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Thesis Final Report (long)

However this view is from the positive angle as

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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
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them go without purchasing anything, we never make a loss’ (Retailer 12, interview, February 27, 2011). Greed Another negative outcome of haggling is that the retailers intentionally quote exaggerated prices initially so that they have enough room to offer a discount. This is a strategy now practiced by majority of the retailers at the bazaar, because they want to remain profitable and at the same time accommodate the desires of the customers to haggle. One of the retailers revealed ‘we have a strategy to deal with the customers; we quote a price which is negotiable so that we can agree on the price the customer is willing to pay’ (Retailer 9, interview, February 27, 2011). Therefore, those customers who do not bargain end up paying inflated prices.
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