Seller and Buying Firm Factors Affecting Industrial Buyers’ Negotiation Behavior and Outcomes

Abstract

The author posits and tests the effects of seller concession behavior, seller information, and buying firm monitoring of the buyer on the negotiation behavior and outcomes of industrial buyers. Practicing industrial buyers participated in an interactive negotiation experiment designed to test the hypothesized effects. The results indicate that the factors interact to affect the buyers’ negotiation behavior and outcomes. The savings buyers obtain in negotiations are significantly affected by the behavior of the seller and the information the seller provides to the buyer. Buyers’ negotiating behavior is influenced by the interaction of seller information and buying firm monitoring of buyer negotiating activity.