WO2001018724A1

WO2001018724A1 - SYSTEM AND METHOD FOR SUBSIDIZING CONDITIONAL PURCHASE OFFERS (CPOs)

Info

Publication number: WO2001018724A1
Application number: PCT/US2000/024696
Authority: WO
Inventors: Jay S. Walker; Daniel E. Tedesco; Andrew S. Van Luchene; Keith Bemer
Original assignee: Priceline.Com Incorporated
Priority date: 1999-09-10
Filing date: 2000-09-08
Publication date: 2001-03-15
Also published as: AU7126500A

Abstract

A conditional purchase offer (CPO) management system (200) is disclosed for receiving and processing CPOs from customers (1, 2, N) for goods or services. The CPO management system subsidizes CPO transactions by a corresponding subsidy amount to increase the original offer price or decrease the selling floor price. The amount of a given subsidy can vary depending, for example, on the relationship between the original offer price and an estimated selling price floor, or on the likelihood that a CPO will be accepted. The subsidy offer can be provided subject to at least one condition. Different types of subsidy offers, each with potentially different strategies for calculating a corresponding subsidy amount, can be applied to CPOs. The subsidy amount that is offered by a subsidizing party (130-1, 130-2, 130-3) can be increased by the CPO management system to further encourage a customer to accept the subsidy offer.

Description

SYSTEM AND METHOD FOR SUBSIDIZING CONDITIONAL PURCHASE OFFERS (CPOs)

Cross-Reference To Related Applications

This application is a continuation-in-part of U.S. Patent Application Serial No. 08/943,483, filed October 3, 1997, which is a continuation-in-part of U.S. Patent Application Serial No. 08/923,683, filed September 4, 1997, which is a continuation-in-part of U.S. Patent Application Serial No. 08/889,319, filed July 8, 1997, which is a continuation-in-part of U.S. Patent Application Serial No. 08/707,660, filed September 4, 1996, each incorporated by reference herein. Field of the Invention

The present invention relates generally to a system for processing the sale of goods and services and, more particularly, to a system for modifying purchase offers from buyers for the purchase of goods and services so that one or more sellers are more likely to accept such purchase offers.

Background of the Invention

Most systems for processing the sale of products are seller-driven, whereby the seller prices, packages, configures and offers the product for sale, and the buyer decides whether or not to accept the seller's offer. In a buyer-driven system, however, the buyer dictates the terms of the offer and one or more sellers decide whether or not to accept the offer. A "help wanted" advertisement, for example, is a buyer-driven inquiry since the employer is looking to locate and buy the services of a qualified employee. The inquiry is advertised to a large number of potential employees, who may respond by submitting their resumes to the prospective employer.

Priceline.com, Incorporated of Stamford, Connecticut is a merchant that has successfully implemented a buyer-driven system for the sale of products, such as airline tickets and automobiles. Priceline.com utilizes a Conditional

Purchase Offer (CPO) Management System, described in the parent and grandparent applications to the present invention, that processes conditional purchase offers received from individual buyers. These conditional purchase offers contain one or more buyer-defined conditions for the purchase of goods or services at a buyer- defined price. They are typically guaranteed by a general-purpose account, such as a debit or credit account, or another payment identifier, such as electronic currency, and thereby provide sellers with a mechanism for enforcing any agreement that may be reached with the buyer. The conditional purchase offers are provided by the CPO Management System to sellers, either directly or indirectly using seller-supplied rules, for individual sellers to either accept or reject. If a seller accepts a conditional purchase offer, the CPO Management System binds the buyer on behalf of the accepting seller, and forms a binding contract.

Thus, the CPO Management System empowers individual buyers to obtain goods and services at a price set by the buyer. The CPO Management System provides numerous commercial advantages to sellers as well. For example, the CPO Management System permits individual sellers to effectively sell excess inventory when actual demand fails to meet forecasted demand. In particular, the CPO Management System allows sellers to be confident that if they accept a buyer's offer, the buyer will purchase the requested goods or services at the agreed-upon price, and not merely use the information to ascertain the seller's underlying level of price flexibility, which, if known to a seller's competitors or customers, could impact the seller's overall revenue structure. For the vast majority of transactions, the CPO Management System will effectively complete transactions in this manner. Invariably, however, a percentage of buyers will submit purchase offers that are not acceptable to any seller, typically because the price offered by the buyer is too low. In addition to being a lost business opportunity, unacceptable purchase offers require buyers and sellers to spend time submitting and reviewing such purchase offers, respectively.

Thus, buyers and sellers alike will be frustrated and discouraged from utilizing the

CPO Management System if the acceptance rate for submitted purchase offers does not meet acceptable levels. While a purchase offer may not be acceptable as originally submitted, buyers and sellers alike would benefit if the purchase offer could be modified so that it is acceptable to at least one seller.

In addition, unacceptable purchase offers consume the resources of the CPO Management System itself. Furthermore, in an implementation where the

CPO Management System obtains revenue only from transactions associated with accepted purchase offers, the resources of the CPO Management System may be consumed by unacceptable purchase offers that do not result in any revenue. This is particularly troublesome when a buyer submits a purchase offer that is recognized to have little, if any, chance of ever being accepted. Thus, the CPO Management System would also benefit if such a purchase offer could be modified so that it is acceptable to at least one seller, or is otherwise turned into a revenue generating transaction. Thus, a need exists for a system to facilitate the modification of CPOs to CPOs that are more likely to be accepted by a seller. Summary of the Invention

Generally, a conditional purchase offer (CPO) management system is disclosed for receiving and processing CPOs for goods or services from customers. The CPO management system determines whether one or more sellers, utilizing seller interfaces, are willing to accept a given CPO. According to an aspect of the invention, the CPO management system facilitates the subsidy of CPO transactions by a corresponding subsidy amount offered by a subsidizing party. Thus, the CPO management system can facilitate the subsidy of a customer's CPO to increase the original offer price or subsidize the seller's margin to decrease the seller's price floor or both. The present invention increases the revenue available to sellers or the CPO management system, or both, by providing a subsidy offer to customers.

The amount of a given subsidy associated with a given subsidy offer can be predefined or can vary depending, for example, on the relationship between the original offer price and an estimated selling price floor, or on the likelihood that a CPO will be accepted, which can be obtained, for example, from historical, forecasted or actual purchase data. In addition, the subsidy amount that is offered by a subsidizing party can be increased by the CPO management system to further encourage a customer to accept the subsidy offer. Likewise, the subsidy amount that is actually offered to a customer may be less than an acquisition budget specified by the subsidizing party for each new account, to reflect a commission retained by the

CPO management system.

In a "CPO evaluation" embodiment of the present invention, a received CPO is evaluated and the value of a subsidy is calculated in accordance with the relationship between the original offer price and an estimated selling price floor. The relationship between the original offer price and the estimated selling price floor can be categorized into one of three categories. If an original offer price is greater than or equal to the corresponding estimated floor price, the CPO is said to be "acceptable." If an original offer price is less than the corresponding estimated selling price floor, but the difference is less than or equal to the total available subsidy budget from one or more subsidy offers, the CPO is said to be "acceptable as subsidized." Finally, if an original offer price is less than the corresponding estimated selling price floor, and the difference is greater than the total available subsidy budget from one or more subsidy offers, the CPO is not likely to be accepted, even if subsidized, and is thus referred to as "unacceptable." The "CPO

10 evaluation" embodiment permits different types of subsidy offers, each with potentially different strategies for calculating a corresponding subsidy amount, that may be applied to CPOs in each of the different categories.

