Cross-cultural Business Cross-cultural Business NegotiationsNegotiations

B2C perspectiveB2C perspectiveEvelyn Grossmann, Victoria Herbst, Anissa

Lenz, Petra Louhimies, Verena Röckl, Carolin

SchmidIntercultural Marketing Management – Stefan Lång – Autumn 2012

Cross-cultural Sales Negotiations - B2C Stream

A typical market place?A typical market place?

...reach an agreement of mutual benefit (Harris and Moran 1987, p. 55)

...reaching a joint agreement (Anjan Dasgupta 2005, p. 2)

...accommodate their conflicting interests into a mutually acceptable settlement (Guy Faure-Olivier 1993, p. 7)

Cross-cultural Sales Negotiations - B2C Stream

What is ”negotiating”?What is ”negotiating”?

Problem – solving

– agreement with win – win situation

– focus on needs and preferences

– high information exchange

fosters long-term relationships

Cross-cultural Sales Negotiations - B2C Stream

Negotiating StrategiesNegotiating Strategies

Competitive

– agreement with win-lose situation

– individualistic & persuasion oriented

• Factual-inductive: persuasion via logic (USA)• Axiomatic-deductive via ideals (Russia)• Affective-intuitive via emotions (Arabia)

Cross-cultural Sales Negotiations - B2C Stream

Negotiating StrategiesNegotiating Strategies

not static business trend to problem solving strategy

Cross-cultural Sales Negotiations - B2C Stream

Negotiating StrategiesNegotiating Strategies

Consideration of the others

Consideration of the own person

Concession Problem- Competitive

solving

process of ”getting to know” each other

emphasis on –status distinction, – impression formation and – interpersonal attraction

Cross-cultural Sales Negotiations - B2C Stream

Non-task interactionNon-task interaction

only concerned with the ”business”

involves exchange of information regarding needs and preferences of negotiators

emphasis on negotiating styles

reliance on non-verbal communicationCross-cultural Sales Negotiations - B2C Stream

Task-related interactionTask-related interaction

Plays an important role in negotiations more relevant in B2B but still a

factor in B2C

Cross-cultural Sales Negotiations - B2C Stream

Influence of corporate Influence of corporate cultureculture

Corporate culture

Different corporate cultures in different cultures in different business sectors in different companies in the same

sector in the company itself

Goal: company-internal negotiation style, which takes cultural differences into account

Discuss within your teams how to sell a car (any car) in ”your” country.

You will find more information about the country’s culture on the information sheet.

Make a summary on your poster.

Time to work: 10min.

Cross-cultural Sales Negotiations - B2C Stream

The car dealershipThe car dealership

USA:– independent, self-reliant behavior– competitive arguments– preparation is highly important– monochronic: one problem at a time– respectful, professional distance

Cross-cultural Sales Negotiations - B2C Stream

Different cultural Different cultural approachesapproaches

China:– focus on group goals– interdependence– building relationships– hierarchical orientation– politness– face-saving concern– preference for harmony and calm

Cross-cultural Sales Negotiations - B2C Stream

Different cultural Different cultural approachesapproaches

Culture goes beyond national culture

Globalisation

Don't under- or overestimate the effect of culture

Cross-cultural Sales Negotiations - B2C Stream

ConclusionConclusion

ConclusionConclusion

Every negotiation is a cross-cultural negotiation

Every negotiation is a cross-cultural exercise and a learning possibility

Keep an open mind and listen