WO2000045314A2

WO2000045314A2 - Computerized group purchasing system

Info

Publication number: WO2000045314A2
Application number: PCT/US2000/002082
Authority: WO
Inventors: Amiran Grynberg
Original assignee: Teledeal, Inc.
Priority date: 1999-01-29
Filing date: 2000-01-26
Publication date: 2000-08-03
Also published as: WO2000045314A8; AU2740800A; WO2000045314A9

Abstract

This invention relates to a computerized group purchasing system forming a computer based communications network of buyers and vendors for processing bids made by vendors to win a purchase order from groups of buyers who share a similar request to purchase of a product or a service. The system accepts requests to purchase from multiple buyers, joins a set of requests into a single joint request based on grouping criteria, and lets buyers bid their best prices for their products possibly in an auction mode until a bid is determined as a winner. When a bid wins, all purchase requests that made up the joint request get the best price and the winner takes in all the orders of that group.

Description

COMPUTERIZED GROUP PURCHASING SYSTEM

Cross-reference to Related Cases

This application is related to a Disclosure Document # 448213, titled, "A Computerized Group Purchasing System," by Amiram Grynberg, sent to the United States Patent and Trademark Office on December 4, 1998, and Disclosure Document #448966, titled, "Computerized Group Purchasing System," by Amiram Grynberg, sent to the United States Patent and Trademark Office on December 16, 1998.

Technical Field

This invention generally relates to electronic commerce and to methods for matching buyers and sellers.

Background

Buyers in need of goods and services have many opportunities to acquire them, including computer networks such as the worldwide collection of networks and gateways that use the Transmission Control Protocol/Internet Protocol (TCP/IP) suite of protocols to communicate with one another, (i.e., the Internet) and the total set of interlinked hypertext documents residing on HyperText Transport Protocol (HTTP) servers all around the world (i.e., the World Wide Web (WWW)). There are several presently used methods of shopping over the Internet. For example, one method is similar to a conventional "store front" in that shoppers can locate and purchase products by going to a vendor's web page, similar to visiting a conventional store. In these transactions, a single transaction occurs at a time. In other words, a single shopper is purchasing products from a single vendor, although Internet vendors have the ability to service many independent shoppers simultaneously. A typical "storefront" type web page is www.amazon.com, which sells books, videos, music, and software.

Another common Internet shopping technique is purchasing through an auction. Although many variations are available, most auctions fall into one of two categories: the conventional auction, where shoppers bid for merchandise or service; and a reverse auction, where shoppers commit on a price and sellers can accept or reject it. A typical auction-type web page is www.ebay.com. Virtually any type of item, including sporting goods, collectibles, computers, toys, appliances, and the like, is put up for sale to the highest bidder. In response, anyone can post a bid for the item. On some Internet auction sites, lists of all the bids and/or the highest bid are displayed so that potential and previous bidders have the opportunity to meet or beat the bids. Other Internet auction sites keep the actual bidding amounts secret, but will list each item with a minimum or starting bid and a time limit. Thus, the highest bidder (who also exceeds the minimum bid) at the close of the auction buys the goods. Participants in such auctions typically agree in advance to payment conditions and method of payment.

Still another Internet shopping technique involves the use of shopping "crawlers" that permit a shopper to search the web for the "best price" or some other target price for a particular item. For example, a user might query a shopping crawler, such as www.bottomdollar.com, for any vendors willing to sell a personal computer having a particular configuration (for example. 400 MHz processor, 128 Mb RAM) for $1000. Alternatively, a user might seek simply the lowest available price for a particular model or configuration of computer. Although the shopping crawler does not necessarily close the transaction for the user, it provides a type of matching by linking the user to the web pages of the actual seller of the item. Shopping crawlers, however, do not necessarily inform the seller about shoppers who are interested in the item. Usually, the shopping crawler relies on the buyer to initiate a transaction with the seller. However, the shopping crawler does not permit the buyer to negotiate a price with the seller.

While these shopping methods are workable for many buyers and sellers, each relies on the traditional paradigm that the shopper is alone (e.g., store front, shopping crawler) and in some instances is competing with other shoppers (e.g., conventional and reverse auctions). None takes full advantage of the unique economy of scale offered by the Internet, an advantage that can benefit buyers and sellers alike.