A subsidizing party generally provides the subsidy, subject to at least

15 one condition applicable between the subsidizing party and the customer. Examples of subsidizing parties include (i) a seller of the originally requested product, for example, to implement a rebate program or a loyalty-rewards program, (ii) the CPO management system itself, for example, to increase the CPO acceptance rate of the

,-,_π system, or (iii) a third party, for example, that desires to establish a relationship with the CPO customers. The condition associated with the subsidy offer may require, for example, the customer to switch service providers, to complete a credit application or to purchase a complimentary product.

The disclosed CPO management system forwards the subsidy offer

25 to the customer, together with any associated conditions, and obtains the customer's acceptance of such associated conditions. If the customer accepts the subsidy offer, the CPO management system modifies the offer price of the original CPO (or the selling price of the seller) and determines if the modified CPO is accepted by any 30 seller. If a customer accepts a subsidy offer, the corresponding conditions associated with the subsidy offer may be enforced by the subsidizing party or the CPO management system, for example, by charging a penalty amount to a general- purpose account specified by the customer with the CPO. If the customer rejects the subsidy offer, the CPO can be processed as originally submitted.

35

A more complete understanding of the present invention, as well as further features and advantages of the present invention, will be obtained by reference to the following detailed description and drawings. Brief Description of the Drawings

FIG. 1 is a block diagram of a network environment for processing conditional purchase offers in accordance with the present invention;

FIG. 2 is a schematic block diagram of an exemplary CPO management system of FIG. 1 ;

FIG. 3 illustrates a sample table from the customer database of FIG.

2:

FIG. 4 illustrates a sample table from the CPO database of FIG. 2; FIG. 5 illustrates a sample table from the floor price database of FIG.

FIG. 6 illustrates a sample table from the subsidizing party database of FIG. 2;

FIG. 7 illustrates a sample table from the rules database of FIG. 2;

FIG. 8 illustrates a sample table from the cross-merchant subsidy database of FIG. 2; FIG. 9 is a flowchart describing an exemplary CPO management process implemented by the CPO management system of FIG. 2; and

FIG. 10 is a flowchart describing an exemplary subsidy evaluation process implemented by the CPO management system of FIG. 2.

Detailed Description

FIG. 1 shows a network environment 100 where a conditional purchase offer (CPO) management system 200 receives and processes CPOs for one or more goods or services, from one or more customers, such as customers 1 10- 1 through 1 10-N, hereinafter, collectively referred to as customers 1 10. The CPO management system 200 determines whether one or more sellers, such as sellers

120-1 through 120-N, are willing to accept a given CPO. The sellers 120-1 through

120-N are hereinafter collectively referred to as sellers 120. As discussed further below, if a seller accepts a given CPO, the CPO management system 200 is operated to bind the customer on behalf of the accepting seller, to form a binding contract.

The present invention encourages customers 1 10 to accept a subsidy offer from a subsidizing party, such as the subsidizing parties 130-1 through 130-N, to subsidize the CPO transaction, increasing the original offer price of the CPO or decreasing the selling price of the seller, thereby rendering the CPO more likely to be accepted. The subsidizing parties 130-1 through 130-N are hereinafter collectively referred to as subsidizing parties 130. In the illustrative implementation, a subsidy offer is used to increase the original offer price of the CPO. As discussed below, the amount of a given subsidy can vary depending, for example, on the relationship between the original offer price and an estimated selling price floor, or on the likelihood that a CPO will be accepted. The estimated selling price floor, as well as the likelihood of acceptance, can be obtained, for example, by analyzing historical, forecasted or actual purchase data. A subsidy offer can be presented to a customer 1 10 for acceptance or rejection before, contemporaneous with, or after the submission of a CPO. Subsidy offers can be provided to all customers, or selectively offered to certain customers based on, for example, eligibility requirements or customer profile requirements. In an implementation where the customer 110 reviews and accepts a subsidy offer before submitting a CPO. the customer I 10 can consider the value of the subsidy offer in selecting an appropriate offer price for the CPO. It is noted that a subsidy offer can be provided to a customer 1 10 after the completion of the original CPO transaction. For example, if a CPO is rejected, the customer can thereafter receive an email (or another notification) indicating that the originally rejected CPO will be accepted if the customer accepts a subsidy offer and complies with at least one associated condition.

In some implementations, the CPO management system 200 retains any excess amounts paid by the customer (or on the customer's behalf by a subsidizing party) over and above the minimum price at which a seller is willing to sell a given product. Such excess amounts may be retained by the CPO management system 200 as profit, utilized to subsidize the CPOs of other customers, or used for other business purposes of the CPO management system 200. Thus, if a customer agrees to accept a subsidy offer and thereby increase the original offer price of a

CPO by the corresponding subsidy amount, and the modified CPO is nonetheless not accepted by a seller 120, the CPO management system 200 retains the total subsidy amount (which is no longer applied to the CPO for the sought product). In this way, the present invention creates a new revenue stream for the CPO management system 200 or sellers 120 or both, from unacceptable offers that previously did not lead to any revenue. In addition, for those instances where a subsidy amount increases the original offer price associated with an accepted CPO above the minimum price at which a seller is willing to sell a given product, the CPO management system 200 retains the excess amount.

In a commission-based implementation, where the seller retains the offer price, less a commission payable to the CPO management system 200, the seller 120 benefits from accepting a CPO with a higher offer price. Likewise, in a commission-based implementation, the CPO management system 200 benefits from the higher CPO acceptance rate and higher commissions from the sales, which in turn attracts more sellers to participate. In any case, the customer benefits from the subsidy of the offer price, and the new relationship with the subsidizing party. The subsidizing party benefits from the new relationship with the customer, and the potential goodwill associated with the subsidy.

CPO AND SUBSIDY TERMINOLOGY

As used herein, the following terms are defined to mean: Agency-Based Seller - A seller who has delegated authority to the

CPO management system operator to accept or reject a given CPO using seller- defined CPO Rules.

Broadcast-Based Seller - A seller who has received a CPO from the CPO management system (directly or by, for example, access to an electronic posting) for evaluation.

Customer - The entity, such as a buyer, consumer or purchaser, that indicates a willingness to buy at least one product from a Seller.

Product - Goods and/or services that are the subject of a Conditional

Purchase Offer transaction.

Conditional Purchase Offer (CPO) - An offer containing one or more conditions submitted by a customer for the purchase of a Product at a customer- defined price. Binding Conditional Purchase Offer (Binding CPO) - A CPO containing one or more conditions submitted by a customer for the purchase of goods and/or services at a customer-defined price, including a payment guarantee, for example with a General Purpose Account, and authorization to debit the Account upon acceptance of the CPO.

Conditional Purchase Offer (CPO) Rule - A restriction defined by an Agency-Based Seller under which the operator of the CPO management system may act as an agent to determine whether to fill a CPO for that Agency-Based Seller.

CPO Management System - One or more controllers that receive and process CPOs for one or more goods or services, from one or more customers, to determine if one or more sellers (Agency-Based or Broadcast-Base Sellers) are willing to accept a CPO.

General Purpose Account - Any account or payment identifier from which payment can be made, including a credit or debit account, or electronic cash (ecash). Selling Price Floor - The minimum price at which a seller is willing to sell a given product.

Estimated Selling Price Floor - The estimated minimum selling price for a product, obtained by analyzing historical, forecasted or actual purchase data. Subsidizing Party - The entity that makes a Subsidy Offer to the

Customer to subsidize a CPO transaction. A Subsidizing Party can be either an Agency-Based Subsidizing Party or a Broadcast-Based Subsidizing Party, in a similar manner to Agency-Based Sellers and Broadcast-Based Sellers.

Subsidy Offer - An offer from a Subsidizing Party to a Customer to subsidize a CPO transaction, for example, by increasing the price associated with a

CPO, or decreasing the seller's price floor, subject to at least one condition.

