WO2013184009A1

WO2013184009A1 - Reward-based auction system and method

Info

Publication number: WO2013184009A1
Application number: PCT/PH2013/000013
Authority: WO
Inventors: Ludanielle LEGARDE
Original assignee: Legarde Ludanielle
Priority date: 2012-06-08
Filing date: 2013-05-30
Publication date: 2013-12-12

Abstract

The present invention relates to the field of internet or online auction bidding and e- commerce specifically on customer management or incentives. An object of the present invention is to provide an online auction system and method where the customers will be given reward point/s for every bid they make for an item. The accumulated reward points will then be used to redeem items equivalent to the reward points accumulated. The system comprises a plurality of first users, a system administrator and an auction central server. The plurality of users and the system administrator communicate with the auction central server over a network.

Description

Reward-Based Auction System and Method

Field of Invention

The present invention relates to the field of internet or online auction bidding and e- commerce specifically on customer management or incentives. Background Art

Currently, in the marketplace, there is a wide range of available online auction bidding sites wherein with just a simple click of the mouse, a product or service can easily be bought and delivered to a customer's preferred address. Essentially, an auction exists as a way to selling or offering an item to a group of buyers for the highest price, which one in the group of buyers is willing to pay. With the convenience provided by the internet, the capability to create new virtual auction sites has eclipsed the traditional mode of auctioning by reaching to a quite remarkably larger audience - global. The role of a traditional auctioneer (which is a real person) and the auction house (which is a real place) has now been substituted by the online moderator and an online auction site itself, respectively. However, as online auctions become increasingly popular, bidding for a particular item becomes increasingly competitive. Frustrations brought about by not winning the auction, coupled with the knowledge of a very low probability of winning the bid for the other remaining biddable items, will cause customers to get discouraged and potentially seek out alternative ways to get the items they want thru other auction sites, online stores or simply thru traditional retail establishments.

There is, therefore, a need to improve the system and method of online and offline auction customer retention.

Brief Description of Drawings

FIGURE 1 is a simplified block diagram illustrating a system (100) for an online auctioning of items over a communications network (102), preferably the internet.

FIGURE 2 is a simplified flow chart illustrating an overview on how a user communicates with the present system.

FIGURE 3 is a flow chart illustrating the steps involved when a user communicates to bid for items according to the present system. FIGURE 4 is a flow chart illustrating the steps involved when a user communicates to redeem rewards according to the present system.

FIGURE 5 is a flow chart illustrating the steps involved in the claiming process of the present system. FIGURE 6 is a simplified schematic diagram of the user profile. FIGURE 7 is simplified diagram of the item profile. FIGURE 8 is simplified diagram of the user cart.

Embodiments of the Invention An object of the present invention is to provide an online auction system and method where the customers will be given reward point/s for every bid they make for an item. The accumulated reward points will then be used to redeem items equivalent to the reward points accumulated. Therefore, an exemplary embodiment of the present invention comprises a system and a method which are provided to achieve this objective. The system comprises at least one user terminal (101), a network (102), at least one system administrator terminal (103), and an auction central server (104). The said user terminal (101) and system administrator terminal (103) communicate with the auction central server (104) over a network (102), preferably the internet.

Shown in FIGURE 1 is a simplified block diagram illustrating a system (100) for an online auctioning of items over a communications network (102), preferably the internet. Through a communications network (102), at least one user terminal (101) can connect to an auction central server or ACS (104). The ACS (104) comprises a central processing unit or CPU (104a), data storage capabilities (104b), and at least a database (104c). At least one system administrator (103) can connect to the ACS (104) either directly or through a communications network (102), preferably the internet. In an embodiment of the present invention, the system administrator (103) is a plurality of system administrators. In another embodiment of the present invention, at least one of the plurality of system administrators (103) is the item provider. The user terminals (101) and the system administrator terminals (103) can take a number of known forms including but not limited to a personal computer, PDA, smart phone, IPAD, television set top box, and the like.

