Abstract:
An on-line system for creating an open market for matching buyers and sellers of brand name products. The system enables buyers to achieve the maximum value in the purchased product by engaging in open ended on-line reverse auction and negotiation process with multiple sellers of the specified product. The system enables sellers to generate sales leads and engage in open ended on-line reverse auction bidding and negotiation process with buyers.

Description:
FIELD OF THE INVENTION  
       [0001]     The present inventions relate generally to electronic commerce on distributed networks such as the Internet, and more specifically to on-line matching and negotiation between buyers and sellers of brand name products.  
       BACKGROUND OF THE INVENTION  
       [0002]     A brand name product is an easily comparable identical or almost identical product manufactured by the same manufacturer that is freely available from numerous sellers. Brand name products (for example, cars, TVs, and refrigerators) are bought and sold on-line in many different ways.  
         [0003]     Under the fixed price approach, brand name products are sold at the manufacture&#39;s or retailer&#39;s websites at a fixed price. Reference websites apply a variation of the fixed price approach by posting lists of prices of the same product available from multiple sellers. Very often the price list information is not accurate and up-to-date. To achieve maximum value when purchasing a product by the fixed price approach, a potential buyer has to engage in both on-line and off-line negotiations with each particular seller, which is a time consuming and ineffective process for both parties. The buyer in most cases is not able to receive the best deal because each particular seller is not aware of quotes provided by other sellers. Similarly, because sellers are not aware of quotes provided by other sellers, a particular seller is not able to provide a competitive quote.  
         [0004]     A referral service is another way of buying and selling brand name products on-line. A buyer specifies the product and provides contact information and the referral service informs a limited number of sellers (usually local) of the potential buyer. Sellers then begin to contact the potential buyer. To achieve maximum value, the buyer has to engage in both an on-line and off-line negotiation process with each particular seller. The referral method is widely used in buying and selling vehicles. Examples include www.autobytel.com, www.edmunds.com, autos.msn.com, autos.yahoo.com, and www.kbb.com. Referral service has the same limitations and disadvantages as the fixed price approaches.  
         [0005]     A reverse auction where invited sellers bid to win a deal is another way for potential buyer to achieve better price for a brand name product. Designed to achieve the best price, a reverse auction has many limitations that prevent a buyer from gaining the best value. While price is one of the most important parameters that a buyer considers when making a purchase decision, parameters such as availability of the product, cost of delivery, warranty, customer service, financing and other seller&#39;s value added products and services are also very important to a buyer  
         [0006]     Thus, existing systems require time consuming and inefficient negotiations between buyer and seller, do not allow the buyer to achieve the best price, do not allow the seller to provide value in addition to price, and do not allow the buyer to consider the additional value in the buyer&#39;s decision making process.  
       SUMMARY OF THE INVENTION  
       [0007]     The present invention satisfies the above-mentioned needs and provides additional advantages and improvements that will be recognized by those skilled in the art upon review of the present disclosure by eliminating time consuming and inefficient negotiations between buyer and seller, allowing the buyer to achieve the best price, allowing the seller to provide value in addition to price, and allowing the buyer to consider the additional value in the buyer&#39;s decision making process. The present inventions combine on-line reverse auction environment with on-line open ended negotiation process to produce greater product value for the buyer as well as higher sales for the sellers by generating more high quality sales leads.  
         [0008]     The present inventions create a flexible open ended on-line reverse auction environment through an on-line negotiation module, where buyers will be able to clarify and/or modify their requests and provide relevant information requested by sellers. Sellers will be able to provide buyers with competitive bids and also with available value added products and services that define overall value of the specified product through the negotiation module. The buyer may consider information that the seller chooses to provide and the buyer may request additional information from the seller. Similarly, the seller may request information from the buyer and the seller may provide information. The buyer may weigh the information provided by the seller subjectively and then choose to complete or not complete a transaction.  
         [0009]     The present invention provides buyers and sellers with the ability to determine the rating or quality of the opposite party in order to increase effectiveness of the negotiation process.  
