SYSTEM AND METHODS FOR DISCOUNT RETAILING

Abstract

A system and methods to mutually satisfy a consumer with a discount and a vendor with a minimum number of sales by establishing a tipping point associated with an offer for a good or service. If the tipping point is met, the sale of the good or service is executed and the consumer is charged and receives an indication of the discounted sale, such as a certificate. If the tipping point is not met, the discount offer is abandoned and the consumer is not charged. Once the tipping point is established, the vendor receives a payment, even before the consumer uses the certificate. The system and methods also include a reward or loyalty program, an exchange or secondary market for the purchased deals, and a matching algorithm that matches customers to relevant goods or services.

Claims

1-23. (canceled)

24. An apparatus comprising at least one processor and at least one memory, the at least one memory storing computer code that, when executed by the processor, causes the apparatus to: select, by the at least one processor of the apparatus, a merchant and a good or service offered by the merchant for presenting to one or more consumers, via one or more consumer devices associated with the one or more consumers, for purchase, via a global communication network; determine, by the at least one processor of the apparatus, a discount offer associated with the good or service for presenting to the one or more consumer devices via the global communication network; identify, by the at least one processor of the apparatus, a first set of consumer devices to receive the discount offer based on consumer information associated with each consumer device of the first set of consumer devices; generate, by the at least one processor of the apparatus, an electronic communication, the electronic communication comprising information indicative of the discount offer and configured to be provided, via the global communication network, to each of the first set of consumer devices; electronically transmit, via the global communication network, the discount offer to the first set of consumer devices; electronically receive, via the global communication network, a plurality of responses from a subset of consumer devices from the first set of consumer devices, wherein a subset of the plurality of responses comprise information indicative of a consumer acceptance, wherein the information indicative of a consumer acceptance is an indication of an agreement to purchase the discount offer; determine, by the at least one processor of the apparatus, and in real-time with electronically receiving, via the global communication network, the plurality of responses from the first set of consumer devices, that a total number of electronically received consumer acceptances exceeds a predetermined threshold, the predetermined threshold being a minimum quantity of offers of a particular good or service to be accepted in order to execute a second offering of the particular good or service to a second set of consumer devices; and subsequent to the real-time determination, by the at least one processor of the apparatus, that the total number of electronically received consumer acceptances from the first set of consumer devices exceeds the predetermined threshold, electronically transmit, via the global communication network, the electronic communication comprising the discount offer to the second set of consumer devices, wherein the second set of consumer devices is larger than the first set of consumer devices and not inclusive of the first set of consumer devices.

25. The apparatus of claim 24, wherein the computer code is further configured, when executed by the processor, to cause the apparatus to: determine, by the at least one processor of the apparatus, a tipping point at which the discount offer becomes valid, the tipping point being a minimum quantity of acceptances of a particular offer of a particular good or service in order to execute a sale of the particular good or service to each of the consumers that accepted the particular offer of the particular offer of the particular good or service; electronically receive, via the global communication network, consumer acceptances in response to transmission of the discount offer; determine, by the at least one processor of the apparatus, whether the consumer acceptances received in response to transmission of the discount offer to the larger set of consumers satisfy the tipping point; and electronically receive, via the global communication network, consumer charges upon a determination that the consumer acceptances received in response to transmission of the discount offer to the larger set of consumers satisfy the tipping point.

26. The apparatus of claim 24, wherein the consumer information comprises historical consumer action information.

27. The apparatus of claim 24, wherein the consumer information comprises consumer demographic information.

28. The apparatus of claim 24, wherein the consumer information comprises consumer likes or dislikes.

29. The apparatus of claim 24, wherein the consumer information comprises acceptable price range information received from consumers.

30. The apparatus of claim 24, wherein the consumer information comprises deal enjoyment information received from consumers.

