Predicting Store Profit and Customer Satisfaction: The Moderating Role of Customer BATNA and Salesperson's Job Attitude

Abstract

This study examined real world sales negotiations. We collected data in collaboration with a large Taiwanese eyeglasses company. Our data showed that the higher the first offers (made from either side) the higher the store profit for the final deal, but this effect was lessened when the had a stronger BATNA (measured by the number of times the customers had compared other stores’ prices in advance). In terms of customers’ perceptions of service quality, a different set of predictors emerged. Customers of salespeople who spent more time talking to customers about the product reported higher service quality, but this only occurred among salespeople high in job satisfaction. We discuss the implications of our findings both for the management and for the customers.