Abstract:

We introduce a technique that can be used by sellers to successfully close a price negotiation with a customer. Specifically we demonstrate that as they offer a discount to consumers, sellers can increase deal acceptance by also requesting a favor from the consumers. We show that the addition of the favor request increases acceptance by first increasing consumer perceptions that the relationship with the seller is reciprocal, and also by increasing consumer confidence the seller offered the lowest possible price. Our research can be used to improve consumer acceptance of discounted offers and contributes to the literatures on social influence and on persuasion.