Understanding Customer Bargaining in Retail Stores: A Customer Perspective

Abstract

Customers today feel more empowered than ever due in part to greater information availability via the Internet, such as price, quality information, and the options available. They are exhibiting their power by increasingly asking for deals or discounts in typically nonbargaining settings, such as traditional retail stores. Furthermore, retailers are more accommodating relative to price matching and price reduction requests. We investigate this growing and important phenomenon by surveying retail store customers about their negotiating behaviors and attitudes. We uncover several factors that drive customer bargaining, their successfulness, and the resulting outcomes. Implications for theory and managers are discussed.