Positive affect and decision frame in negotiation

This study examined decision frame (“gain” vs. “loss”) and negotiator affect (positive vs. control) in a simulated bilateral negotiation where negotiators dealt with a programmed opponent and made offers and counteroffers on three issues that differed in value. Direct comparisons between the gain and loss frame conditions, in the control-affect condition, revealed a replication of the standard frame effect: a loss frame produced fewer concessions than a gain frame. However, an interaction effect indicated that the frame effect reversed in the positive affect condition: under positive affect, a loss frame produced greater concessions than a gain frame. In addition, the data indicated a replication of earlier work showing that positive affect can lead to more integrative agreements in negotiation. The results suggest that positive affect can influence location of a reference point in evaluating prospective outcomes; one implication is that prospect theory can be useful for understanding the effects of affect in bilateral negotiation.     

Emotions in negotiation

In this article, we discuss the ways in which emotions influence the course of negotiation. Emotions play a role in the development of relationships among negotiators; they also facilitate or hinder coordination of strategic exchanges. These functions highlight an interplay between information-processing and emotional expressions: intentions are inferred from statements made and nonverbal gestures sent. They are understood as part of an expression game that emphasizes interaction dynamics. They are also understood in terms of the organizational contexts surrounding negotiation. These are some of the themes that surface in the articles contributed to this special issue. An overview of the articles calls attention to key points but also expands on the themes suggested by the authors. The work reported in this issue provides a basis for a continuing research agenda on emotions in negotiation.     

Trips and tips for negotiation self-defense: Forewarned is forearmed

Continued attention in both the popular and academic press regarding negotiation and the related concepts of influence and persuasion is nothing short of astonishing. The topics on which we focus in this article, however, are rarely—if ever—vetted in such outlets. We venture, with some measure of caution, into the dark side of negotiation: those tactics that may be duplicitous, unethical, and unprincipled. Such tactics provide a quintessential moral hazard, as they are both brutally effective and rarely illegal. It is not our intent to provide a treatise on unsuitable behavior. Rather, our objective is to establish that no one need be victimized by such behaviors, as all of these tactics are avoidable. It is in this spirit that we provide some guidelines on self-defense in a negotiation context to avert and attenuate the consequences of these behaviors.     

Effects of warm-heartedness and reward distribution on negotiation

Research is needed to identify the conditions and dynamics by which foreign managers and local employees can negotiate their differences integratively. In an experiment with 120 participants in South China, employees with foreign managers who communicated warm-heartedness, compared to indifference, indicated that they had cooperative goals, a quality relationship, were confident in future collaboration, and concluded that their manager was an effective leader. Employees with foreign managers who structured mutual rather than independent or comparative rewards found their manager’s ideas reasonable and integrated them into their decisions. Results, especially if they can be replicated in field settings, suggest how foreign managers can negotiate effectively and develop their relationships with Chinese employees.     

Chinese values and negotiation behaviour: A bargaining experiment

The importance of Chinese culture in cross-national negotiation has become conventional wisdom in international business research and practice. However, empirical work has not sufficiently established whether, how and under what conditions specific cultural values of the Chinese affect their negotiation decisions. This paper reports an experiment with a purpose-designed game task in which Chinese subjects divide a fixed gain over escalating stages. We find that concerns for face and harmony promote cooperative negotiation decisions while desire to win and risk seeking accentuate competitive ones. Values only predict behaviour in the critical, final stage of the bargaining process supporting a dynamic view of the effect of culture in negotiation.     

Negotiator affect: the state of the art (and the science)

Negotiation, once regarded by researchers as essentially a cognitive process through which parties with non-identical preferences allocate resources through joint decision making, is now understood to have a significant affective component. I discuss in this essay the evolution of research exploring the role of affect in negotiation, consider the interplay of affect and cognition that underlies the papers in this issue, and comment on methodological developments and challenges in the study of negotiator affect. Attention to the role of affect is no longer a peripheral pursuit in negotiation research, but it does remain an elusive one.     

