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Seller’s information sharing strategy to counter a bid from a rival supplier: a study of negotiations in two cultures created by Abhik Roy and Michael B. Menasco

By: Contributor(s): Material type: TextTextSeries: Journal of marketing theory and practice ; Volume 23, number 4Philadelphia: Taylor and Francis, 2015Content type:
  • text
Media type:
  • unmediated
Carrier type:
  • volume
ISSN:
  • 10696679
Subject(s): LOC classification:
  • HF5415 JOU
Online resources: Abstract: The experimental study tests hypotheses regarding the effect of a combination of a buyer’s bargaining advantage and an information-sharing tactic by a seller on outcomes of a price negotiation. The buyer wields another supplier’s bid price (threat). The seller shares private information about its own valuation of potential outcomes. We find a positive effect of information sharing on outcomes—but only when the seller is facing a threat. We replicate the study in China and find no effect of information sharing on negotiated outcomes. However, in both cultures, the effects of information sharing on perceived fairness and seller influence are similar.
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The experimental study tests hypotheses regarding the effect of a combination of a buyer’s bargaining advantage and an information-sharing tactic by a seller on outcomes of a price negotiation. The buyer wields another supplier’s bid price (threat). The seller shares private information about its own valuation of potential outcomes. We find a positive effect of information sharing on outcomes—but only when the seller is facing a threat. We replicate the study in China and find no effect of information sharing on negotiated outcomes. However, in both cultures, the effects of information sharing on perceived fairness and seller influence are similar.

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