Saving on Discounts through Accurate Sensing - Salespeople's Estimations of Customer Price Importance and Their Effects on Negotiation Success

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Ressource 1Download: Manuscript_CPI Sensing.pdf (1088.80 [Ko])
State: Public
Version: Author's accepted manuscript
Serval ID
serval:BIB_62A81DE5D66B
Type
Article: article from journal or magazin.
Collection
Publications
Title
Saving on Discounts through Accurate Sensing - Salespeople's Estimations of Customer Price Importance and Their Effects on Negotiation Success
Journal
Journal of Retailing
Author(s)
Alavi  S., Wieseke  J., Guba  J.
ISSN
0022-4359
Publication state
Published
Issued date
03/2016
Peer-reviewed
Oui
Volume
92
Number
1
Pages
40-55
Language
english
Abstract
Discount negotiations are prevalent in retailing and serve as key instruments for adjusting retail prices to the individual customer. Accurate perception of the importance the customer attaches to price, which the authors label as customer price importance (CPI) sensing, should be critical to retail salespeople's negotiation performance. However, prior research has neither conceptually nor empirically investigated the role of CPI sensing in customer salesperson interactions. Addressing this research void, this study analyzes both antecedents and consequences of salespeople's accurate CPI sensing in discount negotiations with customers. The authors use a four-sources multilevel data set from the B2C automobile retailing context that comprises data on 537 salesperson customer interactions. Results provide evidence that through accurate CPI sensing, salespeople are able to substantially reduce the discounts they grant to customers (on average by $616 per transaction). Moreover, with respect to CPI sensing accuracy, results show that retail salespeople misperceive CPI owing to reliance on heuristic customer cues.
Keywords
Retail negotiations, Individual pricing, Perceptual accuracy, Price importance, Negotiation performance
Web of science
Create date
02/09/2016 14:11
Last modification date
20/08/2019 14:19
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