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.     

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.     

Book essay on Flemming Hansen and Sverre Riis Christensen (2007), Emotions, advertising and consumer choice

Hansen and Christensen discuss a wide range of current issues regarding the role of emotions in consumer behavior as well as measures of advertising effectiveness. The central theme of the book is the elaboration and application of a new tool to measure the emotional constructions that consumers develop for branded fast moving consumer goods. The authors call this measure NERS, which stands for Net Emotional Response Strength. The book appeals to both intermediate and advanced academic readers due to the comprehensiveness of its literature review and the depth of its theoretical developments. The present essay critically comments the contents of the book and then, based on the context provided by the book, discusses in further detail some salient aspects of the role of emotions in consumer choice that deserve special attention. In particular, it is pointed out how some findings from behavioral decision research could improve the conceptualizations offered by Hansen and Christensen.     

Emotions, store-environmental cues, store-choice criteria, and marketing outcomes

This study integrates extant research relating to store-related cognitions, customer emotions (arousal and pleasure), satisfaction, and loyalty into one framework. The researchers administer a survey to 274 customers in four coffee shops of a major chain. Using these data, the researchers test the hypotheses and model with structural equation modelling. The findings suggest that (a) store-related cognitions differentially affect emotions and customer outcomes (satisfaction and loyalty) and (b) the two emotions of arousal and pleasure differentially mediate the relationships between store-related cognitions and customer outcomes.     

The impact of firm strategy and foreign ownership on executive bonus compensation in Japanese firms

Building on information-processing perspectives and the Japanese contextual factors, this study investigates the relationships between firm strategy and executive bonus pay as well as the moderating role of foreign ownership on the strategy-compensation relationship in Japanese firms. We focus on R&D investment and product diversification as strategy variables and investigate their direct effects on executive bonus pay. Further, we examine the moderating effects of foreign ownership on the strategy-pay sensitivity. The results, based on a sample of the 148 largest industrial firms in Japan for the 1990-1997 period, show that both R&D investment and product diversification are positively related to executive bonus pay. Our findings also indicate that foreign ownership negatively moderates the relationships between the strategy variables and executive compensation, suggesting that foreign investors play an active monitoring role, reducing cash bonus payments when their invested firms choose to increase R&D or pursue diversification strategy.     

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.     

Refuting fear in heuristics and in recycling promotion

This paper deals with emotions in order to demonstrate that recycling behavior is associated more with positive emotions than with cognitions. The resulting model displays a marked contrast to the classic cognitive paradigm in the sense that this perspective highlights the idea that consumers act on the basis of their affective reactions, with cognitive factors playing a minor role. In addition, showing alternative routes to achieve both recycling involvement and behavior depending on both the emotional and cognitive characteristics of individuals within the hedonic process.     

Methodological Issues in Negotiation Research: A State-of-the-Art-Review

This study provides insight into the dominant methodological practices that have shaped the field of negotiation over the past four decades and sheds light on possible gaps and trade-offs. We content analyzed 941 peer-reviewed negotiation articles (published between 1965 and 2004) and identified the most important methodological trends over time. The results reveal significant changes in reliability, validity, and triangulation issues. In addition, the rise of multivariate statistics and multiple data sources displays positive evolution towards more sophisticated methodologies. Despite these positive evolutions, we want to encourage current and future researchers to conduct more longitudinal and qualitative research to further advance our knowledge on negotiation.     

Resolving the empty core: trust as a determinant of outcomes in three-party negotiations

This research examined how trust affected resource allocation in a three-party negotiation. Negotiators were presented with an empty core problem in which their theoretical share of resources exceeded the resources available for distribution. We tested which of three components of trust—reliability, predictability and empathy—predicted negotiators’ outcomes. We distinguished between absolute and relative trust. We found that relative trust was a more consistent predictor of individual outcomes than absolute trust and that the most trusted party in a network obtained the highest individual outcomes. This finding highlights the importance of social context in shaping trust judgements. The component of trust that predicted individuals’ outcomes was affected by structural power. High and low power negotiators benefited from conveying empathy (identity-based trust), whereas moderate power negotiators benefited from conveying predictability (knowledge-based trust). Low power parties also benefited from appearing unreliable (low calculus-based trust). The research reported in this paper was supported by a grant from the Australian Research Council. An earlier version of this paper was presented at the 2002 International Association of Conflict Management Conference, Park City, Utah.     