31. The apparatus of claim 24, wherein the computer code is further configured, when executed by the processor, to cause the apparatus to: determine, by the at least one processor of the apparatus, based on the consumer information, a second set of consumer devices to receive a second discount offer; and electronically transmit, via the global communication network, the second discount offer to the second set of consumer devices; electronically receive, via the global communication network, consumer acceptances associated with the second discount offer; determine, by the at least one processor of the apparatus, that a total number of received consumer acceptances associated with the second discount offer exceeds a second predetermined threshold indicating viability of the second discount offer; and in response to determining, by the at least one processor of the apparatus, that the received consumer acceptances associated with the second discount offer exceeds the second predetermined threshold, electronically transmit, via the global communication network, the second discount offer to a second larger set of consumers via the global communication network.

32. The apparatus of claim 24, wherein the computer code is further configured, when executed by the apparatus, to cause the apparatus to: determine, by the at least one processor of the apparatus, a discount offer duration, wherein the step of determining, by the at least one processor of the apparatus, that the received consumer acceptances satisfy the tipping point occurs following a termination of the discount offer duration.

33. The apparatus of claim 24, wherein the computer code is further configured, when executed by the apparatus, to cause the apparatus to: store, by the at least one processor of the apparatus, consumer information to a customer profile based on the received consumer acceptances.

34. A computer program product comprising at least one non-transitory computer-readable storage medium storing computer-executable program code instructions that, when executed by a computing apparatus, cause the computing apparatus to: select, by the at least one processor of the apparatus, a merchant and a good or service offered by the merchant for presenting to one or more consumers, via one or more consumer devices associated with the one or more consumers, for purchase, via a global communication network; determine, by the at least one processor of the apparatus, a discount offer associated with the good or service for presenting to the one or more consumer devices via the global communication network; identify, by the at least one processor of the apparatus, a first set of consumer devices to receive the discount offer based on consumer information associated with each consumer device of the first set of consumer devices; generate, by the at least one processor of the apparatus, an electronic communication, the electronic communication comprising information indicative of the discount offer and configured to be provided, via the global communication network, to each of the first set of consumer devices; electronically transmit, via the global communication network, the discount offer to the first set of consumer devices; electronically receive, via the global communication network, a plurality of responses from a subset of consumer devices from the first set of consumer devices, wherein a subset of the plurality of responses comprise information indicative of a consumer acceptance, wherein the information indicative of a consumer acceptance is an indication of an agreement to purchase the discount offer; determine, by the at least one processor of the apparatus, and in real-time with electronically receiving, via the global communication network, the plurality of responses from the first set of consumer devices, that a total number of electronically received consumer acceptances exceeds a predetermined threshold, the predetermined threshold being a minimum quantity of offers of a particular good or service to be accepted in order to execute a second offering of the particular good or service to a second set of consumer devices; and subsequent to the real-time determination, by the at least one processor of the apparatus, that the total number of electronically received consumer acceptances from the first set of consumer devices exceeds the predetermined threshold, electronically transmit, via the global communication network, the electronic communication comprising the discount offer to the second set of consumer devices, wherein the second set of consumer devices is larger than the first set of consumer devices and not inclusive of the first set of consumer devices.

35. The computer program product according to claim 34, wherein the computer-executable program code instructions further comprise program code instructions that, when executed by a computing apparatus, cause the computing apparatus to: determine, by the at least one processor of the apparatus, a tipping point at which the discount offer becomes valid, the tipping point being a minimum quantity of acceptances of a particular offer of a particular good or service in order to execute a sale of the particular good or service to each of the consumers that accepted the particular offer of the particular offer of the particular good or service; electronically receive, via the global communication network, consumer acceptances in response to transmission of the discount offer; determine, by the at least one processor of the apparatus, whether the consumer acceptances received in response to transmission of the discount offer to the larger set of consumers satisfy the tipping point; and electronically receive, via the global communication network, consumer charges upon a determination that the consumer acceptances received in response to transmission of the discount offer to the larger set of consumers satisfy the tipping point.

36. The computer program product according to claim 34, wherein the consumer information comprises historical consumer action information.

37. The computer program product according to claim 34, wherein the consumer information comprises consumer demographic information.

