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Price negotiating for services : elucidating the ambivalent effects on customers’ negotiation aspirations
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Alavi, Sascha, Habel, Johannes, Schwenke, Marco and Schmitz, Christian (2020) Price negotiating for services : elucidating the ambivalent effects on customers’ negotiation aspirations. Journal of the Academy of Marketing Science, 48 . pp. 165-185. doi:10.1007/s11747-019-00676-4 ISSN 0092-0703.
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Official URL: https://doi.org/10.1007/s11747-019-00676-4
Abstract
Although customers frequently negotiate the prices of both goods and services, academic research has mostly examined negotiations in goods contexts, neglecting the fact that negotiations for services may be different. This study examines the consequences of customers’ price negotiation behavior relating to services as compared to goods. Using five empirical studies with field and experimental data, the authors show that services exert ambivalent effects. First, the heterogeneity intrinsic to services leads customers to aspire to better negotiation outcomes because customers perceive higher risk and regard negotiation as more legitimate, particularly if services are customized. Second, the inseparability of services leads customers to lower their negotiation aspirations because they fear negative consequences, particularly if customers are closely integrated in the service process. Building on these findings, the authors conceptualize and test communication strategies that diminish customers’ negotiation aspirations. Study results provide actionable recommendations for managers and salespeople in service industries.
Item Type: | Journal Article | ||||||||
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Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HG Finance |
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Divisions: | Faculty of Social Sciences > Warwick Business School > Marketing Group Faculty of Social Sciences > Warwick Business School |
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Library of Congress Subject Headings (LCSH): | Prices, Willingness to pay, Negotiation in business , Consumer behavior | ||||||||
Journal or Publication Title: | Journal of the Academy of Marketing Science | ||||||||
Publisher: | Springer | ||||||||
ISSN: | 0092-0703 | ||||||||
Official Date: | March 2020 | ||||||||
Dates: |
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Volume: | 48 | ||||||||
Page Range: | pp. 165-185 | ||||||||
DOI: | 10.1007/s11747-019-00676-4 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Access rights to Published version: | Open Access (Creative Commons) | ||||||||
Date of first compliant deposit: | 22 July 2019 | ||||||||
Date of first compliant Open Access: | 15 August 2019 | ||||||||
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