Buyer-Seller Negotiations Around the Pacific Rim: Differences in Fundamental Exchange Processes
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Abstract
The determinants of buyer-seller negotiations in four cultures are investigated in a laboratory simulation. One hundred thirty-eight American, 54 Chinese, 42 Japanese, and 38 Korean business people participated in a two-person, buyer-seller, intracultural negotiation simulation. In negotiations between Americans, the use of more problem-solving bargaining strategies positively influenced negotiation outcomes. In negotiations between Chinese, more competitive strategies led to better results. In Japanese and Korean negotiations, buyers achieved higher economic rewards than sellers. In all four cultures, bargainers were more satisfied with negotiation outcomes when partners were rated more attractive. The primary purpose of the study is to determine if face-to-face, buyer-seller negotiation processes vary across three Asian cultures. Specifically, the validity of generalizations about Oriental behavior are called to question by comparing simulated negotiations of Japanese, Korean, and Chinese (Taiwanese) business people. American buyer-seller negotiation processes are also examined and discussed in relation to the three Asian cultures.
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