Power Shift Paradox in Retailer-Manufacturer Negotiations: How to Take Advantage of the Channel Power Shift?
K. Zulauf, and R. Wagner. Proceedings of the 41st EMAC Conference, Marketing to Citizens: Going beyond Customers and Consumers, page 1-7. Lissabon, (2012)
In an experimental investigation, we challenge differences in bargaining power on the success in the domain of retailer-manufacturer negotiations. The power allocations turn out to have a significant impact on negotiation success. In scenarios with substantial differences in bargaining power, particularly female and mixed dyads failed to achieve a mutually satisfactory result. We learn that an increase in bargaining power does not necessarily lead to an increase in negotiation efficiency. Particularly, the paradox of channel power to profitability from manufacturer towards retailers is considered. Keywords: Bargaining power, formal negotiation procedure, gender, issue authority.