How Does Adding Argument into First and Second Offers affect Buyers' and Sellers' Behavior?
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Abstract
Previous research has underscored the paramount importance of first offers and first counteroffers in shaping negotiation outcomes (Lipp, 2023a), highlighted the impact of incorporating arguments into initial offers, influencing the counteroffers received by both buyers and sellers (Maaravi et al., 2011), and emphasized the significance of positive and negative language in the realm of online negotiations (Hine et al., 2009; Friedman et al., 2004; Brett et al., 2007). However, a significant knowledge gap persists regarding with which arguments do buyers and sellers use when they negotiate online and how does the use of integrating arguments that differ in their characteristics (such as their emotional tone) affects buyers' and sellers' behavior, preferences, and counteroffers in online negotiations.
Motivated by a desire to comprehend the intricacies of online negotiations and the impact of arguments on buyer and seller behavior, this research investigates various aspects of argumentation within the context of time-limited goods sold on secondary markets. Initially, the focus was on understanding the arguments utilized by buyers and sellers during online negotiations, and subsequently, how these arguments influence the negotiation process. The first paper delves into the arguments employed in online negotiations for time-limited goods, unveiling consistent argument patterns characterized by a prevalent negative emotional tone. Building on this foundation, the second paper explores the effects of incorporating arguments into sellers' initial offers, revealing that buyers exhibit a preference for sellers presenting high emotional tone arguments, resulting in variations in counteroffers. Shifting to buyers' counteroffers, the third paper investigates the impact of integrating arguments into these offers, demonstrating buyers' inclination towards sellers employing high emotional tone arguments, leading to further variations in counteroffers. Throughout these studies, the Linguistic Inquiry and Word Count (LIWC-22) software is utilized to analyze arguments and examine their emotional tone, authenticity, clout, and analytic components, thereby advancing our comprehension of human argumentation and its influence on the negotiation process. Collectively, these findings deepen our understanding of argument dynamics in online negotiations, shedding light on their influence on the behavior of buyers and sellers and their consequential impact on the negotiation process.
The first paper, "Arguments Used When Negotiating Online to Buy or Sell Time-Limited Goods", examines the arguments employed by buyers and sellers during online negotiations. Four experiments involving 480 participants were conducted, and a total of 960 arguments were collected and analyzed. The findings reveal a predominant negative emotional tone in the arguments, regardless of the diversity of goods being offered. Buyers and sellers utilized similar linguistic constructs when formulating their arguments. Prominent argument groups emerge, with a focus on price and the product itself, indicating consistent argument patterns across different product types and between buyers and sellers.
Building upon the first paper, the second paper, "How Does Adding Arguments to Sellers' First Offers Affect Buyers' Behavior?", investigates the impact of incorporating arguments into sellers' initial offers. Two experiments were conducted to examine the effects of different argument types on buyers' behavior. The results show that buyers exhibited a preference for engaging with sellers whose arguments possess a high emotional tone. Significant variations in buyers' counteroffers were observed based on the emotional tone of the arguments used by sellers.
The third paper, "How Does Adding Arguments to Buyers' Counteroffers Affect Sellers' Behavior?", focuses on the impact of incorporating arguments into buyers' initial counteroffers on sellers' behavior. Three experiments explore sellers' preferences when faced with different emotional tone arguments in buyers' counteroffers. The findings indicate that sellers exhibit a strong preference for engaging with buyers whose arguments entail a high emotional tone, as opposed to buyers whose arguments entail low emotional tone. Additionally, significant variations in sellers' subsequent counteroffers (bid prices) were observed when buyers incorporated different high emotional tone arguments to support their offers.
Overall, these studies contribute to our understanding of the intricate dynamics of arguments in online negotiations, illuminating their profound impact on the negotiation process, as well as the behavior and preferences of buyers and sellers. The findings offer valuable insights into the complexities of human argumentation, revealing its consequential influence on the negotiation process and buyers' behavior. As a result, these studies make a contribution to the advancement of negotiation research, shedding light on the pivotal role of arguments in shaping the negotiation process.
