accepted bid. The 
present system can be implemented either by the system operator purchasing 
the goods and carrying inventory or the system operator contracting with 
certain suppliers or distributors and paying for those goods as those 
goods are sold through the electronic bid, auction and sale system. 
Accordingly, the system may be enhanced to provide for inventory control 
and the direct purchase of goods by the system operator and subsequent 
re-sale of goods by the operator. 
Step 204 obtains shipping and handling and distribution data, updates 
information regarding suppliers of the products and services and the 
manufacturers of the products and services as necessary. Step 206 compiles 
information regarding the availability of the products and services, the 
time factors involved in shipping those products to customers, the cost of 
those products, the manner of delivery of those products or services to 
the customers. Step 206 also contemplates the development of a "launch" 
chart which is a time diagram identifying what goods or services will be 
made available to members of the public during certain time frames. For 
example, automobiles may be sold only during the first full week of each 
month. Electronic devices may be sold during the second full week of each 
month. By carefully monitoring the traffic on the computer system, that 
is, the number of customers accessing computer system 20, the system 
operator can adjust the activity levels on the computer system to match 
the system's capability. The greater activity may require more restrictive 
access to the system and shopping available on the system. In this manner, 
system overloads and unacceptable customer wait times can be avoided. This 
is especially true regarding the auction, bid and sale game (FIGS. 9A, 
9B). Further, the launch chart is used as a just in time inventory control 
for the purchase and distribution of merchandise. 
In step 208, the system operator designs or lays out the electronic 
merchandise showroom. 
FIG. 5 diagrammatically illustrates a merchandise showroom screen-lobby 
level. This merchandise showroom can show the products either in text or 
by illustration. Illustrations are preferable but download time to 
customers must be taken into account when designing the system. Screen 
area 209 provides an electronic entrance way to an exemplary automobile 
store. The merchandise showroom screen indicates that the automobile store 
will be closed until July, 1997. In contrast, house or home appliances 
store 211 is open to customers until Jun. 15, 1997. Large appliances are 
open until June 10. The electronic store is open daily. The products and 
services offered for sale through this system are functionally grouped 
together. It is believed that users may browse through the merchandise 
showroom and select one or more items and potentially bid for the purchase 
of one or more items from one of these electronic stores. However, it is 
beneficial to show the user at the lobby level or merchandise showroom 
screen that the system operator sells a wide variety for products and 
services. 
The customer or member is also permitted to access the system operator's 
home page, go back to the previous page, access member data, access the 
bid program as well as access the rules unique to the electronic bid, 
auction and sale routine. These are cross-links to other data pathways. 
Returning to FIG. 4A, in step 210, the system operator sets an open, close 
and bid acceptance date. Bids for a particular product or service will 
only be accepted after the opening date (and time, if necessary) and 
before the bid close date. The bid acceptance date should closely follow 
in time the bid close date. 
In step 212, the merchandising program opens the bidding. In step 214, the 
merchandising program closes the bidding. In step 216 the system accepts 
one or more posted bids. 
In order to monitor the transactions, the system operator also compiles a 
Merchandise Data Base Tertiary File-Screen Table. This tertiary file or 
table is an internal management tool. An example is shown below. 
Merchandise DB Tertiary File-Screen 
Supplier-Manufacturer data in horizontal format: 
1. fields a, b, f, g, i, k (See Mrch. DB Secondary Table above) 
2. List of all accepted bids 
- bid $ 
- member id 
- bid posting date 
3. billing data 
4. payment data 
5. ship date 
As an example, this tertiary file or screen shows the item description, the 
SKU number, the cost of the item, the shipping and handling cost, the 
close date for the bidding and the average accepted bid. In addition, the 
tertiary file lists all accepted bids. The tertiary file includes the 
amount of each accepted bid, the member ID and the bid posting date. The 
tertiary file also shows whether the member's credit card or E-bank 
account has been charged for the transaction, whether the credit card 
charges have cleared and whether the product has been shipped to the 
customer/member/purchaser. As the goods are electronically paid for, the 
charges clear the bank and the goods are shipped, this file is 
electronically updated. 
In addition to the general merchandise information described above, each 
item, whether product or service offered for sale, must be electronically 
configured and displayed to the customer. The Item Description File-Screen 
(Common) Table shown below provides an example of this type of 
information. 
Item Description File-Screen (Common) 
Generic name 
Brand name 
Manufacturer/supplier 
Model No. 
SKU No. 
Number of items available 
MSRP 
Minimum opening bid 
Features 
User feature selections 
Warranty data 
Purchase restrictions-options 
Illustration of product, service provider vacation destination, etc. 