Summary of the Invention It is a common practice in the corporate and organizational environment to group requests for purchase from different departments or subsidiaries into bigger groups so that vendors can make better offers to win larger orders. For example, a large corporation might group 10 individual requests for personal computers from one department with 20 individual requests for the same computer from another department and 10 individual requests for the same computer from various other departments. Thus, the corporation would have a single order for 40 personal computers versus three separate orders. Because vendors typically offer better prices for larger - j - quantity orders, the corporation gets the benefit of a better price and the vendor gets the benefit of increasing its sales volume with little effort. Such a grouping method is practical, however, only when an organizational structure exists to help locate and group similar requests. It is very difficult for the average person to locate, on his or her own, many other buyers who want to buy the same item, even using the Internet.

There is an opportunity, therefore, to use the growing popularity of the Internet, along with the advantages it offers, to develop a ew shopping methodology. The method and system described in connection with this invention change the conventional paradigm by providing a new mechanism by which unrelated consumers can do their shopping. Using the present invention, Internet buyers can join forces even when they are physically dispersed and unrelated, do not belong to the same organization, and do not know each other. The buyers can present a joint bargaining power that may grant them better prices and better products or services.

The invention takes advantage of the assumption that, any given time, multiple buyers are interested in buying substantially the same product or service. The system creates virtual buyer groups by joining multiple requests to buy a product or service into a single request and then offers the single request to vendors to bid for the joint order. As a result, vendors are likely to give better prices when faced with a larger order. The invention can address the needs of millions of participants because it uses a computerized networked system to interactively group the requests to purchase, get bids, and determine winners.

In one aspect, the invention features a method of conducting group transactions using a data communications network, comprising the steps of: receiving over the data communications network first and second requests, from first and second requesters, for the acquisition of an item; determining if the first and second requests satisfy a first set of conditions; creating a joint request from the first and second requests if the first and second requests satisfy the first set of conditions; and selecting a provider to fulfill the joint request whose offer satisfies a second set of conditions.

In another aspect, the invention features a computerized method for dynamically matching requesters and providers, comprising: storing a plurality of requests, each for the acquisition of an item, from a respective plurality of requesters; receiving from a provider over a data communications network an offer to sell at least a minimum number of items, wherein the offer has an associated set of conditions; determining whether at least a minimum number of the stored requests substantially satisfy the set of conditions: creating a joint request comprising at least the minimum number of stored requests that satisfy the set of conditions; and notifying the provider and each requester comprising the joint request about the joint request and the provider's offer.

In still another aspect, the invention features a computerized system for matching buyers and sellers, comprising: a first processor for: receiving over a data communications network a plurality of requests for the acquisition of at least one item from a plurality of requesters; determining if at least two of the plurality of requests satisfy a first set of conditions; and creating a joint request comprising all requests that satisfy the first set of conditions; a second processor in communication with the first processor for: informing one or more providers of the joint purchase request; and receiving over a data communications network at least one offer to fulfill the joint request from at least one provider; and a third processor in communication with the second processor for selecting the provider whose offer satisfies a second set of conditions.

The foregoing and other objects, aspects, features, and advantages of the invention will become more apparent from the following description and from the claims.

Brief Description of the Drawings

In the drawings, like reference characters generally refer to the same parts throughout the different views. The drawings are not necessarily to scale, emphasis instead being placed on illustrating the principles of the present invention.

FIG. 1 is a simplified block diagram of a physical configuration that permits two or more sellers to be matched with two or more buyers, in accordance with the invention.

FIG. 2 is a simplified block diagram of a computer system in which at least a portion of the present invention can be embodied.

FIG. 3 is an example of a form used by a requester to request acquisition of an item, in accordance with one embodiment of the invention.

FIG. 4 is an example of a form used by a provider to submit an offer, in accordance with one embodiment of the invention.

FIG. 5 is a flow chart of a method for matching a request to one or more other requests, in accordance with another embodiment of the invention.

FIG. 6 is a flow chart of a method to match a joint request with an offer, in accordance with one embodiment of the invention.

FIG. 7 is an example of a list of joint requests that is displayed to a provider, in accordance with an embodiment of the invention.

FIG. 8 is a flow chart of a method for dynamically matching requesters and providers, in accordance with another embodiment of the invention.

FIG. 9 is a diagram illustrating how a winning provider and joint request are selected, in accordance with another embodiment of the invention.

