Sales Negotiation Research Articles

THE ROLE OF PERSUASIVE DIALOGUE IN THE NEGOTIATION OF THE SALE OF GOODS AT SIMPUR CENTER, BANDAR LAMPUNG CITY

This study discusses the role of persuasive dialogue in negotiating the sale of goods at the Simpur Center in Bandar Lampung City. This shopping center has a significant role in meeting consumer needs and in the context of intense competition, the ability to conduct effective sales negotiations becomes important. This study uses a qualitative approach with the case study method to explore a deep understanding of how persuasive dialogue contributes to the outcome of sales negotiations. The main findings of this study include persuasive dialogue strategies used by sellers, customizing messages according to buyer profiles, managing rejection, and building customer relationships. This study shows that the seller's ability to use persuasive dialogue influences the success of sales negotiations. Tailoring messages based on local preferences and culture, as well as being able to overcome resistance with relevant solutions, also contribute to successful negotiations. Furthermore, this study emphasizes the importance of understanding local culture in persuasive dialogue, because adaptation to cultural values can strengthen communication. Persuasive dialogue plays a central role in negotiating the sale of goods at the Simpur Center in Bandar Lampung City. In a competitive environment, product knowledge, tailored persuasive dialogue strategies and the ability to manage rejection wisely are all important factors in achieving success in sales. In closing, suggestions are given to improve the seller's ability to apply effective persuasive dialogue in order to achieve success in the sales negotiation process.

Applying Media-Richness Concepts for the Optimization of Industrial Negotiations

Despite increasing involvement in a global market and growing sophistication of salesperson technologies, salespeople feel unprepared to negotiate digitally and student-learning outcomes tied to digital negotiation exercises are unclear. The present study first outlines the digital negotiation role-play exercise and then compares student learning outcomes between digital and face-to-face negotiation role-plays. It answers research questions revolving around middle-range-richness mediums, i.e., digital communication tools relying mostly on text (e.g., SMS texts). The benefits of digital experiential sales negotiation exercises are uniquely important for building real-world industrial sales negotiation skills due to the complexity and quantity of negotiation messages exchanged.

Multiple parties behind and across the table: A role-play simulation of parallel, competitive order negotiations for training B2B sales professionals

For a couple of years, customer firms have been inviting shortlisted suppliers to so-called ‘supplier days’, where they negotiate potential deal proposals in parallel with the competing suppliers. We describe these parallel, competitive order negotiations (PCONs) and thereby introduce them to the academic B2B community. Supplier salespeople are regularly overwhelmed by these practices and require more and more specific training. We review the literature on effective salespersons' skills training with a focus on sales negotiation and then present a role-play simulation of PCONs for training purposes, called “Lithium Ion Battery”, developed in close cooperation between the academic and practitioner authors. We discuss learning objectives of the simulation, closely linked to the characteristics of PCONs, and then present the simulation set-up including the cover story, negotiable issues, involved parties, and simulation procedures. We disclose our simulation development, testing, and application, and discuss challenges encountered on the way. Running the simulation in corporate and Executive MBA trainings shows a high degree of external validity and participant buy-in. Preliminary evidence of training evaluation is also positive. We conclude that the presented simulation is a valuable and suitable training device.

The big spaces in sales negotiation research

We identify three key priorities for needed work on sales negotiations, based on current marketplace conditions and gaps in the literature. We call these priorities ‘big spaces’: blank or unoccupied portions or areas. Big space #1 considers who the negotiators might be, whether they are consumers or firms. While much research has considered the characteristics and motivation of individual negotiators, much less investigates the negotiating dyad as a mix of firms and individuals, or between two individuals. Big space #2 recognizes the need for more understanding of negotiations that occur in digital contexts. The pandemic has clearly accelerated movement to these spaces and illuminated many intriguing opportunities. Finally, Big space #3 considers relational phenomena that can arise between negotiators, even in brief, one-time encounters. We also suggest novel directions for negotiations that occur over time.

ANALISIS KEBERHASILAN PELATIHAN MENGGUNAKAN METODE EMPLOYEE NET PROMOTER SCORE DAN MODEL KIRKPATRICK

This research aims to analyze trainings’ success using Employee Net Promoter Score Method and Kirkpatrick Model. As this study attempts to conclude research phenomena that are disclosed using research reports, it is considered as descriptive research. Using saturated sampling, all eight employees of PT. XYZ who have joined sales negotiation trainings were selected as the sample. Based on the descriptive statistical analysis, the Employee Net Promoter Score is in the high category. According to Kirkpatrick Model analysis, the relevance of the training programs with the real job is in the outstanding category, the understandability of the training material is in the outstanding category, the applicability of the training materials to the real job is in the outstanding category, facilitators’ attractiveness in running the program is in the outstanding category, and the understandability of facilitators in delivering the material is in the outstanding category. Based on the scores above, it can be concluded that the trainings conducted by PT. XYZ is successful.