Shipping and handling cost and delivery detail 
Critical commentary or acclaim re: product or service 
Cross links: to manufacturer; to bid program; to new member program 
The item description table includes information regarding the generic name 
of the product or service, the brand name, the manufacturer and/or 
supplier of the product or service, model number, SKU number, 
manufacturer's suggested retail price MSRP, and the number of units 
offered for sale through the system. For example, the system operator may 
contract with a distributor of Westinghouse refrigerators in order to sell 
200 refrigerators during the month of August, 1997. These refrigerators 
must be identified by manufacturer, brand, the available colors of these 
refrigerators must be identified, and the suggested retail price should be 
posted to spur sales or bids on these units. The system operator 
identifies and posts a minimum opening bid. A customer's bid less than the 
minimum opening bid will not be accepted. With respect to the refrigerator 
example, the customer or user may be able to select the color of the 
refrigerator. Accordingly, the item description file or screen should show 
or be configured to show, if necessary, the color selection available to 
the customer/member/user. These are restrictions or conditions of the sale 
unique to each item offered for sale. 
The item description file may also include warranty data, purchase 
restrictions or options, and illustrations of the product or service. 
Shipping and handling costs are necessary components of the sale of 
products and services through this system. As an example of options, the 
system operator may offer to sell a vacation package to the public. This 
vacation package may be broken down into a package for an individual, 
packages for couples, and packages for families. These various purchase 
restrictions or options should be located in the item description file. 
In addition to the foregoing, cross-links or hyper-links may be provided 
from the item description file to the manufacturer, to the bid program, 
and to the new member program. Also, the item file may be separated into 
several files which the user can access as necessary. This may increase 
the utilization of space in the virtual shopping mall and reduce download 
time of data to the customer's computer 10. 
Accordingly, after the user or member enters a particular store, for 
example, the electronic store in FIG. 5, the user clicks on or selects 
information regarding the sale of a fax machine. After the user or member 
selects the fax machine, the computer system displays an item description 
file or screen which provides the user/member/customer information 
regarding the fax machine or other selected product or service offered by 
the computer system operator. If the user or member wants to obtain 
additional information on the product, the user selects a hyper-link to 
the manufacturer of the product for additional information. Alternatively, 
the user can select the bid program and thereby place a bid on the 
illustrated item. If the member or customer had not preregistered with the 
system 20, the potential customer could select the new member cross-link 
and the system would direct and channel the potential customer to the new 
member program discussed above. 
In addition to the item description file-screen (common), the system 
operator should have an additional data base information regarding the 
item. The Item Description File-Screen (Supplemental) Table shown below 
provides an example of some of this information. 
Item Description File-Screen (Supplemental) 
Common File-Screen 
Open date 
Close date 
Acceptance date-time 
Last sale date 
Total bids this bid cycle 
Total bids all cycles 
Average accepted bid $ last bid cycle 
Average open bids $ this cycle 
Call frequency 
This supplemental file, accessible primarily by the system operator, 
includes the bid opening date, the bid close date and the acceptance time 
and date. Additionally, it may be useful for the system operator to track 
the last sale date of this item. The system operator may also want to know 
how many bids have been made on this product during the current bid cycle 
and how many bids have been made on this product for all bid cycles. The 
average accepted dollar amount of the last bid cycle is important as well 
as the average open bid amount for this bid cycle. The call frequency is 
also important data. The system operator, if offering a large quantity of 
similar goods, would like to know how successful this product has been in 
the past. By compiling information regarding the total number of bids made 
on this product for the last bid cycle as well as the total number of bids 
during the current open bid cycle, the operator judges the acceptance 
level of this product through the electronic bid, auction and sale system. 
Additionally, the average accepted bid for the last bid cycle provides the 
operator with information from which he can compute his or her profit 
margin. For example, if 200 pairs of NIKE shoes were offered for sale and 
the average accepted bid for those 200 shoes was $32, if the operator 
purchase those shoes at a cost of $25 per pair, a profit margin of $7 per 
pair is realized. If, on the other hand, the current average bid (posted 
by the system but not yet accepted because the bid cycle is still open) is 
$30, the system operator recognizes that his or her profit margin is less 
than the previous bid cycle. The call frequency information is useful in 
determining the traffic for that item based on day of the week and time of 
day. 
Returning to FIG. 4A in the merchandising program, in step 218, the system 
compiles and posts the Bid Checker Table. One example of a Bid Checker 
File-Screen Table is set forth below: 
______________________________________ 
Bid Checker File-Screen 
Item Description (short form) 
Open date . . . close date . . . Acceptance date 
Bid Chart 
Member Member Date of Bid Accepted 
PSE ID (Hidden) 
Bid Amount Bid $ 
______________________________________ 
M-PSE 1 CU 849 5-1-97 38 
M-PSE 1 CU 849 5-1-97 32 32 
M-PSE 5 (H) 5-1-97 31 
M-PSE 6 (H) 5-1-97 30 
M-PSE 12 (H) 5-1-97 30 
. 