38. The computer program product according to claim 34, wherein the consumer information comprises consumer likes or dislikes.

39. The computer program product according to claim 34, wherein the consumer information comprises acceptable price range information received from consumers.

40. The computer program product according to claim 34, wherein the consumer information comprises deal enjoyment information received from consumers.

41. The computer program product according to claim 34, wherein the computer-executable program code instructions further comprise program code instructions that, when executed by a computing apparatus, cause the computing apparatus to: determine, by the at least one processor of the apparatus, based on the consumer information, a second set of consumer devices to receive a second discount offer; and electronically transmit, via the global communication network, the second discount offer to the second set of consumer devices; electronically receive, via the global communication network, consumer acceptances associated with the second discount offer; determine, by the at least one processor of the apparatus, that a total number of received consumer acceptances associated with the second discount offer exceeds a second predetermined threshold indicating viability of the second discount offer; and in response to determining, by the at least one processor of the apparatus, that the received consumer acceptances associated with the second discount offer exceeds the second predetermined threshold, electronically transmit, via the global communication network, the second discount offer to a second larger set of consumers via the global communication network.

42. The computer program product according to claim 34, wherein the computer-executable program code instructions further comprise program code instructions that, when executed by a computing apparatus, cause the computing apparatus to: determine, by the at least one processor of the apparatus, a discount offer duration, wherein the step of determining, by the at least one processor of the apparatus, that the received consumer acceptances satisfy the tipping point occurs following a termination of the discount offer duration.

43. The computer program product according to claim 34, wherein the computer-executable program code instructions further comprise program code instructions that, when executed by a computing apparatus, cause the computing apparatus to: store, by the at least one processor of the apparatus, consumer information to a customer profile based on the received consumer acceptances.

44. A method comprising: selecting, by at least one processor of an apparatus, a merchant and a good or service offered by the merchant for presenting to one or more consumers, via one or more consumer devices associated with the one or more consumers, for purchase, via a global communication network; determining, by the at least one processor of the apparatus, a discount offer associated with the good or service for presenting to the one or more consumer devices via the global communication network; identifying, by the at least one processor of the apparatus, a first set of consumer devices to receive the discount offer based on consumer information associated with each consumer device of the first set of consumer devices; generating, by the at least one processor of the apparatus, an electronic communication, the electronic communication comprising information indicative of the discount offer and configured to be provided, via the global communication network, to each of the first set of consumer devices; electronically transmitting, via the global communication network, the discount offer to the first set of consumer devices; electronically receiving, via the global communication network, a plurality of responses from a subset of consumer devices from the first set of consumer devices, wherein a subset of the plurality of responses comprise information indicative of a consumer acceptance, wherein the information indicative of a consumer acceptance is an indication of an agreement to purchase the discount offer; determining, by the at least one processor of the apparatus, and in real-time with electronically receiving, via the global communication network, the plurality of responses from the first set of consumer devices, that a total number of electronically received consumer acceptances exceeds a predetermined threshold, the predetermined threshold being a minimum quantity of offers of a particular good or service to be accepted in order to execute a second offering of the particular good or service to a second set of consumer devices; and subsequent to the real-time determination, by the at least one processor of the apparatus, that the total number of electronically received consumer acceptances from the first set of consumer devices exceeds the predetermined threshold, electronically transmitting, via the global communication network, the electronic communication comprising the discount offer to the second set of consumer devices, wherein the second set of consumer devices is larger than the first set of consumer devices and not inclusive of the first set of consumer devices.

Description

BRIEF DESCRIPTION OF THE DRAWINGS

[0053] The preferred embodiments of the invention will be described in conjunction with the appended drawings provided to illustrate and not to the limit the invention, where like designations denote like elements, and in which:

[0054] FIG. 1 illustrates a flow chart in accordance with one embodiment of the present invention; and

[0055] FIG. 2 illustrates an exemplary computer system according to the present invention; and

[0056] FIG. 3 illustrates a flow chart in accordance with an alternative embodiment of the present invention.