Cultural variation in response to strategic emotions in negotiations

This research examined how culture influences the effectiveness of the strategic displays of emotions in negotiations. We predicted that in cross-cultural negotiation settings, East Asian negotiators who highly regarded cultural values that are consistent with communicating respect as humility and deference would be more likely to accept an offer from an opposing party who displayed positive as opposed to negative emotion. With a sample of East Asian MBA students, the results of Study 1 confirmed this prediction. Study 2 results replicated this finding with a sample of Hong Kong executive managers and also found they were less likely to accept an offer from a negotiator displaying negative emotion than Israeli executive managers who did not hold humility and deference in such high regard. Implications for strategic display of emotions in cross-cultural settings are discussed.     

An Exploratory Investigation of Study-Abroad Online Information Cues

Despite numerous studies on the factors involved in the decision-making process on study abroad, little attention has been paid to the initial stage when students process information. This qualitative study aims to map out the cues involved when Chinese students process study-abroad information from an information-processing perspective. Findings showed that family members, the Internet, and agents were the main channels through which respondents obtained information. Recognition of qualifications by the source country, employment prospects, and price were identified as important cues. This study identified the determining role of cues by using a rating system. Using marketing cues, marketers may be able to design and align marketing strategies which are more efficient at attracting Chinese students in the future.     

Breathing Down Your Neck!: The Impact of Queues on Customers Using a Retail Service

While a rich body of research has examined the psychological costs and benefits of queuing, this research focuses on the customer currently using a retail service and examines how this customer is affected by lines forming at his or her back. Drawing on Social Impact Theory, we postulate that customers feel pressured by people waiting behind them and that this feeling of social pressure leads to more negative affective experiences, poorer participation in co-creation settings, and lower perceptions of service quality. Five field and controlled experimental studies tested these predictions and also explored how retailers can reduce the adverse impact of queues. Studies 1A and 1B show that the customer’s experience deteriorates as queue length increases and that perceptions of social pressure mediate this effect. Studies 2A and 2B show that this effect is moderated by customers’ own waiting time such that customers are more affected by queues forming at their backs when their own waiting time decreases. Finally, study 3 identifies two strategies to attenuate the negative effects of waiting lines, namely explicitly reassuring the focal customer that she need not feel pressured to be efficient and removing the waiting customers from the line of vision of the focal customer.     

The Effect of Social Cues on Sniping Behavior in Internet Auctions: Field Evidence and a Lab Experiment

This research explores how social cues presented in an online auction affect sniping behavior. Sniping is a strategy of placing a bid on an item in the very ending stages of an auction with a pre-determined ending time in an attempt to win the auction. Such a strategy conceals the intentions of the bidder until the last moments of the auction and minimizes the possibility of other opposing bidders submitting higher bids due to the short period of time left to respond. The research includes two field studies and a lab experiment indicating that sniping appears to be influenced by social factors, that is, when there are a greater number of bidders in the auction or the auction site provides social information about the bidders, the relative use of sniping increases. This research supports the perspective that bidders rely on others' bidding behavior and characteristics as an indication of the true value of the item on sale, and is one of the first studies in the literature which takes this perspective.     

Social selling cues: The dynamics of posting numbers viewed and bought on customers' purchase intentions