. 
M-PSE 20 (H) 5-1-97 27 
______________________________________ 
Cross-Links: Intro. pg; Previous pg; Item Description (full); Rules; 
Member Account Activity 
The bid checker file enables all members or preregistered customers to 
determine what bid was accepted for a particular product or service. The 
Bid Checker File-Screen Table includes a short description of the item, 
the open, close and bid acceptance date and a bid chart. The bid chart 
shows the member pseudonym or nickname (M-PSE 1), the member's 
identification number which is hidden (H) except in certain situations, 
the date of the bid, the bid amount and the accepted bid. In the Bid 
Checker Table set forth above, the accepted bid has been underlined. The 
member ID number is only revealed to the system operator and is only 
revealed to the member whose ID number matches one of the hidden member ID 
numbers shown in the bid chart. In this example, member with the pseudonym 
M-PSE 1 has been assigned a membership or customer number CU 849. That 
member placed a bid of $38 on, for example, a pair of NIKE shoes. Member 
#1 placed that bid on May 1, 1997. The same member placed another $32 bid 
on the same pair of NIKE shoes. That $32 bid was accepted by the system as 
the highest winning bid from all bidders while excluding other higher bids 
from the same member. Of course, the bid chart cannot be compiled until 
after bids have been accepted. Members with pseudonyms 5, 6, 12 and 20 
placed bids on the NIKE shoes on May 1, 1997. Those member bids were 
offers to purchase to NIKE shoes for $31, $30, $30 and $27. Since member 
#1's bid of $32 was higher than all other member's bids, member #1's bid 
of $32 was awarded. 
An important feature of the present invention enables the customer or 
member to place multiple bids (in a preferred embodiment of up to 8 bids) 
on a single product or service. First, bids are awarded based on the 
highest bid from all bidders. Thereafter, the computer program excludes 
all bids greater than the lowest high bid from a single bidder. In the 
example shown above, member #1 placed two bids, $32 and $38 for the pair 
of shoes. Since the $32 was higher than all other bids from all other 
bidders (members 5, 6, 12, 20), that bid was accepted. Member #1's bid of 
$38 was not accepted because that bid was higher or greater than the 
lowest high bid from all bids made by member #1. The bid checker screen, 
accessed by various members after the bid acceptance date, will only show 
the member pseudonym, it will not reveal the member's name or ID. The 
member's ID number is hidden to everyone except the system operator and 
each respective member in order to insure confidentiality of members. The 
bid checker screen is made available to all preregistered customers or 
members in order to establish creditability of the present electronic bid, 
auction and sale system. In a preferred embodiment, the bid chart is 
certified or confirmed by an independent accountant or other authority. 
Cross-links to the home page, previous page, full description of the item 
sold, rules and member account activity is provided from the bid checker 
screen. 
Returning to FIG. 4A, the system after step 218 jumps to jump point 4A-1 in 
FIG. 4B. Step 220 confirms the sale of the product or service with the top 
or winning bidders. This confirmation occurs via electronic mail or by 
voice communication via the call center computer system. If the call 
center is activated, computer system 20 (FIG. 1) electronically uploads 
the correct information to the call center computer system 62. At the call 
center, a voice channel or audio link is established between the call 
center and the customer/member. During this voice communications session 
or, during an e-mail communication, the customer/member confirms the sales 
price and the purchase of the product. The method of payment for the 
product is also confirmed. In the call center situation, the call center 
would then download the confirming information to computer system 20. In 
step 222, the system operator orders the goods, preferably electronically. 
In step 224, the system operator confirms that the customer/members has 
paid for the goods. If payment is made by credit card or E-bank, an 
electronic transfer of funds is completed. In step 226, the system 
confirms the shipment of goods. In step 228, the system sends an e-mail 
communication to the member/customer to determine whether that customer 
has received the goods. Step 230 repeats all of the foregoing steps for 
all merchandise. 
