Bargaining Essay

649 words - 3 pages

Bargaining
Bargaining or haggling is a type of negotiation in which the buyer and seller of a good or service dispute the price which will be paid and the exact nature of the transaction that will take place, and eventually come to an agreement. Bargaining is an alternative pricing strategy to fixed prices. Optimally, if it costs the retailer nothing to engage and allow bargaining, he can divine the buyer's willingness to spend. It allows for capturing more consumer surplus as it allows price discrimination, a process whereby a seller can charge a higher price to one buyer who is more eager (by being richer or more desperate). Haggling has largely disappeared in parts of the world where the cost to haggle exceeds the gain to retailers for most common retail items. However, for expensive goods sold to uninformed buyers such as automobiles, bargaining can remain commonplace.
Dickering refers to the same process, albeit with a slight negative (petty) connotation.
...view middle of the document...

Both religious beliefs and regional custom may determine whether or not the seller is willing to bargain.
Regional differences
In North America and Europe bargaining is restricted to expensive or one-of-a-kind items (automobiles, jewelry, art, real estate, trade sales of businesses) and informal sales settings such as flea markets and garage sales. In other regions of the world bargaining may be the norm even for small commercial transactions.
In Indonesia and elsewhere in Asia where locals haggle for goods and services everywhere from street markets to hotels, haggling is a strong cultural tradition that even children learn from a young age. Participating in that tradition can make foreigners feel accepted.[1] Haggling for food items is strongly discouraged in Southeast Asia and is considered an insult, because food is seen a common necessity that is not to be treated as a tradable good.[2]
In almost all large complex business negotiations, a certain amount of bargaining takes place. One simplified 'western' way to decide when it's time to bargain is to break negotiation into 2 stages: creating value and claiming value. Claiming value is another phrase for bargaining. Many cultures take offence when they perceive the other side as having started bargaining too soon. This offence is usually as a result of their wanting to first create value for longer before they bargain together. The Chinese culture by contrast places a much higher value on taking time to build a business relationship before starting to create value or bargain. Not understanding when to start bargaining has ruined many an otherwise positive business negotiation.[3]
In areas where bargaining at the retail level is common, the option to bargain often depends on the presence of the store's owner. A chain store managed by clerks is more likely to use fixed pricing than an independent store managed by an owner or one of owner's trusted employees.[citation needed]
The store's ambiance may also be used to signal whether or not bargaining is appropriate. For instance, a comfortable and air-conditioned store with posted prices usually do not allow bargaining, but a stall in a bazaar or marketplace may. Supermarkets and other chain
Reference: Wikipedia for all

Other Essays Like Bargaining

Bargaining Power of Suppliers Essay

567 words - 3 pages Porter’s Five Forces Bargaining Power of Suppliers. The ability of a firm to negotiate good terms is influenced by the number of firms a company relies on. Apple has a high bargaining power over their suppliers because they are able to outsource much of their manufacturing and they also have been able produce some of their own supplies, which has allowed Apple a great advantage in the competitive market. Bargaining power of buyers is the

What Is Better Monetary System Bargaining or Money

607 words - 3 pages The preference of a monetary system is determined by considering several factors. Among them includes a wide range of production parameters which affect the rate at which goods and services are produced into the market. On the other hand, the preference is determined by the parameter affecting the customer behaviors in their purchasing (L. Meehan, 2015). Money and bargaining is the two main systems which the markets in the universe utilize in

The Union's Demand For Recognition And Bargaining Rights

824 words - 4 pages Case 15-1: The Union’s Demand for Recognition and Bargaining Rights In case study 15-1 a union representative made claims against a company of unfair labor practices. The Union also claimed that this was in violation of Section 8(a)(1) of the LMRA. The Union organizer claimed that the company had interrogated the employees to decipher if a union was being established in the company. Melton, the supervisor of the employees at the time of

Collective Bargaining In The Public Sector: How It Shapes The World Around It

2612 words - 11 pages Collective Bargaining has a feeling that lends a person to believe that it is for the people and at one point it was true and may even have a place within a private sector setting but not within the public sector. When a person looks at private unions you can see a general difference in the structure from that of Private-Sector unions. Even AFL-CIO President George Meany and even President Franklin D. Roosevelt who were labor union advocates saw

