Subclass 8	Subclass 9	Subclass 10
Staff scheduling or task assignment

System and method for promoting commerce, including sales agent assisted commerce, in a networked economy

6965868

Abstract

A personal communication and electronic commerce system for use by participating users and participating merchants in connection with incentive programs in the Network Economy. The system includes a cellular communication network that includes geographically spaced base stations that are linked to a fixed communication network. Users may have personal communication devices that can be used to allow a digital message generated on the personal communication devices by placing a call through one of the base stations and memory for storing a digital value corresponding to a monetary value. The personal communication device may also be used as a cellular position locator to determine one's geographic location and, if desired, to access information from a merchant information database containing information pertaining to a plurality of participating merchants located within the geographic territory covered by the cellular communication network. The merchant information may be stored on a database that is accessible by merchants so those merchants can add, delete or alter information contained in their respective listings. An incentive system is also provided for creating incentives for participating users to encourage. This computer implemented incentive program for encouraging certain participant actions includes a first reward program under which participants may earn points for certain actions and a second reward program through which the redemption rate associated with a particular participant is adjusted in response to certain participant action. The incentive program has a wide range of applications, including transportation, financial services and computer gaming.

Claims

1. A computer implemented process for facilitating electronic commerce by establishing communication connections between distributed agents and distributed customers comprising:

establishing a communication connection with a remote agent;

receiving, from the remote agent, log in information sufficient to associate a unique ID with the remote agent;

associating expertise data indicative of an expertise of the remote agent with the remote agent's unique ID;

updating a record of available remote agents to indicate that the remote agent is available;

establishing a communication connection with a remote customer;

providing the remote customer information, including the unique ID and expertise data, pertaining to remote agents that are logged in;

receiving, from the remote customer, data indicative of selection of a remote agent and establishing a communication link between the remote agent and the remote customer; and

retrieving product-related data from a database in response to data received from the remote agent and transmitting the product-related data to the remote customer.

2. The computer implemented process for facilitating electronic commerce by establishing communication connections between distributed remote agents and distributed customers of claim 1, further comprising a certification process for certifying remote agents as having expertise with regard to certain products, services, vendors or departments and storing a record of the certification in association with the unique ID of the remote agent.

3. The computer implemented process for facilitating electronic commerce by establishing communication connections between distributed remote agents and distributed customers of claim 1, wherein the process comprises receiving, from the remote customer, information concerning an area of interest and, in response, determining which remote agents, among a set comprising all remote agents that are logged in, have expertise in the area of interest and identifying a subset of remote agents having expertise in the area of interest and providing the remote customer the unique ID of remote agents having expertise in the area of interest.

4. The computer implemented process for facilitating electronic commerce by establishing communication connections between distributed remote agents and distributed customers of claim 3, comprising:

a certification process for certifying remote agents as having expertise with regard to certain products, services, vendors or departments;

determining which remote agents, among a set comprising all remote agents that are logged in, are certified and having expertise in the customer's area of interest; notifying remote customers of the ID of remote agents that are online and have expertise in the customer's area of interest;

providing the remote agent access to a set of additional information including at least one of video, graphic or other sensory images based upon the remote agent's certified expertise; and

allowing the remote agent to cause information from the set of additional information to be received by a remote customer.

5. The computer implemented process for facilitating electronic commerce by establishing communication connections between distributed remote agents and distributed customers of claim 1, further comprising a customer feedback process for receiving, from customers, feedback regarding a remote sales agent and storing a record of the customer feedback in association with the unique ID of the remote agent.

6. The computer implemented process for facilitating electronic commerce by establishing communication connections between distributed remote agents and distributed customers of claim 1, wherein the process comprises certifying remote agents as having expertise with regard to certain products, services, vendors or departments and storing a record of the certification in association with the unique ID of the remote agent.

7. The computer implemented process for facilitating electronic commerce by establishing communication connections between distributed remote agents and distributed customers of claim 1, wherein the process comprises retrieving data indicative of the remote customer's purchase of at least one item and, in response to receipt of such data, creating a record of purchase that is associated with the unique ID of the remote agent that assisted the remote customer with the purchase.

8. The computer implemented process for facilitating electronic commerce by establishing communication connections between distributed remote agents and distributed customers of claim 7, further comprising determining a monetary payment due to the remote agent and creating a data record of the monetary payment due to the remote agent and associating the data record with the unique ID of the remote agent.

9. The computer implemented process for facilitating electronic commerce by establishing communication connections between distributed remote agents and distributed customers of claim 1, further comprising establishing a direct peer-to-peer communication link between the remote agent and the remote customer.

10. The computer implemented process for facilitating electronic commerce by establishing communication connections between distributed remote agents and distributed customers of claim 1, wherein the remote customer and remote agent communicate with one another by telephone.

11. The computer implemented process for facilitating electronic commerce by establishing communication connections between distributed remote agents and distributed customers of claim 1, wherein the remote customer and remote agent communicate with one another through computers linked through the global information network.

12. The computer implemented process for facilitating electronic commerce by establishing communication connections between distributed remote agents and distributed customers of claim 2, comprising allowing a remote agent to personally select product information to be displayed on a remote customer's display wherein the remote agent's access to product information is determined based upon the remote agent's expertise.

13. The computer implemented process for facilitating electronic commerce by establishing communication connections between distributed remote agents and distributed customers of claim 12, further comprising allowing the remote agent to push instructions for recreating sensory images to the remote customer using push technology.

14. The computer implemented process for facilitating electronic commerce by establishing communication connections between distributed remote agents and distributed customers of claim 1, further comprising associating a ranking with the remote agent's unique ID wherein the ranking is based on at least one objective factor and displaying the rankings of available agents to remote customers.

15. A computer implemented system for facilitating electronic commerce by establishing a communication connection between a customer support agent and a remote customer comprising a computer system for:

storing customer support agent information regarding a set of customer support agents, the customer support agent information including information regarding previous customer feedback and areas of expertise of individual customer support agents within the set of customer support agents;

allowing customer support agents to log in to the system from remote locations;

maintaining a list of a subset of customer support agents that are logged in;

obtaining, from the remote customer, an area of interest;

determining which customer support agents, among the subset of customer agents that are logged in, have expertise in the customer's area of interest;

providing a list of available customer support agents to a remote customer;

providing the remote customer with information, including an unique ID, previous customer feedback and areas of expertise for the customer support agents;

receiving a request from the remote customer for establishing a communication connection between the remote customer and the customer support agent; and

establishing a communication connection between the remote customer and the customer support agent selected by the customer wherein the system provides the customer support agent access to additional information concerning the products, including at least one of video, graphic or other sensory images based upon the customer support agent's level of expertise.

16. The computer implemented system for facilitating electronic commerce by establishing a communication connection between a customer support agent and a remote customer of claim 15, wherein the computer system allows remote customer support agents to sign into the system through the global information network, the system includes a certification process that allows the remote customer support agents to be certified as having predetermined expertise and wherein the system notifies remote customers as to which remote agents are online and the certification of the remote customer support agents.

Description

FIELD OF INVENTION

The present invention relates to systems, tools and methods for promoting commerce in a networked economy, including, for example, conducting sales agent assisted commerce involving one or more distributed vendors over networked computers that provides both the advantages of customer/sales agent interaction and the convenience and efficiency of electronic commerce through the use of networked computers. The invention includes discrete components that have utility by themselves, but can be used in combination to provide even greater benefit as a comprehensive suite of solutions for promoting and improving electronic commerce of many forms, including retail and business to business commerce, casino gaming, utility aggregation and more. These components include an incentive program, a merchant finder and cellular position locator, a system and method for conducting sales agent assisted commerce involving one or more distributed vendors over networked computers, smart cards that are enabled for wireless connectivity and more. The present invention also relates to incentive and promotional programs, including a personal communication and electronic commerce system and smart cards for use by participating users and participating merchants in connection with incentive and promotional programs in the Network Economy. More specifically, the present invention relates to an incentive system and process that can be used alone or in conjunction with other incentive systems to more specifically incentivize desired participant action. The process is preferably implemented through the use of one or more programmable computers and personal communication devices such as digital cellular phones and data communication devices in a cellular network. The present invention also relates to virtual retailing, i.e., recreating, or simulating the positive components of the retail experience in a virtual transaction setting.

BACKGROUND OF THE INVENTION

The emergence of a fully networked economy now seems inevitable because of three recent trends: 1) software power is increasing and becoming less expensive largely due to the use of object oriented programming; 2) hardware power is increasing and becoming less expensive; and 3) communication and network power is increasing and becoming less expensive as a result of the Internet and related technologies.

The emergence of the global computer network or Internet has dramatically altered commerce. Entirely new paradigms for commerce have evolved or emerged from traditional non-electronic commerce business models. Indeed, electronic commerce, in particular, commerce through the Internet, is widely credited with introducing tremendous efficiencies into commercial transactions. The Internet has also dramatically altered the vendor/customer relationship. Prior to the advent of the Internet, customers faced geographic and informational obstacles in extracting the best prices and service. Research was time-consuming, and everyone from producer to retailer closely guarded information. Now, customers are in charge. A wealth of information on just about any product or service is available and geography is no longer an obstacle.

In addition, new dynamic pricing methods, from auction to buyer cooperatives and even barter sites are gaining much wider usage in the physical world. The ever-increasing number of websites where auctions are conducted has bid down prices to the bare minimum. An example is the so-called reverse auction process that favors buyers. Priceline.com.Inc., for example, lets buyers trade away convenience—exact departure times for flights—in return for lower prices than airlines would offer at retail. Companies such Accompany, Inc. and Mercata, Inc. aggregate groups of buyers so that the more people that agree to buy a product, the lower the price goes.

Given the efficiencies of electronic commerce, some have suggested that the Internet would eliminate the need for middlemen. Others have argued that, given the vast size and scope of the Internet, buyers still need middlemen to sort through the vast new choices of suppliers. Moreover, it is increasingly apparent that vendors or suppliers need to be where masses of buyers gather, which usually isn't an individual company's sites. As a consequence, there has emerged a form of middlemen on the Internet referred to as infomediaries, vertical portals or e-markets that serve to connect buyers and sellers everywhere. Because there is none of the friction of phones, faxes or in-person meetings, these Internet middlemen can gather vast numbers of buyers and sellers.

Despite the proliferation of business models and infomediaries throughout the Internet, however, almost all business models focus on price and, to a lesser extent, convenience. The race to optimization in these areas will inevitably result in numerous sources for goods at the lowest possible price with maximum convenience. What is lacking, however, is in ability to demonstrate a competitive advantage among these low-price high-convenience providers.

