Thesis Final Report (long)

One of the customers revealed ‘well we start off at

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Unformatted text preview: One of the customers revealed ‘Well we start off at 50 percent and the vendor eventually gives us a discount of 20-25 percent. It also depends on the time. If you try to bargain in the morning it won’t be so effective whereas if you come around evening or night you might easily get a 50 percent off on the quoted price’ (Respondent 58, interview, February 27, 2011). • Social Recognition As highlighted in the literature review, the research findings and analysis, social recognition is an important characteristic of the haggling process. It was discovered that family and peers have an impact on how individual react in a retail set-up. There have been numerous examples mentioned where respondents were concerned about their self image and how their peers react on their 46 bargaining and shopping at Sunday Bazaar. However, this view is from the positive angle as people would tell that they have bargained as according to one respondent, ‘If I get something good from here, I would want my friends to get the same’ (Respondent 45, interview, February 20, 2011). • Dynamic Pricing by Retailers A positive outcome of haggling for the retailers is that they can charge a different price from each customer. The ability to practice dynamic pricing leads to more sales, high margins coming from some customers and less margins from others, but eventually, the retailers are able to sell more and make reasonable profits. A retailer highlighted this by saying ‘We quote a higher price initially because we expect the customers to bargain, those who don't bargain end up giving us more margin therefore we are able to sell at less margins to those who bargain a lot’ (Retailer 11, interview, February 27, 2011). • Building Long-Term Relationships Another positive outcome of haggling for retailers is that it helps them build long term customer relationships at the bazaar that results in repeat purchases. As one customer quotes, ‘well, it’s not always about getting a bargain, sometimes that way you lose a very good vendor’ (Respondent 50, interview, February 20, 2011). A few retailers revealed that by offering good discounts initially, they develop a bonding with the customer that is long lasting. Therefore, by selling at low margins initially, the retailers stand a chance of making higher profits later on in the customers’ stream of purchases from that retailer. NEGATIVE OUTCOMES • Feeling of Resentment A negative outcome of haggling is that the retailers lose their temper if the customers keep pushing for a discount. One of the retailers quoted ‘We try to remain polite, we would ask the customer to leave if they are not willing to buy at our price’ (Retailer 10, interview, February 27, 2011). Another retailer had a similar response and he was quoted as saying “ We have a margin within which we can allow customers to haggle, if the customer is not happy with it then we let 47 them go without purchasing anything, we never make a loss’ (Retailer 12, interview, February 27, 2011).27, 2011)....
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One of the customers revealed ‘Well we start off at 50...

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