Selling and Sales Management in Action: Managerial and Legal Implications of Price Haggling: A Sales Manager's Dilemma

Abstract

Conventional marketing wisdom suggests that once an organization has carefully selected the target market and positioning of its offering, the price strategy is relatively straightforward. However, with the increasing power of the buyer brought about by the proliferation of offerings, domestic and international, the consolidation of distribution channels, the slowing of market growth as well as legislation contribute to a far from straightforward implementation of the pricing policy. To this end, the authors will examine the managerial and legal implications of haggling over price which the sales manager will face regarding “one-price” and “variable-price” policies, and the effect of these policies on the buying process.Price haggling has not enjoyed the same tradition in the United States as it has in many overseas markets. Until the end of retail price maintenance in 1975, in most cases the ticket price was the price to be paid. U.S. buyers consider themselves shrewd shoppers, but this shrewdness arises...