Subsidy Budget - The amount of money available from a given

Subsidizing Party to subsidize the CPO of a Customer.

SUBSIDIZING PARTIES

A subsidizing party is any entity that makes a subsidy offer to a customer 110 to subsidize a CPO transaction. For example, long distance carriers, Internet Service Providers (ISPs), credit card issuers, banking services, insurance services, securities trading services, satellite or cable television services, and utility companies, may offer to subsidize CPO transactions to attract potential new customers. The present invention provides an effective mechanism for a subsidizing party to use cash incentives as the basis for a subsidy offer. In addition to the services mentioned above, the subsidizing party may be a provider of a one-time service, such as landscaping, automobile servicing, or home repair. Likewise, sellers of complimentary products may be motivated to subsidize a given CPO, subject to the customer's agreement to obtain the complimentary product. For example, a car rental service may offer to subsidize a customer's CPO for an airline ticket if the customer agrees to rent a car from the car rental service. The present invention provides a system that permits a subsidizing party to subsidize a purchase offer 0 transaction of a potential new customer, generally subject to at least one condition, such as the customer's agreement to switch service providers, to complete a credit application or purchase a complimentary product. Thus, while a customer 1 10 transacts with a seller 120 in the primary CPO transaction, the customer 1 10 5 transacts with the subsidizing party in a secondary, subsidy transaction that may be transacted before, during or after the primary CPO transaction. It is noted that the CPO management system 200 itself may serve as a subsidizing party, for example, to increase the CPO acceptance rate and thereby encourage additional customers _Q and sellers to utilize the CPO management system 200.

DETERMINING THE SUBSIDY AMOUNT

As previously indicated, in a "CPO evaluation" embodiment, the amount of a given subsidy associated with a given subsidy offer can be predefined _<7 or can be dynamically determined, for example, based on the relationship between an original offer price and an estimated selling price floor, or based on the likelihood that a CPO will be accepted. The estimated selling price floor, and the likelihood of acceptance, can be obtained, for example, by analyzing historical, forecasted or actual purchase data. 0

In a "CPO evaluation" embodiment of the present invention, a received CPO is evaluated and the amount of a subsidy can vary in accordance with the relationship between an original offer price and an estimated selling price floor.

The relationship between the original offer price and the estimated selling price 5 floor can be categorized into one of three categories. A separate method can be provided for a determining a subsidy amount corresponding to each category, as discussed further below in conjunction with FIG. 7. If an original offer price is greater than or equal to the estimated selling price floor, the CPO is said to be "acceptable." If an original offer price is less than the estimated selling price floor, but the difference is less than or equal to a total available subsidy budget from one or more subsidy offers, the CPO is said to be "acceptable as subsidized." Finally, if an original offer price is less than the estimated selling price floor, and the difference is greater than the total available subsidy budget from one or more subsidy offers, the CPO is not likely to be accepted, even if subsidized, and is thus referred to as "unacceptable."

In one variation, the CPO management system 200 may further increase the subsidy amount specified by a subsidizing party, in order to further encourage the customer to accept the subsidy offer, especially in an implementation where the CPO management system 200 retains any excess amounts paid over and above the minimum price at which a seller is willing to sell a given product. For example, for those CPOs where the relationship between the original offer price and the estimated selling price floor indicates that the CPO is "acceptable," it is unlikely that any portion of the subsidy would have to be applied to make the CPO acceptable. Thus, if the CPO management system 200 retains any excess amounts, the CPO management system 200 can increase the subsidy amount offered to the customer 110 without financial exposure.

For example, if a CPO is submitted for an airline flight from New

York to Cleveland with an offer price of $220.00, the CPO management system 200 might determine that the estimated selling price floor for such a flight is $ 180.00.

The CPO management system 200 determines that the difference between the offer price and the estimated selling price floor is (+) $40.00. Thus, the CPO is likely to be accepted and a subsidy will most likely not be necessary. Nonetheless, the CPO management system 200 can offer an attractive subsidy offer, perhaps greater than the subsidy budget, with little risk of actually having to use the subsidy to bind the

CPO. The CPO management system 200 transmits a subsidy offer to the customer

1 10 for a subsidy amount of $80, provided that the customer 110 signs up with a specified long-distance service provider for at least a month. According to an agreement reached between the long-distance service provider and the CPO management system 200, the long-distance service provider agrees to pay the CPO management system 200 $50 for each customer acquired through the CPO management system. Therefore, $50 of the subsidy amount offered to the customer 110 is provided by the long-distance service provider, while the remaining $30 of the subsidy amount ($50 + $30 = $80) constitutes an "inflated" amount provided by the CPO management system 200. The customer 1 10 accepts the subsidy offer. Thereafter, the customer 110 is notified that the CPO has been accepted. The CPO management system 200 may now retain a profit of $90.00, i.e., the $40.00 profit from the original CPO offer price, plus the $50.00 subsidy paid by the long-distance service provider.

In addition, for those CPOs where the relationship between the original offer price and the estimated selling price floor indicates that the CPO is "acceptable as subsidized," it is unlikely that any amount above the subsidy amount paid by the subsidizing party would have to be applied to make the CPO acceptable.

Again, if the CPO management system 200 retains any excess amounts, the CPO management system 200 can further encourage acceptance of the subsidy offer by increasing the subsidy amount offered to the customer 1 10 without financial exposure. If the difference is equal to the subsidy amount, the CPO management system 200 does not gain a profit, but may increase the CPO acceptance rate.

For example, if a CPO is submitted for an airline flight from New York to Cleveland with an offer price of $150.00, the CPO management system 200 again determines that the estimated selling price floor for such a flight is $180.00. The CPO management system 200 determines that the difference between the offer price and the estimated selling price floor is (-) $30.00. If a credit card provider has agreed to pay the CPO management system 200 $50.00 in customer acquisition fees for every credit card application submitted by a customer 1 10, the difference between the offer price and the estimated selling price floor is less than or equal to the available subsidy budget from one or more subsidy offers, and the CPO is said to be "acceptable as subsidized." Thus, the CPO management system 200 can provide the subsidy offer to the customers 1 10, and if the subsidy offer is accepted, the modified offer price now exceeds the estimated selling price floor, and the CPO management system 200 can generally retain the excess amount of $20.00. In fact, since the price floor may not be disclosed to the customer 100, and the CPO management system 200 need only pay out the difference between the CPO and the corresponding price floor to the seller 120 (of the originally requested product), the CPO management system 200 may offer a subsidy in excess of the difference in an attempt to further encourage the customer to accept the subsidy offer. For example, if it is available, a subsidy offer having a subsidy amount of $80.00 can be offered to the customer 110 in exchange for applying for a credit card. In either case, the modified CPO is provided to the sellers 120, and once accepted, the customer 110 is notified of the acceptance.

Finally, for those CPOs where the relationship between the original offer price and the estimated selling price floor indicates that the CPO is "unacceptable." it is possible that an offer amount provided by the CPO management system 200 to encourage acceptance of the subsidy offer, in addition to the original offer price and the original subsidy amount, can render the CPO acceptable. Thus, there is a risk that the CPO management system 200 will be required to pay at least a portion of the offer amount to the accepting seller 120, if the modified offer price (original offer price plus subsidy amount from subsidizing party plus amount from CPO management system 200) is accepted by a seller 120.

Again, the CPO management system 200 may be motivated to contribute to the offer price in this manner, for example, to increase the CPO acceptance rate. If, however, the CPO management system 200 wishes to derive some revenue from such "unacceptable" CPOs without such financial exposure, the subsidy amount can be increased or "inflated" in order to increase the likelihood that the customer accepts the subsidy offer (and thus provide a source of revenue to the CPO management system 200 if the CPO is ultimately rejected and the subsidy amount is retained), without increasing the original offer price enough to make the modified CPO acceptable.