In a general sense after the customer/member has reviewed the merchandise 
in the virtual showroom, the member or customer should purchase or bid on 
the product by accessing the bid program. FIGS. 6A and 6B diagrammatically 
illustrate the major functional aspects of the bid program. In step 310, 
the member or customer provides the system with his or her identification 
number and password. This controls access to the bidding program. In step 
312, the system electronically displays the rules associated with the 
electronic bid, auction and sales system. For example, one of the rules 
provides that there is a bid charge associated with each bid made by the 
customer or member. The customer or member should agree to this bid charge 
prior to activating the bid program. Step 314 logs in or records the 
member's electronic signature. This is acceptance of the rules by the 
customer or user. Step 316 enables the member or customer to jump or loop 
to the merchandise showroom as he or she sees fit. Step 318 compiles a 
temporary bid-offer file for the customer or member. By analogy, this is a 
shopping cart routine. The Temporary Bid-Offer File-Screen Table set forth 
below provides an example of this information. 
______________________________________ 
Temporary Bid-Offer File-Screen 
(Shopping Cart Routine) 
______________________________________ 
Member Name 
Member Pse 
Item 1 Min'm Your Est. bid 
Description 
Mfgr. MSRP open bid 
bids charges 
$ xx 
ww 
yy 
No. of bids 3 .times. $3.00 = $9.00 
Open date 
Close date 
Acceptance date 
Item 2 Min'm Your Est. bid 
Description 
Mfgr. MSRP open bid 
bids charges 
$ 
No. of bids .times. $5.00 = $ 
Total projected savings from MSRP 
$ 
Total cost of bids - this transaction 
$ 
Accept 
Decline More Stuff 
See item detail 
______________________________________ 
The electronic bid, auction and sale program generally simulates a shopping 
trip which the user/customer/member may take through a certain store in a 
real, physical shopping center. While in the store, the user may select 
various products or services which he or she may be interested in 
purchasing. However, before confirming the purchase, the user sometimes 
removes those items from the shopping cart. In the same manner, a customer 
or member may proceed, in an electronic manner, through the merchandise 
showroom established in computer system 20. The temporary bid-offer file 
enables the customer to locate a certain item and determine whether he or 
she wants to bid on that item. The temporary bid-offer table above 
identifies the member's name, member pseudonym and a brief description of 
each item selected, the manufacturer or supplier of that item, the 
manufacturer's suggested retail price, the minimum opening bid, the number 
of bids placed on that item by the customer and the estimated bid charges. 
For example, the system operator may charge each customer $3 for each bid 
on items having an MSRP of between $10-$50. Bid charges of $5 may be 
assessed for items having an MSRP of $50-$150. Bid charges of $10 may be 
assessed for items having an MSRP between $150-$500. Accordingly, the user 
may place 3 bids against a certain item costing $45. The charge for those 
3 bids is $9. The temporary bid-offer file also shows the user the total 
projected savings between his or her average bid and the manufacturer's 
suggested retail price (excluding bid charges). It may be necessary to 
list the bid charges next to the "savings" display. The total cost of all 
bids is also identified in the temporary bid offer file. The customer or 
member can accept all these bids and therefore actually post these bids 
with the system, decline or remove all these bids, add more items to the 
temporary bid-offer file or review the merchandise by selecting "See Item 
Detail" cross-link to the item description file-screen (common) discussed 
above. 
Returning to FIG. 6A, step 320 enables the user/customer/member to input 
proposed bids in the temporary bid file. Step 322 compiles exemplary bid 
charges in the temporary file. Step 324 enables the customer to accept, 
reject or modify the bids as necessary. Step 326 requires that the 
customer or user accept the bid charges by inputting his or her electronic 
signature. Step 328 provides that the computer system generate an 
electronic confirmation note to the customer. This confirmation note may 
be via e-mail or may be an electronic note sent to call center 62. If call 
center 62 is activated, the call center initiates a voice communications 
channel with the user to confirm the bid. Step 330 repeats steps 310-328 
for all user or members. The system then proceeds to jump point 6A-1 in 
FIG. 6B. 
In step 340, the system electronically compiles the total bid count for 
each merchandise item offered for sale. In step 342, the system computes 
the running average bid for each item offered for sale, the mean of those 
bids, the mode and the range of all bids made and all bids accepted or 
awarded as "winning" bids. In step 344 the system conducts a frequency 
analysis on the bid data. This frequency analysis may be helpful to the 
system operator and to the suppliers and the manufacturers of the products 
and services. For example, if the sales of electronic equipment is heavily 
concentrated at Saturday between the hours of 5:00 and 11:00 p.m., it is 
important that the system operator keep the electronic store open during 
that time frame. On the other hand, the sales of automobiles may be 
concentrated during a time frame of Sunday, between 10:00 a.m. and 5:00 
p.m. Further, a frequency analysis of the bidding price, the time of day 
the bids were posted, and even the geographic location of the members may 
be useful to the system operator. If the system operator wishes to enhance 
his sales position with the supplier or manufacturers of these products 
and services, the system operator could sell this information to the 
manufacturers and suppliers. 
Step 346 compiles the bid table or data base file. The following Bid Table 
provides an example. 