Goal orientation and negotiation strategies: an empirical analysis

PurposeThis study aims to examine how negotiators’ goal orientations may affect their negotiation strategy and consequently the negotiation outcomes.Design/methodology/approachUsing cross-sectional data collected from a Fortune 500 Global firm based in France, this study empirically examines how goal orientations of negotiators may affect their value creation (win-win) and value-claiming (win-lose) negotiation behavior reflecting their desired outcome in a given sales negotiation. In so doing, this study proposes a conceptual model and tests a number of hypotheses using partial least squares structural equation modeling.FindingsThis study shows that learning and performance goal orientations (PGO) are indeed related with two commonly used negotiation strategies: win-win (integrative) and win-lose strategies (distributive) strategies, respectively. The results indicate that while the learning orientation has a positive relationship with a win-win strategy and a negative relationship with a win-lose negotiation strategy, just the opposite is true with the PGO, which is positively related to win-lose strategy and negatively related to win-win strategy.Originality/valueTo the best of the authors’ knowledge, this research represents one of the first attempts to connect goal orientations with negotiations strategies to achieve desired negotiation outcome using data from salespeople with negotiation experience.

How small enterprises manage unexpected customer requests in B2B sales

This article analyses upstream supply chain practices in small enterprises to determine how firms manage unexpected customer requests in business-to-business (B2B) sales situations. A small company's offer often fails to satisfactorily meet a customer's needs in B2B sales situations. In such situations, an upstream supply chain network plays an important role in advancing B2B sales negotiations. The selection of a new supplier is crucial if the existing supplier network is not able to respond within an acceptable amount of time. In small firms, well-managed supplier networks can ensure fast delivery. Selecting a new supplier during sales negotiation could be risky; however, potential risks could be mitigated by having a core group of suppliers who can expeditiously fulfil requests.

Validation of an Information Asymmetry Scale in the Portuguese Real Estate Market

Purpose – The motivation to study the information asymmetry in the real estate market comes from the fact that this market is far from being efficient and perfect, and buying a house is, for most families, the biggest deal of their lives. This paper aims to validate a scale that evaluates the information asymmetry in the Portuguese real estate market. Theoretical framework – During the sales negotiation process, estate agents exhibit the positive aspects of the house, as well as its amenities and qualities, and camouflage the least positive aspects of the deal. Finding both the positive and the negative aspects is crucial. Design/methodology/approach – To collect the sample, an instrument based on a questionnaire survey was used, which analyses the information asymmetry in the real estate market and the sociodemographic profile of estate agents in Portugal. The sample is composed of 350 commercial delegates from the three biggest real estate mediation companies in the Portuguese market. Findings – The results show that the scale for the information asymmetry in the Portuguese real estate market is composed of six factors, which present adequate levels of validity and reliability: negative externalities, possibilities of making a deal, housing quality, service areas, proximity to businesses, and positive externalities. Practical & social implications of research – This study is expected to contribute to improving the scientific knowledge on the real estate market, and to enhancing the information transmitted by estate agents to their future clients. Originality/value – In Portugal, there is no study with such depth about this topic of research. The validation of the information asymmetry scale in the Portuguese real estate market represents a breakthrough in the knowledge in this area. Keywords – information asymmetry, real estate market, housing demand, housing location, real estate externalities.

“Turquoise negotiations” – their features & case study

The paper aims at characterizing specific type of negotiations, i.e., the ones conducted within a turquoise organization, which is a new, specific model of the functioning of modern institutions. Firstly, an organization of this type was described as both negotiations environment and party. Secondly, the features of turquoise negotiations were discussed in the frame of their different interpretations, i.e., as a process, a method of conflict resolution and reaching agreement, interdependence of the parties, and processes of decision making, communication, mutual exchange and value creation. Thirdly, a case study was presented concerning sales negotiation of turquoise nature within a company from IT sector. The summary comprises a synthesis of the features of turquoise negotiations and indicates the directions of further research.