Referring to FIGURES 1 and 7, before the user communicates with the present system, a System Administrator (103) must complete to the ACS (104) at least one Item Profile (700) for an item for bidding (300) and at least one Item Profile (700) for an item for rewards redemption (400). The ACS (104) stores the Item Profiles (700) in the ACS database (104c). The Item Profile (700) comprises: administrator-specified fields and system-specified fields. The administrator-specified fields are the fields which the System Administrator (103) may provide while the system-specified fields are the fields which the ACS (104) will be providing. For an item for bidding (300), the administrator-specified fields comprise: an Item Name field (701) and a Starting Bid Price field (703), while the system-specified fields comprise: a Current Bid Price field (704), a Current Highest Bidder field (705), and a Timer field (708). In an embodiment of the present invention, the administrator-specified fields further comprise an Item Description field (702). In another embodiment, the system-specified fields further comprise: a Last High Bid field (706) and a Last Highest Bidder field (707). For an item for rewards redemption (400), the administrator-specified fields comprise: an Item Name field

(701) and a Rewards Equivalent field (709). In one embodiment, the administrator-specified fields further comprise an Item Description field (702). The Item Name field (701) is a data field and is the label under which the item will be auctioned. The Item Description field

(702) is an optional field which describes characteristics of the item which is being auctioned. The Starting Bid Price field (703) is a numeric data field where the starting bid price of the auctioned item is set by the System Administrator (103). The Current Bid Price field (704) is a numeric data field of the auctioned item's current bid price which will be incremented by the ACS (104) every time a new user makes a bid for the same auctioned item. The starting value set in the Current Bid Price field (704) is equal to the value set in the Starting Bid Price field (703) of the same auctioned item. In an embodiment of the present invention, the System Administrator (103) may set the said increment. The Current Highest Bidder field (705) is a data field which will be written by the ACS (104) with the username of the user who made the current bid of the same item. The Last High Bid field (706) is a data field where a numerical data is written by the ACS (104) which is equal to the numerical data written on the Current Bid Price field (704) upon the expiration of the time set in the Timer (708). The Last High Bidder field (707) is a data field which will be written by the ACS (104) with the username of the user who made the last bid of the same item upon the expiration of the time set in the Timer (708). The Timer field (708) is a data field written by the ACS (104) setting the amount of time required for the next user to make another bid before the bidding of a particular item stops. The Rewards Equivalent field (709) is a data field where the reward points equivalent of the redeemable item is set by the System Administrator (103).

Shown in FIGURE 2 is a simplified flow chart illustrating an overview on how a user communicates with the present system. In one embodiment of the present invention, after keying in the web address of the auction site, the ACS (104) prompts a display of an html main menu (201) on the user's computer terminal (101). The user is then prompted to decide (202) whether to bid items or to redeem rewards. If the user decides to bid for items, the ACS (104) will redirect the user to the bidding process (300). If the user decides (202) to redeem rewards, the ACS (104) will redirect the user to the rewards redemption process (400). After the bidding process (300) or the rewards redemption process (400), the user is then redirected to the claiming process (500).

Another embodiment of the present invention is shown in FIGURE 3, which shows a flow chart (300) illustrating the steps involved when a user communicates to bid for items according to the present system. The ACS (104) prompts a display of the Bidding Menu (301) on the user's computer terminal (101). The Bidding Menu (301) allows the user to view the Item Profiles (700) of the items posted by the system administrator (103). After selecting an item to bid (302), the ACS (104) will execute the Login process block (303). If the user is not logged in, the user will be prompted to execute the registration decision block (304). If the user is not registered, the user will be redirected to Registration process (305) wherein the user is required to create a new account by completing a user profile (600) shown on FIGURE 6. If the user is already registered, the user will be redirected to the Login process (306) wherein the user will be prompted to input the Username (601) and the password (603). If the records are found, the user will be redirected back to the Item Selection process (302). If the user is already logged in, the ACS (104) will execute the Bid Points decision block (308). If Bid Points (604) is not enough, the ACS (104) will prompt the user to decide (309) whether to purchase Bid Points or not. If the user decides not to purchase Bid Points, the user will be redirected back to the Item Selection process (302). If the user decides to purchase Bid Points, the user will be redirected to the Payment process (310). The Payment process (310) may be according to any system of payments available in the prior art. After the Payment process (310) the ACS (104) will execute again the Bid Points decision block (308). If there is enough Bid Points (604), ACS (104) will execute the following: a) reset the timer (708), b) make the user as the Current Highest Bidder (705), c) increment the Current Bid Price (704), d) deduct the required bid points to the user's accrued bid points, e) convert the deducted bid points into reward points, f) adding the converted reward points to the user's accrued reward points. In one embodiment of the present invention, free bid points may not be convertible to reward points. The increment on the Current Bid Price (704) and the amount of time set on the timer (708) may be preset by the system administrator (103). After executing steps a-c, ACS (104) will then execute the New Bid decision block (312). If there is a new bid, the user will be redirected back to the Item Selection Process (302). If there is no new bid, ACS (104) will then execute the Time Expiration decision block (313). If time has not expired, ACS (104) will execute again the new bid decision block (312) until time expires. If time is expired, ACS (104) will add the won item and its Item Profile (700) to the user's User Cart (800). No more bids for the said item will be accepted when the time expires. The user is then prompted to decide (314) whether to bid for another item or not. If the user decides to bid for another item, the user will be redirected back to the Item Selection process (302). If the user decides not to bid for another item, the user will be prompted to decide (315) whether to claim the won item or not. If the user decides to claim the won item, the user will be redirected to the Claiming process (500). If the user decides not to claim the won item, the user will be redirected back to the Main Menu (201).