BID TABLE 
______________________________________ 
(e.g. 1 item 4 units) 
Mbr1 Mbr2 Mbr3 Mbr4 Mbr5 
______________________________________ 
Bid 38 
Bid 32 32 31 32 
Bid 27 29 
Bid 22 24 20 
. -- 18 15 
. -- 
Bid chg. $12 $6 $6 $6 $6 
Bit t. t1 t2 t3 t4 t5 
______________________________________ 
The bid table shows the total number of bids placed by each member, the 
amount of the bid, the bid charges for each member and the date and time 
the bid was received. In the exemplary bid table set forth above, four 
units were offered for sale by the system operator. For example, four 
pairs of NIKE shoes were offered for sale. Bids ranging from $38 (member 
1) and $15 (member 5) were received and posted by the system. Since 4 
units were offered for sale, the bid from member 1 was accepted as well as 
the bids from members 2, 3, and 5. The $32 bid from member 1 was accepted 
because it was the highest bid from all the bids submitted by all members 
and the $38 bid was excluded because it was higher than the $32 bid which 
was the lowest high bid from a single member. The $31 bid from member 3 
was accepted because 4 units were offered for sale. Member 1 was charged 
$12 as a bid charge which reflects a $3 bid charge for each bid placed by 
the member. Accordingly, member 1 purchased the pair of shoes at a total 
price of $44, not including shipping, handling, and tax. Member 2 is 
charged $38 for the pair of shoes. This represents the $6 bid charge and 
the $32 charge for the pair of shoes. 
If two members post identical bids, the system will award or accept the 
first posted bid and reject all other bids posted at a subsequent time. If 
the time as well as the date of bid posting is critical, the bid chart set 
forth above in conjunction with the Bid Checker File-Screen Table could be 
altered to include the time the bid was posted. 
Returning to FIG. 6B, at step 348, the system closes the merchandise 
showroom store at the close date. It is important to establish a bidding 
cycle. The bidding cycle includes the initial date the bids will be 
posted, the last date and time the bids will be posted and the bid 
acceptance date and time. In this manner, goods and services can be 
advertised in the electronic showroom in order to spur the interest of 
customers and members. The pre-sale activity or traffic of these customers 
is useful information. The Bid Table set forth above is only available to 
the system operator. 
In step 350, computer system 20 repeats the data analysis described above 
in connection with the merchandising or merchandise program. In step 352, 
this sale data and other relevant data is uploaded electronically to the 
computer systems of the manufacturers and suppliers. In step 354, the 
system operator selects or awards the accepted bid or bids. In step 356, 
outside consultants certify the bidding results and the system posts a 
predetermined number of bids in the bid chart. This bid chart is discussed 
above in connection with the Bid Checker File-Screen Table. 
It is important that the system operator establish credibility with the 
public. The credibility of the system operator and the electronic bid, 
auction and sale system is enhanced by electronically publishing the bid 
charts. The bid chart shows the pseudonym of the member, the bid amount 
for all bids, including the high bids not accepted by the system (the bid 
checker file-screen set forth above did not accept the $38 bid but did 
accept the next highest $32 bid for member 1) as well as the bids closest 
to the winning bid. In this example, approximately 20 bids are shown for 
the bid chart for a particular item. In step 358, the system jumps to the 
confirm sales step 220 in the merchandise program shown in FIG. 4B. The 
bid program ends after step 358. 
In order to establish a user friendly bid, auction and sale system, the 
member can access his or her account activity file or screen from the home 
page. As shown in FIG. 2, members access this information by inputting a 
password P113. FIG. 7 diagrammatically illustrates some typical 
information that would be presented to the user if he or she were 
reviewing the member account activity file. The account activity would 
include the member's name, the pseudonym for the member, his or her 
address and home and work telephone. The account file should have a period 
date, that is, those dates which are covered by the currently displayed 
activity file. One possible format for the member account activity file is 
to list, in chronological order, the date the user placed each bid, a 
short description of the items, the accepted bid (a-bid) for that item (if 
the acceptance date has passed), the amounts of the submitted bids during 
an open bidding cycle, the amount of any accepted bids, the ship date for 
the product and the confirmation number for that sale. 
For example, the member account activity shown in FIG. 7 reveals that on 
May 1, 1997 the member placed four bids for one pair of NIKE shoes. The 
bids range from $22-$38. The electronic bid, auction and sale system 
accepted a $32 bid and the goods were shipped on May 9, 1997. The 
confirmation number XP321 is shown as a field in that data record. In 
contrast, the member placed two bids on May 15, 1997 for theater tickets. 