[0057] FIG. 4 illustrates a flow chart in accordance with one embodiment of the incentive program of the present invention;

[0058] FIG. 5 illustrates one embodiment of an on-line G-store where G-Points can be redeemed according to the present invention; and

[0059] FIG. 6 illustrates a personal account summary of the incentive program in accordance with one embodiment of the present invention.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

[0060] FIG. 1 illustrates a flow chart 100 in accordance with one embodiment of the present invention. As shown in FIG. 1, a vendor is selected at step 110 for participation in the present invention. The vendor may be any individual or entity that provides goods or services to a consumer. The vendor may be local, national or global in terms of the geography the vendor provides products or services, and the vendor may be solicited for the system or may hear of the system and may approach the system's provider without being solicited. Additionally, a product or service provided by the vendor is identified for a discount offering at step 120. The good may be any product sold or distributed by the vendor, and the service likewise, can be any service provided by the vendor.

[0061] A tipping point is then determined at step 130. Again, the tipping point is defined as the minimum quantity of the good or service to be accepted by consumers in order to execute the sale of the good or service. Typically, the vendor sets the tipping point. At step 140, terms of the discount offer are determined and include discount to be provided, duration of the offer, for example 24 hours, and maximum number, if any, of the good or service the vendor is willing to offer, expiration of the good or service, or restrictions associated with the good or service.

[0062] At step 150 the discount offer is exploited through a website on the Internet. Consumers participate by accepting the offer such as by “signing up” for the offer on the website. “Signing up” may entail providing the name of the consumer; address of the consumer, and form of payment to purchase the offer. At step 160, the consumer participation is received and calculated in terms of the number of consumers that participated by accepting the discount offer at step 170. As shown by step 180 in FIG. 1, if the number of consumers that participated by accepting the discount offer equals the tipping point established at step 130, the sale of the good or service is executed at step 185. If the number of consumers that participated by accepting the discount offer does not equal the tipping point established at step 130, the offer is abandoned. The sale of the good or service is executed by providing the consumer with a gift certificate.

[0063] The following is discussed with reference to a restaurant discount of 50%, but is merely exemplary. The present invention is applicable to a variety of goods, services and discounts.

[0064] Vendor XYZ Restaurant is selected to participate in discount retailing according to the present invention. XYZ Restaurant serves Chicago, Ill. and the Chicagoland area. The tipping point is established at 25, which is the critical mass or minimum quantity that must be accepted by consumers in order to execute the sale of the offer. So, if 24 people accept the discount offer then the offer is abandoned and no consumer receives the discount.

[0065] Next, terms of the discount offer are determined. The discount to be provided by XYZ Restaurant is $20 in food for the cost of $10, provided the tipping point of 25 is met. Another term is that the offer will run for 8 hours, although any duration is contemplated. Another term may be that XYZ Restaurant will only provide a maximum of 100 discount offers, although any variation is contemplated, for example, terms of the discount offer could vary with respect to the number of consumers that accept the offer in excess of the tipping point. For example, the first 25 consumers that accept the discount offer receive the 50% discount. The subsequent consumers (number 26 through 50) to accept the offer receive a 40% discount, or $20 in food for the cost of $12. The next subsequent consumers (number 51 through 100) to accept the offer receive a 20% discount, or $20 in food for the cost of $16.

[0066] Another term may be that, provided the tipping point is met, the consumer must use the discount offer within two months otherwise it expires. Any expiration date is contemplated including no expiration. Yet another term may be that the discount is applicable to food only, not beverages, but again, any restriction is contemplated such as the discount only applies to alcoholic beverages.

[0067] Upon establishing the tipping point and determining the terms, the discount offer is exploited through a website on the Internet. Consumers accept the offer via the website and provide their name, address and credit card number. Upon or before the 8 hour duration ends, consumer participation is received by the system and the number of consumers that accepted the discount offer is calculated. In this example, 50 people accepted the offer, which meets and exceeds the tipping point of 25. Therefore, the discount offer is realized and the sale of the service is executed. Each consumer's credit card is charged $10 and the consumer receives a $20 gift certificate to XYZ Restaurant. Again, if the number of consumers that accepted the discount offer is calculated at any number less than 25, the discount offer is abandoned and the consumer's credit card is not charged.