Another embodiment of the present invention is shown in FIGURE 4, which shows a flow chart (400) illustrating the steps involved when a user communicates to redeem rewards in the present system. The ACS (104) prompts to display a Rewards Redemption Menu or RRM (401) on the user's computer terminal (101). The RRM (401) allows the user to view the Rewards profile (800) of the items for redemption posted by the system administrator (103). After selecting the items for redemption (402), the ACS (104) will execute the Login decision block (403). If the user is not logged in, the user will be prompted to execute the registration decision block (404). If the user is not registered, the user will be redirected to Registration process (305) wherein the user is required to create a new account by completing a user profile (600) shown on FIGURE 6. If the user is already registered, the user will be redirected to the Login process (406) wherein the user will be prompted to input the Username (601) and the password (603). If the records are found, the user will be redirected back to the selection process (402). If the user is already logged in, the ACS (104) will execute the Reward Points decision block (408). If the Reward Points (605) is not enough, the user will be prompted to decide (409) whether to select another reward or not. If the user decides to select another reward to redeem, the user will be redirected back to the Rewards Selection Process (402). If the user decides not to select another reward, the user will be redirected back to the Main Menu (201). If the Reward Points (605) is enough, ACS (104) will execute the following: a) deduct the Rewards Equivalent (709) of the redeemed item to the user's total Reward Points (605), b) display the remaining Reward Points (605), and c) add the selected item's item name and description to the user's User Cart (800). The user will then be prompted to decide (411) whether to redeem more rewards or not. If yes, the user will be redirected back to the Rewards Selection process (402). If the user decides not to redeem more rewards, the user will be prompted to decide (412) whether to proceed to claiming or not. If yes, the user will be redirected to the Claiming process (500). If no, the user will be redirected back to the Main Menu (201).

Shown in FIGURE 5 is a simplified flow chart illustrating the steps involved in the Claiming process (500) of the present system. The ACS (104) prompts a display of the user's User Cart on the user's computer terminal (101). The User Cart contains the Item Profiles of the items acquired by both Bidding (300) and Rewards Redemption (400) ready to be claimed. After the Items to Claim Selection process (502), ACS (104) will redirect the user to the Mailing Address Input process (504). If there is existing mailing information, ACS (104) will automatically input these information after which the user will then be prompted to confirm the mailing address (505). If no, the user may input new information and then confirm the mailing address. After the user's confirmation of the mailing address information, the user will then be redirected to the Payment process (505). The Payment process (505) may be according to any system of payments available in the prior art. After the Payment process (505). The system administrator (103) will then execute the delivery process (506).

The Registration process (305) allows the user to create a new account by completing a user profile (600) shown on FIGURE 6. The User Profile (600) may comprise: a Username field (601), an Email Address field (602), a Password field (603), a Bid Points field (604), and a Reward Points field (605). The Username field (601) stores a unique name which will be used by the user in logging in the system. The Email Address field (602) stores the user's email address. The Password field (603) stores the user's password which will be used by the user in logging in the system. The Bid Points field (604) stores the user's total bid points which will be a requirement in order for the user to bid for an item. The bid points may be purchased by the user. In one embodiment, after successfully registering, the user may be given free initial bid points. The Reward Points field (605) stores the user's accumulated reward points which will be used in redeeming rewards. Both the Bid Points field (604) and the Reward Points field (605) are system fields and thus their stored data are written by the ACS (104).