Since the bid cycle is still open, the account activity screen reveals 
that no bids have been accepted. A summary of the member's monthly bid 
charges is also provided. The system operator charged $3 per bid for the 
shoes and $5 per bid for the theater tickets. Accordingly, the $22 bid 
charge has been accessed against the member's American Express (AMX) 
credit card. This is reflected in the bid program (FIGS. 6A, 6B) in step 
326 wherein the system clears a bid charge for all the bids posted by the 
member. 
The member account activity screen also shows that on April 20 the member 
placed two bids on a Westinghouse stove. Since the member's bids were 
below the accepted bid of $265, the screen shows "NA" or not applicable. 
However, the member was charged $20 for placing two bids on the 
Westinghouse stove. 
An important feature of the present invention is the presentation of the 
total amount of projected savings based upon the member's accepted bids 
and the manufacturer's suggested retail price (MSRP). The member account 
activity screen shows that the member saved $13 on the pair of NIKE shoes 
purchased via the electronic bid, auction and sale program. 
The member account activity screen enables the user to jump or cross-link 
to other member data (for example the membership data base file screen 
table discussed above), member account history (previous account history 
not shown on the illustrated account activity screen), a cross-link to the 
item description file-screen (common) in order to again review information 
regarding the products purchased or bid on, the ability to go to the 
previous viewing page, the home or introduction page or to review the 
rules associated with the bid, auction and sale program. 
Returning briefly to FIG. 2, it is important that the home page or 
introduction screen 110 for the electronic bid, auction and sale system 
provides an easy route to establish a communications link with the system 
operator. The communications program diagrammatically illustrated in FIG. 
8 lists some of the major functional aspects of such a program. In step 
420, the system has received an e-mail request from a user or customer. In 
step 422, the system logs in that e-mail request and stores the e-mail 
message. In step 424, the system opens a prospective business or 
prospective customer file. In step 426, the system alerts the system 
operator or formats an electronic message which is sent to the call center 
computer system 62. The system operator either at computer system 20 or 
the call center operator prepares and sends a response back to the caller 
in step 428. 
In step 430, a telephone call request has been logged into computer system 
20. A call system request may be in the form of an e-mail or may simply by 
an electronic request selected by the member. This electronic request 
would require that the system operator or the operator at the call center 
establish a voice or audio communications link with the member or the 
potential member. Step 432 establishes the criticality of the call. The 
criticality may be broken down into "call back immediately" or "call back 
within 24 hours". Other priority levels may be established. Step 434 
obtains the member's telephone number from the membership data base, 
obtains the member's ID and/or the prospective member's name. Step 436 
selects the proper call back time based on the criticality information and 
enables the member or prospective member to select the appropriate call 
back time. For example, the member may request that he or she be called 
back during normal business hours. Otherwise, the member could elect to be 
called back on a certain day from between two certain times (time a 
through time b). Step 438 electronically posts that telephone call message 
with either the system operator at computer system 20 or the call center 
operator at call center computer system 62. Of course, any comment from 
the prospective member or member should be logged into computer system 20 
in order to refine and enhance the bid, auction and sale system. 
From the introductory screen or home page 110 shown in FIG. 2, members or 
potential customers, in an effort to learn the rules regarding the 
electronic bid, auction and sale system, may select the interactive role 
or game play program shown in FIGS. 9A and 9B. In step 502, the system 
describes assignment of a member or customer ID, the assignment or 
selection by that member of a unique password and the various controls and 
encryption of financial data such as credit card information and e-bank 
information. In step 504, the system describes the rules associated with 
the bid, auction and sale system. These rules, include, among other 
things, that the system can only be utilized by consumers and that the 
consumers can only bid on one unit of a product or one unit of a service 
offered for sale. This rule excludes dealers or other retailers from 
purchasing goods. For example, if 200 pairs of NIKE shoes are available 
for sale in the electronic bid, auction and sale system, the consumer can 
only bid on the purchase of one pair of shoes. With respect to services, 
some services, such as vacations, can be purchased as packages. One unit 
for a single individual vacation; one unit for a couple's vacation; one 
unit for a vacation package for two adults and two children. Other rules 
such as the maximum bid rule also apply. For example, it is presently 
contemplated that the customer may place up to a maximum of 8 bids on a 
single unit of product or service. Bids in excess of 8 will not be 
accepted. Further, each bidder must pay the bid charge for each bid 
submitted at the time the bid is submitted. If the customer's credit card 
or e-bank refuses to honor the bid charge transaction, the bidder's bids 
are cleared or deleted from the system. Other rules such as payment for 
products and services on accepted bids and shipping and handling charges 
and data also apply to the use of the system. 