Detailed Description

FIG. 1 illustrates a block diagram of a system that can implement one embodiment of the invention. A plurality of buyers 6 can interface with a controller 2 via a buyer network interface 4. Typically, each buyer 6 (note that the terms "buyer^" and "requester^" are intended to be used interchangeably herein) has access to a computer or terminal in order to directly communicate its requirements to the controller 2 via the buyer network interface 4. Further, each seller 10 typically has access to a computer. A typical computer for the buyer 6 and seller 10 is illustrated in FIG. 2 (see description below). The controller 2 comprises a processor that can sort incoming requests from buyers, determine whether two or more buyers are requesting similar items, then group the buyers together based on sorting criteria, such as a common product specification. In one embodiment, the controller 2 is a remote computer accessible to the buyer 6 over a computer network. In another embodiment, the controller 2 corresponds to a particular Uniform Resource Locator (URL) accessible via the world wide web (WWW). In still another embodiment, the controller 2 can comprise two or more separate computers, each responsible for one or more functions used during the process of matching buyers and sellers, completing transactions, notifying buyers and/or sellers of matches, etc. For example, each of the following steps can be performed by a different processor: receiving requests from buyers 6; sorting the request into matching groups; notifying sellers 10 about the groups; receiving offers from sellers 10; determining if offers from sellers 10 match requests from buyers 6; notifying buyers 6 and/or sellers 10 about matches; processing financial information relating to the transaction; and establishing a contract between buyers 6 and sellers 10.

FIG. 2 illustrates a computer that a buyer 6 uses in one embodiment of the invention. However, it should be understood that the seller 10 and/or the controller 2 can also use the computer illustrated in FIG. 2. The computer used by a buyer 6 can be any type of computer, such as PCs, terminals, personal organizers, mainframe computers, or workstations, running any one of a variety of operating systems including DOS. WINDOWS. LINUX. OS/2. MAC OS. etc. The computer of a buyer 6, regardless of its configuration, typically includes a central processor 12, a main memory unit 14 for storing programs and/or data, an input/output controller 16, a network interface 18, one or more input devices 20 such as a keyboard and a mouse, a display device 22, a fixed or hard disk drive unit 24, a floppy disk drive unit 26, a tape drive unit 28, and a data bus 30 coupling these components to allow communication therebetween. Each computer used by a buyer 6 or a seller 10 of FIG. 1 generally includes all or some of the components illustrated in FIG. 2.

In some embodiments, one or more computer programs define the operational capabilities of the computer of the buyer 6. The programs can be loaded via the hard drive 24. the floppy drive 26, and/or the tape drive 28. Alternatively, the programs can reside in a permanent memory portion (e.g., a ROM chip) of the main memory 14. In some other embodiments, the invention can include specially-designed, dedicated, hard-wired electronic circuits that perform all functions described herein without the need for instructions from computer programs. In another embodiment, all of the functions described herein can be implemented in software.

Referring back to FIG. 1 , the buyer network interface 4 can be any interface capable of permitting a buyer 6 to submit information relating to an item that a buyer wishes to acquire. In one embodiment, the interface 4 is a form that defines, for the item to be acquired, relevant data items for selecting the item and a vendor for the item. For example, in one embodiment, the interface 4 comprises a HyperText Markup Language (HTML) form that can be filled out when a web page is accessed. In one embodiment of the invention, the item can be a product (e.g., a computer) or a service (e.g., a car rental). The data specifications, in one embodiment of the invention, include any qualifier that can more particularly describe the item to be acquired, and can include one or more qualifiers such as type, price, quality, quantity, brand, version, model, color, style, date of request, description, delivery date, expiration date, manufacturer, term, interest rate, payment plan, wage, and down payment. Note that the item to be acquired, in some embodiments of the invention, can include personal services, such as applying for a loan, hiring a tax preparer or a financial analyst, or even hiring an employee. Therefore, the qualifiers can include terms relating to salary rates, interest rates, etc. Furthermore, in some embodiments of the invention, the acquisition of an item is not limited to just the purchase of an item, but also encompasses the lease or rental of an item.

FIG. 3 illustrates an HTML form that is used as a buyer interface 4. in accordance with one embodiment of the invention. This form can be used so that a buyer can submit a request for the acquisition of an item. In this embodiment, the buyer selects an item to purchase from a list of items. However, it should be understood that the buyer interface 4, in some embodiments, can list a service to be procured, an item to be rented, an item to be leased, and the like. In still another embodiment, the buyer interface 4 can permit the buyer to describe the item desired rather than have the buyer select an item from a list. The controller 2 in such an embodiment, parses the description for keywords linking the description to a particular actual item that is available.

Referring again to FIG. 3. in addition to selecting an item, a buyer can select one or more other qualifiers to further refine the buyer^'s preferences regarding the item selected. For example, the buyer can set minimum and maximum prices he is willing to pay, indicate a deadline by which the request must be filled, and indicate the type of request. As is explained in greater detail below, a buyer's request can be conditional on the controller 2 joining the buyer with other buyers to locate a seller who will a product subject to certain limitations. As illustrated in FIG. 3, these limitations may include brand limitations, price limitations, vendor limitations, etc. For example, a buyer may be willing to pay $1300.00 for a personal computer having certain specifications that the buyer provides, but only if the computer is an IBM brand computer.