         [0010]     The present inventions create an open market for matching buyers and sellers of brand name products implemented through a computer program residing on one or more web servers and accessible to parties with access to World Wide Web. The present invention allows both buyers and sellers to engage in on-line reverse auctions and on-line negotiation processes in order to complete the transaction.  
         [0011]     The present inventions allow buyers to achieve maximum value in purchased product by comparing not only the price quotes provided by multiple sellers, but also by evaluating a value added products and services available from sellers, such as warranty, financing, and customer service.  
         [0012]     The present inventions allow sellers to compete more efficiently in the environment where they can provide not only the price quote, but also available value added products and services, such as warranty, financing, and customer service that define the overall value of the purchased product. The present inventions also allow sellers to compete with high confidence, since each quote fully discloses verifiable seller information such as business name, address, sales representative name, phone, and e-mail. The present inventions also allow sellers to evaluate buyer rating and lead quality based on buyer provided information prior to providing a quote. A seller may request additional information from the buyer in order to increase buyer rating and lead quality. If the buyer rating or lead quality is not sufficient, a seller may choose not to participate in an on-line reverse auction and negotiation process.  
         [0013]     The present inventions also allow for generating sales leads by embedding sales leads generation software module into affiliated websites.  
     
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0014]      FIG. 1  illustrates the System Functional Diagram which is a high level block diagram of the system;  
         [0015]      FIG. 2  illustrates the flow chart of the New Buyer Registration module;  
         [0016]      FIG. 3  illustrates the flow chart of the Existing Buyer Logon module;  
         [0017]      FIG. 4  illustrates the flow chart of the Buyer Personal Information Update module;  
         [0018]      FIG. 5  illustrates the flow chart of the Buyer Request for the Quote (R4Q) Generation module;  
         [0019]      FIG. 6  illustrates the flow chart of the Buyer Request for the Quote (R4Q) Post module;  
         [0020]      FIG. 7  illustrates the flow chart of the Buyer/Seller Negotiation module;  
         [0021]      FIG. 8  illustrates the flow chart of the New Requests for the Quote (R4Q) module;  
         [0022]      FIG. 9  illustrates the flow chart of the Seller Business Information Update module;  
         [0023]      FIG. 10  illustrates the flow chart of the Existing Seller Logon module;  
         [0024]      FIG. 11  illustrates the flow chart of the New Seller Registration module; and,  
         [0025]      FIG. 12  illustrates the flow chart of the Sales Leads Generation module.  
     
    
     DETAILED DESCRIPTION OF THE INVENTION  
       [0026]     The System Functional Diagram, shown in  FIG. 1 , is a high level block diagram of a system according to the present inventions that implements an open ended on-line reverse auction and negotiation process between buyer of a particular brand name product and multiple sellers of the particular brand name product. Detailed block diagrams of the components of the system according to the present invention are presented in  FIGS. 2-12  for each of the blocks in the System Functional Diagram shown in  FIG. 1 .  
         [0027]     Since systems according to the present inventions are implemented as one or more computer programs residing on one or more web servers accessible via World Wide Web, unlimited number of instances of the open ended on-line reverse auction and negotiation processes can coexist at the same time. For example, a particular buyer can be involved simultaneously in negotiation with multiple sets of sellers while buying different kind of brand name products, and a particular seller can be involved simultaneously in the negotiation with multiple buyers while selling the same brand name product. All required input data is collected from and computed results are presented to buyers and sellers in the form of web pages displayed within a web browser application.  
         [0028]     A system according to the present inventions may function in the following way. First, the open ended on-line reverse auction and negotiation process is initiated by the buyer  1  who creates a request for a quote for a particular brand name product, as shown in  FIG. 1 .  