Industrial buyer-seller interactions: negotiating in the Arabian Gulf

Purpose – The purpose of this study is to explore the key cultural factors that shape the Arab style of buyer-seller negotiations in the industrial goods sector; formulate propositions predicting behaviors of empowered buyers, avoidant buyers and deciders in an expensive industrial purchase situation; and develop a model of communication structure in an industrial buyer firm in the Arabian Gulf. In addition, the study advances propositions concerned with the bargaining style of Arab industrial buyers and the relationships between industrial sales effectiveness and negotiation tactics. Design/methodology/approach – The study draws on literature in the domains of industrial buying behavior, influence tactics in industrial buyer-seller negotiations and communication in industrial buyer-seller bargaining interactions. Findings – The more expensive an industrial purchase is the more empowered buyers will tend to anticipate the wishes of and seek the endorsement of powerful stakeholders, the more avoidant buyers will tend not to take responsibility for the purchase and the more decision makers will tend to rely on unwritten and formal rules and consult with influencers, subordinates and peers. Aggressive bargaining is unlikely to be used by Arab industrial buyers, who prefer a problem-solving approach. Sales effectiveness will be higher when industrial vendors incorporate tactics of ingratiation and inspirational appeal to influence Arab industrial buyers. Originality/value – The study offers a systematic examination of industrial purchasing characteristics through the lens of Arab culture. It synthesizes several literature streams, develops eight original research propositions and proposes a new conceptual model of the communication structure in an industrial buyer firm in the Arabian Gulf.

Digital sales negotiation stories

Cultural features influence international sales negotiations. Cultural distance and cultural intelligence are key factors related to successful outcomes. To explore these influences on sales negotiation, digital stories based on actual sales negotiations are used. The digital stories were complemented by a cultural analysis of the sales professionals involved. The analysis covered the cultural dimensions, cultural intelligence and adaptive behaviours of the negotiators. The study showed that cultural intelligence is not a sufficient predictor of sales negotiation outcomes. In contrast, the cultural distance dimensions of performance, humane and short-term orientation do relate to sales outcome. Comparing cultures at the country level indicate that flexibility in negotiation and a low context culture also results in positive outcomes. It is important to assess the cultural distance of customers and to adapt negotiation styles related to what occurs during the actual process.

An Assessment of Selected Relationships in a Model of the Industrial Marketing Negotiation Process

Given the importance of understanding the determinants of successful buyer/seller negotiations in industrial sales settings, the authors tested specific relationships in a general model proposed by Graham (1987). Sixty industrial managers participated in a simulated sales negotiation exercise, which involved the potential purchase/sale of a high-end industrial product. Insights are provided regarding the effects of demographic and personality variables on the use of coordinative (versus competitive) communication strategies in sales negotiating, as well as the subsequent effects of different strategies on both deadlock and satisfaction outcomes.

Rapid productisation: challenges and preconditions

The purpose this study is to provide tangible examples of the rapid productisation (RP) challenges in high-tech companies in a sales situation. The need to respond quickly to customer preferences in a changing business environment poses new challenges for companies. RP, a new concept originating from practical challenges, seeks to add customer value in the sales negotiation. When an existing product and service portfolio does not satisfy the customer, RP provides a faster alternative to a new product development process. This study supports managers considering RP as an option to better serve customers and to increase agility within the organisation. It explores RP and presents challenges and preconditions for RP in a sales situation.

Implementing an ROI Measurement Process at Dell Computer

This return-on-investment (ROI) evaluation study determined the business impact of the sales negotiation training course to Dell Computer Corporation. The specific metrics used include profit margin and margin attainment percentage, units sold and attainment percentage, total revenue and attainment percentage. The study applied a five-step ROI measurement process used at Dell Computer. The process steps include Plan-Develop-Analyze-Communicate-Leverage. Using this process, this particular case study involved 57 participants who attended the Dell Situational Negotiation course and an equivalent control group. To collect data, the corporate sales information database was used to compare pre- and post-training metrics for both training and control groups. A cost benefit analysis was also conducted to determine ROI of the training. Among the key findings of the study are: •There was an overall improvement of 17.63% in all metrics for the training group. The greatest improvements were in profit margin volume sales and total revenue sales, with 61.56% and 41.86% respectively. •Average quarterly compensation per participant increased by 14.11% for the 3rd quarter over the 2nd quarter for Fiscal Year (FY) 1997. •The training group performed better than the control group in all metric areas which means that the Dell Situational Negotiation has positively impacted performance and goal attainment. •The cost-benefit analysis calculated an ROI of 523.25% for a three-month period. The total net profit to the company, in margin dollars, is $763,297. •Projected annual net profits generated by Dell Situational Negotiation training is about $1.5 million per year. The recommendations generated from the results of the study include the following: •These results have to be communicated to executive and management staffs for them to recommend the training to those who have not yet attended. •Coaching and reinforcement efforts for the course have to be stepped up so that these improvements can be sustained. •Due to the significant results of this study, the course should be included in development plans of sales representatives, account executives, sales managers, and regional sales managers. •It is suggested that a follow-up study be done to identify specific negotiation skills and tools that are being used on the job.