It should be understood that any one or more of the entries on the form may be used as a qualifier to determine if a particular buyer^'s request substantially matches another buyer's request or if a seller's offer substantially matches multiple buyer requests. For example, two different requests from two different buyers might be requesting the same item to be purchased. Thus, that qualifier could be used by the controller 2 to determine if the buyer's requests can be grouped together. The qualifiers can also be used by the controller to determine if a vendor offer is sufficiently matched to a buyer request such that the vendor offer can be considered to "substantially" match two or more buyer requests.

As illustrated in FIG. 4, the seller interface 8 is similar to the buyer interface 4 in that it also, in one embodiment, is an HTML form. As with the buyer interface of FIG. 3, the seller interface of FIG. 4 permits a seller to define terms of its offer, including product specification, delivery method, expiration of the offer, price, and links to additional product information. Thus, this form permits a seller (also called a provider) to submit an offer to fulfill the request specified in the form illustrated in FIG. 3.

Referring back to FIG. 1, the controller 2. in one embodiment, receives a plurality of independent requests from a plurality of independent buyers 6. Based on one or more of the qualifiers selected on each form (see FIG. 3). the controller 2 groups forms that have one or more matching qualifiers into groups called joint purchase requests. A joint purchase request, as the name implies, joins at least two purchase requests. In one embodiment, the determination to join the requests is based on one or more qualifiers. In another embodiment, it is a "virtual" list of requests.

The joint request is made available to vendors, such as by directly sending it to them, making it available on a web page, electronically sending it to them, etc. In one embodiment, the joint request does not disclose the identity of the buyers to the potential vendors, but it does disclose the number of requests in the group. In another embodiment, statistical information about the joint request is publicized (and, therefore, made available to sellers and/or buyers). For example, the statistical information might comprise information relating to the number of buyers that are interested in a particular product, such as a 600 MHz personal computer. In another embodiment, the statistical information might comprise detailed information about the preferences of buyers, such as color, brand, and configuration preferences for a product. Those skilled in the art will recognize other types of statistical information that might be useful or interesting to provide to others. Preferably, the statistical information is made available without disclosing the identities of the buyers.

The following examples illustrate the formation of a joint request from individual requests. A first buyer 6 submits a request for a PENTIUM II personal computer, with at least a 400 MHz processor, and is willing to pay up to $1500 for it. A second buyer 6 specifies the same computer and is willing to pay up to $1400. A third buyer 6 specifies the same computer and is willing to pay up to $1000. Based on these requirements, the controller 2 can create several different joint requests.

In one embodiment, the controller groups all three buyers 6 together based on the minimum characteristic by which all requests match. Thus, for example, the three requests are grouped together as a joint request for a 400 MHz PENTIUM II PC costing $1000 or less. This request satisfies all three buyers 6 and substantially matches the qualifiers selected by all three buyers 6.

In another embodiment, the controller 2 groups together the buyers 6 having the most closely matching qualifiers into a joint request. Thus, the buyers 6 with the requests having the most closely matched price, i.e.. the first buyer 6 and the second buyer 6. are grouped as a joint request for a 400 MHz PENTIUM II PC costing $1400 or less.

If an additional buyer 6 submits a similar request, with a price limit of $1300, the controller 2 has several options, and the choices depend on the sorting criteria used. It can form a single joint request with four buyers (with a price of $1000 or less for the PC). It can also form two different joint requests, one with the two lowest buyers ($1000, 1300), another with the two highest buyers ($1400, $1500). It can form a joint request with the three closest buyers ($1300, $1400, and $1500). However, it will not form a joint request with fewer than two buyers.

After the joint request is made available to sellers 10. the controller 2 waits for sellers 10 to submit offers to fulfill the joint requests. Using a form such as the form illustrated in the embodiment of FIG. 4, sellers 10 prepare bids for the products or services specified in the joint request and submit those bids to the controller 2. In one embodiment, the seller can keep its identity secret from potential buyers until it "wins" the joint request (i.e., most closely matches the joint request). In another embodiment, the seller's identity is revealed only to members of the joint request. These features also prevent other sellers from learning how low in price a particular seller will go.

Multiple sellers 10 can submit bids, and the controller 2 determines the bid that most closely matches the requirements of the joint request. In one embodiment, the controller 2 informs the buyers 6 and the seller 10 when a match is achieved. In another embodiment, the controller 2 automatically creates a transaction between the buyers 6 and the seller 10 when a match is achieved. In still another embodiment, some of the buyers 6 can specify in their respective requests that they do not want to be committed to a transaction until they approve of the seller 10 that is selected. In that embodiment, the transaction is created between those buyers 6 and sellers 10 who have given prior approval (that is, those that are "committed" to the transaction). Uncommitted buyers (those that must approve the transaction) are merely notified about the match but not automatically bound to the transaction.

