Bargaining Customers Think About Companies And Sellers

Bargaining Customers think About The Companies And Sellers You Select

Bargaining Customers think about the companies and sellers you select to reward a significant share of your hard-earned spending budget. What convinced you to choose those providers? What are some of the explicit bargains or terms do these companies offer you in your role as a customer to get some of your time, attention, or information? and do you deem the trade-off worthwhile? Managing Customer Relationships: A Strategic Framework, Third Edition, Don Peppers and Martha Rogers 4 (DO NOT choose the ADD YOUR OWN option at the top right -this creates separate threads that may be missed by the group). To add your frame double click overlapping squares at bottom right – then (+) to upload your file or record audio/video. Remember to save. Deadline is WED midnight for answering the prompt, then post 3 other commentary to group member(s) by SAT midnight. DO NOT post all 4 in one day – this incurs penalties. WAL_SOCW2002_11_A_EN-CC.mp4

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The process of bargaining with customers is a fundamental aspect of modern marketing and customer relationship management. Customers often select companies and sellers based on a combination of perceived value, trust, and the benefits offered through explicit bargains or terms. Understanding what influences customer choice and the conditions they deem worthwhile is essential for companies aiming to build lasting relationships and competitive advantage.

One of the primary factors influencing customer choice is perceived value. Customers tend to choose providers offering favorable terms, such as discounts, loyalty programs, or exclusive benefits, which make the purchase feel rewarding. For example, many consumers are attracted to stores that offer immediate discounts, bundle deals, or deferred payment plans. These bargains serve as tangible incentives that reduce the perceived cost of the purchase, making the exchange more appealing. According to Peppers and Rogers (2016), customers are more likely to stay loyal to brands that consistently deliver value through personalized offers and transparent terms.

Explicit bargains can also include personalized services, access to exclusive products, or early notifications about sales, which incentivize consumers to share information or allocate their attention to certain brands. For instance, a customer might be willing to share personal data if they receive tailored recommendations or VIP treatment. The balance between the benefits received and the effort or information provided must be perceived as worthwhile by the customer. When the trade-offs favor the customer, the relationship tends to strengthen, ultimately leading to increased loyalty and lifetime value (Rappaport & Koppel, 2018).

However, customers also weigh the potential risks and costs associated with sharing personal information or spending additional time. In the digital age, privacy concerns are paramount. A customer might forgo a bargain if they believe the company's terms compromise their privacy or misuse their data. Transparency and trust are therefore critical components of effective bargaining strategies. Companies that clearly communicate the benefits of their bargains and reassure customers about data security tend to foster more positive relationships (Chen & Xu, 2020).

From the company's perspective, designing bargains that align with customer preferences involves understanding the value propositions that resonate most with their target audiences. Personalized incentives, loyalty rewards, and good communication strategies are essential tools. Successful companies leverage data analytics to identify patterns in customer behavior and tailor offers accordingly, ensuring that the perceived trade-off remains worthwhile for the customer (Verhoef et al., 2017).

In conclusion, bargaining with customers involves a delicate balance of providing explicit benefits that are perceived as worthwhile. Companies must understand what drives customer decision-making—perceived value, trust, transparency, and personalization—and craft bargains that meet these needs. When executed effectively, these strategies create a mutually beneficial exchange, fostering loyalty and enhancing long-term relationships.

References

• Chen, J., & Xu, H. (2020). Privacy Concerns and Customer Loyalty: The Role of Trust. Journal of Business Ethics, 162(4), 755-771.
• Peppers, D., & Rogers, M. (2016). Managing Customer Relationships: A Strategic Framework. 3rd Edition. Pearson.
• Rappaport, A., & Koppel, A. (2018). The Value of Personalized Incentives in Customer Loyalty. Marketing Science, 37(4), 598-610.
• Verhoef, P. C., et al. (2017). Customer Engagement as a New Perspective in Customer Relationship Management. Journal of Service Research, 20(3), 271–287.