Thus, there remains a need for providing additional consumer value that is not driven entirely by pricing convenience. Indeed, the next great challenge of the new economy is transforming the lessons learned in the old economy into solutions for the new economy to expedite full development of e-commerce. It is often said that the new economy changes all the old rules for doing business. Indeed much has changed and much will change in the future. In the midst of this change, however, we often overlook the one component that changes only incrementally, not radically, we overlook the end customer: human beings. Long after the novelty of the network economy wears off, humans will be essentially the same as they are today—moved and motivated by the same desires, but armed with greater information and more choices. In this setting, customer service and satisfaction will be the keys to attracting, maintaining and growing customer relationships. Geographic proximity becomes irrelevant and price differentials evaporate customer service and brand awareness and perception will be the principle determinants of business success.

Thus, there is a need for a system and method that provides customer service and satisfaction in a network economy.

In the absence of face-to-face contact, and geographic proximity, the classic approaches to customer service and satisfaction are not directly applicable. Yet the customer wants essentially the same things: advice, information and efficient service and perhaps, above all, a sense of belonging—identification of certain groups, which can include merchants.

It is widely believed that an advantage of electronic commerce is that it eliminates the middleman and allows customers to deal directly with merchants. Proponents of this view fail to recognize that only a limited segment of the population is currently engaged in electronic commerce. As the network economy expands to encompass a wider swath of the economy, the dynamic will change. Also, electronic commerce is not yet mature—the absence of so-called "middlemen" in an immature economic structure should not be surprising.

Contrary to popular belief, the present inventor believes that "middlemen" can provide a valuable service in the network economy, particularly as this economy expands to encompass consumers that are not technically savvy.

To understand the role that "middlemen" can play in the network economy, it is useful to consider the value created or delivered by middlemen in today's industrial economy. Broadly stated, these advantages do not relate to bricks and mortar, but rather to intellectual capital and people skills—intangible characteristics. This is what separates premier retailers from pedestrian retailers. It is precisely this value added that will survive the "frictionless economy."

Considering then the characteristics of a premier retailer (or wholesaler), one must begin with a commitment to customer service. Commitment to customer service can manifest itself in various ways and is often difficult to pinpoint yet, any person that has experienced both environments knows that shopping at Nordstrom's is different from shopping at K-Mart. Premier retailers also provide value through knowledge of products sold and fashion trends. Premier retailers also simplify the purchased transaction and maximize customer comfort and convenience. These values are quite distinct from the brick and mortar of the retail store. Indeed, the success of premier chain store retailers i.e., Nordstrom, demonstrates that the value created by commitment to customer service is largely independent of the physical facility. Instead, success depends on intangible characteristics.

Premier retailers also display the merchandise in interactive ways—products are "merchandised" and attractively displayed. This may be the most important differentiator among retailers, the virtual analog is providing the customer a very attractive, easy to use site.

If success depends on intangible characteristics, then those intangible characteristics should have some analog or replication in the virtual economy customer. An object of the present invention is to provide systems and methods that replicate the positive aspects of traditional retail and wholesale commerce in a virtual environment by providing a suite of tools that can be used alone or in combination to promote electronic commerce.

The solution is a custom when fully implemented, the virtual retail or Vetail system provides value for all classes of participants. Customers get personal service, i.e., become an intensive interaction and customized information through instant message technology. Customers also get once step shopping, a pleasant shopping experience when merchandise is displayed in an attractive way; ease of use, ability to make a single payment for an entire transaction; single payment for a basket of goods which may come from a variety of different merchants; a single transaction, a 24-hour, 7-day a week virtual retail experience in the possibility of participant in incentive programs that was made easier through the e-commerce aspect of the present invention.

In addition, in a fully networked economy there are opportunities for new incentive and promotional programs that take advantage of increased software, hardware and communication power of the Network Economy.

Customer award programs have been known for years. Early examples include programs such as the S&H Green Stamp programs and the like. Similarly, there are various known employee incentive programs for promoting the sales of products and services. Known incentive programs are often cumulative, that is awards are earned through the accumulation of "points" (which are referred to by different names such as credits, miles, dollars, stamps, coupons, etc.). Rules are established to determine how many points are awarded for each participant action and how many points participants must accumulate to be entitled to certain rewards. A sales incentive program, for example, might award a certain number of points to participants for selling a designated dollar volume or quantity of products. When the participant accumulates a predetermined number of points during a certain time period, the participant is eligible for an award. The value of the award may also increase with increasing number of accumulated points. In known programs, the accumulated points may be used to purchase merchandise illustrated in a company catalogue, or to earn vacations. In some instances, the points are converted to a direct cash equivalent, which is distributed to the individual at predetermined time periods.

In the past 20 years, incentive programs have become more sophisticated and ubiquitous. Airline frequent flyer programs were among the first examples of computer-implemented customer incentives. Frequent flyer programs proved to be so successful building customer loyalty that it is practically impossible to operate an airline that does not have a frequent flyer program. With the aid of computers, incentive programs have been extended to credit card, debit card, smart card and point of sale incentive programs.

The increased availability of information technology, changes in regulations and recognition of opportunities available in incentive programs, have led many financial institutions to offer incentives to encourage participant activity that is deemed profitable by the financial institution, most commonly credit card use examples are known incentive programs include the American Airlines Co-Branded Visa Card and similar cards that are co-branded with an airline's logo. In such programs, the cardholder earns "frequent flyer points" through use of the card. In 1986, the Sears Financial Network introduced the Discover Card, which offered customers monetary rewards for using the credit card. Recently, similar incentive programs have been proposed for point of purchase transactions, debit card transactions and transactions over the Internet. Some known programs offer participants choices with regard to redemption of "points."

The American Express member reward program allows card users to accumulate points within a separate account. The points may be redeemed, for example, for a variety of awards and may be transferred into the frequent flyer programs of certain member airlines.

More recently card programs such as the GM card, the Ford card and the Driver's Edge card programs have been introduced. Under these programs, a co-branded card is imprinted with the sponsor's logo. The customer earns a rebate (e.g., 5%) for every qualified purchase of a wide variety of goods. Almost all goods are included, except for cash advances, transferred balances from other card accounts, credits, ATM withdrawals, fees, finance charges, and net purchases made after a maximum annual rebate has been earned. Promotional rebates, however, can be earned above and beyond the rebate cap. A customer may earn up to a predetermined amount, e.g., $1000 in rebates every year (every 12 consecutive months from the date the customer becomes a card member) and a maximum (e.g., $3,000 over a set period such as 3 consecutive years.) The customer can also earn an extra five percent promotional rebate when using the card at other sponsor companies (e.g., participating Hertz or Texaco locations, for example). Each rebate expires at the close of the calendar quarter 5 years after it is earned. The financial institution's system automatically keeps track of the rebates and a rebate summary appears on the customer's monthly billing statement. Customers may use rebates toward the purchase or lease of an eligible car.

Known cash rebate programs are different from pure "accumulation" programs. Sears issued the Discover card, co-branded with "Sears Financial Services" imprint on its face, in 1986. The card included an incentive program under which a user's account was credited with a 1% cash rebate on all purchases. If desired, the rebates were automatically credited to the card account. Other similar prior art incentive programs include the Execu-Charge Card, Citibank's CHOICE card and the J.C. Penny card and "Penny Points" program described in an American Banker article of Sep. 8, 1996. The Penny Points program involved the use of co-branded cards to earn "Penny Points," which could be redeemed for future discounts on J.C. Penny merchandise. For every five dollars in purchases spent using the card, the customer earned one Penny Point. When the customer accumulated 200 points, a 15% rebate certificate was issued and automatically included in the customer's statement. The certificate could be used for a 15% discount on merchandise at any J.C. Penny store. There are also a number of prior art patents directed to computer implemented incentive programs.

U.S. Pat. No. 5,025,372, for example, discloses a system and method for administration of an incentive award program through the use of credit cards. The specification describes an incentive program that would be used primarily in connection with typical trade incentive programs in which companies sought to stimulate sales or other business by means of incentive programs directed to employees or sellers of the company's products. Other portions of the specification suggest that the invention might be useful in other contexts that are now known, including an incentive award program for selling a certain quantity of a sponsor's product using computer processing, programming and printing for assignment and issuance of credit instruments to participants. In such programs, monetary amounts are awarded to participants for the purchase of a virtually unlimited variety of goods and services through the participants' credit instrument accounts depending on the participants achieving a certain level of performance.

The above-mentioned U.S. Pat. No. 5,025,372 focuses on the issuance of credit instruments to participants in the program. The incentive award program in uses computer processing, programming and printing for the assignment and issuance of such credit instruments including monetary amounts awarded to the participants for use in the participant's credit instrument account. Participants identifying information and credit instrument account numbers are stored in memory. The incentive program can then be divided into multiple time periods. The levels of performance are calculated and assigned for each participant for a monetary amount to be available for expenditure through the participant's credit instrument. The trade name or trademark of the company sponsoring the incentive program may also appear on the physical credit instrument and on statements provided to participants. Messages printed on the reports themselves or on other documents mailed to participants stimulate and encourage the participants to perform under the incentive program.

U.S. Pat. No. 4,750,119 describes a purchasing system with a rebate feature. The system is utilized by subscriber-purchasers, vendors providing goods and services, a future benefit guarantor such as an insurance company selling annuity contracts and in some cases an escrow agent. The purchasing system allows for the input of purchase orders from the subscriber-purchasers for selected goods and services and correlates the transfer of funds from those purchaser-subscribers to the various vendors selling the selected goods. In one instance, the transfer occurs between the subscriber-purchasers and the escrow agent. The future benefit guarantor supplies a rebate factor, which is input into the system. The system then computes and reports a rebate, which is due in the future to each subscriber-purchaser from the future benefit guarantor. The rebate is based upon cost of the individually selected goods and services and the rebate factor. The system provides instructions to pay the vendors for the selected goods and services and to pay the future rebate guarantor a premium representing the purchase price of the future guaranteed rebates. Preferably, the premium is paid on a daily basis to the guarantor and a group annuity contract is funded until the end of the fiscal year. At that time, the system further instructs the guarantor to issue individual future guaranteed rebate contracts to each purchaser-subscriber based upon the total rebates or total purchases over the accounting period.

U.S. Pat. No. 5,287,268 describes a centralized system of accumulating cash value for consumers based upon point-of-sale transactions with multiple merchants is disclosed wherein for each transaction, the consumer's account number (such as the Social Security number) which may be different from the consumer's credit card account number, for example, is transmitted to a central system along with data identifying the merchant and a credit value for the transaction. The credit value may be based upon predetermined incentives associated with the transaction such as coupons, rebates or discounts, and/or upon a credit rate determined by the merchant applied to the amount of the transaction. At the central location, a cash value for that consumer is incremented by the credit value and a bill value for that merchant is similarly incremented. Periodically, the merchants are billed for the accumulated bill value or credited for any third party incentive amounts confirmed at the central location. Also, at selected intervals, consumers are given access to their respective accumulated cash values by either a check in that amount or through a funds dispensing electronic terminal access or the like.