FIG. 5 is a flow chart that illustrates the process of forming a joint request, in accordance with one embodiment of the invention. In FIG. 5, the joint purchase request is referred to as a "group." The term "group" in reference to a group of buyers or requesters and the term "joint purchase request" are used interchangeably herein. When a new request is received from a potential buyer (step 40), it is checked to see if it matches any existing groups (step 42). If it does, it is added to that group (step 48). If it does not, the request is then compared to other requests stored on the system to determine if a new group may be formed. For example, there may be a stored request that exactly or closely matches the new request that has been received. However, there should be at least two requests in any group. If the new request matches a stored request, a new group comprising the new request and the stored request, is formed (step 46). If the new request does not match any stored requests, it is stored (step 50) until a new request comes in that matches it. In one embodiment, requests that are not part of groups are stored only until a predetermined condition occurs, such as the expiration of the request or the expiration of a time limit.

In another embodiment, the minimum number of requests to form a group can be dependent on the value of the item being requested. For example, for low priced items, the minimum group size might be significantly larger than for higher priced items. Sellers, in some embodiments, can set this limit. This feature is practical because a seller might require a higher volume for low priced, high-volume items (such as books) to be able to offer a savings to buyers. In contrast, with high priced, low volume items (such as high end computer systems and automobiles), the seller may not need as large a group to offer a savings.

FIG. 6 is a flow chart illustrating how a vendor submitting an offer is matched to a group, in accordance with an embodiment of the invention. When the offer is received (step 52), it is checked to determine if it matches any existing groups (step 54). If it does not, the offer is stored (step 56) and is checked against new groups as they are formed (steps 56-54). If the offer matches a group, the vendor offer and the group (i.e., the joint request) are checked to determine if conditions required for the sale are met (step (60). In one embodiment, the condition can comprise one or more of the following: expiration of a time period; achieving a specific price for items offered for sale; receiving a predetermined number of offers; receiving a predetermined number of requests: creating a joint request having a predetermined number of requests; and creating a joint request that substantially matches other conditions of a received offer. If the condition is not met, the offer is stored (step 58) until the condition is met. If the condition is met, then a transaction is created between the vendor and the group (step 62); that is. the seller is considered to be the "winning" seller.

As noted previously, potential sellers can be made aware of the existence of groups and of the items that they are requesting. In another embodiment, the controller 2 (FIG. 1) continuously displays the bids made to win a specific joint request and sellers may update their bids multiple times in competition with each other. FIG. 7 illustrates how the different groups and bids can be displayed to potential vendors. In another embodiment (not shown), the highest price bid by other vendors also is displayed.

In yet another embodiment, the controller 2 continuously matches individual purchase requests with bids from sellers. For each bid the system creates a list of matching requests, creating a "dynamic joint request". Matching, in one embodiment, is based on product specification, price and/or expiration time. Sellers may change their bids at any time, and buyers can change their requests. Thus, at any given moment, for each bid, there would be a certain number of requests in a matching dynamic joint request. In one embodiment, when the number of requests participating in any dynamic joint request exceed a certain threshold, the bid associated with this dynamic joint request automatically is selected as a winning bid. In another embodiment, the winning bid may continue to be open, so that more requests may join it (but not withdraw from it) up to a maximum limit that is set by the vendor and/or the system. The maximum limit can be equal to the minimum threshold effectively closing the auction once a winner is determined.

By having a minimum and maximum thresholds, sellers know the minimum lot size and their maximum exposure per bid. For example, a seller can submit an offer at a particular price to determine how large a dynamic group is formed at that price. Buyers, on the other hand, are motivated to join the process because a buyer might miss a good bid that might not return later. In one embodiment, when a bid is selected as a winner for a certain joint request, all purchase requests that form the joint request are committed to that bid at the winning best price. When this occurs, the purchase requests that form the joint request are removed from all other joint requests to which they belong (if they belong to any). In another embodiment, a winning bid binds the bidder to supply the goods and/or services to all members of the joint request at the winning price. The winning bidder also receives the information about the buyers from the controller and each buyer receives information about the winning bidder.