For example, if a CPO is submitted for an airline flight from New

York to Cleveland with an offer price of $30.00, the CPO management system 200 again determines that the estimated selling price floor for such a flight is $180.00.

The CPO management system 200 determines that the difference between the offer price and the estimated selling price floor is (-) $150.00. Assuming the maximum available subsidy amount is $50.00, the CPO management system 200 determines that the difference between the offer price and the estimated selling price floor is greater than an available subsidy budget, and the CPO is said to be "unacceptable." Specifically, the difference between the given CPO and the estimated selling price floor is more than four times as great as the offer price of the submitted CPO. If a credit card provider has agreed to pay the CPO management system 200 $50.00 in customer acquisition fees for each credit card application submitted by a new customer 110, the CPO management system 200 can offer the customer a subsidy with a subsidy amount greater than or equal to the $50.00 subsidy budget, provided that the customer 1 10 applies for a specified credit card, in order to gain the revenue associated with the subsidy amount from such an unreasonable offer. If the customer accepts the subsidy offer, and the CPO nonetheless is not accepted, the customer is informed that the CPO has been rejected, and the subsidy amount ($50.00) is generally retained by the CPO management system 200, thereby recovering some revenue from otherwise unacceptable offers.

It is noted that the subsidy amount actually offered to the customers 1 10 may be less than the acquisition budget specified by the subsidizing party 130 for each new account, to reflect a commission retained by the CPO management system 200.

SUBSIDY OFFER

As previously indicated, a subsidizing party typically provides the subsidy subject to at least one condition applicable between the subsidizing party and the customer. For example, the condition(s) associated with the subsidy offer may require the customer to purchase an additional product from the subsidizing party, separate from the original CPO transaction. It is noted, however, that the subsidizing party may provide the subsidy unconditionally, with or without the customer's knowledge or approval, merely to obtain access to the valuable information inherent in the CPO. For example, a hotel operator may subsidize all CPOs for airline tickets associated with travel to the city in which the hotel is located, in exchange for the ability to provide targeted marketing materials to such travelers.

The condition(s) associated with the subsidy offer may require the customer to utilize an ongoing or one-time service provided by the subsidizing party, such as a long distance carrier, an Internet Service Provider (ISP), a credit card issuer, a utility company or another service provider. For example, a service provider may subsidize a customer's CPO for an amount up to the subsidizing party's budgeted acquisition cost for new accounts, provided that the customer is not currently utilizing the provider's service, and the customer switches to such service.

The CPO management system 200 forwards the subsidy offer to the customer 1 10, together with any associated condition(s), and obtains the customer's response to the offer. If the customer agrees to the associated condition(s), the CPO management system 200 modifies the offer price of the original CPO and provides the modified CPO to the appropriate sellers 120. The subsidy offer may be initiated by (i) the subsidizing party 130, such as a service provider seeking new accounts or a seller of a complementary product, (ii) a seller 120 of the originally requested product, (iii) the CPO management system 200, or (iv) a customer 1 10. If the customer rejects the subsidy offer, the CPO management system 200 processes the CPO as originally submitted. See, for example, the parent and grandparent applications to the present invention for a discussion of the processing of unsubsidized CPOs.

If a customer accepts a subsidy offer, the corresponding obligations of the customer may be enforced by the subsidizing party or the CPO management system 200, for example, by charging a penalty amount to a general purpose account specified by the customer 1 10 who submit the CPO.

CPO MANAGEMENT SYSTEM

The CPO management system 200 may provide a given CPO to selected sellers 120 or subsidizing parties 130 based on predefined screening criteria, so that sellers and subsidizing parties only obtain CPOs that they may be interested in or are authorized to screen. Alternatively, the CPO management system 200 may provide all CPOs to all sellers and subsidizing parties for screening.

As discussed further below, each customer 1 10 contacts the CPO management system 200, for example, by means of telephone, facsimile, online access (i.e. the Internet), electronic mail, in-person contact or through an agent, and provides the CPO management system 200 with the terms of the customer's CPO. It is noted that each customer 110, seller 120 and subsidizing party 130 may employ a general-purpose computer for communicating with the CPO management system 200. The general-purpose computer may be comprised of a processing unit, a modem, memory means and any software required to communicate with the CPO management system 200.

The CPO management system 200. as well as any general-purpose computers utilized by customers 110, sellers 120 or subsidizing parties 130 (collectively, the "nodes") transmit digitally encoded data and other information between one another. The communication links between the nodes can comprise, for example, a cable, fiber or wireless link on which electronic signals can propagate.

AGENCY AND BROADCAST-BASED SELLERS

According to one feature of the present invention, the CPO management system 200 provides an optional agency feature that permits the CPO management system 200 to accept or reject a given CPO on behalf of certain agency-based sellers 120 who have delegated such authority to the CPO management system 200. Thus, the CPO management system 200 (i) evaluates CPOs on behalf of certain agency-based sellers 120 who have delegated authority to the CPO management system 200 to accept or reject a given CPO, and (ii) permits broadcast-based sellers 120 to evaluate CPOs independently. Thus, the CPO management system 200 can optionally provide one or more CPOs to each broadcast-based seller 120 for the seller 120 to independently determine whether or not to accept a given CPO. It is noted that the CPO management system 200 can provide a CPO to each appropriate broadcast-based seller 120, for example, by means of a broadcast transmission, or by means of posting the CPO, for example, on an electronic bulletin board or secure Web site accessible by each broadcast-based seller 120. Alternatively, the CPO management system 200 can evaluate one or more CPOs against a number of CPO rules defined by one or more agency-based sellers 120, to decide on behalf of an agency-based seller 120 whether to accept or reject a given CPO. Thus, the CPO management system 200 can determine if one or more sellers accepts a given CPO by providing the CPO to each seller and receiving an acceptance or rejection, or by applying the CPO rules to the CPO to render a decision to either accept, reject or counter a CPO on behalf of a particular seller. In a similar manner, the optional agency feature can permit the CPO management system 200 to initiate a given subsidy offer on behalf of certain agency-based subsidizing parties 130 who have delegated such authority to the CPO management system 200. Thus, the CPO management system 200 (i) initiates subsidy offers on behalf of certain agency-based subsidizing parties 130 who have delegated authority to the CPO management system 200 to initiate subsidy offers, and (ii) permits broadcast-based subsidizing parties 130 to initiate subsidy offers independently.

As discussed further below, a CPO rule is a set of restrictions defined by a given agency-based seller 120 under which the seller 120 is willing to accept a CPO. For a more detailed discussion of CPO rules, the manner in which they are generated, and related security issues, see U.S. Patent Application Serial No. 08/889,319, entitled Conditional Purchase Offer Management System, filed July 8, 1997, referenced herein above. For a discussion of a subsidy rules-based implementation for an agency-based subsidizing party 130, see U.S. Patent Application Serial No. 08/943,483, filed October 3, 1997, referenced herein above.

A CPO can optionally contain one or more customer-defined variables or flexible conditions, typically specified using a range. For example, the variable condition may be a date range within which the product may be delivered by the seller. Other variable conditions might include a price range, a performance range or a quality range. The seller may then choose a product to fill the customer's flexible condition within the specified range. Such a variable condition may provide substantial assistance to the seller in filling the customer's CPO. For example, with respect to an airline ticket, the seller may be able to be meet a customer's specified price if the CPO permits the seller to select a flight within a range of times or days.