[0068] An alternative embodiment of the present invention relates to an incentive or loyalty program used in conjunction with the discount retailing system. FIG. 4 illustrates a flow chart 400 in accordance with one embodiment of the incentive program of the present invention. When a sale is executed (see step 185 in FIG. 1), purchase information is entered as shown by step 410. Purchase information includes a description of the discount offer in terms of the good or service, quantity, price, and payment information. After purchase information is entered at step 410, it is submitted at step 420. After submission of the purchase information at step 420, it is determined if the purchase information is accepted at step 430. If the purchase information in not accepted at step 430, then the purchase information must be entered at step 410. Purchase information may not be accepted, for example when credit card information is invalid or the credit limit has been exceeded. If the purchase information is accepted at step 430, then points are collected at step 440. At step 450, the points are redeemed.

[0069] According to the preferred embodiment, two types of points are contemplated: “G-Points” or simply “Gs” and “Experience Points” or simply “Experiences”. Gs are points collected based on the price of the consumer purchase. Experiences are points collected based on use of the discount offer after purchase. For example, if a consumer purchases a service such as a manicure from Vendor ABC and fulfills the offer by receiving the manicure, then the consumer obtains one Experience Point. According to one preferred embodiment, Gs and Experiences have different expirations and awards. Gs never expire and continue to accrue in the consumer's account while Experiences expire after a certain time period.

[0070] In one preferred embodiment, Gs are collected at a level of one point per one cent such that a consumer purchasing the discount offer for five dollars collects 500 Gs. Gs are also redeemed at a level of one point per one cent such that a consumer redeems 500 Gs to purchase a discount offer at five dollars. In one embodiment, Gs can only be redeemed at an Internet store such as a “G-store”, which is a merchant or vendor that only accepts points in exchange for a good or service. FIG. 5 illustrates one embodiment of a G-store where G-Points can be redeemed. The G-store includes various goods and services for purchase using G-Points. It is contemplated the G-store may include all or a portion of previous discount offers.

[0071] In one preferred embodiment, Experiences are collected at an award level of a three-tiered ladder defined by three statuses: bronze, silver and gold. The consumer must fulfill discount offers by either receiving the service or using the good to obtain an Experience Point. Three Experience Points achieve bronze status, five Experience Points achieve silver status and thirteen Experience Points achieve gold status. Although three, five and thirteen Experiences are discussed above, any number of Experiences are contemplated. Experiences are redeemed at a level of percentage off the sale price depending on the rung of the ladder achieved. For example, the bronze status is 10% off the sale price, silver status is 15% off the sale price, and gold status is 25% off the sale price. Where G-point's can only be used toward the purchase of goods and services at the G-store, the Experience Points can be used toward the purchase of goods and services of the discount offer.

[0072] FIG. 6 illustrates a personal account summary of the incentive program in accordance with one embodiment of the present invention. As shown, all G-Points and Experience Points collected are listed. Details on the collection and redemption of the G-Points and Experience Points are provided.

[0073] An alternative embodiment of the present invention is a deal exchange or exchange program that allows customers to exchange the deals that they have already purchased for money, loyalty points or for other deals owned by other customers. The exchange provides a tool or secondary market for customers or members (or groups of members) to offer to sell or exchange their purchased deals for money or something of value.

[0074] As an example of the exchange program, if a customer has paid $25 for a deal for $50 off at a Chinese restaurant and that customer no longer plans to use that particular deal (either they do not like that restaurant, or the deal is getting ready to expire, or for any other reason), the customer can offer to sell the deal for $20. If such a sale is consummated, the individual purchasing the deal pays $20 and gets $50 off of the meal at the restaurant and the person selling the deal receives something instead of letting the deal expire.

