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Customer-oriented salespeople’s value creation and claiming in price negotiations

Author

Listed:
  • Roland Kassemeier

    (University of Warwick)

  • Sascha Alavi

    (University of Bochum)

  • Johannes Habel

    (University of Houston)

  • Christian Schmitz

    (University of Bochum)

Abstract

Although customer orientation is widely endorsed as a crucial salesperson characteristic, little is known about its effect in price negotiations with customers. This study rectifies this omission and argues for its ambiguous effects. While customer-oriented salespeople create value for customers that enables them to reduce price concessions, they may overly focus on customers’ needs and, in doing so, hesitate to defend against such requests. Results of two quantitative studies and one preliminary qualitative study reveal that customer-oriented salespeople do not unconditionally benefit from their created value in price negotiations with customers. That is, salespeople effectively leverage their created value to negotiate prices with customers only if their sales managers instill confidence that high prices are justified. Furthermore, we find that profit-related incentives reduce undesired consequences of salespeople’s customer orientation in price negotiations.

Suggested Citation

  • Roland Kassemeier & Sascha Alavi & Johannes Habel & Christian Schmitz, 2022. "Customer-oriented salespeople’s value creation and claiming in price negotiations," Journal of the Academy of Marketing Science, Springer, vol. 50(4), pages 689-712, July.
    • Handle: RePEc:spr:joamsc:v:50:y:2022:i:4:d:10.1007_s11747-022-00846-x
    DOI: 10.1007/s11747-022-00846-x
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    Cited by:

    1. Kjellberg, Hans & Sjögren, Ebba & Krafve, Linus Johansson, 2023. "The functions of known to be inaccurate prices in markets: A cross-country comparison of pharmaceutical list pricing," Journal of Business Research, Elsevier, vol. 167(C).
    2. Park, Hyewon & Hur, Won-Moo, 2023. "Customer showrooming behavior, customer orientation, and emotional labor: Sales control as a moderator," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).

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