FIG. 8 illustrates a flow chart for dynamic matching of buyers and sellers. There are two entry points in this flow chart: one for the seller (step 68); and one for the buyer (step 90). When an offer to sell is received from a seller (step 70), the offer is checked to determine if it matches at least two stored requests that have been received from buyers (step 72). If it does, a dynamic group is formed (step 82) that comprises the at least two matching stored requests. The dynamic group can be added to as more and more requests are received (steps 90 and 76). until a predetermined condition is reached that consummates the sale (step 84).

Until the predetermined condition is met. however, the group is stored (step 86) and new requests can be added to the dynamic group, as described above. The predetermined condition can comprise one or more of the following: expiration of a time period; achieving a specific price for items offered for sale; receiving a predetermined number of offers; receiving a predetermined number of requests; creating a joint request having a predetermined number of requests; and creating a joint request that substantially matches conditions of a received offer. Other predetermined conditions, such as conditions specifically dependent on the item, the buyer, or the seller, can be used. When the condition is reached, a transaction is created between the seller and the dynamic group (step 88).

If the offer does not match at least two stored requests (such that a dynamic group can be formed), the offer is stored, awaiting new requests that might match it so that a group of at least two can be formed (step 74). As new purchase requests are received (step 76), each request is checked to see if it matches any stored offers from sellers (step 78). If it does, then the offer to sell is checked against other stored requests to determine if there is at least one other request stored that also matches the offer to sell and the new purchase request, so that a group may be formed as described above. If the new request does not match any stored offers, it is stored (step 80) to wait for new offers and/or new requests.

For purposes of an example only, assume the following situation: starting at step 90. five sellers have each submitted a request to purchase the same personal computer and that no offers have been received from sellers. The first seller has a maximum price of $1 100, the second $1200, the third $1300, the fourth $1400, and the fifth at $1500. Also, assume for this example that the predetermined condition is that a sale will be consummated when at least three buyers match a seller's offer. Given the five buyers listed, and depending on the matching characteristics selected by each buyer, the buyers may or may not be considered to be matched to each other. For this example, however, assume that no buyer will go over its maximum price by any amount. Because each request does not match any stored offers to sell (step 78), each request is stored and waits for incoming offers to sell.

Continuing with this example, assume that a first seller submits an offer to sell the same personal computer that all five buyers want (step 70), but at a price no lower than $1450. This offer is checked to see if it matches at least two stored purchase requests (step 72). Although it matches the fifth buyer's request, it does not match any other requests, so the first offer is stored (step 74) to wait for new purchase requests.

Next, another buyer submits a request for the same personal computer, at a maximum price of $1700 (steps 90 and 76). This request matches the first stored offer to sell (step 78), so the stored offer is then checked to determine if there are any additional stored requests that it matches (step 72). As noted previously, the stored request from the fifth buyer matches the first vendor request, so a first dynamic group is created comprising the fifth and sixth buyers (step 82). However, because the predetermined condition (at least three buyers in the dynamic group) is not met (step 84), the first dynamic group is stored (step 86) until the condition is met. Although the fifth and sixth purchase requests are part of the first dynamic group, these purchase requests are still available to join other dynamic groups as they are formed.

Next, a second vendor offer is received (step 70), and the second vendor offer is for the same personal computer, at a price of $1400, minimum. When this second offer is checked to determine whether it matches at least two stored purchase requests (step 72), it is seen that the offer matches the purchase requests from the fourth, fifth, and sixth buyers. Accordingly, a second dynamic group is created comprising these three buyers (step 82). Next, because the predetermined condition (at least three buyers) is met (step 84), a binding transaction is created among the three buyers of the second group and the second seller (step 88). Even though the first seller submitted an offer earlier in time than the second seller, because the second seller's offer created a condition where a dynamic group was formed and the predetermined condition was met, the second seller "won" the three buyers of the second dynamic joint request. When this occurs, all buyers comprising the dynamic joint request are removed from any other dynamic groups to which they might belong.

In another embodiment, using the same example described above, the predetermined condition could be changed to a seller that matches the largest dynamic group (i.e., the most matching requests) before the expiration of a time limit, will be selected as the "winner." In this embodiment, the first and second sellers could have the opportunity to modify their bids so as to join the largest dynamic group. Other vendors could join in, with new bids, in somewhat of an "auction" format. Moreover, in this embodiment, buyers can also change their bids so that they can be part of what looks to be a winning group, and additional potential buyers can receive information about the ongoing request and bid process so that they can try to join. In this manner, the flow chart of FIG. 8 illustrates an embodiment of the invention where buyers and sellers are dynamically and continually matched, until a condition is reached.