[0075] Alternatively, the parties can exchange purchased deals so that one party receives a $50 deal at the Chinese restaurant and the other party receives a $50 deal for a massage, or a $40 deal for drinks at a bar. Anything of value, including loyalty or reward points can be exchanged.

[0076] To accommodate the purchase, sale or exchange of deals, the present invention contemplates an exchange or market where customers or members can list the deals they intend to sell (or buy), and other customers or members can make offers for the deals. The market can be open to everyone, to subscribers, or to a specified group such that only certain individuals in that specified group are allowed to offer and/or purchase deals.

[0077] As an example, a member that is about to have a manicure at Spa ABC looks to the exchange to see if there are any deals for sale for a manicure at Spa ABC. If the manicure cost $40, even if there is a deal for $30 that might have originally cost $20, the individual purchasing the deal pays less than the full amount for the manicure. As such, deals can be purchased and put up for sale on the exchange for a profit with the risk that no one will purchase the deal.

[0078] In another alternative embodiment, instead of offering the deals on the exchange for a specific amount ($30 in the example above for the manicure at Spa ABC), the potential purchasers can place the deal on the exchange and let others bid on that deal, thereby potentially obtaining the maximum amount for the deal, but still less than the full price.

[0079] The exchange can incorporate numerous limitations on the purchase or sale of the deals. For example, the basic sale would include the sales price and when the deal was set to expire. However, additional information could include when the offer for the deal (not the deal itself) was set to expire, whether the deal was still valid, and reviews or recommendations from others that had taken advantage of the deal, etc. The exchange could also allow the merchants themselves to place additional offers on the exchange. These offers and the others can be indexed to allow for quick searching of the deals.

[0080] The exchange can allow for various forms of payment or trading of deals. Besides the conventional credit card or Paypal payments, the loyalty points described herein can be accepted by the exchange and used for the transaction. Further, the exchange may determine the value of the deal based on various factors, such as original price, time for expiration, customer reviews, etc. and a one deal may have a different value than the other deal and trading may involve additional compensation, either through a credit card payment or loyalty points.

[0081] Upon payment or trade, the ownership of the deal can be immediately transferred from one party to the other, as long as each party is a registered member of the discount retailing system, the exchange, or both. The system of the present invention can record the transfer of the deal from one member to the other for validation and accounting purposes at a later date if necessary. This transfer obviates any attempt for a deal to be redeemed twice. Further, the exchange may charge a varying or set amount for the listing or charge a commission upon the sale and transfer.

[0082] The present invention further contemplates each of the above transactions occurring on the customer's computer or mobile telephone. Applications for mobile telephone use can be created that would allow for searching, purchasing and selling the deals for ease of use. Based on the GPS functionality of various cellular telephones, deals (both from the exchange and the discount retailing system) can be forwarded to members that are located near the place where the deal can be used. With this mobile application capability, a customer can access the system (or be sent a message that there is a deal nearby), search or be informed about a deal on a mobile telephone, purchase the deal, and walk into the merchant and obtain the goods or services.

[0083] In an alternative embodiment, the present invention includes a system for matching customers to goods or services that the customer would be more interested in purchasing. For example, a deal for $25 worth of alcohol at a sports bar in the Lincoln Park area of Chicago may be more relevant to a 25 year-old male living in the city of Chicago, than to a suburban housewife with two kids that play soccer (although maybe not). The system can obtain information about customers, including their residence, age, income, education, likes, dislikes; along with information pertaining to the previous deals they purchased, whether they enjoyed or did not enjoy those deals, etc. Once that information is entered into a database, more relevant offers can be made to a particular customer with a better chance of being accepted.

[0084] There are numerous ways that this information can be obtained; some directly from the customer and some from other sources. The customer can set up a customer profile at the time membership is commenced with updates to this information happening periodically. Further, those in the customer's group (if one is set up) can provide information and information can be culled from previous deals that the customer accepted and possibly rated. Also, customer questionnaires or surveys can be used to populate the customer database.