Something

926 words - 4 pages barriers. However, it is important to note that new businesses may overcome these barriers if they are able to introduce new products to the market based on innovative concepts. Large players such as Dell, Apple, HP, Samsung and Acer derive extensive benefits from the economies of scale and this fact represents an additional entry barrier to the consumer electronics industry. Bargaining power of buyers is immense due to the abundancy of offer

Apply Porter 5 Forces To IBM

345 words - 2 pages economies of scale due to experience curve effect. In addition, Consumers' preference over established brands, long-term relationship and broad product portfolio make IBM the preferred brand.2.Threat of SubstitutesPropensity to substitute is low for buyers. Threat varies from low to medium with high switching cost and product differentiation such as technology, performance, functionality etc.3. Bargaining power of buyersBargaining power is high during

Human Resource Management Is Replacing Traditional Industrial Relations

2716 words - 11 pages ). Part 2 provides a review of the subject of employee relations, there will be an explanation of the following issues: employee relations (indivudalism and collectivism; trade unions, employer associations and collective bargaining. Part 3 examines the collective bargaining, the factor of Industrial relations that is being replaced by human resource management. In this part an attempt is made to show the arguments for and against statement

The Best Paper Ever

1060 words - 5 pages also argue against the use of plea bargains. I personally think they are helpful, but may be offered to easily. Plea bargaining is the process by which a person accused of a crime may bargain with the prosecutor to receive a lesser punishment. Typically, the accused person will plead guilty, sometimes to a lesser charge than the original one (to manslaughter rather than murder, for example). As stated by the Boston College Law Review, the U.S

National Football League Players Association

766 words - 4 pages National Football League Players Association Jim VanHatten HRM 531 July 25, 2012 Sandra Akbar National Football League Players Association This is a paper discussing the effects of the union on the National Football League Players Association (NFLPA). Specifically, four topics will be addressed – the benefits of joining a union, the unionization process, how the union bargains, and the effects union bargaining has on the NFLPA

Introduction

853 words - 4 pages  This paper presents a brief study on UPS, a unionized company. Its history as well as some legal issues and hurdles they have encountered, how the laws at different levels could be compromised because of those issues. As a part of the analysis, the paper also touches on the unionization process, how unions conduct bargaining, and the impact of union bargaining on the company as a whole. From

Mg420 Labor Relations

2034 words - 9 pages 1. Define and Discuss the Term “Collective Bargaining” Collective bargaining is the process of negotiations involving the representatives of the employer and employee for terms and conditions of employment that will apply to the employee. In the United States the negotiations that happen between concerning parties are written into legally binding contracts and usually last from one to five years (Budd). As a member of the United States Air

Related Papers

Collective Bargaining Essay

1203 words - 5 pages MBA HRM Collective Bargaining Paper University of Phoenix The purpose of this paper is to describe the major provisions, roles and effects of specific Federal laws and regulations that play a role in collective bargaining initiatives.   In addition, this paper will also evaluate conditions presented in the product and services markets that lead to collective bargaining.   The term “collective bargaining” is governed by federal and state

Bargaining Report

1228 words - 5 pages Firstly, we defined our negotiation strategy as distributive bargaining. This consensus was reached through intra-organizational bargaining as some of our views and ideas differed slightly on how to approach negotiations. As we are still feeling the aftershock of the deep recession that erupted a year ago, our company’s resources are scarce. Hence Management has decided that any improvement in work terms that will increase the

Plea Bargaining Paper

1219 words - 5 pages Melody Kibbe Professor Jennifer Martin CJA/224 University of Phoenix December 15, 2013 Today in modern times, plea bargaining has become the primary procedure through which we dispose of the vast proportion of cases of serious crime. We then think about how our common law procedure function could, for so many centuries be without a practice that is today so prevalent and seemingly so indispensable in the criminal court systems. With

Plea Bargaining Essay

1200 words - 5 pages Evaluate the effectiveness of plea bargaining. (15 marks) Plea bargaining is a controversial aspect in the criminal justice system. It can be both beneficial, and detrimental to any court case. A plea bargain is the flexible form of justice that refers to the negotiation of charges between the defence and the prosecution. A plea bargain serves the main purpose of getting the accused to plead guilty to an offence and eliminates the need