Predicting Store Profit and Customer Satisfaction: The Moderating Role of Customer BATNA and Salesperson's Job Attitude

29 Pages Posted: 21 May 2010

See all articles by Shu-Cheng Chi

Shu-Cheng Chi

National Taiwan University - College of Management

Ray Friedman

Vanderbilt University - Organizational Behavior

Huei-Lin Shih

National Taiwan University

Abstract

This study examined real world sales negotiations. We collected data in collaboration with a large Taiwanese eyeglasses company. Our data showed that the higher the first offers (made from either side) the higher the store profit for the final deal, but this effect was lessened when the had a stronger BATNA (measured by the number of times the customers had compared other stores’ prices in advance). In terms of customers’ perceptions of service quality, a different set of predictors emerged. Customers of salespeople who spent more time talking to customers about the product reported higher service quality, but this only occurred among salespeople high in job satisfaction. We discuss the implications of our findings both for the management and for the customers.

Suggested Citation

Chi, Shu-Cheng and Friedman, Raymond A. and Shih, Huei-Lin, Predicting Store Profit and Customer Satisfaction: The Moderating Role of Customer BATNA and Salesperson's Job Attitude. IACM 23rd Annual Conference Paper, Available at SSRN: https://ssrn.com/abstract=1612372 or http://dx.doi.org/10.2139/ssrn.1612372

Shu-Cheng Chi (Contact Author)

National Taiwan University - College of Management ( email )

No. 1, Section 4
Roosevelt Road
Taipei 106
Taiwan

Raymond A. Friedman

Vanderbilt University - Organizational Behavior ( email )

401 21st Avenue South
Nashville, TN 37203
United States
615-322-3992 (Phone)
615-343-7177 (Fax)

HOME PAGE: http://mba.vanderbilt.edu/faculty/rfriedman.cfm

Huei-Lin Shih

National Taiwan University ( email )

1 Sec. 4, Roosevelt Road
Taipei 106, 106
Taiwan

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