FIG. 2 is a block diagram showing the architecture of an illustrative CPO management system 200. The CPO management system 200 includes certain hardware components, such as a central processing unit (CPU) 205, a random access memory (RAM) 210, a read only memory (ROM) 220, a clock 225, a data storage device 230, and a communications port 280. The CPU 205 can be linked to each of the other listed elements, either by means of a shared data bus. or dedicated connections, as shown in FIG. 2. The communications port 280 connects the CPO management system 200 to each customer 1 10 and seller 120 and optionally to remote transaction processing servers (not shown). The communications port 280 can include multiple communication channels for simultaneously establishing a plurality of connections.

The ROM 220 and/or data storage device 230 are operable to store one or more instructions, discussed further below in conjunction with FIGS. 9 and 10, which the CPU 205 is operable to retrieve, interpret and execute in accordance with the present invention. For example, the ROM 220 and/or data storage device 230 can store processes to accomplish the transfer of required payments, charges and debits, between the sellers 120 and customers 110. The processing of such accounting transactions can be secured in a conventional manner, for example, using well-known cryptographic techniques.

As discussed further below in conjunction with FIGS. 3 through 8, respectively, the data storage device 230 includes a customer database 300, a CPO database 400, a price floor database 500, a subsidizing party database 600, a rules database 700 and a cross-merchant subsidy database 800. The customer database 300 stores information on each customer transacting business through the CPO management system 200, including identification information and billing information, such as a credit card number or another general-purpose account identifier. The CPO database 400 contains a record of each CPO processed by the CPO management system 200, including the customer-specified conditions associated with the CPO and the associated status. The floor price database 500 maintains a corresponding estimated selling price floor for each product sold by the CPO management system 200. The subsidizing party database 600 stores information on each subsidizing party making subsidy offers through the CPO management system 200, including identification information, such as the name of the subsidizing party, and the corresponding subsidy amount offered by each subsidizing party. The rules database 700 contains a method for determining the subsidy amount that is optionally utilized for each of the three possible categories of relationships between the original offer price and the estimated selling price floor. The cross-merchant subsidy database 800 contains a record of each subsidy offer processed by the CPO management system 200, including an identification of the corresponding customer 110, subsidizing party 130, subsidy amount and status.

In addition, the data storage device 230 includes a CPO management process 900 and a subsidy amount evaluation process 1000, discussed further below in conjunction with FIGS. 9 and 10, respectively. Generally, the CPO management process 900 (i) receives each CPO from a customer 110, (ii) initiates the subsidy amount evaluation process 1000 to determine a subsidy amount, and (iii) processes each CPO modified in accordance with any accepted subsidy offers.

DATABASES FIG. 3 illustrates an exemplary customer database 300 that stores information on each customer of the CPO management system 200. including biographical information and billing information, such as a credit card number. The customer database 300 maintains a plurality of records, such as records 305-315, each associated with a different customer. For each customer identifier in field 320, the customer database 300 includes the corresponding name, address, telephone number, electronic mail (e-mail) address, and credit card account number (or another payment identifier) in fields 330 through 370, respectively. The customer identifier stored in field 320 may be utilized, for example, to index the CPO database 400 or the cross-merchant subsidy database 800, each discussed below, or a historical database (not shown) of previous purchases and CPOs; associated with the customer.

FIG. 4 illustrates an exemplary CPO database 400 that contains a record of each CPO processed by the CPO management system 200, including the customer-specified conditions associated with the CPO and the associated status. The CPO database 400 maintains a plurality of records, such as records 405-415, each associated with a different CPO. For each CPO identified by a transaction identifier in field 420, the CPO database 400 includes an identifier of the customer associated with each CPO in field 430, as well as the customer-specified conditions of the CPO and the offer amount in fields 440 and 450, respectively. In addition, the CPO database 400 records the date the CPO was received and the current status of the CPO in fields 460 and 470, respectively. FIG. 5 illustrates an exemplary price floor database 500 that maintains a corresponding estimated selling price floor for each product sold by the CPO management system 200. The floor price database 500 maintains a plurality of records, such as records 505 through 515, each associated with a different product sold through the CPO management system 200. For each product (set of conditions) identified in field 530, the floor price database 500 indicates the corresponding estimated selling price floor in field 540. As previously indicated, the floor price may be obtained from historical, forecasted, or actual sales information, corresponding to past, future and current sales, respectively. FIG. 6 illustrates an exemplary subsidizing party database 600 that stores information on each subsidizing party making subsidy offers through the CPO management system 200, including identification information, such as the name of the subsidizing party, and the corresponding subsidy amount offered by each subsidizing party. The subsidizing party database 600 maintains a plurality of records, such as records 605 through 615, each associated with a different subsidizing party. For each subsidizing party identified with by an identifier in field 630, the subsidizing party database 600 indicates the name of the subsidizing party in field 640. In addition, for each subsidizing party, the subsidizing party database 600 records the subsidy amount that the subsidizing party will pay for each accepted subsidy offer in the subsidy- per-acquisition field 650, the maximum total subsidy amount that the subsidizing party will pay for all accepted subsidy offers in field 660 and the total number of accepted subsidy offers to date in field 670. Thus, the amount recorded in field 650 conesponds to the amount that a subsidizing party is willing to pay on behalf of a single accepting customer to subsidize a single CPO transaction, while the amount recorded in field 660 corresponds to the total maximum amount that the subsidizing party is willing to pay for all customers in furtherance of the subsidizing party's subsidy program. Thus, the CPO management system 200 ensures that the per acquisition amount recorded in field 650, multiplied by the number of accepted subsidy offers in field 670 is less than or equal to the maximum amount specified in field 660, by not offering additional subsidy offers if the maximum total subsidy amount set forth in field 650 is exceeded.

As previously indicated, subsidy amounts can vary based on the relationship between an original offer price and an estimated selling price floor. In the illustrative embodiment, discussed above, the relationship between the original offer price and the estimated selling price floor can be categorized into one of three categories. FIG. 7 illustrates an optional and exemplary rules database 700 that contains a method for determining the subsidy amount that can be utilized for each of the three possible categories of relationships between the original offer price and the estimated selling price floor, as discussed above. The rules database 700 maintains a plurality of records, such as records 705 through 715, each associated with a different possible relationship category between the original offer price and the estimated selling price floor. For each category identified in field 730, the rules database 700 sets forth the corresponding relationship conditions for categorizing a given CPO in field 740 and indicates a method for determining the conesponding subsidy amount in field 750. In the illustrative embodiment, the method for determining the corresponding subsidy amount is represented as a scale factor of the estimated selling price floor, or a portion thereof. As discussed below in conjunction with FIG. 10, the subsidy amount evaluation process 1000 retrieves the appropriate method for determining a subsidy amount from the appropriate record of field 750 of the rules database 700, based on the identified relationship category, to calculate a subsidy amount. FIG. 8 illustrates an exemplary cross-merchant subsidy database 800 that contains a record of each subsidy offer processed by the CPO management system 200, including an identification of the corresponding customer I 10, subsidizing party 130, subsidy amount and status. The cross-merchant subsidy database 800 maintains a plurality of records, such as records 805 through 815, each associated with a different subsidy offer. For each subsidy offer identified by a corresponding customer identifier in field 830, the cross-merchant subsidy database

800 identifies the subsidizing party in field 840 and provides a transaction identifier in field 850 and a CPO offer price/price floor relationship category in field 860. In addition, for each subsidy offer, the cross-merchant subsidy database 800 indicates the corresponding subsidy amount, pay-out amount and acceptance status of the subsidy offer in fields 870, 880 and 890, respectively. The subsidy amount set forth in field 870 includes any additional amounts added by the CPO management system

200 to encourage acceptance of the subsidy offer. The pay-out amount set forth in field 880 indicates the portion of the subsidy amount that the CPO management o system 200 must actually contribute to the purchase price to complete the transaction on its own behalf, or on behalf of the subsidizing parties. The difference between the subsidy amount paid by the subsidizing parties (i.e., the uninflated subsidy amount) and the pay-out amount can be retained by the CPO management 5 system 200.

