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This chapter traces the development of the pricing research program of Kent Monroe, beginning with his doctoral dissertation and continuing to the present time. Drawing on psychophysics and adaptation-level theory the early research efforts concentrated on validating two important concepts relative to behavioral pricing research: reference price and acceptable price range. Then the behavioral pricing research program expanded to explore how the context of a purchase situation, including the structure of the prices available for judgment, influences buyers' price perceptions and willingness to buy. In the early years his research included pricing models and research on patronage behavior. Subsequently, concentrating primarily on behavioral pricing research, he began to integrate findings from the research program into examining how various sellers pricing strategies and tactics influence buyers' judgments and purchase decisions. These efforts led to the first edition of his book Pricing – Making Profitable Decisions published in 1979. The book was subsequently revised and expanded in 1990 and again in 2003.

There are many anecdotal accounts about industrial buyers’ perceptions of sellers, but little research exists empirically to determine these perceptions. This research generates a profile of industrial buyer perceptions of salespeople developed from a perceptual inventory gathered from a national sample of purchasing professionals. Both positive and negative profiles are identified, but means analysis generally supports the contention that industrial buyers have largely positive perceptions of salespeople. These profiles can be useful to both researchers and industry professionals in assessing the effects of buyer perceptions in industrial, business‐to‐business, and relationship marketing situations.

Buyers and suppliers often perceive relationship governance mechanisms, such as trust and contractual fairness, in different ways. These differences in perception create an extra layer of complexity that is often ignored in the extant literature. This study adds to the understanding of how perceived asymmetries in trust and contractual fairness, two key relationship governance mechanisms, impact relational rents. This study also analyzes how boundary spanners aid managers to deal with these perceived asymmetries.

Based on survey data of 103 buyer–supplier dyads from a single global manufacturer of industrial equipment, the authors test hypotheses of perceived asymmetries in trust and contractual fairness, as well as the moderating effect of boundary spanners, on relational rents.

This research challenges the belief that asymmetries negatively impact or lead to unstable buyer–supplier relationships. Furthermore, it explains how preferential treatment and length of the relationship could reduce the impact of asymmetric perceptions.

This study stresses that open communication, which considers different viewpoints, helps to overcome the negative differences in attitude and perception. In addition, the authors found that long-term relationships seem to be far more resilient in dealing with asymmetries and that preferential treatments are best applied in (approximately) symmetric relationships in terms of contractual fairness.

While studies on buyer–supplier relationships often assume symmetric perceptions of governance mechanisms, asymmetric perceptions are far more prominent in reality. This study aims to improve one’s understanding of the impact of these asymmetries as well as how boundary spanners can affect these perceptions.

Women in many countries are breaking through the gender barrier and are working in positions where they have a major impact on the buying and selling activities in business-to-business relationships. A number of studies have investigated the role gender plays in driving perceptions of sales representatives in the USA, however, little research has been undertaken on this important topic in China, one of the largest and most influential countries. Consequently, the purpose of this study is to examine whether the gender of both the buyer and seller, affects perceptions of expertise, trust and loyalty in business relationships.

A survey instrument was developed, tested and used on individuals with purchasing responsibility in China. Confirmatory factor analysis was used in the pre-test and the final study data to develop and refine measurement instruments, assessing construct validity, identifying method effects and evaluating factor variance across groups. Independent t-tests were used to compare male and female buyers on their evaluation of sales reps.

The results indicate that the gender of the sales person does not seem to be a consideration for male buyers in evaluating reps in any of the variables tested. However, female buyers consistently give less favorable evaluations to female sales people than male sales representatives. The possible implications of these findings are discussed.

First, this research uses a quantitative methodology in both the collection and analysis of the data. Thus, future studies may want to use a qualitative data set to gain a more in-depth understanding of the business-to-business relationships between men and women in the workplace. Also, as the study was concentrated on a relatively small number of business professionals from only one area in China, subsequently researchers should consider increasing the geographic domain where respondents are sampled, to help improve the generalizability of the results.

The gender bias by female buyers found in this study has several important implications for businesses in China. Specifically, the suggests that female buyers may carry with them a “collective negative bias” against other women, in this case, female sales reps. The solution to this problem is not to avoid assigning female sales reps to female buyers, rather, it is to change the negative collective social-esteem identity preconceptions. Organizations can do this through training by making women aware of their own predisposition to unfairly evaluate women that they interact with in the workplace.