Online retailers provide social selling cues, such as “39 customers bought this product” or “156 customers viewed our product per hour”, to encourage sales. Revealing the numbers bought has been shown to increase purchase intentions, but what remains unexplored are the ramifications of posting the number of brand-related views or revealing both numbers bought and viewed so customers can determine the views-to-bought ratio. The number of views is much higher than the numbers bought, which customers may anchor on as a signal for product quality; however, a countervailing force is that views are a more ambiguous, hence a less diagnostic, cue. Five experiments revealed that: (1) showing the number of views or bought can, but does not always, increase purchase intentions; (2) revealing the number bought has a monotonically increasing (at diminishing rate) effect on purchase intentions; and (3) views exhibit a concave curvilinear effect in that, beyond a tipping point, increasing the number of views lowers purchase intentions. Given the anchoring effect of the larger views number, if the number of views or the number bought are relatively low, it is better to show the larger views number, but the reverse is true if the respective numbers are both high. Additional insights reveal that it is only advantageous to reveal both numbers if the views-to-bought ratio is lower than 20:1, which would apply to about the top 25% of brand landing pages. These findings were further validated in a choice experiment. Perceptions of product quality mediate the relationship between these social selling cues and purchase intentions; however, this is not the case for perceived skepticism (lack of trust in the information). Revealing these social selling cues is an online retailer’s prerogative; hence, these insights are theoretically interesting and have practical relevance.     

Overcoming information overload in retail environments: Imagination and sales promotion in a wine context

Information overload is a common problem in retail environments. Reducing information in a retail environment is not always feasible or desirable given the plethora of products and extent of limitations on retailers in terms of merchandising and display decisions. Therefore, retailers need other ways of overcoming information overload than simply reducing the amount of information. However, extant research is unsettled with respect to arguments in favor of and against adverse effects of information overload. To enhance our understanding of these issues, the present research presents two studies that investigate the moderating role of consumer decision processing approaches in an information overload retail space. The findings reveal that the consumer imagination offers a more efficient processing route, circumventing the frustration associated with information overload and leading to enhanced consumer outcomes compared to the less efficient consideration route. Further, heuristic processing triggered by sales promotions in high information retail environments lead to piqued arousal and enhanced consumer imagination, ultimately bolstering consumer responses to the product. Implications, limitations, and future research directions are discussed.     

Investigating Organizational Learning through Social Network Analysis: The Case of a Consultancy Firm in India

Three problems beset the literature on organizational learning—confusion about who learns (individuals, groups, or organization), absence of a robust theory, and tools for measurement. Social network analysis, it is argued, can be used to capture organizational learning at multiple levels, to capture relational data (expressed as linkages between actors), and can yield actionable insights for changes within the organization. Two subprocesses of organizational learning, information acquisition and distribution, were measured using social network analysis in a decade‐old consultancy firm in India. Results reveal who shares information with whom, who goes to whom for information, who is bypassed, who hoards, how groups interact, and how much information is shared at the organizational level. The study provides a deeper understanding of how “people” relationships affect learning at various levels. The theoretical and managerial implications of the approach taken to measure organizational learning using social network analysis are discussed. © 2016 Wiley Periodicals, Inc.     

Relevance of actors in bridging positions for product-related information diffusion

Research in marketing examines concepts that deal with social interaction, for example opinion leadership and word-of-mouth. Two types of actors play key roles in social networks where social interaction takes place: actors who have a lot of contacts (so called hubs) and actors in bridging positions. Given their importance in social networks, the lack of studies in marketing literature that focus on bridges is surprising. Information on bridges' roles in the diffusion of product-related information on an individual level is important for companies to take relevant actions. Therefore, this paper analyzes the relevance of actors in bridging positions for product-related information diffusion in a representative study of consumers in the mobile phone market of a large European country. The study shows that bridges display lower degrees of information seeking as well as lower levels of opinion leadership. Therefore, although in central positions, they are less suited to be used in company-initiated actions, for example in seeding strategies.     

Does online observational learning matter? Empirical evidence from panel data

The information presented on a product sales page plays an important role in consumers' purchase decisions. This study examines the persuasive effect, whether a customer's choice is heavily driven by information inferred from others' behavior, and how these impacts are moderated by market age and product type. Results show that online customer choice was significantly affected by historical cumulative sales and times saved. Positive cumulative sales and shop service quality have a significant positive impact on product sales. The times saved have no direct impact on product sales. For different types of products, the times saved of experiential products has a significant impact on product sales, while the shop service quality information of search products has a greater impact on product sales. The influence of online observation learning on product sales will be significantly moderated by a combination of product type and market age. These findings not only offer important theoretical contributions to e-commerce research but also provide practical implications for online sellers and managers of social commerce platforms.     