[0085] Once information about a particular customer is known, the deals that are forwarded to that customer can be more relevant and more likely accepted.

[0086] Further, the discount retailing system may offer one deal to a customer or group of customers one day, and a different deal to a different customer or group of customers that same day.

[0087] Based on information about the customers or the group of customers, it may be more advantageous to offer a particular deal to one group of customers one day, and the same deal to a different group of customers on a different day. As such numerous deals may be offered to different or multiple groups at the same (or different) times. The retailing system can utilize historical data to determine that based on certain customer's responses to an offer, additional customers may be given the same offer. For example, if a group of customers is generated based on historical activity, and that group tends to accept offers similar to another group of customers (the second group being generated based on ratings of various deals), then if the first group accepts an offer by a certain percent (for example 10%), then the same offer should be made to the second group. The retailing system can make these determinations on the fly as deals are accepted or rejected.

[0088] There is no limitation on the number of groups or even if certain customers overlap into multiple groups (as long as they do not continue to receive the same offer multiple times). A computer program or algorithm using various filters and subroutines can keep track of the customer groups and which customers have received which offers. In this manner, a test group (or multiple test groups) can be generated and receive an offer. If the test group accepts the offer in certain quantities, the offer can be made to some or all of the other groups (or to everyone). If the test group does not respond favorably by accepting the offer in enough quantity (different from the tipping point described above), the offer may be dropped altogether.

[0089] FIG. 2 illustrates an exemplary computer system 200, or network architecture, that may be used to implement the methods according to the present invention. One or more computer systems 200 may carry out the methods presented herein as computer code. One or more processors, such as processor 220, which may be a special purpose or a general-purpose processor is connected to a bus 210. As shown in FIG. 2, bus 210 connects the processor 220 to various other components of the computer system 200, but it is contemplated bus 210 may connect processor 220 to components (not shown) such as, sensors, and servomechanisms. It is also contemplated that bus 210 connects the processor 220 to other computer systems. Via the bus 210, the processor 220 can receive computer code. The term “computer code” includes, for example, programs, instructions, signals and/or data. The processor 220 executes computer code and may further send the computer code via the bus 210.

[0090] Computer system 200 may include one or more memories, such as first memory 230 and second memory 240. It is contemplated that the first memory 230, secondary memory 240, or a combination thereof function as a computer usable storage medium to store and/or access computer code. The first memory 230 and second memory 240 may be, for example, random access memory (RAM), read-only memory (ROM), a mass storage device, or any combination thereof.

[0091] As shown in FIG. 2, one embodiment of second memory 240 is a mass storage device 243, although it is contemplated that first memory 230 may be the mass storage device. The mass storage device 243 comprises a storage drive 245 and a storage media 247. It is contemplated the storage media 247 may or may not be removable from the storage drive 245. Mass storage devices 243 with storage media 247 that are removable, otherwise referred to as removable storage media, allow computer code to be transferred to and/or from the computer system 200.

[0092] A mass storage device 243 may include, for example, a Compact Disc Read-Only Memory (“CDROM”), ZIP storage device, tape storage device, magnetic storage device, optical storage device, Micro-Electro-Mechanical Systems (“MEMS”), nanotechnological storage device, floppy storage device, hard disk device. Mass storage device 243 also includes program cartridges and cartridge interfaces (such as that found in video game devices), removable memory chips (such as an EPROM, or PROM) and associated sockets.

[0093] The computer system 200 may further or alternatively include other means for computer code to be loaded into or removed from the computer system 200, for example, input/output (“I/O”) interface 250 and/or communications interface 260. Both the I/O interface 250 and the communications interface 260 allow computer code to be transferred between the computer system 200 and external devices including other computer systems. This transfer may be bi-directional or omni-direction to or from the computer system 200.

