All in, one-at-a-time or somewhere in the middle? Leveraging the composition and size of the negotiating package

Abstract

PurposeWhile industrial marketers have long bundled their products and services to sell them as packages, to what extent should negotiators also rely on packaging their offers? Clearly, negotiating at a package level can tax the cognitive capacity of the involved parties at some point. Therefore, this study aims to analyze the impact of the number and type of issues that should be negotiated simultaneously to leverage the package strategy efficiently and effectively in multi-issue buyer-seller negotiations.Design/methodology/approachThe authors conducted and analyzed negotiation simulations with 676 students from 2 public universities.FindingsThe authors’ results suggest that negotiating three out of six issues simultaneously is the least efficient but most effective strategy in multi-issue buyer-seller negotiations. Moreover, they found that bundling distributive and integrative issues is more efficient and effective than only bundling distributive or integrative negotiation issues in a package offer.Originality/valuePast research has examined the impact of negotiating a package as compared to each issue separately; however, little empirical attention has been directed toward understanding how to apply a package strategy in complex multi-issue negotiations.