It has been argued that gender plays a small role in perceptions of sales representatives in buyer-seller relationships. While this seems to be true in the USA, it has not (until now) been empirically tested in China. Somewhat surprisingly, the gender differences we did uncover are not from male buyers in their assessments, but from female buyers in their evaluation of women sales representatives. This result provides some interesting insight into Chinese business relationships and how some women in positions of power are more critical of other women within their sphere of influence.

This paper aims to link conceptually the concepts of price fairness and customer satisfaction and empirically demonstrate the influence of perceived price fairness on satisfaction judgments. Further, it seeks to examine specific factors that influence fairness perceptions including price perception and consumer vulnerability.

The study is conducted in the context of automobile purchases in major German car dealerships. Based on a theoretical conceptualization of the constructs and an empirical pretest, 246 car buyers were surveyed and their fairness perceptions and satisfaction judgments with the car buying process measured.

The research shows that price perceptions directly influence satisfaction judgments as well as indirectly through perceptions of price fairness. Results also indicated that consumers' vulnerability, which is induced by a perceived demand‐supply relationship and the urgency of need from the consumers' side, had a negative effect on perceived price offer fairness.

The research demonstrated the influence of perceived price fairness on satisfaction judgments empirically. The study was conducted in the context of car purchases and the generalizability of the model should be further tested.

The effect of consumer vulnerability implies that sellers should not only avoid exploiting their customers but should also anticipate consumers' potential feelings of being exploited. Being sensitive to the buyers’ psychological state and assuring buyers of fair treatment will enhance perceptions of price fairness without changing the price offer.

Both the direct and indirect effects of price perception on satisfaction judgment were examined in the paper. Specifically, the influences of consumer vulnerability and price procedure fairness on satisfaction judgments are new and contribute to the dual‐entitlement principle and our existing knowledge in price fairness.

The purpose of this research is an examination of three different types of sales approaches (product-, solution- and provocation-based) on relational outcomes. The type of sales approach influences buyer's assessments about the trustworthiness of the salesperson and the conflict with the salesperson. These outcomes of the sales approach affect the customer's economic and non-economic satisfaction.

Using cross-sectional survey data from a sample of 840 organizational buyers, a structural equation model measures the path coefficients of the proposed model and tests the differences in the magnitude based on gender.

The results indicate that sales approaches will differentially influence assessments of trustworthiness and conflict. The magnitude of the influence of the sales approach on outcomes is different between genders.

To the best of the authors' knowledge, this is the first empirical study to examine the impact of sales approaches on both genders of organizational buyers.

Presents the results of a study in which judgement of quality and purchase value of three different product categories were obtained from 173 purchasing managers and 190 household consumers. The products varied according to the country where they were designed, the country where they were assembled, their brand name, their price and their warranty. In addition, the respondents rated 13 developed and newly industrializing countries by their capacity to design and assemble products in general. Indicates that the respondents′ perceptions of newly industrializing countries are more negative than their perceptions of developed countries. However, when additional information concerning the product′s brand name, price and warranty is available, their perceptual differences between developed and newly industrializing countries are considerably reduced. Shows significant differences between household and organizational buyers in the relative importance given to country‐of‐origin and other product cues. Discusses strategic implications of these findings for global marketing.

The purpose of this paper is to examine how country-of-origin (COO) perceptions of managers affect their provider selection for offshoring and offshore-outsourcing of services. In particular, it examines how economic and cultural attributes of the supplier’s host nation shape these choices and identifies whether these attributes have a substitutive, complementary, or competing relationship.

A quantitative study was performed using data collected from 235 managers in Saudi Arabia, which has relatively homogeneous managerial population with a clear significant cultural attribute and so presents an ideal setting to study the theory developed in this paper. Data were analyzed using a repeated-measures analysis of variance and a repeated-measures and doubly multivariate analysis of variance.

Building on signaling theory, it is shown that buyers from developing countries prefer suppliers from developed rather than culturally distant developing economies as stronger institutions in developed nations increase the credibility of firms. It is also shown that they prefer suppliers from developing countries that share a common cultural attribute such as religion over other developing countries, supporting social identification behavior and a substitutive relationship between cultural and economic attributes. Finally, they are indifferent between suppliers located in a developed and in a culturally similar developing country, even when the cost of obtaining the service is the same in both countries. In such cases, economic and cultural COO attributes have a competing relationship in provider selection.

It would be interesting to examine if the results of the current study extend to cultural attributes/cues other than religion that may shrink the social distance between buyers and suppliers.

Service multinationals from developing countries may struggle to establish credibility in the eyes of potential customers, who consistently evaluate them lower than firms in developed markets or firms from developing countries that share a common social trait with the potential customers. They can compensate for this by adopting policies that enhance pre-contract trust, invest in homogeneity capital that decreases the social distance between the two firms, or by focussing their sales efforts on countries with which they share a social/cultural attribute.

