Adoption of cognitive reference points in negotiations

Dynamic pricing decisions by potential tourists under uncertainty: The effects of tourism advertising

“…In the same decision-making situations, different people, or even the same people, may form distinctive reference points. A plurality of reference points may simultaneously occur (Kristensen and Gärlinga, 1997). However, research on tourism reference prices has been largely limited to static (one-shot) decision-making.…”

A neural network approach to predicting price negotiation outcomes in business-to-business contexts

“…Hence, initial offers function as ''anchors'' or external references for the buyer. As strategic informational cues, initial offers affect the corresponding counter offer because they provide the person making the counter offer with additional information with which to reassess his or her intended offer (Kristensen & Gaerling, 1997c;Liebert, Smith, Hill, & Keiffer, 1968). Adoption level theory has been used to argue that this reference is perceived as a strong adoption level by the buyer whose counter offer must respond to this adoption level.…”

“…In other words, higher initial offers raise the subsequent offers. Evidence shows that the stated first offer can affect the corresponding counter offer (Kristensen & Gaerling, 1997c;Yukl, 1974) and ultimately the negotiation outcome (Pruitt & Carnevale, 1993). Some research has even claimed initial offers to be the best predictors of price negotiation outcomes (Van Poucke & Buelens, 2002).…”

Reference Prices as Determinants of Business‐to‐Business Price Negotiation Outcomes: An Empirical Perspective from the Chemical Industry

“…Research that investigates initial price offerings as triggers of counteroffers, which constitute the key elements of competitive bargaining processes, involves both anchoring and adjusting of both parties’ reference prices (Kahneman ). As strategic informational cues, initial price offerings also affect the counteroffer by giving the negotiation partner information that he or she can use to reassess an intended offer (Liebert, Smith, Hill and Keiffer ; Kristensen and Gaerling ). A seller's initial price offering thus should be regarded as a strong adaption level by the buyer, whose counteroffer should respond to that level.…”

“…Because buyers, in the interest of keeping the negotiation going, likely respond with an offer that might be assimilated rather than contrasted, an increased initial price offering tends to raise subsequent offers in a negotiation. Thus, research shows a positive effect of the initial price offering on corresponding counteroffers (e.g., Yukl ; Kristensen and Gaerling ) and ultimately the negotiation outcome (Pruitt and Carnevale ). Some research even has asserted that the initial price offering is the best predictor of settlement price (Van Poucke and Buelens ).…”