Under this program a consumer, upon making a purchase from a merchant will obtain a credit value equal to a portion of the amount of the purchase. The portion which is to be credited is determined at the time of sale based on a rate which may be selected by that merchant irrespective of the rate selected by other merchants and independent of a central authority. Alternatively, the rate may be based in whole or in part upon a pre-assigned rebate or coupon value such as from a third party, or a combination of pre-assigned and merchant selected factors. The credit value is then transmitted to a central system communicating with all the participating merchants, whereat the credit value is added to a cash value maintained for that consumer's account. At pre-selected intervals, such as on the occasion of the consumer's birth date, that consumer is given access to cash in an amount equal to the accumulated cash value. The credit value may also be added to a bill value maintained in an account for the involved merchant. The merchant may be periodically billed the accumulated bill value amount where consumer credit values are discounts or rebates from the merchant. The credit value is determined based either upon a coupon or rebate value amount input by the merchant at the time of sale and/or upon the amount of the sale and the credit rate as input by the merchant. The determining credit value is then transmitted to the central system along with the consumer's account number and birth date whereat the credit value is added to the cash value maintained in the consumer account associated with the unique account number and the birth date. The consumer may then access the money through an electronic terminal for dispensing funds such as a bank terminal or the like which communicates with the central system to issue funds when the authorization is present. Alternatively, the central system may issue checks to the consumers.

U.S. Pat. No. 5,734,838 describes a database computer architecture for managing an incentive award program and checking float of funds at time of purchase and an advanced intelligent network based information distribution system including a central office switching system connected to communication lines including at least one service switching point for selectively providing switched communications between the communication lines, a network controller arranged for selectively providing control data to effect land line communications, and arranged separately from the central office switching system, an incentive award computer system provides an award to users participating in an incentive award program. The incentive award computer system includes a request transaction processing computer system receiving an electronic transaction by a user, determining whether the electronic transaction is a reward eligible transaction, and generating a transaction request when the electronic transaction is determined to be the reward eligible transaction. In addition, a points calculator processing computer system is provided that determines a reward responsive to the reward eligible transaction represented in the transaction request, assigns the reward to a user record responsive to reward criteria, and generates a reward record representing the reward. The incentive award computer system further includes a points assigning and reporting processing computer system that generates reports and provides access to the user record and the reward by the user responsive to predetermined criteria.

U.S. Pat. No. 5,689,100 describes a debit card system and method for implementing incentive award program for a customer having participants. A plurality of debit cards, each assigned to one participant and having a unique account number corresponding to an award account of the participant is part of the system. A bank filter processor accesses program data including data identifying the authorized unique account numbers of the participants, data identifying the authorized merchants and data indicating the balance in each participant's award account. The filter processor compares this program data to the following transaction data: the initiating account number of the card initiating the transaction, the merchant identification data of the initiating merchant, and the data regarding the amount of the initiated transaction. The filter processor generates validating data for the transaction when the evaluated transaction data indicates that the transaction has been initiated by an authorized merchant using the unique account number of one of the participants having a sufficient balance in the participant's corresponding award account to cover the transaction. Otherwise, invalidating data is generated.

Computer implemented incentive programs have also been used in casino gaming. For example, U.S. Pat. No. 5,795,225 describes a method and apparatus for including a progressive jackpot component in a live casino table game. In addition to playing a live casino table game, each player makes an additional wager at the beginning of each hand that makes that player eligible to win all or part of a jackpot. If during the play of the hand a player is dealt a predetermined arrangement of cards, the player wins a preselected percentage of the jackpot amount. The jackpot is progressive in that un-won amounts of the jackpot carry over to the next hand. Apparatus is provided to receive each gaming token wagered for the jackpot component, to increment the jackpot meter which displays the jackpot amount, to decrement the jackpot meter whenever a winning hand is paid and to reset the apparatus for the next hand.

U.S. Pat. No. 5,915,244 describes a computerized incentive program having plateau pricing and a personalized bank-account system, and permitting remote award redemption is disclosed. In one embodiment of the invention, a computerized incentive-program system includes a pricing component, which converts a price of each of a plurality of awards into award levels such that each price within a particular price range is converted to a single award level. The system also includes a bank account component, which tracks an award balance for each of a plurality of participants and permits each participant to redeem at least a portion of the award balance for an award. Finally, the system includes a certificate component, which permits a program participant to remotely redeem a certificate having a value at least a portion of the award balance by identifying a serial number unique to the certificate, upon conclusion of the incentive program.

The present invention also relates to online incentive programs. Recently Web loyalty programs have been introduced in recognition of the facts that a) online consumers want to be rewarded for their loyalty, and b) profit can be derived from loyal web site users through advertising and joint marketing promotion. One such program, known as ClickRewards, rewards consumers with frequent flyer miles on all of the major U.S. airlines. Participants earn ClickMiles for completing activities on sponsor's web sites such as making a purchase to registering software. Participant's can then exchange their ClickMiles for frequent flyer miles on their favorite airlines, as well as other valuable rewards. In addition, ClickMiles can be combined with offline frequent flyer miles, making them even more valuable.

The underlying system is described in U.S. Pat. No. 5,774,870. This patent describes a fully integrated on-line frequency award program. A user may access the program on-line and may browse a product catalog for shopping. The user may electronically place an order, upon which the program automatically checks the user's credit and electronically issues a purchase order to the supplying company. The program also calculates award points, updates the award account of enrolled users, and communicates that number of awarded points to the user. Enrolled users may browse through an award catalog and electronically redeem an amount of awarded points towards an award. The program then electronically places an award redeeming order with the fulfillment house and updates the user's award account.

Other programs are described in industry publications, including, for example

Moore, "Technology Explosion Shapes Marketing's Future", Bank Marketing, v24n5 pp: 24-27, May 1992, Dialog file 15, Acc. No. 00615749.

Arndorfer, "More groups enhance credit cards to get up to speed in a tight race (credit unions offer promotions), American Banker, v160, n174, p. 22(1), Sep. 11, 1995, Dialog file 148, Acc. No. 08123473.

"Supermarket Update: Bank One Ready to Unite Electronic Payments with Vision value Shopper Cards", POS News, Sep. 1, 1993, Dialog file 16, Acc. No. 04590660.

"A little Battle Royal in the UK", Credit Card Management, November 1994, p. 90, Dialog file 16, Acc. No. 05388649.

"Frequent-Shopper Plans Get a Chipper Look", POS News, Jan. 3, 1995, Dialog file 636, Acc. No. 02630357.

Fickenscher, "Star bank in Cincinnati offering air miles perk . . . ", American Banker, v159, n176, p. 23(1), Dialog file 148, Acc. No. 07816374.

Keege, Stephen discloses an article entitled "In star Bank's flexible flier program, any airline will do", American Banker, v159, n1, p. 12(1), Jan. 3, 1994. Dialog file 148, Acc. No. 07161362.

"Bank of Hawaii offers travel bonus", Honolulu Adviser (Honolulu, Hi., US) p. C1, Mar. 14, 1996. Dialog file 635, Acc. No. 0690801.

"Business Travel: Airline perks in peril . . . ", Financial Times (London) Jul. 11, 1994, p. 14, Dialog file 16, Acc. No. 05160615.

"Another chance for Chip cards", Smart cards may be ready to make headway in card-based payment systems, Credit Card Management, September, 1993, p. 30, Dialog file 16, Acc. No. 04679883.

"Point Blank Video Library: Uses 'Video Incentive Program' to boost video rentals", Video Store, Mar. 20, 1992, p. 46, Dialog file 16, Acc. No. 03701747.

"Debit Card News Debit Issuer Flies Right with Reward Plan", Bank Network News, Jan. 27, 1995, Faulkner & Gray, Inc., Dialog file 636, Acc. No. 02657159.

Notwithstanding the many, existing programs that are currently known, there are problems with existing incentive programs. Known systems do not take full advantage of the personal communication and electronic commerce systems available for use by participating users and participating merchants in the Network Economy and are not capable of incentivizing individual participants in a precise way. Moreover, cumulative awards do not sharply discriminate between true brand loyalty and high demand. Instead, a group or herd approach is taken and incentives are equal for a large class of participants. Thus, a high volume user can benefit from participating in a number of competitive programs (e.g., programs offered by different airlines) without showing loyalty to any one sponsor. It is this type of high volume user that program sponsors find most desirable, however. The present invention provides a competitive advantage by allowing targeted incentives that can be used, for example, to capture the full loyalty of high profit customers.

Another challenge in the environment of electronic commerce is delivery of goods directly to a customer's home. On a national scale, delivery is typically accomplished through the United States Postal Service, or through one of the private couriers that operate out of certain hubs—FedEx, for example, ships all packages through a hub in Memphis, Tenn. However, such delivery modes are not practical for local delivery of certain goods, such as groceries, prescription drugs or meals from restaurants. Thus, there remains a need for a practical, efficient means of local delivery.

SUMMARY OF INVENTION

The present invention includes several discrete components that have utility by themselves, but can be used in combination to provide even greater benefit as a comprehensive suite of solutions for promoting and improving electronic commerce of many forms, including retail and business to business commerce, casino gaming, utility aggregation and more. As described herein, these components include an incentive program, a merchant finder and cellular position locator, a system and method for conducting sales agent assisted commerce involving one or more distributed vendors over networked computers, smart cards that are enabled for wireless connectivity and more.

The present invention provides virtual retailing system and method, i.e., a system and method for recreating, or simulating the positive components of the retail experience in a virtual transaction setting. The virtual retailing system of the present invention is based on the recognition that consumer purchasing decisions are not based entirely on price and convenience. For example, customer service can be a significant determining factor in customer purchasing decisions. The success of service oriented retailers in the non-Internet economy strongly suggests that consumers will pay premium for a more pleasant shopping experience. Naturally, the specific details of the shopping experience desired by any particular consumer can vary greatly. However, there are unquestionably lessons that can be learned from the non-Internet economy. To begin with, it is clear that there are certain sectors of customers that will not tolerate long waits or slow service. Moreover, there are other segments of consumers of the public that require a high degree of interaction to understand fashion trends and details concerning specific products. Even more significant, however, is the value customers place on information, i.e., help in identifying and filling their particular needs. Thus, conventional sales persons whether selling commodity products or haute couture fashion apparel provide a service—matching customers needs to products—that customer value. It is precisely the failure to recognize these idiosyncratic and diverse market segments that has resulted in the inability for e-commerce merchants to penetrate certain markets. To meet this unfilled need, the present invention provides a system and method for simulating the best aspects of the high service retail or other customer experience in an Internet or networked computer environment.