Consumer evaluations of different promotion types and price presentations: the moderating role of promotional benefit level

The effects of promotion type (i.e., price discounts and bonus packs) and price presentation (i.e., dollars and percentages) across promotional benefit levels were investigated in three experimental studies. The results suggest, for the products considered, that price discounts and bonus packs were valued similarly for both low and moderate promotional benefit levels, while price discounts were preferred when high promotional benefit levels were employed. Additionally, promotions presented in percentage terms were preferred when the benefit level was high. The implications of these results for retailers and manufacturers are that percentage price presentations should be used when large discounts are being offered. Furthermore, it appears that bonus packs are a viable alternative to price discounts when promotion levels are small or moderate since they have less of a deleterious effect on the brand.     

Establishment modes and network relationships of foreign subsidiaries

This research examines the effects of the establishment mode of foreign subsidiaries (greenfield vs acquisition) on the type of network relationships (social vs business) they develop in local markets. The authors use the network approach to better understand the role played by local subsidiaries for the development of networks in multinational enterprises. The empirical study is based on a dataset covering 120 foreign-owned subsidiaries in Italy. The findings show that acquired subsidiaries are more directly involved in business relationships, whereas greenfield subsidiaries pay more attention to social relationships before building business networks. The establishment mode thus affects the type of network relationships developed by local subsidiaries, which can help them to overcome the liabilities of foreignness and outsidership.     

The bright side of disorganization: When surprise generates low-price signals

The research problem of this paper attempts to understand the effects of disorganized versus organized shelves on search information. Contemporary retail studies have tended to discover how the organization of displays can evoke increased consumer attention. Thus, the purpose is to examine how disorganization cues shelf displays foster surprise through information search and the implications of that process for visualizing low-price signals. In three experiments carried out using eye-tracking devices and face reader techniques (two in the laboratory and one in the field), empirical evidence is presented that disorganization cues can generate an increase in information search generated by cognitive processing, increased emotional surprise manifested levels via schema discrepancy, and perception of low-price provoked by the attempt to reduce the risk of choice.     

Pairwise comparison of concessions in negotiation processes

Starting off with a pairwise-comparison method to evaluate the possible deals between two parties in conflict, we generalize the approach and we consider the case of three parties in conflict. The basic step is the subjective evaluation of a deal where each party offers exactly one concession. The trade-off of benefits and costs is judged in verbal terms which are subsequently converted into numerical values on a discrete geometric scale. Although the number of plausible geometric scales is large, the information to be used by a mediator is scale-independent. The approach is illustrated by the results of an exploratory project aiming at a balanced CO₂ emission reduction in Poland, Brazil, and the netherlands. The success of the method depends largely on the information-processing support. Given the limitations of human imagination and human judgement, the method is not likely to be effective in a conflict among four or more parties, although it can easily be generalized.Paper presented at the IFAC Workshop on Support Systems for Decision and Negotiation Processes, Warsaw, Poland, June 24–26, 1992.     

The Panoptic Role of Advertising Agencies in the Production of Consumer Culture

Advertising's role in promoting an ideology of marketed consumption has been widely commented upon by critical theorists yet the mechanisms through which this influence becomes manifest remain relatively under-examined. In particular there has been no explicit examination of the mediating role of cultural knowledge in the production of ideologically driven advertising. This paper invokes the panoptic metaphor to position the knowledge gathered by and on behalf of advertising agencies as a major dynamic in the production of consumer culture. The consumer of advertising is a known entity for advertising agencies: the subject is watched, filmed, questioned, recorded, and tracked. Indeed, consumer biography and subjectivity itself has become material that is both produced and consumed by advertising agencies in order to produce culturally constitutive advertising. The paper integrates disparate literatures to situate knowledge of consumer culture at the hub of advertising's constitutive ideological influence.