PROCESSES

As discussed above, the CPO management system 200 executes a

CPO management process 900 to receive each CPO from a customer 110 and 0 determine an appropriate subsidy amount for any subsidy offers. In the illustrative implementation, the CPO management process 900 initiates the subsidy amount evaluation process 1000 to determine the subsidy amounts for any subsidy offers.

As shown in FIG. 9A and 9B, the CPO management process 900 initially receives a CPO during step 905 for certain described products, including an 5 identifier of a general purpose account, such as a credit or debit card account from which funds may be paid. It is noted that if the customer ultimately fails to purchase the requested product once a seller accepts the CPO, the customer may be charged a fee or a penalty. In this manner, the offer is guaranteed with a general-purpose 0 account, for example, using a line of credit on a credit card account. In addition, if the customer ultimately fails to satisfy the conditions of any accepted subsidy offers, the customer can also optionally be charged a fee or a penalty by the CPO management system 200. Thereafter the CPO management process 900 creates or ₅ updates a corresponding customer record in the customer database 300, during step

910. In addition, a record of the CPO is created in the CPO database 400 during step 915.

The CPO management process 900 executes the subsidy amount evaluation process 1000, discussed below in conjunction with FIG. 10, during step 0 920 to determine the subsidy amounts corresponding to any subsidy offers. The subsidy amount evaluation process 1000 will return any subsidy amounts to the CPO management process 900. Thereafter, any subsidy offers are communicated to the customer during step 925. 5 A response to the subsidy offer is received from the customer during step 930, and then a test is performed during step 940 to determine if the customer has accepted the subsidy offer. If it is determined during step 940 that the customer has accepted the subsidy offer, then the original offer price of the CPO is increased during step 945 by the corresponding subsidy amount. Alternatively, the estimate selling price floor can be lowered by the subsidy amount.

A record is created in the cross-merchant subsidy database 800 during step 950 indicating the terms of the subsidy offer, and the acceptance status. The CPO is thereafter processed during step 960, with any increases to the offer price attributable to accepted subsidy offers, but is otherwise processed as described in the parent and grandparent applications to the present invention. In other words, the CPO Management System provides the CPO, including the offer price, as modified by any subsidy amounts, to sellers, either directly or indirectly using seller-supplied rules, for individual sellers to either accept or reject. If a seller accepts a conditional purchase offer, the CPO Management System binds the buyer on behalf of the accepting seller, and forms a binding contract.

Once the CPO has been either accepted or rejected, the price at which the CPO is accepted is compared to the original offer price. If the original offer price exceeds the price of the accepted CPO, the difference, as well as any accepted subsidy amounts can be retained by the CPO management system 200. If the price of the accepted CPO exceeds the original offer price by an amount less than any accepted subsidy amounts, a portion of the subsidy amount, refened to as the pay-out amount, must be applied towards the transaction price of the accepted CPO. The pay-out amount is recorded in the appropriate record of the cross- merchant subsidy database 800 during step 970. Finally, if the price of the accepted CPO exceeds the original offer price by an amount greater than any accepted subsidy amounts, the CPO will be rejected, and the subsidy amount can be retained by the CPO management system 200. The CPO management process 900 completes processing during step 980.

As previously indicated, the CPO management process 900 initiates the subsidy amount evaluation process 1000 (FIG. 10) to determine a subsidy amount for any subsidy offers. As shown in FIG. 10, the subsidy amount evaluation process 1000 initially identifies the estimated selling price floor corresponding to the current CPO during step 1005. Thereafter. a test is performed during step 1010 to determine if the offer price of the CPO is greater than or equal to the estimated selling price floor. If it is determined during step 1010 that the offer price of the CPO is greater than or equal to the estimated selling price floor, then the CPO is refened to as an "acceptable" CPO and the method for determining a subsidy amount for such "acceptable" CPOs is retrieved during step 1015.

If, however, it is determined during step 1010 that the offer price of the CPO is not greater than or equal to the estimated selling price floor, then a further test is performed during step 1020 to determine if the estimated selling price floor less the offer price of the CPO is less than or equal to a subsidy budget, as retrieved from field 650 of the subsidizing party database 600. If it is determined during step 1020 that the estimated selling price floor less the offer price of the CPO is less than or equal to a subsidy budget, then the CPO is referred to as a "acceptable as subsidized" CPO and the method for determining a subsidy amount for such

"acceptable as subsidized" CPOs is retrieved during step 1025.

If, however, it is determined during step 1020 that the estimated selling price floor, less the offer price of the CPO, is not less than or equal to a subsidy budget, then the CPO is referred to as an "unacceptable" CPO, and the method for calculating a subsidy amount for such "unacceptable" CPOs is retrieved during step 1035.

Thereafter, based on the identified relationship category, the appropriate method for determining a subsidy amount is obtained from field 750 of rules database and used during step 1050 to calculate a subsidy amount. Program control of the subsidy amount evaluation process 1000 terminates during step 1060.

In a further variation of the present invention, referred to as the

"guaranteed subsidy embodiment," the CPO Management System 200 transmits a guaranteed subsidy offer to the customer 1 10. The guaranteed subsidy offer guarantees the acceptance of a CPO if the customer 110 accepts a subsidy offer.

Generally, guaranteed subsidy offers are extended to customers 110 only where the

CPO Management System 200 has determined that the original offer is "acceptable" or "acceptable as subsidized," as defined herein. Generally, the subsidy amount is not disclosed to the customer 1 10 in this guaranteed subsidy embodiment. Thus, since a customer 1 10 will generally not know the subsidy amount, there is little risk of disclosing the underlying price floor associated with the CPO.

Like all subsidy offers, the guaranteed subsidy offer can be presented to a customer 110 for acceptance or rejection before, contemporaneous with, or after the submission of a CPO. It is noted, however, that it may be desirable for the CPO Management System 200 to process the CPO before extending a guaranteed subsidy offer, to ensure that the CPO is "acceptable" or "acceptable as subsidized." In this manner, the CPO Management System 200 can ensure that the CPO is likely to be accepted before the guaranteed subsidy offer is extended to the customer 1 10.

It is to be understood that the embodiments and variations shown and described herein are merely illustrative of the principles of this invention and that various modifications may be implemented by those skilled in the art without departing from the scope and spirit of the invention.

Claims

We claim:

1. A method for processing a customer offer for a product, comprising the steps of: obtaining a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a payment identifier for specifying a manner in which funds may be paid; determining a subsidy amount for adjusting said price based on a comparison between said price and an estimated price floor; and offering said subsidy amount to said customer subject to at least one condition.

2. The method of claim 1, wherein said condition requires said customer to obtain an additional product from a subsidizing party in exchange for said subsidy amount.

3. The method of claim 1, wherein said condition requires said customer to accept an offer for a service provided by a subsidizing party.

4. The method of claim 1, wherein said condition requires said customer to have a minimum prior purchase history.

5. The method of claim 1 , wherein said subsidy amount is determined by evaluating at least one subsidy rule.

6. The method of claim 1 , wherein said subsidy amount is determined by evaluating at least a subsidy budget.

7. The method of claim 1, further comprising the step of providing said purchase offer to a plurality of potential sellers in which said price is increased by at least a portion of said subsidy amount.

8. The method of claim 1, wherein said subsidy amount is adjusted based on said price and the likelihood that said purchase offer will be accepted.