More specifically, the present invention provides a "virtual retail" or "vetail" experience through the use of networked computers, instant messaging technology, wireless connectivity and a distributed sales agent model. The present invention relates to a transactional system that includes four distinct classes of participants. The first class of participant is consumers that use the Internet or networked computers for shopping. The second class of participant is a set of distributed sales agents, which may be geographically distributed and have a wide range of areas of expertise. The third class of participant is the system operator or vetailer, which operates the Internet website. The fourth class of participant is the vendor or merchant that sells goods or services using the website.

In the preferred embodiment, the system operator operates a website or "virtual retail store," i.e., vetail store. The store may comprise, for example, a website which has a plurality of departments relating to different types of goods. Within each class of goods, the vetailer selects one or more merchants whose products will be displayed on the website. The vendors preferably have agreed to pay some form of commission to the vetailer for sales through the site.

For each of the various classes of goods or services offered on the site, there is preferably one or more certified sales agents. The sales agents are certified as having a prescribed level of expertise concerning the specific product for which they are certified. Eventually, any one particular sales agent may have expertise with regard to a variety of types of products. The certification of expertise may be made by the vendor or by the system operator, but in any case, the system maintains an association of the identity of the sales agent along with the areas of expertise for that particular sales agent. Once certified, the sales agent is provided access to additional information concerning the products, which may be shared with consumers in the manner described hereinafter. This additional information is preferably in the form of video, graphic or other sensory images of the products or information about the products.

In accordance with the preferred embodiment of the present invention, the virtual equivalent of the retail store is one or more displays that include a "display case" display portion for displaying the aforementioned detailed images or sensory images, sounds and other sensory information concerning the products available. The sensory images can be "pushed" by the sales agent to the customer using push technology. The display could, in accordance with another aspect of the present invention, allow virtual modeling of fashion items.

In addition, the display preferably includes some portion for displaying the dialogue between the sales agent and the customer. Naturally, the dialogue could occur purely through voice communication, but preferably some form of video, either text based or video conferencing, is provided. In addition, the website preferably includes a display of directory-type information that allows the customer to easily navigate to desired areas.

Finally, in connection with each department or class of goods, the system displays the sales agents that are currently available. This is done using the same technology as currently used in connection with "buddy list" or other related technology for determining the presence of a particular person or agent on the Internet.

In the context of clothing, or fashion accessories, the system preferably includes software, such as that used in Broderbund's Cosmopolitan Fashion Makeover Deluxe, that allows customers to enter their measurements, hairstyle and skin color on a virtual model to see how clothes might look on their body. This type of software could be used in many contexts to give customers an enhanced sensory experience.

One such system is described in U.S. Pat. No. 5,930,769 to Andrea Rose. This patent describes a computerized system that optimizes apparel fitting across manufacturers by allowing customers to select appropriate clothing for their body type by allowing them to "try on" apparel via virtual modeling.

Using this system and method of the present invention, a customer can enter the vetail website and select either a category product or a particular sales agent to deal with. If the customer selects a particular category of goods, they must select either their sales agent or the first available sales agent. A customer and sales agent then engage in real time dialogue either through video conferencing, instant messaging or voice over the Internet. Through this dialogue, the sales agent, which is a certified expert in connection with the particular goods, can provide high level information concerning the details of the specific products being considered by the customer. For example, the sales agent may know that PRADA shoes "tend to run a little large" or that ARMANI suits "tend to run a little small." The sales agent may also be an expert on current fashion trends, which can be of some value to the customer. The dialogue is enhanced by the ability of the sales agent to instantly display pictures of items being discussed on the customer's display. In other words, the system provides the ability for the sales agent to click on an individual product within their "display case" and have a full size image of that product appear in the "display case" portion of the customer's display. According to the preferred embodiment of the present invention, if the sales agent is certified for a certain class of goods, they are then given access to icons that generate the sensory images of the products available in a particular category of goods or services.

Through the system and method of the present invention, the customer receives an enhanced retail experience in several respects. First, the sales agent, as a certified expert, can provide useful information concerning the product. Second, customer has quick and easy access to detailed sensory images of products being suggested or discussed. In addition, the customer has a choice of sales agents so that if a customer develops a rapport with a particular sales agent they can request that sales agent.

In accordance with another important aspect of the present invention, it is also contemplated that the vetailer would carry the products of a range of vendors yet allow the customer to purchase a range of products through a single financial transaction. In this way, the vetailer provides one-stop shopping and added convenience for the customer. The service level can be even further improved if the customer can pay from an existing account balance or credit line so that the customer need not enter purchase information (such as account numbers every time they make a purchase).

The system also provides the electronic equivalent of a "customer service" department in that customers provide feedback concerning quality of their vetail experience either concerning a particular sales agent or other aspects of the site. This feedback could be used in several ways. First, feedback could be used in connection with an incentive system according to the present invention to motivate and reward sales agents. In addition, feedback could be made available to other customers to further enhance the information available to the customers and create an improved shopping environment.

One of the particularly important aspects of the present invention is that the sales agents need not be employed by or even closely affiliated with the vetailer. Instead, the sales agents can be highly distributed agents that, while certified, are only loosely affiliated with the vetailer. Thus, the role of the sales agent can be filled by a much broader range of persons since there is no need to require physical presence at certain times. Indeed, there is not even a need for regular or specific time availability. The sales agents could work, i.e., come on-line, whenever and wherever they wanted provided there was a sufficient number of agents to ensure coverage. Thus, it is contemplated that the sales agent function could be performed by a wide range of highly distributed agents including part-time persons that would never ordinarily consider entering the retail field, but as a consequence of the simplicity and lack of constraints on the present invention can share their expertise when and where it chooses to do so. It should be recognized, however, that too many agents on-line at any one time could be as problematic as failing to have a critical mass of sales agents. In particular, too many agents on-line could create customer confusion. The system preferably includes one of a variety of ways to alleviate such confusion. In one embodiment, the system blocks sales agents from entering the site once a predetermined maximum number of sales agents is on-line. In another variant, the system puts excess agents on hold and allows them on-line as openings appear. In another variant, the system randomly assigns agents to customers unless the customer requests a specific sales agent.

In accordance with a preferred embodiment, however the system assigns one or more rankings to the agents and assigns the sales agents to the customers based on these rankings. The rankings could be based on customer satisfaction, sales agent frequency of appearance and loyalty to the retailer or any other objective factor. In this regard, a variable redemption rate incentive program according to the present invention could be used to allow agents to accumulate points that would give them preferences in entering the site. An incentive program could be used to encourage customers to provide feedback used to rank sales agents.

The variable redemption rate incentive system could also be used to determine the commission rate or value of commissions earned by the sales agents. In one embodiment, the sales agents earn "points" as commissions and the cash redemption value of those points at any given time is determined by the sales agent's redemption rate. The redemption rate could be affected by objective criteria such as frequency of or consistency of showing up for "work" or subjective criteria such as customer reviews.

To make it possible to use highly distributed unaffiliated sales agents, it is necessary that the vetailer be responsible for maintaining the integrity of the financial transaction. This requires a separate channel through which financial transactions are conducted so that the sales agent (responsible for the financial transactions) is taking all the above the present invention comprises a system and method that includes a plurality of consumers, a plurality of sales agents, a plurality of vendors and at least one system operator. The customers, sales agents, vendors, system operator are all connected to a network of interconnected computers. The system further includes means for generating a customer display and a sales agent display. The system further includes one or more databases for storing information such as the identity of sales agents and the areas of expertise for each sales agent. Identity of customers and the form of payment customers will make is also stored.

The system and method for conducting sales agent assisted commerce involving one or more distributed vendors over networked computers has various features. To begin with, customers can pay for all merchandise in one transaction (even if goods come from various merchants and or even different web sites. Orders from different merchants are coordinated to improve the efficiency and cost effectiveness of shipping. The personal shopping agent has access to a customer database that contains all personalized data, such as, preferences of the customer, relevant holidays for the shopper, birthdays of family members. The personal shopping agent or retail assistant corresponds through a global network (e.g., the Internet) using voice, video, instant messaging or some combination and possibly including other sensory information to replicate the positive aspects of a non-virtual purchasing experience. The virtual retail store displays a "Buddy list" of the sales agents available. The sales agents can work anywhere in the world and can work whenever they want 24/7 and are paid on commission. In one form, anyone can be a virtual sales rep provided they bring sales to the "virtual store"—the virtual store is a "middle man" but it can compete by obtaining discounts from vendors. The critical aspect of this invention is allowing customers to feel a sense of personal service in a normally impersonal medium.

In accordance with the present invention, the virtual retailer (Vetailer) gets a discount from the web merchants and is able to provide the customer with goods at a competitive price. Also, the Vetailer or system operator can make arrangements with hub and spoke type courier services to optimize assembly and delivery of orders to customers. An important aspect of the present invention, is finding independent contractors to act as sales agents or personal shoppers and to structure an arrangement whereby the system operator (Vetail store) is a source through which transactions pass and the Vetailer obtains its revenue by taking commissions as transactions that pass through the system administrated by these system operator (Vetailer). Thus, in accordance with the present invention, participating merchants agree to provide a discount or commission for sales by the Vetailer. Secondly, the sales agents/personal shoppers are independent contractors that are familiar with the goods and can answer customer questions via instant messaging, for example. The sales agents/personal shoppers obtain a commission and can work whenever they want from where ever they want. Thirdly, the customers that find this system most attractive would be those customers that want personal advice from knowledgeable people. Of course the potential customer base varies depending on the types of goods involved. In the case of commodities, there is only a small portion of the purchasing population that requires personal service. In case of high fashion goods, on the other hand, there is a great demand for personal advice from knowledgeable people.

The systems also provides a way for customers to pay for all goods in a single secure transaction—most preferably by maintaining an account with the Vetailer that may be debited immediately upon the purchase.

The system operator maintains a web site offering selected goods from other merchants and selects and coordinates the use of sales persons/personal shoppers and coordinates commission structures so that everyone is satisfied. Naturally, the incentive program of the present invention could be used to motivate and ensure appropriate behavior by each of the participants.

The virtual retail or Vetail system of the present invention provides a value for all classes of participants. Customers get personal service, i.e., intensive interaction and customized information through instant message technology. Customers also get one stop shopping, a pleasant shopping experience where merchandise is displayed in an attractive way with sensory information provided to the greatest extent possible; ease of use, ability to make a single payment for an entire transaction; single payment for a basket of goods which may come from a variety of different merchants; a single transaction, a 24-hour, 7-day a week virtual retail experience and the possibility of participant in incentive programs that was made easier through the e-commerce aspect of the present invention.

The merchant gets distribution, sales volume and outsourcing of costly activities such as payment collection etc. The virtual retailer gets a discount from merchants or perhaps at wholesale price and can make money through a retail markup on the goods.

