Thesis Final Report (long)

They dont have the option of taking a second opinion

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makers, they have to decide then and there whether their buy is really worth it or not. They don’t have the option of taking a second opinion from anyone. There are instances when customers haggle with the intention of vengeance .i.e. desire to compete and win but end up not buying the item. It was observed in an observation that the seller was bargaining and reducing the price but the buyer wasn’t interested in buying that rug so she quoted such a less price that the buyer refused to sell. The seller quoted a high price but he was willing to reduce the price, but Rs 500 was too low for him so the sale didn’t take place (Observation 4, Observation, February 20, 2011). If we look at it from the retailer’s point of view then it was observed by the researchers that at times two buyers want the same thing and this is the time when the seller takes advantage of the situation. This results in less bargain and good profit margin for the seller. The seller doesn’t 31
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indulge in bargaining and sells the product to the one who is paying a higher price (Observation 7, Observation, February 20, 2011). Another observation that was made by the researchers was that the sellers know the art of bargaining and they even threat the customer that if they don’t buy now then they will not get the same discounted deal afterwards (Observation 14, Observation, February 27, 2011). It was found that retailers have this habit of charging higher prices from women as compared to men so that they can compete with other sellers and not sell at a loss. As one retailer responded ‘The female customers bargain a lot more as compared to the male customers. So right from the beginning we tell them a higher price so that even after bargaining we are not at a loss’ (Retailer 9, Interview, February 27, 2011). 4.4.2 Factors Leading to Haggling Based on the findings derived from the customer and retailer interviews, the researchers have identified the following factors that influence the haggling process. 4.4.2.1 The Individual Demographic Factors o Age : It was found through customer interviews that age was an important contributor in the haggling process. It was believed by some respondents that older aged women tend to bargain more than anyone. ‘Women keep on bargaining, especially older women would spend hours bargaining over a single item’ (Respondent 44, interview, February 20, 2011). However another respondent supporting the view added that younger men are better bargainers while younger females do not bargain much. ‘Women do it but mostly it is the ‘aunties’ (older age ones). The younger women don’t bargain but the younger men can do it’ (Respondent 42, interview, February 20, 2011). Also, in some observations it was noted that children influence parents to make a purchase and sometimes the retailer can use this opportunity to have an upper 32
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edge over the negotiation process. In one such observation it was noted that a retailer was very smart and he took advantage of the situation because he knew that the buyer will buy the toys at any price as his children were crying for the toy (Observation 15, observation, February 27, 2011). In another observation, the retailer was not smart
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