Although not all combinations and outcomes for incoming offers and requests are described in detail for the flow chart of FIG. 8, one skilled in the art will recognize that the system implemented in accordance with this flow chart will by dynamic, continually accepting new requests and new offers to sell, grouping those that match, and attempting to reach a point of transacting a sale when specified conditions are met. In that manner, it provides a capability not presently available to Internet shoppers and vendors.

FIG. 9 is a diagrammatic representation of the possible groups and matches that result, in one embodiment, from the flow chart of FIG. 8. In FIG. 9, providers PI through P5 (i.e., sellers) and requesters Rl through Rl 1 (i.e.. buyers) are shown. Check marks indicate where a particular provider's offer matches a particular requester^'s request. Dotted lines indicate groups of requesters that are formed. For example groups 100, 102, and 104 each contain two or more requesters whose requests match the provider's offer. Also, it is seen that a requester can be a member of more than one group. For example, requester Rl is a member of group 106, group - 15 - 100, and group 104. In this example, it is assumed the condition for consummating a sale is that there must be at least 5 requests that match an offer. Thus, only the group 106, represented by the solid line, will be selected as the "winning" transaction. All requesters that are in this group, therefore, will be removed from other groups to which they belong.

Variations, modifications, and other implementations of what is described herein will occur to those of ordinary skill in the art without departing from the spirit and scope of the invention as claimed. Accordingly, the invention is to be defined not by the preceding illustrative description but instead by the spirit and scope of the following claims.

Claims

CLAIMS 1. A method of conducting group transactions using a data communications network, comprising: a) receiving over the data communications network first and second requests, from first and second requesters, for the acquisition of an item; b) determining if the first and second requests satisfy a first set of conditions; c) creating a joint request from the first and second requests if the first and second requests satisfy the first set of conditions; and d) selecting a provider to fulfill the joint request whose offer satisfies a second set of conditions.

2. The method of claim 1 further comprising the step of publishing the joint request over the network.

3. The method of claim 1, further comprising the steps of: (i) receiving, over the network, offers to fulfill the joint request from two or more providers; (ii) notifying at least one of the providers about of an offer made by at least one other of the providers; and (iii) repeating steps (i) and (ii) until the second set of conditions is satisfied.

4. The method of claim 3 further comprising the step of permitting one or more providers to change its respective offer during steps (i) and (ii).

5. The method of claim 3 further comprising: (iv) permitting the changing of the joint request during steps (i) and (ii); and (v) permitting the first and second requesters to change their respective requests during steps (i) and (ii).

6. The method of claim 1 further comprising the step of notifying the members of the joint request, over the network, of the provider selected in step (d).

7. The method of claim 1 further comprising the step of inviting, over the network, at least one additional potential requester to submit a request.

8. The method of claim 1. wherein the acquisition of step (a) comprises purchase, lease, or rental of an item, and the item of step (a) comprises a product or service.

9. The method of claim 1 wherein the first and second requests each include information relating to an item that the respective requester wants to acquire, the information including one or more qualifiers selected from the group consisting of type, price, quality, quantity, brand, version, model, color, style, date of request, description, delivery date, expiration date, manufacturer, term, interest rate, payment plan, wage, and down payment.

10. The method of claim 1 wherein the first set of conditions comprises determining whether the second request is for an item that is substantially similar to the item requested in the first request.

11. The method of claim 9 wherein the first set of conditions comprises determining whether at least one of the qualifiers of the second request substantially matches at least one of the qualifiers of the first request.

12. The method of claim 1 wherein the joint request includes information relating to the total number of items being requested.

13. The method of claim 9 wherein the joint request includes the one or more of the qualifiers of the first and second requests that substantially match.

14. The method of claim 1 wherein the joint request includes the identities of at least one of the first and second requesters.

15. The method of claim 1 wherein the joint request does not reveal the identities of the first and second requesters.

16. The method of claim 1 wherein step (d) comprises selecting a single provider from two or more providers that have offered to fulfill the request.

17. A method for matching a group of requesters with at least one provider using a data communications network, comprising: a) receiving over the data communications network a plurality of requests, each for the acquisition of an item, from a respective plurality of requesters; b) determining whether a predetermined number of the requests satisfy a first set of conditions; c) creating at least one joint request from at least the predetermined number of the requests that satisfy the first set of conditions; d) publicizing information relating to the joint request so that it is available to providers: and e) selecting a provider who makes an offer to fulfill the joint request that satisfies a second set of conditions.

18. The method of claim 17 wherein the predetermined number of step (b) is related to the item being requested.

19. The method of claim 17 wherein: (i) each request of step (a) and the joint request of step (c) includes one or more qualifiers selected from the group consisting of type, price, quality, quantity, brand, version, model, color, style, date of request, description, delivery date, expiration date, manufacturer, term, interest rate, payment plan, wage, and down payment; and (ii) step (b) comprises determining whether a predetermined number of the requests have one or more substantially matching qualifiers.