         [0029]     A new unregistered with the system buyer starts by selecting the brand name product from the products database, providing contact information including email and submitting the request  40 . New unregistered with the system buyer uses Sales Leads Generation module  20 , also shown in  FIG. 12 , embedded into system main or affiliated web sites to create a new request for the quote  22 . Then, the New Buyer Registration module  40 , as shown in  FIG. 2 , searches  44  buyers database  50  to determine if provided contact information  26  matches an existing buyer record  50 . If provided contact information  42  doesn&#39;t match an existing buyer record, the system creates a new buyer record in the buyer database  50 , generates secure password and user id  52 , and, in order to verify the contact information provided by the buyer  54 , sends an Email message containing new buyer registration and logon information, such as the new buyer user id and password, to the Email address provided by the buyer. If the Email address provided by the buyer is valid  56 , buyer receives the Email message and using logon information that was sent, signs in with the system via “Existing Buyer Logon” module  60  shown in  FIG. 3 . No logon information is sent if the Email address provided by the buyer is not valid  55 . Successful logon of the new buyer validates a new buyer record in the buyers database  50 .  
         [0030]     Existing registered with the system buyer starts by logging in to the system  60  with existing user id and password. Alternatively, existing registered with the system buyer can submit the new request for the quote using Sales Leads Generation module  20 , also shown in  FIG. 12 , embedded into system main or affiliated web sites. Once system detects that provided contact information  26  matches existing buyer&#39;s database record  50 , buyer is prompted to sign in to the system via Existing Buyer Logon module  60 ,  FIG. 3 , to finalize the request for the quote.  
         [0031]     Once logged on, buyer can modify and update personal information such as name, address, and phone number  84  as well as configuration settings  84  such as preferred sellers and notification using Buyer Personal Information Update module  80 , which is shown in detail in  FIG. 4 . The system verifies the personal information entered by the buyer  86  and then the system updates the personal information  88  in the buyers database  50 . During the update, the system calculates and assigns buyer&#39;s rating  90  based on the provided information that allow sellers to determine quality of this particular sale lead.  
         [0032]     In the next step, using Buyer Request for the Quote Generation module  100 , which is shown in detail in  FIG. 5 , buyer creates or finalizes request for the quote. If partial product information came from the Sales Leads Generation module  20 ,  FIG. 12 , buyer continues with specifying product details such as specifications and options  103 . Otherwise, buyer first selects the product  102  from the product database  104 . Then buyer specifies preferred terms of acquisition such as buying or leasing, cash or financing  105 , and confirms or modifies settings such as preferred sellers and notification  107 , adds additional information such as comments and questions  106 , and passes over the control to the system to actually post the request  108 . Optionally, based on the system configuration  110 , buyer may have to pay a fee in order to be able to post a request for the quote. In this case system prompts buyer to accept the charge  113  and then posts the request  115 . If the buyer refuses to pay or the payment transaction fails, the transaction is terminated  114 . Otherwise, the buyer is allowed to use the free service to post a request for a quote  112 .  
         [0033]     The Buyer Request for the Quote Post  120  module shown in  FIG. 6  implements actual posting of the buyer request. System searches sellers database  206  to select sellers of the product specified in buyer&#39;s request for the quote. System retrieves assigned buyer rating  124 , posts buyer&#39;s request with the buyer rating  126  into negotiation database  127 , and notifies preferred sellers  128  selected based on the buyer&#39;s preferences in configuration settings via Email message about the new request for the quote on a product.  
         [0034]     Sellers enter the system  2 , as shown in  FIG. 1 , either through the Existing Seller Logon Module  200 , details of which are shown in  FIG. 10 , or through the New Seller Registration Module  220 , details of which are shown in  FIG. 11 . In order for a seller to enter into on-line reverse auction and negotiation process with a buyer, the seller must be registered with the system. A new unregistered with the system seller uses New Seller Registration module  220 ,  FIG. 11 , to provide business information such as business name, address, and products  222 , as well as a main contact information such as main contact name, phone, and Email address  222 . The system searches the sellers database  206  to determine if provided information matches any existing seller record. If provided information does not match any existing record  224 , the system creates  227  a new seller record in the sellers database  206  and generates user id and associated secure password  227 . System&#39;s seller support contacts seller to verify provided business information  228 . Once business information is verified, the system sends an Email message containing new seller registration and logon information, such as the new seller user id and password, to the seller&#39;s main contact Email address  230 . If the Email address provided by the seller is valid, the seller receives the Email message and, using logon information that was sent, signs in with the system via Existing Seller Logon module  200  shown in  FIG. 10 . Successful logon of the new seller validates a new seller record in the sellers database  206 .  
