The role of leadership in salespeople’s price negotiation behavior

Alavi, Sascha; Habel, Johannes; Guenzi, Paolo; Wieseke, Jan

doi:10.1007/s11747-017-0566-1

Cited by 46 publications

(34 citation statements)

References 120 publications

(187 reference statements)

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“…Negotiation aspirations lead to more persistent negotiation behavior, thus improving a customer's negotiation outcome (Hüffmeier et al 2014;Alavi et al 2018;Wieseke et al 2014). To replicate this well accepted finding, we hypothesize: H6: The higher customers' negotiation aspiration, the lower the negotiated price.…”

Section: The Effect Of Negotiation Aspiration On Negotiated Pricementioning

confidence: 77%

Price negotiating for services: elucidating the ambivalent effects on customers’ negotiation aspirations

Alavi¹,

Habel

Schwenke

et al. 2019

J. of the Acad. Mark. Sci.

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Although customers frequently negotiate the prices of both goods and services, academic research has mostly examined negotiations in goods contexts, neglecting the fact that negotiations for services may be different. This study examines the consequences of customers' price negotiation behavior relating to services as compared to goods. Using five empirical studies with field and experimental data, the authors show that services exert ambivalent effects. First, the heterogeneity intrinsic to services leads customers to aspire to better negotiation outcomes because customers perceive higher risk and regard negotiation as more legitimate, particularly if services are customized. Second, the inseparability of services leads customers to lower their negotiation aspirations because they fear negative consequences, particularly if customers are closely integrated in the service process. Building on these findings, the authors conceptualize and test communication strategies that diminish customers' negotiation aspirations. Study results provide actionable recommendations for managers and salespeople in service industries.

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Section: The Effect Of Negotiation Aspiration On Negotiated Pricementioning

confidence: 77%

Price negotiating for services: elucidating the ambivalent effects on customers’ negotiation aspirations

Alavi¹,

Habel

Schwenke

et al. 2019

J. of the Acad. Mark. Sci.

Self Cite

View full text Add to dashboard Cite

show abstract

“…Empirical research also indicates that, under many conditions, discount processes requiring internal seller approval generate greater profit than allowing salespeople to unilaterally reduce price (Stephenson, Cron, and Frazier 1979). In addition, research in retail settings suggests that customers can influence salesperson actions regarding discounts (Alavi et al 2018; Wieseke, Alavi, and Habel 2014). Notably, salesperson actions in B2B discount processes have not been empirically studied.…”

Section: Literature Review and Research Frameworkmentioning

confidence: 99%

“…The customer-specific discount process begins with a customer’s concern regarding a product’s price. The salesperson tries to assuage that concern through seller advocacy, offering the seller’s point of view (Alavi et al 2018). If the concern is allayed, the process ends.…”

mentioning

confidence: 99%

Salesperson Dual Agency in Price Negotiations

Lawrence¹,

Scheer²,

Crecelius³

et al. 2021

Journal of Marketing

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When should B2B firms encourage their salespeople to advocate for the customer in pricing negotiations? This research extends dual agency theory to the sales domain to address this question. In Study 1, the authors examine discount negotiations with secondary data from a major U.S. industrial distributor. They find that the customer and seller both experience the most favorable outcomes when the salesperson engages in both customer advocacy toward the seller and seller advocacy toward the customer; either type of advocacy alone is counterproductive. Study 2 confirms these results using matched survey, pricing, and profit data and demonstrates a key boundary condition: broad customer–seller ties enable the synergy between customer advocacy and seller advocacy by enhancing the firms’ abilities to monitor the salesperson. In Study 3, experiments with B2B buyers replicate key findings and provide evidence for theorized mechanisms. This research emphasizes the interdependence between the salesperson’s dual roles and demonstrates how the salesperson can serve as an effective agent of both the customer and seller, thereby mitigating challenges associated with role conflict.

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“…If firms want their salespeople to adopt and use social media in their jobs, they should ensure that they have sufficient opportunity to do so. Opportunity may stem from market-related factors (e.g., Alavi, Habel, Guenzi, & Wieseke, 2018 ; Wu, Balasubramanian, & Mahajan, 2004 ) and organizational resources that enable salespeople (e.g., Johnson & Friend, 2015 ; Nijssen et al, 2017 ; Sabnis et al, 2013 ). In our case, we distinguish (1) the market environment, in particular the propensity of customers and competitors to use social media in business relationships, and (2) the organizational environment, specifically the social influence (peer use) as well as the organization's support (training as well as information and communication technology [ICT] support) for using social media in its sales processes.…”

Section: Theoretical Background: Moa Logicmentioning

confidence: 99%

Studying the antecedents and outcome of social media use by salespeople using a MOA framework

Guenzi

Nijssen

2020

Industrial Marketing Management

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The role of leadership in salespeople’s price negotiation behavior

Abstract: Please refer to published version for the most recent bibliographic citation information. If a published version is known of, the repository item page linked to above, will contain details on accessing it.

Cited by 46 publications

References 120 publications

Price negotiating for services: elucidating the ambivalent effects on customers’ negotiation aspirations

Price negotiating for services: elucidating the ambivalent effects on customers’ negotiation aspirations

Salesperson Dual Agency in Price Negotiations

Studying the antecedents and outcome of social media use by salespeople using a MOA framework

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