Executing profitable sales negotiations: selling value, not price

PurposeTo identify the keys to executing profitable sales negotiations based on analysis of the negotiation approaches of high‐performing salespeople.Design/methodology/approachBayGroup International (a leading global sales consultancy) conducted a research study involving 2,000 salespeople at all levels from Fortune 500 companies across a wide range of industries. Respondents participated in an actual buy‐sell negotiation. BayGroup collected and analyzed data on the negotiation approaches taken by study participants, and determined how the approaches taken by the sales professionals who negotiated the best agreements differed from others in the study.FindingsBayGroup concluded that high performers raise their customers’ perception of value by using six fundamental strategies, summarized in the form of principles of sales negotiation. The paper not only describes the principles, but also reveals the unique, counterintuitive manner in which high‐performing salespeople plan and execute profitable sales strategy.Practical implicationsOwing to increasing pressure to improve earnings (and share prices), value‐based sales negotiation has become more critical than ever to corporate success. Use of the research conclusions and analysis from this article can provide useful guidance to sales professionals and their managers on how to execute more profitable customer agreements throughout the sales process.Originality/valueThe importance of “selling value, not price” has been fully embraced by the world's leading sales organizations, but effective approaches to implementing behavioral change in this area have been rare. This paper presents provocative findings that suggest new ways to approach this critical strategic challenge.

The Impact of Demographic Variables on Negotiators’ Problem-Solving Approach: A Two Country Study

The influence of demographic variables on the problem-solving approach in negotiation has been widely supported in the academic literature, but a majority of these studies have been limited to a single-cultural and/or Western-based context. To expand our understanding of this interrelationship at a cross-cultural level, this study examines gender, age, sales negotiation experience, tenure in the organization, and education level and their impact on the problem-solving behaviors of negotiators from two countries – the United States and Philippines. Our findings showed that none of the demographic variables influenced the problem-solving behaviors of Filipino negotiators. Gender, age and education did not affect American negotiators’ problem-solving behaviors. However, a u-shaped effect was found on sales negotiation experience and tenure in the organization for the American sample.

Interactive Video Negotiator Training: A Preliminary Evaluation of the McGill Negotiation Simulator

The authors investigated student reactions to an interactive video training program called the MCGILL NEGOTIATION SIMULATOR designed to teach negotiation skills using a sales negotiation scenario. They also determined whether the program increased learning of negotiation concepts, as measured by a pretest and posttest. The authors conducted two studies. In Study 1, undergraduate students taking a sales class used the SIMULATOR and demonstrated significant learning relative to a control group. Study 2 replicated the findings from Study 1 using a bargaining and negotiation class. Discussion focuses on the implications of the findings fromthe two studies on the use of interactive video to teach negotiation skills in the classroom.

The interaction of reward contingencies and causality orientation on the introduction of cooperative tactics in buyer–seller negotiations

AbstractThis article reports results of an experiment designed to see if reward contingencies and individual differences in causality orientation can interact to affect the frequency with which buyers and sellers introduce cooperative tactics into a sales negotiation. A face‐to‐face simulation is employed to consider these effects. A 2 × 2 ANOVA (task‐contingent/task‐noncontingent rewards × control/autonomy orientation) tests this interaction. These two factors interact to affect cooperation. A buyer or seller with an autonomous causality, in a situation with task‐noncontingent rewards, is most likely to introduce cooperative negotiation tactics. Task‐noncontingent rewards are more effective than task‐contingent rewards for autonomous causality buyers and sellers, but not for control causality buyers and sellers. © 2001 John Wiley & Sons, Inc.

Managing Customer `Objections' during Real-Life Sales Negotiations

In this paper we invesigate a common locus of consumer decision-making in buyer-seller interactions—customer non-acceptances to a proposed sale and the verbal negotiations that often ensue. The research is based on a study of recordings of real-life telephone-selling calls. In this study the prospective customers often raised their nonacceptances implicitly, and salespeople and prospective customers tended, at first, to negotiate these non-acceptances in veiled, indirect and delicate ways. Explicit objections and rejections appeared to be less important and consequential than is usually appreciated. This type of sales negotiation is contrasted with the way difficulties are raised and resolved within conversational interaction. Also we briefly compare our findings with the advice given by sales trainers and address the implications of this type of research for our understanding of the role and influence of communicative skill on selling activity.

International Sales Negotiations:

Successful business negotiation in global markets requires effective cross-cultural communication between buyer and seller. Building on a growing body of literature, this paper develops a four-step, funnel-like model of international sales negotiation. This bi-directional framework traces the communications flow from broad non-selling issues to specific aspects of the international sales transaction. The four stages—non-task related activities, information exchange, persuasion, and adjustment—are then discussed individually. Finally, directions for future research in the area of international sale negotiation are presented.