9. The method of claim 1, wherein said subsidy is obtained if said purchase offer is unacceptable.

10. The method of claim 1, wherein said estimated price floor is determined based on historical sales information.

11. The method of claim 1 , wherein said estimated price floor is determined based on actual sales prices.

12. The method of claim 1, wherein said estimated price floor is determined based on forecasted sales information.

13. The method of claim 1, further comprising the step of binding said customer to said condition if said customer accepts said subsidy offer and said at least one condition.

14. The method of claim 1, further comprising the step of evaluating an eligibility of said customer for said subsidy using at least one subsidy rule.

15. The method of claim 1, further comprising the step of evaluating an eligibility of said customer for said subsidy using a customer profile.

16. The method of claim 1, wherein said subsidy amount is increased to be greater than a subsidy budget amount to increase the likelihood that said customer accepts said subsidy offer.

17. The method of claim 1 , wherein said subsidy amount is selected to increase the likelihood that said customer accepts said subsidy offer.

18. The method of claim 1, wherein said purchase offer price is less than a difference between said estimated price floor and a subsidy budget amount provided by a subsidizing party, and said subsidy amount is any value less then the difference between said price floor and said offer price.

19. The method of claim 1, wherein said purchase offer price is greater than said estimated price floor, and said subsidy amount is greater than a subsidy budget amount provided by a subsidizing party.

20. The method of claim 1, wherein said purchase offer price is less than said estimated price floor, said purchase offer price is greater than a difference between said estimated price floor and a subsidy budget amount provided by a subsidizing party, and said subsidy amount is greater than a difference between said price floor and said offer price.

21. The method of claim 1 , wherein said subsidy offer is

10 provided to said customer before said customer submits said purchase offer.

22. The method of claim 1, wherein said subsidy offer is provided to said customer contemporaneous with said customer submitting said 5 purchase offer.

23. The method of claim 1. wherein said subsidy offer is provided to said customer after said customer submits said purchase offer.

24. A method for processing a customer offer for a product,

20 comprising the steps of: obtaining a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a payment identifier for specifying a manner in which funds may be paid;

25 determining a subsidy amount for adjusting said price based on the likelihood that said purchase offer will be accepted by at least one seller; and offering said subsidy amount to said customer subject to at least one condition.

25. The method of claim 24, wherein said condition requires said

30 customer to obtain a product from a subsidizing party in exchange for said subsidy amount.

26. The method of claim 24, further comprising the step of ,_ providing said purchase offer to a plurality of potential sellers in which said price is increased by at least a portion of said subsidy amount.

27. The method of claim 24, wherein said likelihood that said purchase offer will be accepted is obtained from historical sales information.

28. The method of claim 24, wherein said likelihood that said purchase offer will be accepted is obtained from actual sales prices.

29. The method of claim 24, wherein said likelihood that said purchase offer will be, accepted is obtained from forecasted sales information.

30. The method of claim 24, further comprising the step of binding said customer to said condition if said customer accepts said subsidy offer and said at least one condition.

31. The method of claim 24, wherein said subsidy amount is increased to a value greater than a subsidy budget amount to increase the likelihood that said customer accepts said subsidy offer.

32. The method of claim 24, wherein said purchase offer price is less than a difference between an estimated price floor and a subsidy budget amount provided by a subsidizing party, and said subsidy amount is any value less then the difference between said price floor and said offer price.

33. The method of claim 24, wherein said purchase offer price is greater than an estimated price floor, and said subsidy amount is greater than a subsidy budget amount provided by a subsidizing party.

34. The method of claim 24, wherein said purchase offer price is greater than a difference between an estimated price floor and a subsidy budget amount provided by a subsidizing party, and said subsidy amount is greater than a difference between said price floor and said offer price.

35. The method of claim 24, wherein said subsidy offer is provided to said customer before said customer submits said purchase offer.

36. The method of claim 24, wherein said subsidy offer is provided to said customer contemporaneous with said customer submitting said purchase offer.

37. The method of claim 24, wherein said subsidy offer is provided to said customer after said customer submits said purchase offer.

38. A method for processing a customer offer for a product, comprising the steps of: obtaining a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a payment identifier for specifying a manner in which funds may be paid; comparing said price to an estimated price floor; determining a subsidy amount for decreasing a difference between said price and said estimated price floor; providing a subsidy offer with said subsidy amount to said customer subject to at least one condition; receiving an acceptance of said subsidy offer from said customer; and processing said purchase offer with said price modified by at least a portion of said subsidy amount.

39. The method of claim 38, wherein said condition requires said customer to obtain a product from a subsidizing party in exchange for said subsidy amount.

40. The method of claim 38, wherein said subsidy amount is adjusted based on said price and the likelihood that said purchase offer will be accepted.

41. The method of claim 38, further comprising the step of evaluating an eligibility of said customer for said subsidy.

42. The method of claim 38, wherein said subsidy amount is increased to be greater than a subsidy budget amount to increase the likelihood that said customer accepts said subsidy offer.

43. The method of claim 38, wherein said purchase offer price is less than a difference between said estimated price floor and a subsidy budget amount provided by a subsidizing party, and said subsidy amount is any value less then the difference between said price floor and said offer price.

44. The method of claim 38, wherein said purchase offer price is greater than said estimated price floor, and said subsidy amount is greater than a subsidy budget amount provided by a subsidizing party.

45. The method of claim 38, wherein said purchase offer price is

10 greater than a difference between said estimated price floor and a subsidy budget amount provided by a subsidizing party, and said subsidy amount is greater than a difference between said price floor and said offer price.

_j

46. The method of claim 38, wherein said subsidy offer is provided to said customer before said customer submits said purchase offer.

47. The method of claim 38, wherein said subsidy offer is provided to said customer contemporaneous with said customer submitting said

20 purchase offer.

48. The method of claim 38, wherein said subsidy offer is provided to said customer after said customer submits said purchase offer.

2 49. A method for processing a customer offer for a product, comprising the steps of: obtaining a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a payment identifier for specifying a manner in which funds may be paid;

30 determining a subsidy amount for increasing said price; and offering said subsidy amount to said customer subject to at least one condition.

50. The method of claim 49, wherein said condition requires said

35 customer to obtain a product from a subsidizing party in exchange for said subsidy o amount.

51. The method of claim 49, wherein said subsidy amount is determined by evaluating at least one subsidy rule.

5 52. The method of claim 49, further comprising the step of providing said purchase offer to a plurality of potential sellers in which said price is increased by at least a portion of said subsidy amount.

53. The method of claim 49, wherein said subsidy amount is ^ adjusted based on said price and the likelihood that said purchase offer will be accepted.

54. The method of claim 49, further comprising the step of evaluating an eligibility of said customer for said subsidy.

15

55. The method of claim 49, wherein said subsidy amount is selected to increase the likelihood that said customer accepts said subsidy offer.

56. The method of claim 49, wherein said purchase offer price is 0 less than a difference between an estimated price floor and a subsidy budget amount provided by a subsidizing party, and said subsidy amount is any value less then the difference between said price floor and said offer price.

57. The method of claim 49, wherein said purchase offer price is

25 greater than an estimated price floor, and said subsidy amount is greater than a subsidy budget amount provided by a subsidizing party.

58. The method of claim 49, wherein said purchase offer price is greater than a difference between an estimated price floor and a subsidy budget

30 amount provided by a subsidizing party, and said subsidy amount is greater than a difference between said price floor and said offer price.

59. The method of claim 49, wherein said subsidy offer is 35 provided to said customer before said customer submits said purchase offer.

60. The method of claim 49. wherein said subsidy offer is provided to said customer contemporaneous with said customer submitting said purchase offer.

61. The method of claim 49, wherein said subsidy offer is provided to said customer after said customer submits said purchase offer.