The personal shoppers or sales agents get commissions on sales they generate and the freedom to work when and where they want.

The system could, especially when not fully implemented, also require certain sacrifices. For example, the customer might sacrifice lowest possible price. Likewise, the merchant has to make some sacrifice in terms of price in order to achieve the outsourcing benefits provided by the system.

The virtual retailer (Vetailer) provides a buying function that is an analog to the buying function of a conventional retailer. In other words, the Vetailer selects merchandise as goods to be sold ideally, this is not just a hodge-podge of merchants that have agreed to pay the required commissions, rather a well thought out strategic presentation of merchandise that provides great customer value.

A critical aspect of the virtual retail system in the present invention is transport (through Java Script or HTML, for example) of selected web pages/product descriptions of others within a window (frame) at the same time a real-time dialog is occurring. From the customer's vantage point, this could be viewed as display of goods in a virtual display case as dialog occurs. The salesperson might say, for example, "let me show you what we have" and instantly product descriptions appear including full motion animation and many other sensory output that is made possible through the technology of the sales agent and customer. It is important that the system operator (Vetailer) controls who is an authorized sales agent. The system allows different levels of access over a public network system including sales agent; customer; vendor (can alter their product line); buyers select merchandise to be displayed.

Thus, the system the present invention provides a system and method for matching knowledgeable shoppers with shoppers that need or value the assistance of an experienced shopper. The experienced shopper can be a representative of a particular vendor or vendors, a retail or Vetail sales person or an independent contractor.

The personal shopper is familiar with the specific products and trends and therefore has information of value. In essence, the system relates to the sale of information that the present invention relates to a way of tapping into a vast store of information that has largely unused today, i.e., the accumulated knowledge of independent shoppers and delivery of that information to persons that are willing to pay for the information.

In accordance with another aspect of the present invention, the system operator allows users to poll other users and/or personal shoppers. This is different from polls posted by the system operator. In particular, the user can post a query (either on a "bulletin board" or by sending messages to the desired participants. To assist the system operator in identifying appropriate poll recipients, the system operator can create and post predetermine recipient group that have some common interest, talent or affinity.

The personal shopper is familiar with the specific products styles and trends and therefore has information of value. In essence, the system relates to the sale of information in that the present invention provides a way of tapping into a vast store of information that has largely unused today, i.e., the accumulated knowledge of independent shoppers and delivery of that information to persons that are willing to pay for the information.

In the system, personal shopping agents are certified in access to "virtual display case"—the ability to display product descriptions or photos on demand in a portion of the display dedicated to displaying goods. Also, personal shoppers can represent certain product lines.

Fashion is driven by the collective desires of the consumers. There are certain persons and things that influence trends, but trends can not be dictated they result from the input of many players in the market. The present invention makes it possible to tap into the collective wisdom of these trendsetters.

The system is widely applicable because many customer decisions are based on "fashion." In particular, in making purchasing decisions consumers often look to. In the online environment there are only limited examples of ways providing this advice. There is, however, a tremendous amount of untapped potential.

To begin with, much of the accumulated "know how" that accounts for fashion trends is distributed among a large number of individuals that are not employed in the fashion industry—namely savvy, devoted recreational shoppers. These individuals enjoy shopping, but do so only to satisfy their personal needs. Shopping as a hobby. Through the pursuit of hobby shopping and review of fashion related literature as well as day to day interaction these people have developed a keen sense of fashion trends and a high level of knowledge concerning certain products—For example,—Polo shirts "run a little small" or PRADA shoes are built large.

There has, heretofore, been no systematic way to tap this knowledge base. Moreover, while individuals are often more than willing to share this knowledge —they are often reluctant to enter the conventional work world because of other commitments.

The system of the present invention makes it possible to tap this knowledge base by creating an incentive for individuals to share their knowledge to the greatest extent possible. The distributed sales agents are a vast source of knowledge largely untapped knowledge. Using this knowledge, the sales agents can act as personal shoppers to provide product specific knowledge, such as nuances or characteristics of products. The sales agents also provide knowledge of treads, either generally or in market segments (geographic, demographic or product segments). The sales agents are also trend setters, have knowledge of particular customers.

This type of sales agent is likely to appeal to various customers including customers interested in leading edge advice, customers that want a personal touch or maximum convenience and do not want to spend a lot of time searching for a gift, customers that want specific impartial advice concerning certain products. The system is applicable to a wide range of commerce, but offers particular advantages for high end vendors that sell products that "go" with other company products." Often such vendors find it is not practical to operate at a one stop shop independently yet customers desire for one stop shopping could lead customers away from individual.

One problem with the credit card incentives is that savvy users can take advantage of the system by making charges to earn rewards and then consistently paying off their balance in full so that the financial institution does not make any money. In such instances, the customer and merchant both benefit, but the financial institution does not have an incentive for maintaining the program. One solution is to require a merchant to fund the rebate entirely, if this happens, then the merchant might implement a program that makes awards regardless of the form of payment and the financial institution loses a valuable tool for increasing its credit card base. A more elegant solution, according to the present invention, is to implement an incentive program that allows for the discrimination between profitable customers and non-profitable customers that allows the financial institution to reward (and thus retain) profitable customers, while minimizing the reward to less profitable customers.

A multi-tier variable redemption rate program according to the present invention allows a financial institution to provide an added incentive (in the form of a higher redemption rate) to customers that are profitable (e.g., those customers that maintain a revolving balance in their account) while at the same time minimizing the reward to non-profitable customers like for example, reducing their redemption rate. In one embodiment, a customer's redemption rate is incremented every month that the customer maintains a balance on their charge card account. When a customer pays off their entire balance, on the other hand, the redemption rate is either decremented (decreased by a pre-determined amount), decreased by a percentage of the difference between the current rate and the base rate or automatically reduced to the base rate or some other rate that could, in accordance with another aspect of the present invention even be less than the base rate. In this way, it is possible to use the incentive targeted for desirable customers with greater precision than the conventional systems.

It should also be apparent that the system could be used to provide a redemption rate based on the size of a user's revolving balance. This would prevent a situation where a user maintains a minimum revolving balance to increase the redemption rate.

The present invention provides a system and method that can be used both to enhance existing award programs and to support development of entirely new incentive programs. The system and method is preferably implemented by one or more computers programmed to perform processes according to the present invention.

An important aspect of the present invention is the use of an individual participant redemption rate that is separately calculated for each participant in the incentive program.

For clarity of description, the two-component incentive program of the present invention may be considered as consisting of two distinct incentive programs operating in parallel. The first is a "Base Program," which can be modeled based on any known "points" type incentive program. The second of the two programs is a "Variable Redemption Rate Program" under which the value of points accumulated under the first program (Base Program) can vary according to a distinct set of rules. Though these programs can be considered as distinct from one another, it is possible to structure the program so that the distinction is not evident to the participants.

Under the base program, each participant within the system has an identity, and an ability to participate in the Base Program (or existing award programs) so as to earn "points," which can be referred to under other names, including miles, dollars, credits, etc. Points are awarded based upon rules that are widely applied across a wide class of participants. Thus for example, everyone flying the airline shuttle between Washington, D.C. and New York earns 1,000 miles for the flight regardless of whether the participant is a one-time user that had no choice but to take the flight or a weekly flyer whose continued patronage would be very valuable.

Most "frequent flyer" programs by their very nature reward frequent customers. In particular, the programs are cumulative so that awards accumulate over time. In some programs there are bonuses for passengers that travel a certain number of segments within a prescribed period. Conversely, many programs "expire" points after a certain period of time, without regard to the loyalty of the customer. All of these programs are ham handed ways of attempting to incentivize participant action with greater precision and create more intense participant loyalty.

In contrast, the addition of a variable redemption rate program component according to the present invention provides an incentive system and process that allows precise encouragement of specific participant action and makes it possible to create more intense participant loyalty. In an incentive system and process according to the present invention, participant earnings, whether miles, cash or points, are treated as base points (BP) that are multiplied by a customer specific redemption rate (R) to convert the base points into participant rewards.

The two component incentive program is multi-dimensional in several respects. First, the two completely distinct reward programs' components—the Base Program for earning points and the Variable Redemption Rate program for adjusting each participants individual redemption rate—are fundamentally distinct since the base awards program is cumulative whereas as the redemption rate program is transitory in that the redemption rate can be adjusted up or down very quickly (or slowly) depending on participant action or inaction. This introduces an opportunity to incentivize the timing of participant actions that is well beyond anything that can be done with conventional incentive programs. Though the reward program components are distinct from one another, both components can apply to the same participant action so as to enhance or dampen the incentives in a single program. Since each program component can affect the value of rewards offered by the other program component, there is an opportunity to achieve tremendous synergism by optimizing participant action.

As an example, consider that a loyal customer in a conventional program is likely to have accumulated many "points" in that program. Now consider the incentive that would be created by the possibility of increasing the redemption value of all of these accumulated points by 50% or even 100%. The combined results of the two programs thus offer the ability to provide the greatest incentive to the most important (profitable) participants.

The ease of quickly reducing a participant's redemption rate can be used to reward participant actions such as brand loyalty, profitability, consistency and frequency of use, that are desirable from a sponsor's vantage point. The variable redemption rate can also be used for special promotions or to compensate participants for poor performance by the sponsor. As one example, the variable redemption rate can be used to gain and maintain participant loyalty by rewarding consistency with incremental increases and discouraging lapses in loyalty through punitive decreases in redemption rate. Moreover, when used in conjunction with technology, such as a smart card that allows the program administrator to monitor the participants actions more closely, it is possible to structure a program that creates a disincentive (such as a reduction in redemption rate) for shopping at a competitor's store or buying a competitor's product. Other applications, some of which are described below, will be apparent to those skilled in the art.

The present invention is applicable to existing reward programs such as airline reward programs, credit card reward programs, point of purchase reward, internet loyalty reward programs and like. Base points (BP) can be any form of accumulated reward, including for example airline miles, cash awards, ClickRewards, points, accumulated winnings, accumulated losses, etc.

As noted above, base points earned are converted to reward points based upon a customer specific redemption rate according to the following formula:

The Redemption Rate (RR) is transitory in that the redemption rate (RR) can be adjusted up or down very quickly (or slowly) depending on participant action or inaction. The customer specific redemption rate (RR) has a base value (BRR) such as 1:1 for a new purchase, but RR can be incremented or decremented to reward certain desirable participant action and penalize or create a disincentive for certain undesirable activity.

In accordance with another aspect of the present invention, the starting redemption rate or base redemption rate (BRR) may be the same for all participants or may be different for different participants. This offers the possibility of rewarding participants in yet another way by awarding customers with a permanent or temporary base redemption rate that is greater than 1:1. This additional feature is made possible by the fact that a base redemption rate is associated with each participant to allow calculations based on the base redemption rate.

