Determinants of satisfaction in sales negotiations with foreign buyers: perceptions of US export executives

Abstract

The promotion of US exports has been a priority for the US Department of Commerce, with the aim of reducing the trade deficit. This, combined with the worldwide reduction in trade barriers, has opened up a number of foreign markets for US companies. A key element of export sales development is successful sales negotiations between US exporters and potential foreign buyers. This study examines sales negotiations between US exporters and foreign buyers from 47 different countries. A large‐scale model of the determinants of satisfaction in exporter‐importer sales negotiations is developed and tested. This model incorporates a series of antecedents (cultural divergence, contextual familiarity, goal compatibility, interdependence, trust, social orientation, cooperative orientation) and two major process variables (sense‐making and sense‐giving) which bring in a communications perspective. The effects of sense‐making and sense‐giving on flexibility and conflict and the impact of flexibility and conflict on satisfaction, the ultimate outcome variable, are also examined. The proposed model is tested with data gathered from 179 respondent US export/international sales managers. The fit was found to be excellent. Implications are provided for US export sales executives, along with a discussion of suggestions for future research.