62. A method for processing a customer offer for a product, comprising the steps of. obtaining a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a payment identifier for specifying a manner in which funds may be paid; and applying a subsidy amount to decrease a selling price of a seller of said product.

63. The method of claim 63, further comprising the step of processing said purchase offer to determine if said offer price is at least equal to said decreased selling price.

64. The method of claim 63, further comprising the step of requiring said customer to obtain a product from a subsidizing party in exchange for said subsidy amount.

65. The method of claim 63, further comprising the step of evaluating an eligibility of said customer for said subsidy.

66. The method of claim 63, wherein said purchase offer price is less than a difference between an estimated price floor and a subsidy budget amount provided by a subsidizing party, and said subsidy amount is any value less then the difference between said price floor and said offer price.

67. The method of claim 63, wherein said purchase offer price is greater than an estimated price floor, and said subsidy amount is greater than a subsidy budget amount provided by a subsidizing party.

68. The method of claim 63, wherein said purchase offer price is greater than a difference between an estimated price floor and a subsidy budget amount provided by a subsidizing party, and said subsidy amount is greater than a difference between said price floor and said offer price.

69. The method of claim 63, wherein said subsidy offer is provided to said customer before said customer submits said purchase offer.

70. The method of claim 63, wherein said subsidy offer is provided to said customer contemporaneous with said customer submitting said purchase offer.

71. The method of claim 63, wherein said subsidy offer is provided to said customer after said customer submits said purchase offer.

72. A method for processing a customer offer for a product, comprising the steps of: obtaining a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a payment identifier for specifying a manner in which funds may be paid; providing a subsidy offer to said customer with a corresponding subsidy amount for adjusting said price, said subsidy offer subject to at least one condition; and determining if said customer accepts said subsidy offer.

73. The method of claim 72, wherein said subsidy amount for a given subsidy offer is predefined.

74. The method of claim 72, wherein said subsidy amount is determined by evaluating at least one subsidy rule.

75. The method of claim 72, wherein said subsidy amount is determined by evaluating at least a subsidy budget.

76. The method of claim 72, wherein said subsidy amount is adjusted based on said price and the likelihood that said purchase offer will be accepted.

77. The method of claim 72, wherein said purchase offer price is less than a difference between an estimated price floor and a subsidy budget amount provided by a subsidizing party, and said subsidy amount is any value less then the difference between said price floor and said offer price.

78. The method of claim 72, wherein said purchase offer price is greater than an estimated price floor, and said subsidy amount is greater than a subsidy budget amount provided by a subsidizing party.

79. The method of claim 72, wherein said purchase offer price is greater than a difference between an estimated price floor and a subsidy budget amount provided by a subsidizing party, and said subsidy amount is greater than a difference between said price floor and said offer price.

80. A system for processing a customer offer for a product, comprising: a memory for storing computer-readable code; and a processor operatively coupled to said memory, said processor configured to: obtain a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a payment identifier for specifying a manner in which funds maybe paid; determine a subsidy amount for adjusting said price based on a comparison between said price and an estimated price floor; and offer said subsidy amount to said customer subject to at least one condition.

81. A system for processing a customer offer for a product, comprising: means for obtaining a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a o payment identifier for specifying a manner in which funds may be paid; means for determining a subsidy amount for adjusting said price based on a comparison between said price and an estimated price floor; and means for offering said subsidy amount to said customer 5 subject to at least one condition.

82. An article of manufacture for processing a customer offer for a product comprising: a computer readable medium having computer readable code 0 means embodied thereon, said computer readable program code means comprising: a step to obtain a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a payment identifier for specifying a manner in which funds may be paid; a step to determine a subsidy amount for adjusting said price based on a comparison between said price and an estimated price floor; and a step to offer said subsidy amount to said customer subject to at least one condition.

0 83. A system for processing a customer offer for a product, comprising: a memory for storing computer-readable code; and a processor operatively coupled to said memory, said processor configured to: 5 obtain a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a payment identifier for specifying a manner in which funds may be paid; determine a subsidy amount for increasing said price; and 0 offer said subsidy amount to said customer subject to at least one condition.

84. A system for processing a customer offer for a product, comprising: 5 means for obtaining a purchase offer for said product from a o customer, said purchase offer containing a description of said product, a price and a payment identifier for specifying a manner in which funds may be paid; means for determining a subsidy amount for increasing said price; and 5 means for offering said subsidy amount to said customer subject to at least one condition.

85. An article of manufacture for processing a customer offer for a product comprising: 0 a computer readable medium having computer readable code means embodied thereon, said computer readable program code means comprising: a step to obtain a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a payment identifier for specifying a manner in which funds may be paid; a step to determine a subsidy amount for increasing said price; and a step to offer said subsidy amount to said customer subject to at least one condition. 0

86. A system for processing a customer offer for a product, comprising: a memory for storing computer-readable code; and a processor operatively coupled to said memory, said 5 processor configured to: obtain a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a payment identifier for specifying a manner in which funds may be paid; and 0 apply a subsidy amount to decrease a selling price of a seller of said product.

87. A system for processing a customer offer for a product, comprising: 5 means for obtaining a purchase offer for said product from a o customer, said purchase offer containing a description of said product, a price and a payment identifier for specifying a manner in which funds may be paid; and means for applying a subsidy amount to decrease a selling price of a seller of said product.

5

88. An article of manufacture for processing a customer offer for a product comprising: a computer readable medium having computer readable code means embodied thereon, said computer readable program code means comprising: 0 a step to obtain a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a payment identifier for specifying a manner in which funds may be paid; and a step to apply a subsidy amount to decrease a selling price of a seller of said product.

89. A system for processing a customer offer for a product, comprising: a memory for storing computer-readable code; and 0 a processor operatively coupled to said memory, said processor configured to: obtain a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a payment identifier for specifying a manner in which funds may be paid; 5 provide a subsidy offer to said customer with a corresponding subsidy amount for adjusting said price, said subsidy offer subject to at least one condition; and determine if said customer accepts said subsidy offer. 0

90. A system for processing a customer offer for a product, comprising: means for obtaining a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a 5 payment identifier for specifying a manner in which funds may be paid; o means for providing a subsidy offer to said customer with a corresponding subsidy amount for adjusting said price, said subsidy offer subject to at least one condition; and means for determining if said customer accepts said subsidy 5 offer.

91. An article of manufacture for processing a customer offer for a product comprising: a computer readable medium having computer readable code 0 means embodied thereon, said computer readable program code means comprising: a step to obtain a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a payment identifier for specifying a manner in which funds may be paid; . a step to provide a subsidy offer to said customer with a corresponding subsidy amount for adjusting said price, said subsidy offer subject to at least one condition; and a step to determine if said customer accepts said subsidy offer. 0

92. A method for processing a customer offer for a product, comprising the steps of: obtaining a purchase offer for said product from a customer, said purchase offer containing a description of said product, a price and a payment 5 identifier for specifying a manner in which funds may be paid; determining a subsidy amount for adjusting said price to a price that is at least equal to an estimated price floor; and offering said subsidy amount to said customer subject to at 0 least one condition, wherein said offer guarantees the acceptance of said purchase offer.

93. The method of claim 92, wherein said estimated price floor is determined based on historical sales information. 5

94. The method of claim 92, wherein said estimated price floor is determined based on actual sales information.

95. The method of claim 92. wherein said estimated price floor is determined based on forecasted sales information.

96. The method of claim 1. further comprising the step of binding said customer to said condition if said customer accepts said subsidy offer and said at least one condition.

97. The method of claim 1. wherein said subsidy amount is increased to be greater than a subsidy budget amount to increase the likelihood that said customer accepts said subsidy offer.