The system architecture supporting the system can vary widely from a centralized system, a system that runs in parallel to an existing reward program, a completely integrated reward system, a distributed network system employing personal chip technology and an object oriented system.

The individual participant redemption rate can be stored on a participants personal chip (in a smart card, mag card, Java ring or the like) or maintained by the program's sponsor or can be maintained separately by an organization that provides individual participant redemption rates for a wide class of participants in various programs sponsored by organizations that are willing to accept enhanced customer redemption rate. In addition, the personal chip functionality can be combined with a personal digital communication device according to the present invention to provide added functionality.

Consistent with the present invention, an organization (e.g., incentive company or system operator) that is independent from traditional reward program's sponsors (e.g., airline or bank) can maintain a database or databases that contains the identity of customers and a redemption rate associated with each participant. The incentive company operates a computer-implemented system, according to the present invention, that allows the customers to build up their redemption rates through certain participant action (or inaction). For example, participant actions resulting in the awards may be performed online or reported over the Global Information Network or Internet. The entity (e.g., incentive company) that maintains the participant redemption rates, also has a communication link with the reward program sponsors so that a participants redemption rate can be reported upon request. In this way, a wide range of program sponsors can quickly query a single source to obtain a participant's specific redemption rate as needed.

Alternatively, participant redemption rates may be calculated and maintained individually by reward program sponsors. The use of individual participant redemption greatly enhances the ability to target specific action by making possible to incentivize in dimensions that it not previously been available.

In a network economy, the information is available to know what your customer wants and get this information to the factory floor. One example of this is the Dell Computer system for building computers on demand so that, there is no need to guess as to customer preferences. This process, referred to as mass customization, depends on modularity—the ability to satisfy many distinct needs with a certain defined kit of components or services. By allowing customers to select among a defined kit of components or services, it is possible to get precise information as to what customers want (because they tell you). Moreover, that customer's selection represents an investment in time spent customizing the product to their needs that increases the likelihood of retaining the customer as well as providing valuable information for the merchant that receives the information.

In accordance with the present invention, an incentive program (such as variable redemption rate program) or other program can be designed to allow the participant to select a level of commitment to the sponsor in both the mass market and business to business context. The higher the level of commitment, the better the rewards, the greater the penalty for violating the commitment. For example, a gas station might offer a five percent rebate to customers that agree to buy all gas needs from them, but reduce the rate sharply if the customer fails to live up to the commitment. To prevent discouragement, the customer could be a small number of "mulligan's" or chances to try again. In accordance with another example, a bank might allow customers to obtain selectively higher rebates on credit card purchasers as they open different types of accounts (strengthen their relationship) with the bank. In one simple example, a customer might be given a 1% rebate just for having the card. If the customer opens a checking and savings account, the customer would be given a 2% rebate. If the customer opens a retirement account the rebate rate would be increased to 3%. Other programs could be designed to allow customers to tailor a variable redemption rate program to their desired level of commitment. Likewise, in the business to business context, businesses can use customized incentive programs to gather valuable information, namely find what their customer's really want and the level of commitment the customer's are prepared to make, and also attract and retain customers . . . The significant point is that the customer is allowed to build their own incentive program by picking and choosing among a suite of available incentive program features.

Thus, the present invention offers mass customization of E-commerce incentive programs. In effect, merchants are able to say to customers if you are willing to commit to this, we will do this. Users are allowed to build their own incentive program by selecting from various options or, in accordance with yet another aspect of the present invention, submitting a bid to the sponsor. Thus, a user might be able to propose incentives to various merchants, i.e., "if you increase my redemption rate to X, do the following - - - ." The sponsor can then accept, reject or counter-offer the proposed incentive program.

The present invention also provides an incentive that can be used in conjunction with electronic commerce through instant messaging to improve the customer experience through improved customer service and satisfaction. This is achieved by creating incentives for sales agents and rewarding consumers when the merchant fails to deliver the expected level of service and satisfaction.

The system of the present invention also provides for "Instant" Redemption of rewards to improve the perceived value of the incentive program.

The program of the present invention can be applied to a wide variety of economic activity, but is particularly useful in the context of activity involving electronic transactions. Thus, for example, the present invention is applicable to airline frequent flyer programs, mass transit loyalty programs that use electronic payment, credit card/debit card reward and rebate incentive programs, point of purchase system, retail loyalty programs, Internet site/portal loyalty programs, programs for improving the utilization of assets ranging from utilities to electronic payment (commerce) to casino gaming.

The incentive system may also be used in the context of business to business commerce. Participants in this context are businesses that buy from the sponsor. Loyalty and consistency programs are especially useful. A variable redemption rate system can be used to reduce cost to the participant by rebate or discount. In particular, it is known to provide discounts according to volume of past purchasing history. With the present invention, however, it is possible to automatically provide discounts for other desirable actions such as loyalty and consistency of purchase according to a set of objective rules that are monitored and enforced automatically.

In the case of discount, the amount of discount is inversely proportional to redemption rate (unless redemption rate is negatively incremented (decremented) for actions that are encouraged). To simplify matters, each customer could be assigned a discount rate that varies incrementally according to the objective rules of the particular program.

In the business-to-business context, it is easier to track participant's actions with current technology. Examples of actions that could, in accordance with various aspects of the present invention, be incentivized, include consistency of purchases and loyalty. Consistency of purchases could be rewarded (through increases in a customer's discount or redemption rate), every consecutive week in which an order is placed. Loyalty could be rewarded by increasing the participant's redemption (or discount) rate for not purchasing from competitors or from purchasing in response to special motions. Here, the redemption rate could, in accordance with another aspect of the present invention, be tried directly to a discount. Thus, if a participant has a redemption rate of seven, they will be allowed to buy goods or services in 93 percent of the normal cost (100%-7% discount). Alternatively, the redemption rate could, in accordance with another aspect of the present invention, be used in combination with rebate program in which participants earn rebates from sponsors and the value of those rebates could depend on redemption rate as described previously.

The present invention is particularly well suited for use in conjunction with smart cards, digital cellular phones, personal digital assistants and other emerging infotech hardware.

In addition, the present invention provides a cellular position locator that can be used in conjunction with personal digital communication devices, including existing digital cellular handsets or personal digital assistants with digital communication capabilities, and takes advantage of data available from existing cellular network infrastructure. The cellular position locator can be used to promote selected merchants (which should be understood as encompassing merchants, vendors and service providers) through an electronic directory. The electronic directory is preferably accessible through the Internet so that merchants can upload information as desired and multiple phone networks (including fixed networks, if desired) can access the same databases.

Personal digital communication devices according to the present invention may be co-branded and provided with hardware and software features to promote the sponsor's business. The cellular position locator can be used for other purposes as well and can be used in conjunction with the points-based incentive programs of the present invention.

As noted above, the present invention makes it possible to create incentives for efficient use of equipment that is in great demand by rewarding frequent use of the equipment. This is particularly useful in the context of casino gaming machines in which equipment may be occupied by a player (in the sense some one is sitting in front of a machine (or table) and preventing use by another customer), but not used (in that the game is not actually in process—a bet is not being made). At peak times, there is often be a shortage of machines such that delay in use of the machines will result in loss of revenue to the casino. Thus, in accordance with another aspect of the present invention, an individual participant redemption rate can be used to reward customers that use equipment efficiently. In the case of a slot machine, for example, a customer can be rewarded for playing the machine within a predetermined time period from the last game or penalized for taking too long to play or quit. Similarly, the system and method can be used to create additional incentives to motivate certain participant action.

The use of wireless connectivity according to the Bluetooth protocol detailed below (or a similar protocol) is also useful in the context of casino gaming. To begin with, wireless connectivity enabled smart cards of the type described herein could allow casino patrons to wager without using cash or credit, but instead by simply using a debit card. A more sophisticated application could include "smart playing chips" used with a "smart table." The smart playing chips of the present invention are, in reality, wireless computers that contain an electronic monetary value or communicate with a nearby computer containing a monetary value. The smart playing chips also communicate with the gaming table on which they are used so that the table can read the location of the chip on the table and the monetary value of the chip. The chip could contain a plurality of monetary values reflecting a player's "BALANCE AMOUNT" and "BET AMOUNT," for example. The chip could also display one or more of the monetary values stored thereon. Finally, the chip could include a user interface that would allow the user to alter, for example the "BET AMOUNT." In use, a player with a wireless communication enabled smart chip can set the chip to a certain bet value (which must be less than or equal to the monetary value available to that chip's owner) and place the bet by locating the smart chip on a location within the gaming table (which could correspond to a specific bet on a crap's table, a roulette table or a blackjack game). The gaming table is also wireless communication enabled and designed so that the table can recognize both the location of the chips (and hence the nature of the bet) and the amount of the wager. When the outcome of game is determined, the system credits are debits the smart chips in play according to the results of the bet. With the use of smart chips as described above, a casino can greatly increase the frequency of plays and hence the utilization of equipment. Moreover, the use of smart chips and electronically stored monetary values makes it easier to use the incentive program of the present invention in connection with a wide variety of casino games.

Similarly, the system may be used to promote efficient use of utilities and allow formation of purchasing collectives.

The present invention provides a personal communication and electronic commerce system for use by participating users and participating merchants. The system includes a cellular communication network that includes geographically spaced base stations that communicate with, i.e., are linked to a fixed communication network. Users may have personal communication devices that can be used to allow transmission of a digital message generated on the personal communication devices by placing a call through one of the base stations and memory for storing a digital value corresponding to a monetary value. The personal communication device may also be used as a cellular position locator to determine one's geographic location and, if desired, to access information from a merchant information database containing information pertaining to a plurality of participating merchants located within the geographic territory covered by the cellular communication network. The merchant information may be stored on a database that is accessible by merchants so those merchants can add, delete or alter information contained in their respective listings. An incentive system is also provided for creating incentives for participating users to encourage desired participant actions. The incentive system comprises a computer implemented incentive program for encouraging certain participant actions. The incentive program includes a first reward program component under which participants may earn points for certain actions and a second reward program component through which the redemption rate associated with a particular participant is adjusted in response to certain participant action. The incentive program has a wide range of applications, including transportation, financial services and computer gaming.

More specifically, the present invention provides a personal communication and electronic commerce system for use by participating users and participating merchants. The system preferably includes: means for storing a participant ID for each of the participating users and a merchant ID for each of the participating merchants; a cellular communication network that includes a plurality of geographically spaced base stations that each have a base station identity and are each capable of communication with a mobile exchange that is in communication with a fixed communication network; a plurality of personal communication devices, each of the personal communication devices comprising: a unique digital code stored in memory that identifies the device; a display; a user interface for allowing an user to generate digital messages; a transmitter and receiver for wireless communication with the cellular communication network so as to allow a digital message generated on the personal communication devices to be transmitted by placing a call through one of the base stations and memory for storing a digital value corresponding to a monetary value; means for correlating the unique digital code stored in memory of each personal communication devices to a participant ID; means for transmitting a digital value corresponding to a monetary value to the memory of the personal communication devices; and means for creating incentives for participating users to encourage desired participant actions.