This paper contributes to the marketing and international business literatures by providing insights on how firms from developing countries can effectively compete in the global marketplace given COO effects. Overall, the results provide novel evidence of the importance of co-membership in transnational communities (for instance, religious groups across countries) in supplier selection and its relationship to economic attributes.

The study aims to investigate cultural aspects in supply chains, analysing the effect that local customs may have in the quality of buyer–supplier relationships. Building on the premisses of social exchange theory (SET), it concentrates on the impacts that suppliers’ use of local practices and informal networks may have in buyers’ attitudes and perceptions. The issues addressed and the empirical evidence provided represent initial, yet important steps in the fulfilment of the ‘cultural void’ within supply chain social sustainability (SCCS) literature.

Through a role-playing experiment applied to a total sample of 468 participants, the effects of Chinese guanxi, Russian blat, South Korean yongo and Brazilian jeitinho on buyers’ satisfaction, buyers’ commitment, trust and solution severity are measured by their use to access informal networks as solutions to both common (i.e. documentation irregularities) and extraordinary (i.e. modern slavery) supply chain problems.

Results show that, while the activation of informal networks may impact buyers’ perceptions, the use of some local practices by suppliers (i.e. Chinese guanxi and Brazilian jeitinho) cause greater variations in buyers’ attitudes and perceptions than others (i.e. South Korean yongo and Russian blat), with ethical offences (i.e. modern slavery) and higher levels of buyers’ dependency acting as catalysts of these processes.

The investigation of cultural practices typical of economically peripheral countries contributes to the understanding of new facets of buyer–supplier relationships, with the investigation of non-Northwestern practices being particularly important in this regard.

The purpose of this study is to understand how the degree of congruence between buyers’ and sellers’ intentions to negotiate impacts buyers’ postpurchase emotions and attitudes. In addition, the study examines whether buyers’ self-confidence and negotiation expertise can increase buyers’ perceptions of control and regret, as well as buyers’ postpurchase satisfaction and enjoyment with the purchase. Traditionally, marketplace exchanges have been classified as either fixed price or negotiated. The present research treats marketplace exchanges along a continuum of intention congruence to test the relationships between intention congruence and outcome variables of control, regret, satisfaction and enjoyment with the purchase.

The authors studied the perceived difference between buyers' and sellers' intentions to negotiate and how the difference impacts buyers' postpurchase attitudinal and emotional outcomes. A mail survey of automobile buyers resulted in a sample of 291 respondents. An automobile is a significant and irreversible purchase for a buyer. Thus, automobile markets often host transactions that evoke dissonance and regret for buyers if things go awry. In addition, buyers and sellers vary considerably in their desire to negotiate, thus reflecting a range of intention congruence in negotiation. Therefore, a survey of automobile buyers was considered appropriate for testing the effects of intention congruence on buyers’ postpurchase outcomes.

Results indicate that when buyers are willing to negotiate but sellers do not reciprocate equally, buyers feel less in control of a transaction. Contrarily, buyers experienced greater control and lesser regret when buyers’ perceptions of sellers’ intention to negotiate exceeded buyers’ own intentions to negotiate. Results also suggest that when buyers’ intentions to negotiate were congruent with buyers’ perception of sellers’ intention to negotiate, greater dyadic levels of negotiation marginally lowered buyers’ perceived regret. Overall, an intention-congruence perspective adds to the current understanding of negotiated exchanges and is a meaningful approach for improving postpurchase outcomes for buyers.

The study used only the consumers’ perspective of negotiation. Although this is supported by studies in power and dependence because the consumers’ perspective is valuable and valid, a true dyadic measurement of the negotiation process can only be obtained if the sellers’ view is also incorporated. This remains a key limitation of this study.

The results suggest that sellers may be better off honoring buyers’ intentions to negotiate. Intention incongruence negatively impacted buyer satisfaction when buyers perceived sellers to be less eager to negotiate. However, where sellers seem more eager to negotiate, incongruity favored buyers and positively impacted buyers’ postpurchase outcomes. Thus, for sellers, it is worthwhile to consider adding policies that honor negotiation.

Past research classifies marketplaces exchanges as either fixed price or negotiated. The present study uses intention congruence as a continuum between transaction partners. The intention congruence approach allows a closer examination of both the symmetry and strength of intentions to negotiate in a dyadic exchange. Given that markets are comprised of buyers and sellers who display considerable variability in intentions to negotiate, examining intention congruence allows for a more realistic study of negotiation behavior in business-to-consumer marketplaces.