20. The method of claim 17 wherein: (i) step (a) further comprises receiving an indicator for each requester indicating whether the respective requester is uncommitted or committed, where a committed requester is committed to acquiring the item if a provider is selected in step (d) and an uncommitted requester is not; and (ii) step (d) further comprises publicizing statistical information relating to the joint request.

21. The method of claim 20 further comprising the step of establishing a contract between the provider selected in step (e) and each committed requester whose request is part of the joint request.

22. The method of claim 20 further comprising the step of notifying each uncommitted requester whose request is part of the joint request about the provided selected in step (e) and its respective offer.

23. The method of claim 17 wherein the second set of conditions comprises determining whether the offer to fulfill the joint request substantially matches the joint request.

24. The method of claim 19 wherein the second set of conditions comprises the offer including one or more of the qualifiers that substantially match the qualifiers of the joint request.

25. A computerized method for dynamically matching requesters and providers, comprising: a) storing a plurality of requests, each for the acquisition of an item, from a respective plurality of requesters; b) receiving from a provider over a data communications network an offer to sell at least a minimum number of items, wherein the offer has an associated set of conditions; c) determining whether at least a minimum number of the stored requests substantially satisfy the set of conditions; and d) creating a joint request comprising at least the minimum number of stored requests that satisfy the set of conditions.

26. The method of claim 25 wherein (i) step (b) further comprises receiving an offer having a set of conditions comprising one or more qualifiers selected from the group consisting of type, price, quality, quantity, brand, version, model, color, style, date of request, description, delivery date, expiration date, manufacturer, term, interest rate, payment plan, wage, and down payment; and (ii) step (c) further comprises determining whether at least a minimum number of the stored requests have qualifiers that substantially match one or more of the qualifiers of the offer.

27. The method of claim 25 wherein: (i) the offer of step (b) further comprises an offer to sell at most a maximum number of items under the set of conditions; and (ii) step (d) comprises creating a joint request comprising at most the maximum number of joint requests that satisfy the set of conditions.

28. A computerized method for dynamically matching requesters and providers, comprising: a) receiving from at least one provider, over a data communications network, an offer to sell a plurality of items, where the offer includes a first set of conditions; b) receiving, over a data communications network, at least one request from a requester to acquire the item; c) storing the request if it satisfies the first set of conditions; d) determining whether there are two or more stored requests that satisfy the first set of conditions; e) creating at least one joint request comprising the two or more stored requests that satisfy the first set of conditions; f) repeating steps (a),(b), (c), (d), and (e) until a second set of conditions is reached; and g) selecting a winning provider and a winning joint request.

29. The method of claim 28, wherein: (i) step (a) further comprises receiving an offer having a first set of conditions comprising one or more qualifiers selected from the group consisting of type, price, quality, quantity, brand, version, model, color, style, date of request, description, delivery date, expiration date. manufacturer, term, interest rate, payment plan, wage, and down payment; and (ii) step (d) further comprises determining whether two or more of the stored requests have qualifiers that substantially match one or more of the qualifiers of the offer.

30. The method of claim 28, wherein the second set of conditions of step (f) comprises one or more of the following: expiration of a time period; achieving a specific price for items offered for sale; receiving a predetermined number of offers; receiving a predetermined number of requests; creating a joint request having a predetermined number of requests; and creating a joint request that substantially matches the first set conditions of a received offer.

31. A computerized system for matching buyers and sellers, comprising: a) a first processor for (i) receiving over a data communications network a plurality of requests for the acquisition of at least one item from a plurality of requesters; (ii) determining if at least two of the plurality of requests satisfy a first set of conditions; and (iii) creating a joint request comprising all requests that satisfy the first set of conditions; b) a second processor in communication with the first processor for (i) informing one or more providers of the joint purchase request; (ii) receiving over a data communications network at least one offer to fulfill the joint request from at least one provider; and c) a third processor in communication with the second processor for selecting the provider whose offer satisfies a second set of conditions.

32. The system of claim 31 wherein at least one of the first, second, and third processors notifies each requester comprising the joint purchase request, over the data communications network, when a provider has been selected to fulfill the joint purchase request.

33. The system of claim 31 wherein at least two of the first, second, and third processors are part of the same computer system.

34. The system of claim 31 wherein the first set of conditions comprises determining whether at least two of the plurality of requests are for substantially the same item.

35. The system of claim 31 wherein the second set of conditions comprises determining whether the offer to fulfill the joint request substantially matches the joint request.