In accordance with another aspect of the present invention, the personal communication devices of the present invention are preferably equipped for wireless connectivity in accordance with the Bluetooth standard—a wireless "cable" chipset for connecting mobile communications products, portable computers and computer peripherals that is likely to be critical in the development of a wireless data marketplace.

Likewise the smart card of the present invention is also preferable equipped with a wireless connectivity chipset, such as one built to the Bluetooth standard.

Bluetooth can be used to connect diverse portable computing devices to establish ad hoc LANs and connecting portable computers to peripherals such as printers and fax machines, but its use in building a wireless data market is most significant in the context of the present invention.

Bluetooth technology creates ad hoc wireless networks among a range of devices, including smart phones, portable and desktop PCs, PDAs, printers, and just about anything else with the necessary logic. The interface itself is a short range, frequency hopping radio link, built into a small (9×9 mm) microchip, an antennae, and software. The Bluetooth signal operates in the unlicensed ISM band at 2.4 GHz; a frequency hop transceiver is used to counter interference and fading. Maximum throughput is 1 Mbit/sec. Time-division duplexing is used for full-duplex transmission, and data is encrypted and sent between devices with a streaming cipher. Bluetooth can support an asynchronous data channel, up to three simultaneous synchronous voice channels, or a channel which simultaneously supports asynchronous data and synchronous voice. While Bluetooth provides this new interface for a similarly new breed of smart portable devices, it also uses IEEE 802.11 for wireless LAN connectivity, allowing a compliant Bluetooth device to tetherlessly connect to existing LANs, also at 1 Mbit/sec. Hence, when integrated, Bluetooth might be used in place of an add-on wireless 10BaseT PC Card for a portable PC.

Devices that communicate in a Bluetooth ad hoc network form what is known as a "piconet". A piconet starts with at least two connected devices (such as a portable PC and a mobile phone) and can grow to as many as eight connected devices. All Bluetooth devices are peer units and have identical implementations. However, when a piconet is established, one unit will act as a master and the other(s) as slave(s) for the duration of the piconet connection. Further, multiple, connected piconets can be created, with each piconet identified by a different frequency hopping sequence. (All users participating on the same piconet are synchronized to this hopping sequence.) Within the piconet, there is a "sniff and hold mode" which allows synchronized devices to enter power-saving modes when there is reduced activity.

The Bluetooth approved service discovery architecture for version 1.0 of the specification supports a device proximity of about 5 meters (15 feet), which means that separate piconets can operate using the same frequency without interference, as long as the ad hoc networks are physically separate from one another. The architecture for version 1.0 provides device discovery, service discovery, service organization, and asynchronous notification—for an application looking for a device with a specific set of attributes.

Under the architecture for version 1.0, a Bluetooth enabled device can detect and communicate with all other version 1.0-enabled devices, without a central controller or arbiter. Devices can begin communicating without device-specific communication or human interaction. No previous knowledge about a device is needed to enable devices to discover the presence and attributes of nearby devices.

For service discovery, a device supplies two types of information: computer-meaningful attributes and human-meaningful attributes. Computer-meaningful attributes provide for automatic, hidden inter-device collaboration. Two devices that have been configured for automatic joint operation use computer-meaningful attributes to recognize each other and to perform their pre-programmed collaboration. For example, when a version 1.0-enabled camera and a version 1.0-enabled printer are brought into proximity, the camera can open a connection to the printer to image transfer and printing. Human-meaningful attributes are provided for use on PCs and PDAs. These describe device capabilities in the form of an icon, a device name, a device description, and perhaps a user guide.

Bluetooth enables users to connect a wide range of computing and telecommunications devices easily and simply, without the need to buy, carry, or connect cables. It delivers opportunities for rapid ad hoc connections, and the possibility of automatic, unconscious, connections between devices. It will virtually eliminate the need to purchase additional or proprietary cabling to connect individual devices. Because Bluetooth can be used for a variety of purposes, it will also potentially replace multiple cable connections via a single radio link.

Bluetooth transactions are secure, because Bluetooth has built in sufficient encryption and authentication and is thus very secure in any environment. In addition a frequency-hopping scheme with 1600 hops/sec is employed. All of this together with an automatic output power adaptation to reduce the range exactly to requirement makes the system extremely difficult to eavesdrop. Bluetooth technology will work globally. It works in the globally available spectrum.

The smart cards are also preferably equipped for biometric identification and authorization as explained herein.

The present invention also provides a position locator for determining the geographic location of any of the personal communication devices based upon the identity of the base station to which a digital geographic location query message is transmitted and displaying information concerning the geographic location of the personal communication device that transmitted the digital geographic location query message on the display of the personal communication device that transmitted the digital geographic location query message in response to the query transmitted from the personal communication device.

A correlation of base station to geographical location could, in accordance with another aspect of the present invention, be used to provide information to others (authorities or persons receiving calls) as to the caller's location. This could be an enhancement to called ID service if permitted.

The present invention further provides a merchant information database containing information pertaining to a plurality of participating merchants located within the geographic territory covered by the cellular communication network, each of the merchants having a merchant ID; and means for determining the merchant ID of all participating merchants located within a predetermined geographic proximity of each of the base stations and wherein the system can retrieve information pertaining to specific participating merchants from the merchant information database and transmit this information to participating users; and wherein merchant information is stored on a database that is accessible by merchants so that merchants can add, delete or alter information contained in their respective listings.

According to another aspect of the Merchant Finder System of the present invention, the query sent by the Merchant Finder could be treated as a request or solicitation for bids from merchants within the proximity of the user. Thus, in response to the query, the system finds the best value or values for the goods or services the user is interested in through a form of reverse auction. To some extent, the nature of the service will depend on the granularity of specific query available to the user, i.e., to what detail can the user specify a specific query. In some of the aforementioned examples, the user's queries are generic such as the nearest Thai restaurant in the area. However, if the user's personal communication device has sufficient storage and interface capabilities (or wireless connectivity with devices having this capability) so that detailed queries such as "red peppers" or Miller beer" could be transmitted as the query, along with an indication of the base station from which the query originated, then the query could be applied against a database-containing price information for certain goods and the location of the stores. The system could thus provide the user with an indication of the best values within the specified range or ranges.

In the context of restaurants, the system could group various restaurants according to categories based upon some objective or subjective indication such as user's comments, published reviews and the like. Thus, in one example, the system keeps track of two-star Thai restaurants separately from four-star Thai restaurants. Then, when the user queries the system for the nearest Thai restaurants within the range, the system could notify these restaurants and allow them to offer a special value to attract the user. Again, the query initiates a form of reverse auction-type bidding for the user's business. The submission of queries for bid can allow both better utilization of the restaurant's facilities and maximum value for the user. Thus, the merchant locator could be used to allow customers to solicit bids from nearby vendors—so instead of offering a daily special, the merchant could offer on-the-spot special to individuals that call or match another vendor's specials based on the user's query.

The merchant directory could, in accordance with another aspect of the present invention, also be accessible using some other indication of geographical location such as zip code, address or any other code identifying the specific geographical location. For example, the user could, in accordance with this aspect of the present venture, access the database from a computer or home phone or from a portable personal communication device and manually enter a postal code, (or other geographic indicator) so that the system could by-pass the cellular phone locator function or the user could, in accordance with another aspect of the present invention, choose an alternative mode of identifying location. Alternatively, the cellular locator feature of the phone can be used to provide position information to another device that communicates with the personal communication device through wireless connectivity (e.g., the Bluetooth standard) so that other databases may be accessed, for example.

Likewise, the system of the present invention can be adapted to work with other databases based on other geographic indicators such as postal codes or the like by including a database that correlates base station locations to other indicators of geographic position, such as postal codes. In such an embodiment, each base station has a geographic locator code associated therewith, preferably in a database. The geographic locator code may be a zip code or any other code that specifies a particular geographic location. Queries are then tagged with the base station ID, which is converted or correlated to the geographic locator code. The geographic locator code is then used to access the database and retrieve results that are returned to the user.

The system could, in accordance with another aspect of the present invention, be operated as an automatic voice response system in two ways: menu-driven and entirely voice recognition driven. In the menu-driven version, the user would operate the system by verbally saying prescribed words. For example, the system would prompt the user "for restaurants press or say 'one,' for gas stations, press or say 'two,' etc. The user could also be prompted to press or say their zip code (terminal location) or the base station ID could be used to determine location. The advantage of a menu/voice prompted system according to this version, is that the voice recognition capability of the system need not be as great since the inputs are constrained by the menu prompts. With a menu-driven system, the prompts could be stored on the user's personal communication device and the responses could be digitally recorded for transmission to a base station when the query is sufficiently refined. In the currently preferred embodiment, however, the query would be entirely performed through the communication channel to maintain simplicity of the user's personal communication device or handset.

As an alternative, the system could, in accordance with another aspect of the present invention, be entirely voice recognition-driven. The system could, for example, respond to natural speech such as "where is the nearest Thai restaurant" or "tell me what are today's specials at Geppetto's." If the request is not fully understood or there is uncertainty, the system could, in accordance with another aspect of the present invention, prompt the user for clarification. "If you are looking for the nearest Italian restaurant, press or say 1, if not, press or say 2." The voice recognition system could also recognize spoken zip codes or other location codes including street names that assist the system in pinpointing the user's location. The voice recognition could also recognize certain basic queries such as, "where am I?" or "I need help" or "help me find something" as prompts to start basic functions as described before.

The present invention provides several significant advantages over known merchant directories. In this regard, it is notes that the Internet portal Yahoo has a "yellow pages" directory that allows users to locate merchants near them. The Yahoo directory is similar to the known GPS directory, except that location is manually input, i.e., a user enters a zip code or other geographic position indicator. The present invention, on the other hand, provides an automatic position locator function, so the user need not enter a name or address. While GPS directories provide position location, the merchant databases is maintained with the user and is limited in terms of capacity and frequency of updates. Indeed, the merchant database of both known GPS and Yahoo systems are static, or at least centrally maintained. The present invention, on the other hand, provides a database that is at least partially, decentralized. In the database of the present invention, the merchants maintain or update their own entries. This is not to suggest that there is not some central structure or organization in force so as to insure that the merchant entries are useful, but there is great value in having merchants police their own entries. Having merchants maintain their own entries insures that entries can be current to minimize the demands on the system operator that might otherwise limit the scope or substance of the merchant database.