The role of perceived control and gender in consumer reactions to download delays

An empirical study finds that perceived control strongly mediates the effects of perceived speed of a Web site download on consumers' attitudes and intentions to use the Web site. Moreover, results show that men are more likely to react positively to the perceived speed of a Web site download, whereas women are more likely to base their reactions on perceptions of control in the context of download delays. In contrast to past online research, the gender differences are intrinsic in two ways—they are context independent, and they are not caused by length of Internet experience, extent of Internet usage, or type of Internet connections.     

Predicting consumer behavior with two emotion appraisal dimensions: Emotion valence and agency in gift giving

Decades of emotion research have demonstrated the unique influences of many specific emotions on consumer behaviors. These countless numbers of emotion effects can make it difficult to understand the role of emotions in consumer behavior. The current research introduces a parsimonious framework that can predict the effects of emotions on the consumer behavior of gift giving with just two appraisal dimensions: valence and agency. A series of studies examining gift giving reveals that positive emotions exert positive effects on gift giving, independent of their agency. In contrast, agency does predict the effects of negative emotions on gift giving. Negative self-caused emotions increase gift giving, whereas negative other-caused emotions decrease gift giving. These findings seem to hold for inactive and active emotions, and for uncertain and certain emotions. Together, these findings make a unique theoretical and empirical contribution to the understanding of emotions in gift giving. Moreover, it provides a pragmatic framework for both academics and practitioners.     

A Negotiation Model for Inducing Higher Service in a Distribution Channel

This paper analyzes, in the context of negotiation, the problem of coordination and conflict resolution between the manufacturer (Seller) and the retailers (Buyers) for a two-tier inventory system. The retailers capture demand (from customers) and therefore are responsible for the level of service offered by the system. The larger the inventory that a retailer has of a particular product, the lower the probability of running out of stock and therefore, avoid the possibility of a lost sale for the manufacturer. A conflict arises (and therefore the negotiation process starts) when the manufacturer wants the retailer to increase the level of service while retailers are satisfied with the status quo. Using the Nash bargaining solution, we develop a theoretical framework that incorporates behavioral dimensions and predicts the outcome of “sharing” the profit. The results indicate the advantage of developing long term relationships among the members of the distribution channel to minimize the uncertainty and therefore the source of conflict.     

Power imbalance and the pattern of exchange in dyadic negotiation

We investigate how a key structural aspect of negotiation—power—combines with aspiration level to affect the interaction pattern of negotiators. Conflicting research findings have revealed that in most cases negotiators with anequal balance of power reach agreements of higher joint gain than negotiators with an unequal power balance, but in some instances the opposite result has been found. We suggest that it is important to consider the interaction between the negotiators to explain these varying findings. We propose that when unequal power negotiators are able to reach agreements of high joint gain it is due to the efforts of the low power party. In addition, we argue that the low power player will be most likely to drive the search for a solution of high joint gain when he or she also has high aspirations. We tested these proposals in a market negotiation with integrative potential. To examine the pattern of negotiation, all offers and counter-offers were written. The results indicated that overall, equal power dyads achieved higher joint outcomes than unequal power dyads. Under unequal power, the hypothesis that higher joint outcomes would be obtained when the low power player had high aspirations received partial support. In addition, support was found for the hypothesis that in unequal power dyads low power players would be responsible for driving solutions of higher joint gain.     

