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The role of leadership in salespeople’s price negotiation behavior

Author

Listed:
  • Sascha Alavi

    (University of Bochum)

  • Johannes Habel

    (ESMT European School of Management and Technology)

  • Paolo Guenzi

    (Bocconi School of Management)

  • Jan Wieseke

    (University of Bochum)

Abstract

Salespeople assume a key role in defending firms’ price levels in price negotiations with customers. The degree to which salespeople defend prices should critically depend upon their leaders’ influence. However, the influence of leadership on salespeople’s price defense behavior is barely understood, conceptually or empirically. Therefore, building on social learning theory, the authors propose that salespeople might adopt their leaders’ price defense behavior given a transformational leadership style. Furthermore, drawing on the contingency leadership perspective, the authors argue that this adoption fundamentally depends on three variables deduced from the motivation–ability–opportunity (MAO) framework, that is, salespeople’s learning motivation, negotiation efficacy, and perceived customer lenience. Results of a multi-level model using data from 92 salespeople and 264 salesperson–customer interactions confirm these predictions. The first to explore contingencies of salespeople’s adoption of their transformational leaders’ price negotiation behaviors, this study extends marketing theory and provides actionable guidance to practitioners.

Suggested Citation

  • Sascha Alavi & Johannes Habel & Paolo Guenzi & Jan Wieseke, 2018. "The role of leadership in salespeople’s price negotiation behavior," Journal of the Academy of Marketing Science, Springer, vol. 46(4), pages 703-724, July.
    • Handle: RePEc:spr:joamsc:v:46:y:2018:i:4:d:10.1007_s11747-017-0566-1
    DOI: 10.1007/s11747-017-0566-1
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    2. David Gligor & Christopher Newman & Saim Kashmiri, 2021. "Does your skin color matter in buyer–seller negotiations? The implications of being a Black salesperson," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 969-993, September.
    3. Ertugrul Uysal & Sascha Alavi & Valéry Bezençon, 2022. "Trojan horse or useful helper? A relationship perspective on artificial intelligence assistants with humanlike features," Journal of the Academy of Marketing Science, Springer, vol. 50(6), pages 1153-1175, November.
    4. Dishop, Christopher R. & Good, Valerie, 2022. "A dynamic system of job performance with goals and leadership changes as shocks," Journal of Business Research, Elsevier, vol. 139(C), pages 602-613.
    5. Roland Kassemeier & Sascha Alavi & Johannes Habel & Christian Schmitz, 2022. "Customer-oriented salespeople’s value creation and claiming in price negotiations," Journal of the Academy of Marketing Science, Springer, vol. 50(4), pages 689-712, July.
    6. Colleen E. McClure & Justin M. Lawrence & Todd J. Arnold & Lisa K. Scheer, 2023. "The opportunities and costs of highly involved organizational buyers," Journal of the Academy of Marketing Science, Springer, vol. 51(2), pages 480-501, March.
    7. Michael Ahearne & Yashar Atefi & Son K. Lam & Mohsen Pourmasoudi, 2022. "The future of buyer–seller interactions: a conceptual framework and research agenda," Journal of the Academy of Marketing Science, Springer, vol. 50(1), pages 22-45, January.
    8. Daryanto, Ahmad & Lukas, Bryan A., 2022. "Controlling for spurious moderation in marketing: A review of statistical techniques," Journal of Business Research, Elsevier, vol. 144(C), pages 180-192.
    9. Vieira, Valter Afonso & Fernandes de Negreiros, Leticia & Agnihotri, Raj & Bakeshloo, Khashayar Afshar, 2021. "Perceptual differences regarding leadership between the store manager and employees and its impact on frontline sales performance: A research note," Journal of Retailing, Elsevier, vol. 97(3), pages 347-358.

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