         [0035]     Existing registered with the system seller starts by logging in to the system with existing user id and password according to the Existing Seller Logon module  200  of  Figure 10 . The seller provides an id and password  202  to logon and the system then checks the id and password  204  against the sellers database  206 . If the id and password are valid, the seller is allowed to logon  210 . If the id and password are not valid, then logon is not allowed  208 .  
         [0036]     Once logged on, seller can review business information  182  and modify business information  183  and product information  189  through the Seller Business Information Update module  180  of  FIG. 9 . System contacts  184  seller to confirm and verify business information and system updates business information  185 . System contacts  190  seller to confirm and verify product information and system updates business information  191 . Using the Seller Business Information Update module  180 , seller can add, modify, and update main contact information, sales representative information, and configuration settings  186 .  
         [0037]     In the next step, seller can review new requests for the quote posted by buyer through the New Requests for the Quote module  160  shown in  FIG. 8 . New requests for quotes are automatically presented to the seller  161  if particular seller matches the criteria of the preferred sellers defined in the buyer&#39;s configuration settings. If seller doesn&#39;t match buyer&#39;s preferred seller criteria  162 , seller can obtain the list of the new requests for quotes for products this particular seller is authorized to sell by specifying the location such as zip codes or state(s)  163 . Using the specified location information, system searches negotiation database  127  for the newly posted requests for quotes for the specified product and presents the list of the new requests to the seller.  
         [0038]     After reviewing the list of the new requests for the quote, seller may decide to engage into one or more on-line reverse auction(s) and negotiation process(s) with buyer(s) in order to provide a quote  167 . Optionally, based on the system configuration, seller may have to pay a fee in order to be able to provide the quote  170 . In this case system prompts seller to accept the charge  170  and then allows seller to enter on-line reverse auction and negotiation process with the buyer  174 . The seller may be allowed to use the free service to post a quote  171 . The module checks for acceptance of the paid service terms  172  and cancels the transaction if the seller refuses to pay or the payment transaction fails  173 . “Buyer/Sellers Negotiation” module  140 ,  FIG. 7 , implements the on-line reverse auction and negotiation process functionality of the present invention. Designed in a form of a forum, this module allows buyers and sellers to communicate with each other.  
         [0039]     Buyer reviews quotes, comments, requests, questions, and other information posted by seller  142  and, if necessary, communicates back to the seller with the relevant information  144 . At some point in the negotiation  145 , buyer can accept or reject sellers&#39;offers  143 , effectively ending the negotiation.  
         [0040]     Seller reviews new or existing requests for quotes  149 , additional information provided by buyer  149 , buyer&#39;s ration information  149 , quotes and information provided by other sellers  149  and can provide the quote as well. Seller may opt to leave the negotiation exchange  150 . Seller may choose to provide the quote and any additional information interactively  146 , or in a fully automated mode  147 . To use fully automated mode, seller specifies in a configuration setting the product&#39;s highest and the lowest price  147 . System checks quotes available from other sellers and, if possible, provides the lowest quote that is higher than the seller&#39;s predetermined lowest price for the product. System stops bidding if the provided quote is the lowest, or if it reaches the seller&#39;s predetermined lowest price for the product.  
         [0041]     Although specific embodiments and methods of use have been illustrated and described herein, it will be appreciated by those of ordinary skill in the art that any arrangement that is calculated to achieve the same purpose may be substituted for the specific embodiments and methods shown. The same or different computer languages and tools for performing these operations could be used, as understood by those skilled in the art to which the present invention pertains. Certain tools and interfaces such as cookies, applets, and web browser windows are considered part of the invention and are not explicitly delineated in this disclosure as such would be readily created by those skilled in the art to which the present invention pertains. It is to be understood that the above description is intended to be illustrative and not restrictive. Combinations of the above embodiments and other embodiments as well as combinations of the above methods of use and other methods of use will be apparent to those having skill in the art upon review of the present disclosure. The scope of the present invention should be determined with reference to the appended claims, along with the full scope of equivalents to which such claims are entitled.