Analyzing Computer Mediated Buyer-Seller Negotiations: Advantages of Conceptual Precision and Observational Methods

Abstract

The relative effectiveness of three communications media is examined using laboratory methods and applying social presence theory. The three media - face-to-face interaction (FTF), instant messaging (IM), and email (EM) - are conceptualized to have different levels of social presence. Their impact on the buyer-seller negotiation processes, such as integrative and distributive bargaining strategies, and negotiation outcomes, such as negotiation time, joint profit, and joint satisfaction were examined using negotiation simulations conducted in FTF, IM, and EM conditions. Participants completed questionnaires after negotiating in one of the three conditions, audio recordings were made for some of the FTF interactions, and transcripts of many of the computer mediated interactions were secured. The transcripts allowed for a comparison between perceptual measures and observational measures of bargaining behaviors in the three conditions. The central finding of the study is that higher social presence caused higher levels of distributive negotiation behaviors (measured using content analysis), which in turn caused more time spent, lower joint profits, and lower joint satisfaction for negotiators.