Referring to FIGURE 8, the User Cart (800) preferably comprises an Item Name field (801) and optionally a corresponding Item Description field (802). The Item Name field (801) and the Item Description field (802) are system fields which data will be written by the ACS (104). The Item Name field (801) is a data field which will be written by the ACS (104) with the accrued item names of the items which the user won through the Bidding process (300) and redeemed through Rewards Redemption process (400). The Item Description field (802) is a data field which will be written by the ACS (104) with the corresponding descriptions of the items listed in the Item Name field (801).

Claims

Claims:

A system of online auctioning of items comprising:

a. at least one user terminal (101),

b. at least one administrator terminal (103),

c. a network (102), and

d. an auction central server (104)

characterized in that every bid a user makes for an auctioned item earns the said user at least one reward point wherein the accrued reward points may then be used to redeem an item as reward.

A system according to claim 1 characterized in that the auction central server (104) comprises:

a. a central processing unit (104a),

b. storage capabilities (104b), and

c. at least one database (104c).

A system according to claim 1 or 2 characterized in that the network is the internet. A system according to any of claims 1-3 characterized in that at least one of the said administrator terminals is an item provider terminal.

A system according to any of claims 1-4 characterized in that the user terminals (101) and the system administrator terminals (103) are in any of the following forms: a. a personal computer,

b. PDA,

c. a smart phone,

d. an IPAD, or

e. a television set top box.

A method of online auctioning of items comprising the steps of having at least one user (101) and at least one system administrator (103) communicate with an auction central server (104) over a network (102) characterized in that it further comprises the steps:

a. having at least one system administrator complete an item profile (700) of an item for bidding to an auction central server (104),

b. having at least one system administrator complete an item profile (700) of an item for rewards redemption to an auction central server (104), c. having at least one user complete a user profile (600) to ah auction central server (104),

d. having at least one user buy at least one bid point,

e. having at least one user make a bid for the auctioned item,

f. having an auction central server (104) convert the used bid point into a reward point,

g. adding the said converted reward point to the said user's accrued reward points,

h. having at least one user redeem an item for reward redemption by using the said user's accrued reward points.

7. A method according to claim 6 characterized in that at least one of the system

administrators is the item provider.

8. A method according to claim 6 or 7 characterized in that the said item profile (700) of an item for bidding comprises:

a. an item name field (701),

b. a starting bid price field (703),

c. a current bid price field (704),

d. a current highest bidder field (705), and

e. a timer field (708).

9. A method according to claim 8 characterized in that the starting bid price is set at zero value.

10. A method according to claim 8 or 9 characterized in that a current bid price

increment is preset by the system administrator.

11. A method according to any of claims 8-10 characterized in that the said increment is 1 unit.

12. A method according to any of claims 8-11 characterized in that said timer is preset by at least one system administrator.

13. A method according to any of claims 8-12 characterized in that the said item profile (700) of an item for bidding further comprises an item description field (702).

14. A method according to any of claims 8-13 characterized in that the said item profile (700) of an item for auction further comprises:

a. a last high bid field (706), and

b. a last highest bidder field (707).

15. A method according to any of claims 6-14 characterized in that the said item profile (700) of an item for rewards redemption comprises:

a. an item name field (701), and

b. a rewards equivalent field (709).

16. A method according to claim 15 characterized in that the said item profile (700) of an item for rewards redemption further comprises an item description field (702).

17. A method according to any of claims 6-16 characterized in that the said user profile (600) comprises:

a. a username field (601),

b. a password field (603),

c. a bid points field (604), and

d. a reward points field (605).

18. A method according to any of claims 6-16 characterized in that the said user profile (600) comprises:

a. an email address field (602),

b. a password field (603),

c. a bid points field (604), and

d. a reward points field (605).

19. A method according to any of claims 6-16 characterized in that the said user profile (600) comprises:

a. a username field (601),

b. an email address field (602),

c. a password field (603),

d. a bid points field (604), and

e. a reward points field (605).

20. A method according to any of claims 6-19 characterized in that said user will be given at least one free bid point after completing the user profile (600) to an auction central server (104).

21. A method according to claim 20 characterized in that said free bid points cannot be converted into reward points.