Thesis Final Report (long)

The researchers have developed a haggling model shown

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The researchers have developed a haggling model shown in figure 1 according to which haggling is influenced by factors that lead to motives and needs. Haggling results in positive and negative outcomes both for the buyer and seller. As explained, the haggling model shows that motives, factors and outcomes have a two-way reaction on each other. For example, age can have an effect on how people bargain leading to a certain outcome like better negotiation due to experience gained throughout one’s life. Likewise, once an outcome like closing a sale at the bargained price is achieved, the person’s motive of haggling may change and affect his/her individual or other factors that revolve around him/her, for instance his/her lifestyle or attitude. Moreover, if a certain outcome is achieved through haggling, the intensity of reinforcement of a motive may increase or decrease. For instance, if a positive outcome is achieved, the likelihood of reinforcement of the same motives with more intensity will be high. However, if a negative 50
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outcome is achieved, the likelihood of reinforcement would be lower or eradication of that motive could also occur. Also, motives could have and affect on factors and some factors may change the motives of haggling. The main motives that have been identified for haggling at Sunday bazaar are inflated price to customers, social acceptance, power, sense of achievement, entertainment, curiosity, long term relationship with the seller and the intention of vengeance, that is, desire to compete and win but end up not buying the item. Based on the findings derived from the customer and retailer interviews, the individual factors that influence the haggling process are demographics, psychographics, psychological and social. Other factors also influence haggling that includes economical, natural, technological, political, market and situational factors. The outcomes of haggling that have been identified through this research are positive as well as negative, with regards to the customers as well as the retailers. Overall, the benefits of haggling outweigh the costs involved which is why the practice has become so popular and majority of the customers indulge in this habit at such a bazaar setting. As far as the retailers’ are concerned, majority of them have become accustomed to it and they don’t see their margins shrinking or profits declining due to the haggling phenomenon prevalent in the bazaar. What can be ascertained is that, the retailers have devised a strategy to entertain this habit and use it for their own advantage. Hence, we see that both parties tend to indulge in haggling and strive to attain a profitable outcome out of it. Haggling is very common at a bazaar setting and it wouldn’t be wrong to say that it is a major attraction for customers. In such bazaars, customers are at benefit as they get a lot of variety of different goods at affordable prices while the retailers benefit by getting a lot of business.
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  • Fall '09
  • ........., Bargaining, Sunday Bazaar

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