Why Dick and Jane don’t ask: Getting past initiation barriers in negotiations

Negotiation is an essential skill for personal well-being and professional success, a skill that begins with identifying and acting on one's wants and needs. Many individuals, however, lack the confidence, motivation, or training to simply ask for what they want in certain situations; for example, when negotiating with an important client. Still others are reluctant to initiate requests in general. This article discusses the personal characteristics and situational factors that influence an individual's likelihood of engaging another party in a negotiation, making a request, and optimizing that request. Herein, specific suggestions are offered for managing this critical phase of the negotiation process via three steps: mental preparation prior to the engagement; positioning prior to, and at the point of, the engagement; and verbal craftsmanship during the delivery of one's request.     

The Role of Emotions in Envisioning Outcomes in Conflict Analysis

A conceptual framework is proposed that accounts for the role of emotions in shaping conflict behavior. The isomorphism between the characteristics that define and drive conflict and those that engender emotions makes it feasible to reconcile emotions with current conflict analysis techniques. Building on Damasio's somatic markers hypothesis, the concept of possibility facilitates modeling the effects of emotion on the scenarios apprehended by the decision makers. Attention is focused on two subsets of the conventional set of feasible states, the hiddenstates that are invisible because of existing emotions (usually negative), and the possiblestates that are invisible because of missing emotions (usually positive). These new concepts can be incorporated within the Graph Model for Conflict Resolution. A model of the confrontation between the United States and North Korea over nuclear weapons demonstrates that the new concepts can simplify analysis and make new predictions that are consistent with the actual unfolding of events. Our main goals are to draw attention to the centrality of emotion in conflict and to the need for research on the incorporation of emotions into conflict analysis and resolution methods.     

Strategies and language trends in learning success and failure of negotiation

In negotiation by electronic means, language is an important deal-making tool which helps realize negotiation strategies. Negotiators may use language to request information, exchange offers, persuade, threaten, as well as reach a compromise or find prospective partners. All this is recorded in texts exchanged by negotiators. We explore the language signals of strategies—argumentation, persuasion, negation, proposition. Leech and Svartvik’s approach to language in communication gives our study the necessary systematic background. It combines pragmatics, the communicative grammar and the meaning of English verbs. Language signals become features in the task of classifying those texts. We employ Statistical Natural Language Processing and Machine Learning techniques to find general trends that negotiation texts exhibit. Our hypothesis is that language signals help predict negotiation outcomes. We run experiments on the Inspire data. The electronic negotiation support system Inspire was gathering data for several years. The data include text messages which negotiators may exchange while trading offers. We conduct a series of Machine Learning experiments to predict the negotiation outcome from the texts associated with first halves of negotiations. We compare the results with the classification of complete negotiations. We conclude the paper with an analysis of the results and a list of suggestions for future work.     

自由贸易区农产品谈判策略之比较研究——以奶制品为例

以奶制品为例,选择澳大利亚、新西兰等主要的奶制品生产国和贸易国,通过分析自由贸易协定中有关奶制品的规定,深入研究具有生产优势的国家、高补贴国家和发展中国家三种不同类型国家在自由贸易区农产品谈判中所采取的谈判策略,以期对我国的自由贸易区谈判提供借鉴。     

Consumer emotions: Determinants and outcomes in a shopping mall

The present study aims to provide a deeper understanding of consumers’ emotions in a shopping mall by taking into account its two dimensions i.e. pleasure and arousal. The conceptual model is developed by considering a few unexamined determinants (namely perceived human and spatial mall crowding, promotional events, and co-visitors) and outcomes (namely repatronage and positive word-of-mouth) of arousal and pleasure. The responses (n=346) are collected by using a mall-intercept technique. Results of structural equation modeling reveal positive linkages between determinants and outcomes of pleasure and arousal. Overall, the work extends and complements the extant literature by delineating the role of various social cues and promotional cues on consumers’ pleasure and arousal in a shopping mall setting. Theoretical and managerial implications are further discussed.