Thesis Final Report (long)

In chapter 4 the focus is on analyzing the data that

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well as the limitations to this research. In Chapter 4, the focus is on analyzing the data that has been collected from the respondents. Conclusions that have been derived from this research are in Chapter 5. 4
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CHAPTER 2 LITERATURE REVIEW 2.1 Defining Haggling Haggling has been defined as “to bargain in a petty, quibbling, and often contentious manner” (Dictionary.com 2010). It has been used synonymously with the terms bargaining and negotiation. Merriam-Webster (2010) describes bargaining as “an agreement between parties settling what each gives or receives in a transaction between them”. Haggling involves an interaction between the buyer and the seller in order to conduct a transaction by mutually satisfying the needs of both parties, keeping in mind what the other party wants. Deeds (2008), finds that bargaining or negotiating are “dignified” terms for haggling as a person tries to make most of the deal by saving money. He suggests that negotiation should be a “win-win process” for both, buyer and seller, in order to develop a long lasting relationship. On the contrary, in his studies related to the topic, Bacharach (2009) expresses that bargaining and negotiation are very different from each other. He argues that bargaining is manipulative and can be displayed as a “lose-lose” situation, whereas, negotiation, a “win-win” situation, is less manipulative and more based on co-operation. Haggling is also a process by which prices are determined in markets where there is no fixed price policy. Uchendu (1967) terms haggling as a process of price formation, whereby, the buyer and seller come to a mutual agreement over the price of a certain product remaining within the price range prevailing in the market. However, this price may vary due to various factors from customer to customer, depending upon the skill of the buyer or the seller. Price discrimination is a characteristic of haggling in which the market does not have a fixed posted price. According to Desai and Purohit (2004), haggling can be beneficial for the seller as it allows the seller to charge different prices to various customers. Jones, Trocchia and Mothersbaugh (1997) describe bargaining as to set a price for a product that is in accordance with the rates in the market and proves to be a financially favourable gain. Supporting the above 5
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mentioned views, Khuri (1968), suggests bargaining is a characteristic that is common in a “free market system”. Further on, he added that bargaining serves the purpose of regulating prices in places where there is uncertainty in the value of the commodities that are being exchanged. On the other hand, consumers in many markets do not have an option to bargain as it is not a common practice and the market structures are not bargain-oriented, focusing on fixed price policy (Alserhan 2009).
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