“The more, the merrier” or “less is more”? How the number of issues addressed in B2B sales negotiations affects dyadic and seller economic outcomes

• Published in: Industrial marketing management 2020-05, Vol.87, p.90-105
• Main Authors: Geiger, Ingmar, Hüffmeier, Joachim
• Format: Article
• Language: English
• Subjects: Cognitive psychology; Integrative negotiation; Mixed-method design; Negotiation theory
• ISSN: 0019-8501; 1873-2062
• DOI: 10.1016/j.indmarman.2020.02.013

With a mixed-methods approach, this study analyzes how varying the number of issues in business-to-business (B2B) sales negotiations affects negotiation processes and outcomes. A qualitative interview study with B2B negotiators (N = 46) reveals that more issues increase complexity but offer more possibilities for concessions. Sellers see benefits in increasing the number of issues addressed, whereas buyers are ambiguous about whether negotiating more issues will benefit their economic outcomes. A second experimental study (N = 97 dyads) tests whether negotiating a different number of issues (four, eight, or between four and eight) produces different absolute and relative dyadic economic outcomes and sellers' shares of the joint profits in one-on-one negotiations. In absolute terms, more negotiation issues produce larger negotiation pies; fewer issues facilitate more accurate information processing, leading to relatively more integrative agreements. For sellers, increasing the number of issues increases their share of the joint profit, because buyers are more willing to concede on the overall price of the deal. •Fewer issues in negotiation lead to relatively greater joint profit.•More negotiation issues lead to greater absolute joint profit.•More issues negatively affect negotiators' information processing.•More negotiation issues mostly benefit the sellers.•With more issues, buyers over-proportionately concede on price.