In step 506, the system describes, either visually or audibly or by textual 
information a shopping trip through the merchandise showroom. On a visual 
level, this may include the display of the merchandise showroom-lobby 
level screen (FIG. 5) and then the cursor automatically selecting the 
electronic store and, as an example, a member entering the electronic 
store, selecting a particular item by automatic cursor control from the 
electronic store, then reviewing the item description file-screen 
(common). This shopping trip is driven by the computer system. Thereafter, 
the example may shift from the electronic store to the women's clothing 
store. 
Step 508 in FIG. 9A illustrates the system selecting one store from the 
showroom (i.e., the electronics store). In step 510, the system assigns a 
temporary member ID to the player or potential customer. In step 512, the 
system enables the player or potential customer to compile a temporary 
bid-offer file. The temporary bid-offer file-screen table is discussed 
above. In step 514, the system describes how the user/member/customer 
posts bids and confirms the posting of those bids with an electronic 
signature. In step 516, the system initially explains a bidding cycle and 
then displays an exemplary bidding cycle. For example, if a ten day 
bidding cycle is available for a certain product, the system may establish 
a time compression routine wherein six seconds equals one day in the 
bidding cycle. 
The user or potential customer places a fictitious bid on a certain 
product. Thereafter, the system generates a plurality of other fictitious 
bids from other fictitious members and compiles a bid chart shown above in 
connection with the Bid Checker File-Screen Table. The bid chart table is 
displayed and the player or potential member sees the chart being filled 
during a time frame of six seconds which is equivalent to one day. 
Alternatively, the system could display and fill with fictitious bids the 
Bid Table shown and described above. In any event, the user or potential 
customer dynamically views how the electronic bid, auction and sale system 
compiles bids from a plurality of customers or members and then selects 
the winning bids. In step 518, the system describes the close date for the 
bids, the bid acceptance date and the certification and posting of the top 
n bids in the bid chart. In the preferred embodiment, the 20 top bids are 
displayed in the bid chart. The bid chart is found in the Bid Checker 
File-Screen Table discussed above. 
In order to enhance the credibility of the electronic bid, auction and sale 
system, the accepted bids are certified by an accountant or a group of 
individuals not employed by the company operating the electronic bid, 
auction and sale system. The interactive or I.A. role play or game play 
program jumps to jump point 9A-1 in FIG. 9B. In step 520, the system 
describes how the user/member/customer is informed of the accepted bid by 
e-mail, voice communications via the call center and the communications 
program. For example, after the system accepts winning bids, the winning 
bidders are notified by e-mail and, if appropriate, notified by 
establishing an audio channel or voice communications link with the 
bidder. This may occur directly from computer system 20 (FIG. 1) or from 
the call center computer system 62. If the call center system is remote 
from computer system 20 an electronic e-mail message would be sent to the 
call center notifying the operator at the call center to establish a voice 
communications link with the bidder in costumer computer 10. The call 
center, after reaching the winning bidder, electronically confirms the 
sale with system 20. 
Step 522 in FIG. 9B describes the follow-up procedures to ensure that the 
goods or services have been delivered to the winning bidder or customer. 
The system, from step 522, branches to enable the potential member to go 
to the membership program at jump point 524 or to a decision step 526. In 
the exemplary flow chart illustrated in FIG. 9B, if the member has made 
two trips through the role play or game, the potential member is 
automatically shifted to the membership program via jump point 524. If 
not, the member is given the option to return to step 508 via jump point 
528. This enables the potential member to game play again with the system 
in order to determine whether he or she has "won" or been awarded a 
fictitious winning bid for a particular product or service. The potential 
savings to the customer is also displayed during this game. 
It is believed that the role play or game play component of the present 
system is an important feature because the game play is entertainment and 
because the game play enables the potential member or an existing member 
to refine his or her bidding skills. Further, the number of members 
playing the bid and auction game may be an indication of consumer interest 
regarding a particular product or a particular store established in the 
electronic bid, auction and sale system. This information is important not 
only to the system operator but also to the manufacturer and the supplier 
of that particular product or service. 
There are several methods to define the extent of the role play or game 
play. The game play store selection table set forth above provides some 
options. 