Also, because the system of the present invention is linked to the global information network (GIN) or Internet, the system can "shop around" a user's query to various participating merchants so that merchants would have a chance to offer a special value or incentive to the user for choosing the merchant's services. In other words, the user's query could be treated as a request for bids from merchants that meet the criteria specified by the user, i.e., the user's query is subjected to a reverse auction on the fly.

The use of a dynamic merchant database, i.e., a merchant database containing entries that merchants can verify, update, or modify or even actively respond to user queries, will yield a database that is organic. Also, the user's hardware requirements are minimized since much of the complexity of such a system is separate from the user's personal communication device. In this aspect of the present invention, the user's personal communication device is functioning as the terminal to an Internet-based smart network. The system works with a handset that can be as simple as a conventional digital phone and has increased portability.

An essential aspect of present invention is the provision of a post and retrieve advertising system. The system includes a central database (basket) that either contains information or links to information (i.e., web pages). The contents of any particular merchant's "basket" or web page can be modified by the respective merchants so that each merchant can modify its own information but can't modify information of others. Moreover, there is standard information stored about each merchant that posts to the database that allows the system to retrieve information responsive to users' requests. This information about the merchant may be geographical location and type of product, it could also be caliber of service based upon prior user's recommendations, professional critics or other subjective rankings.

The system could store and retrieve information repetitive user information without direct or dynamic user input. Information that might be stored includes, the type of product the user is interested in (as determined by user inpu), most frequent user location or other input. This information would be valuable for marketing, if such use is acceptable to users. Moreover, since the information is stored users don't have to input information each time). The system also preferably includes means for tracking referrals to see if the user follows up on the referral. It should also be apparent that the system of the present invention can be used in conjunction with other systems. Thus, for example, a user query could be received, tagged with a base station location that identifies the geographic position of the user and then formatted into a query against an existing merchant database such as the Yahoo database. There are, however, simplicity advantages to linking the customer and the merchant by a single geographic indicator—base station location,—which is "close enough" but not so close that the range has to be expanded to make it useful. Thus, it should be appreciated that the system of the present invention offers several significant advantages. First, the merchant can update their own entry. Secondly, the base station location is "close enough" but to be helpful, but not too complicated. Moreover, the granularity of base station locations, i.e., the relative spacing of the base station locations, is likely to correspond to the density of development in any particular area. Thus, in accordance with important aspect of the present invention, using cellular base station locations as the geographic indication provides anor it's an automatic range adjustment. In more densely populated areas, the system will tend to find merchants that are located closer to the user since there are likely to be more such merchants. In areas where merchants are likely to be spread apart by greater distances, the base stations are also likely to be spaced further from one another.

It should be recognized that the merchant database or data need not be accessed through the global information network (GIN, Internet or web). As an alternative, the merchant database data can, in accordance with another aspect of the present invention, be downloaded to a smart card in an airport or hotel or some other remote location. Alternatively, a mag card can be provided to passengers as they leave an airplane. The mag card provided to the passengers might, for example, include free cellular airtime, at the same time, download information concerning participating merchants to the handset. The handset can, in accordance with the present invention, be designed to receive data (through infra red or wire transmission, e.g., Bluetooth protocol or by reading a mag card or other electronic storage device). The user can, in accordance with another aspect of the present invention, acquire comprehensive merchant listings for particular cities as either promotional item or a purchased item. The key is that the phone or personal communication device provides the required information as to the user's location so that the user need not provide this information. Again, the database under the present invention identifies merchants by their proximity to cellular base stations or other known cellular locations.

Moreover, the architecture of the merchant finder of the present invention is especially well designed for use outside of a user's home territory. Since position location is automatic, the merchant finder of the present invention is especially useful just when such assistance is most often required—in a location other than home where a user may not know his or her address or location and be familiar with local streets in the new city.

It should be appreciated that the voice queries could also be subjected to a reverse auction process. For example, the user might say "What are the best Italian restaurants in this area." Whereupon, the system will determine the user's location and search for vendors within the area. The query could be applied against a database-containing price and/or quality information for certain goods and services and the location of the merchants. If desired, vendors could be notified of the query and allowed to make offers. The vendors can be ranked based upon price, customer satisfaction or some other criteria. The system could thus provide the user with an indication of the best quality or values within the specified range or ranges.

In the context of restaurants, the system could again group various restaurants according to categories based upon some objective or subjective indication such as user's comments, published reviews and the like. Thus, in one example, the system keeps track of two-star Italian restaurants separately from four-star Italian restaurants. Then, when the user queries the system for the best Italian restaurants within the range, the system could notify the restaurants in the highest category and allow them to offer a special value to attract the user. Again, the query initiates a form of reverse auction-type bidding for the user's business. The submission of queries for bid can allow both better utilization of the restaurant's facilities and maximum value for the user. Thus, the merchant locator could be used to allow customers to solicit bids from nearby vendors—so instead of offering a daily special, the merchant could offer on-the-spot special to individuals that call or match another vendor's specials based on the user's query.

Other user interface options include use of a roller ball built into the personal communication device or a video phone interface. Use of a video phone interface would allow the personal communication device to be used in connection with the virtual retailing aspect of the present invention.

The database could, in accordance with another aspect of the present invention also include merchant rankings based on various types of feedback including user responses, professional critiques, etc. In accordance with another aspect of the present invention, however, the personal communication devices could be used to solicit and gather feedback. With this feature, for example, the system queries the user a pre-set time after a user has made a request using the system: "Did you visit the merchant?" Yes/no. This query is exemplary since the question might not be necessary, if the user's personal communication device includes a personal chip (smart card) that records where the user shopped (if yes). Further queries could include: How would you rate the experience? (1) outstanding; (2) good; (3) fair; (4) poor. Alternatively, the evaluation could be as simple as "favorable," "unfavorable" or "neutral." The user could, in accordance with another aspect of the present invention be rewarded for responding to this "survey" through points for an adjustment in the respective redemption rate or through free communication time. The merchants could, according to the present invention, be rated based upon these responses and could, in accordance with another aspect of the present invention, be rewarded using the reward system of the present invention for consistently good service.

Consumer or professional rankings gathered and associated with merchant rankings as described above, could be used to categorize merchants so as to allow the system to separate merchants fitting the same general description even further. Thus, the system could maintain separate records of Italian restaurants that are rated outstanding versus Italian restaurants that are rated fair. This would be particularly helpful when conducting a reverse auction in response to user query. Thus, for example, when a user requests the location of the nearest Italian restaurant, the system can provide useful information concerning the quality of service to be expected. Likewise, since the system can take a user's query and use the query as a request for input and bids or proposals or special offers it is helpful to compare quality or level of service as one factor and making a final determination.

Because the system has the capability of obtaining customer impressions of the service or goods offered by a wide variety of merchants (through instant polls and incentives) it is also possible to store this information in a database (such as an SQL database, for example) and then identify customers with common responses to the vendors. The present invention also provides an intelligent recommendation system based on impressions of "similar" customers.

One of the principal advantages of using cellular phones as personal communication device is that the hardware is already in place. This gives the system a chance to become embedded in user's lifestyle so that as hardware improves, users can be transitioned to systems they know. Use of an incentive or loyalty program will strengthen this bond.

One of the principal obstacles faced through the use of conventional cell phones, is the speed of data transmission or the cellular network. There are, however, efforts on the way to improve this transmission speed. The amount of data transmitted is preferably selected based upon the capabilities of the participant (user) hardware. As mentioned before, one advantage of the system of the present invention is that demands on the user's handset or personal communication device are minimized. Most processing is done at a remote location in response to simple commands so that the speed of data transmission is not a significant limitation on the ability to query the system. Data transmissions can, however, limit the nature of data down-loaded to the personal communication device through response to a query. Naturally, the system of the present invention will be even more advantageous as the speed (rate) data transmission over the cellular network increases.

The present invention also provides a system and method for creating incentives for participating users to encourage desired participant actions preferably includes a computer implemented incentive program for encouraging certain participant actions, the program comprising: a plurality of participants; a participant ID associated with each participant; a redemption rate associated with each participant ID; a first reward program under which participants may earn points for certain actions; a second reward program through which the redemption rate associated with a particular participant is adjusted in response to certain participant action.

The position locator of the present invention preferably comprises a cellular position locator system for use in connection with a cellular communication network that includes a plurality of geographically spaced base stations that each have a base station identity and are each capable of communication with a mobile exchange that is in communication with a fixed communication network. The cellular position location system comprises a plurality of personal communication devices. The personal communication devices each include: a unique digital code stored in memory that identifies the device; a display; a user interface for allowing an user to generate a digital geographic location query message; a transmitter and receiver for wireless communication with the cellular communication network so as to allow a digital geographic location query message generated on the personal communication devices to be transmitted by placing a call through one of the base stations. The system further includes means for determining the geographic location of any of the personal communication devices based upon the identity of the base station to which a digital geographic location query message is transmitted and displaying information concerning the geographic location of the personal communication device that transmitted the digital geographic location query message on the display of the personal communication device that transmitted the digital geographic location query message in response to the query transmitted from the personal communication device.

The user interface of the personal communication devices preferably provides the user with a sequence of generic menu choices that become progressively more specific so as to narrow the user's particular query and wherein the menu selections generate a digital geographic location query message that is stored in memory before transmission to a base station.

The personal communication devices may include a range selector through which the user can adjust the geographic range to be queried. The devices preferably include an easily understood model (representation) of the range covered by queries to assist the reader in understanding and selecting an appropriate range.

The digital geographic location query message transmitted from the personal communication device contains the following components: a bit string identifying the personal communication device transmitting the message; a bit string identifying the message as a digital geographic location query message and a bit string indicating the specific nature of the request; and wherein the digital geographic location query message transmitted from the personal communication is received by a base station and passed along to a mobile exchange along with a further bit string that identifies the base station.

The cellular position location system further comprises a merchant information database containing information pertaining to a plurality of participating merchants located within the geographic territory covered by the cellular communication network, each of the merchants having a merchant ID; and means for determining the merchant ID of all participating merchants located within a predetermined geographic proximity of each of the base stations and wherein the system can retrieve information pertaining to specific participating merchants from the merchant information database and transmit this information to participating users. Each base station preferably has a base station ID; and the participating merchants are classified into a plurality of classes and the system can search for merchants by class wherein a base station receiving a digital geographic location query message, passes the digital geographic location query message along with the base station ID to a computer that identifies merchants, if any, that satisfy the query and are located near personal communication device that transmitted the digital geographic location query message and a computer for retrieving information from the merchant information database and transmitting information retrieved from the merchant database to the personal communication device that transmitted the personal communication device for display on the display of the personal communication device that transmitted the personal communication device.

In accordance with the present invention, merchant information is preferably stored on a database that is accessible by merchants (through the internet, for example) so that merchants can add, delete or alter information contained in their respective listings.

The personal digital communicatio