[0094] Computer code transferred by the I/O interface 250 and the communications interface 260 are typically in the form of signals, which may be electronic, electromagnetic, optical, or other signals capable of being sent and/or received by the interfaces. These signals may be transmitted via a variety of modes including, but not limited to, wire or cable, fiber optics, a phone line, a cellular phone link, infrared (“IR”), and radio frequency (“RF”) link.

[0095] The I/O interface 250 may be any connection, wired or wireless, that allows the transfer of computer code. An I/O interface 250 includes, for example, an analog or digital audio connection, digital video interface (“DVI”), video graphics adapter (“VGA”), musical instrument digital interface (“MIDI”), parallel connection, PS/2 connection, serial connection, universal serial bus connection (“USB”), IEEE1394 connection, PCMCIA slot and card. In certain embodiments the I/O interface connects to an I/O unit 255 such as a user interface, monitor, speaker, printer, touch screen display, to name a few.

[0096] The communications interface 260 is also any connection that allows the transfer of computer code. Communication interfaces include, but are not limited to, a modem, network interface (such as an Ethernet card), wired or wireless systems (such as Wi-Fi, Bluetooth, and IR), local area networks, wide area networks, intranets, etc.

[0097] The invention is also directed to computer products, otherwise referred to as computer program products, to provide software that includes computer code to the computer system 200. Processor 220 executes the computer code in order to implement the methods of the present invention. As an example, the methods according to the present invention may be implemented using software that includes the computer code, wherein the software is loaded into the computer system 200 using a memory 230, 240 such as the mass storage drive 243, or through an I/O interface 250, communications interface 260, or any other interface with the computer system 200. The computer code in conjunction with the computer system 200 described herein may perform any one of, or any combination of, the steps of any of the methods presented herein. It is also contemplated that the methods according to the present invention may be performed automatically, or may be invoked by some form of manual intervention.

[0098] The computer system 200, or network architecture, of FIG. 2 is provided only for purposes of illustration, such that the present invention is not limited to this specific embodiment. It is appreciated that a person skilled in the relevant art knows how to program and implement the invention using any computer system or network architecture.

[0099] A flow chart 300 representing an alternative embodiment of the present invention is illustrated in FIG. 3. Similar to the flow chart in FIG. 1, a vendor is selected or obtained at step 310 for participation in the present invention and a good or service is identified for the process in step 320. In the alternative embodiment, no tipping point is established, however, in step 340, terms of the discount offer are determined and include the discount to be provided, duration of the offer, for example 24 hours, and an expiration date of the offer, or other restrictions associated with the offer.

[0100] At step 350 the discount offer is exploited through a website on the Internet or on some other global communication network. Consumers participate by accepting the offer such as by “signing up” for the offer on the website. “Signing up” may include providing the name of the consumer, address of the consumer, and form of payment to purchase the offer. The consumer may have already entered personal information that is stored thereby obviating the need to sign up each time to receive an offer. However, the system must be able to track the individual accepting the offer so that the consumer can be charged appropriately at the correct time, which may be when a deal reaches a tipping point (if a tipping point is used), or as soon as the consumer accepts the offer, if there is no tipping point.

[0101] At step 360, the consumer participation is received by the system and in step 370, the system calculates the number of consumers that have accepted the discount offer. This calculation can be done on a rolling basis, or at the end of the time limit, which was determined in step 340. Once the offer is accepted by the consumer and the consumer has been charged for the sale of the good or service, the consumer receives an indication that will allow him or her to receive the product or service. For example, the consumer may receive a gift certificate indicating the discount offer.

[0102] Once the number of consumers accepting the offer has been calculated and the consumers have been charged in step 385, a vendor payment can be made in step 390. The calculation and payment can occur at the end of the deal, based on a time limit, or the calculation can occur at a number of different time intervals, with numerous checks being sent to the vendor.

[0103] The described embodiments are to be considered in all respects only as illustrative and not restrictive, and the scope of the invention is, therefore, indicated by the appended claims rather than by the foregoing description. Those of skill in the art will recognize changes, substitutions and other modifications that will nonetheless come within the scope of the invention and range of the claims.