Abstract
This chapter examines the important human interactions called bargaining and negotiation in the setting of personal selling. Economics and psychology provide important concepts and variables which, when combined, produce favorable insights to bargaining, negotiations, and personal selling. Whenever the terms of a sales transaction are determined, or a business deal is settled, bargaining is likely. In a sense, everyone becomes a bargainer at one time or another. Bargaining occurs between all forms of human groupings: individuals, groups, organizations, and countries. The conditions under which “bargaining” takes place are when two or more parties have divergent interests or goals and communication between the parties is possible. Three additional conditions must also exist in order for bargaining to occur (Chertkoff and Esser, 1976):
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1.
Mutual compromise must be possible. If one of the parties must choose between total victory or complete loss, no bargaining occurs. Bargaining situations require intermediate solutions for the parties involved.
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2.
The possibility must exist for provisional offers to be made by those involved in the situation.
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3.
The provisional offers must not determine the outcome of the situation, until the terms are accepted by all parties.
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© 1988 Springer Science+Business Media Dordrecht
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Johnston, W.J., Benton, W.C. (1988). Bargaining, Negotiations, and Personal Selling. In: van Raaij, W.F., van Veldhoven, G.M., Wärneryd, KE. (eds) Handbook of Economic Psychology. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-7791-5_12
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DOI: https://doi.org/10.1007/978-94-015-7791-5_12
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