Game Play Store Selection 
1. Rotate players through stores 
a. Autos 
b. Appliances 
c. Small electronics 
d. Computers 
e. Women's clothing 
f. Linen 
g. Vacation 
2. Day of week, time of day sequencing 
a. Assign day-time game play cycles to stores in showroom 
3. Limit game players to certain goods in certain stores. 
4. Limit game players to stores that are "closed" to bidding members 
5. Limit number of games players allowed in each store 
It should be appreciated that rather than establish a fixed routine for the 
merchandise showroom, access to a particular store during the game play 
routine may not be the best way to promote the electronic bid, auction and 
sale system. Potential members and actual members should be provided with 
some variety. This variety can be provided by selecting, on a rotating 
daily or hourly basis, certain stores that may be accessed during the 
interactive game or role play program. For example, automobiles may be 
included in the game on Sunday, appliances may be available on Monday, 
small electronics may be available on Tuesday, etc. Alternatively, the 
system could rotate players through the stores. The first potential member 
playing the game could be placed in the automobile store, the second 
member or potential customer could be placed in the appliance store, the 
third member in the small electronic store, etc. Further, in order to 
limit the activity on the Website, there may be a limit to the number of 
game players permitted in a certain store, or, the game players in a store 
may only be permitted to fictitiously bid on certain goods illustrated or 
found in the store. Lastly, the game players could be permitted into 
stores that are closed to actual or genuine bidders. 
The last branch from the introductory screen or home page 110 in FIG. 2 is 
the selection by a member or a potential customer of the company profile 
branch. The company profile provides a brief description of the company 
and some company credentials. If the company has obtained critical acclaim 
or favorable reviews, these reviews are posted in the company profile 
branch. Also, in order to spur sales and utilization of the electronic 
bid, auction and sale system, the company profile branch may include the 
sample sales table diagrammatically illustrated in FIG. 10. 
The sample sales screen in FIG. 10 reveals actual goods and/or services 
that have been sold to members. A small illustration of the products, 
information regarding the manufacturer, brand and model, the 
manufacturer's suggested retail price, the winning bid or sales price and 
the estimated amount of sales is illustrated for each product. The 
estimated savings is the difference between the MSRP and the winning bid 
price. The sample sale screen should also list how many items or units 
were sold of that quantity. The open and close date and the bid acceptance 
date provides an indication to the member or potential customer of the bid 
cycle and when the bids are accepted by the system operator. Lastly, the 
sample sales screen enables the viewer to jump to the membership new 
accounts via a cross-link, to review merchandise in the merchandise 
showroom, to go to the previous view screen, to jump back to the 
introduction or home page, to review the rules associated with the 
electronic bid, auction and sales system or to view "more stuff" or an 
additional sample sales screen. 
Although an electronic system for bidding and purchasing products and 
services has been described herein, the system can be integrated with call 
center computer system 62. With the availability of an audio or voice 
channel established between call center computer system 62 and the 
customer at customer computer 10, the customer may preregister with the 
call center computer system. The preregistration by call center 62 works 
dynamically with computer system 20 handling the electronic bid, auction 
and sale system. In other words, when a potential member establishes a 
voice link with call center 62, the operator at call center 62 establishes 
an electronic computer link between computer system 62 and computer system 
20. The call center operator then completes, with the assistance of the 
potential member at telephone 13 the Membership Data Base File-Screen 
Table discussed above. After completion of the membership data screen, the 
call center operator at computer system 62, with the electronic input from 
computer system 20, assigns a member ID and particular passwords to the 
customer or member at telephone 13 and customer computer 10. The customer 
at customer computer 10 may want to role play either electronically via 
customer computer 10 or audibly via call center 62. The member may want to 
select one or more fictitious bids for a product, the computer system 20 
could generate fictitious bids and the operator at call center 62 would 
announce whether the fictitious bids placed by the customer were 
classified as "winning fictitious bids". However, it is believed that an 
electronic game play established by an electronic linkage between customer 
computer 10 and computer system 20 handling the electronic bid, auction 
and sale system provides a better teaching method to display the rules for 
the electronic bid, auction and sale system as well as to provide 
entertainment services to the customer. 
The customer may place a bid via call center 62 and that bid, after being 
entered by the operator at call center 62 would be electronically posted 
at computer system 20. After the close of the bid cycle and on the 
acceptance date, computer system 20 would then award the winning bids and 
identify the winning bidders. Computer system 20 then posts these winning 
bids and compiles the publicly available bid chart discussed above in 
connection with the Bid Checker File-Screen Table. Thereafter, computer 
system 20 could compile an electronic file identifying the winning bids, 
the amount of those bids, the members' names, e-mail address and telephone 
numbers and other member data and electronically ship that information to 
call center computer system 62. The operator at call center computer 
system 62 could then open a voice or audio channel with the customer at 
telephone 13 to notify the customer that he or she is the winning bidder. 
Thereafter, the operator at call center 62 could confirm the sale, 
establish a method of payment and confirm the ship date of the goods. 
Other interaction between the computer system 20 and call center computer 
system 62 is discussed in detail above in connection with FIGS. 1-10. 
The claims appended hereto are meant to cover modifications and changes 
within the scope and spirit of the present invention.