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Understanding the balance of power and ethics in a bank-customer negotiation

  • Claude Alavoine

In a highly competitive context with low interest rates and a low level of trust in the institutions from the customer's perspective, the current advice is to profit from the change in this balance of power to negotiate or re-negotiate with banks that are desperate to find new and profitable customers. However negotiation is a complex activity and beyond the usual recipes for success research has tried to understand the key variables and the mechanisms that lead to specific outcomes. The notion of power, its sources and the balance or asymmetry that establishes itself before and during the process is not the only expression of an adjustment between offer and demand. There are many other elements that must be considered before any attempt to engage. Our intention in this paper is to present aspects of the conceptual framework regarding power and negotiation and to provide eventually some recommendations regarding this new context of bank-customer relationship

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Paper provided by Department of Research, Ipag Business School in its series Working Papers with number 2014-221.

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Length: 14 pages
Date of creation: 10 Apr 2014
Date of revision:
Handle: RePEc:ipg:wpaper:2014-221
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