Money talks: Customer-initiated price negotiation in business-to-business sales interaction

Abstract

This article provides an in-depth analysis of a conversational exchange initiated by a customer’s price question in real-life business-to-business (B2B) sales encounters. The analysis focusses on when the customer requests a price, what that implies as well as how the price discussion is conducted. Marketing literature usually considers product/service price to be an obstacle that the salesperson needs to overcome; we demonstrate that the price question is a positive signal for the salesperson. By requesting the price, the customer claims sufficient understanding of the offer, recognition of the service value and a readiness to move to the next phase in the meeting. The salesperson initiates an insert expansion to tailor the price to her or his customer and then informs the price in an expanded clausal response to build customer value. The conversation analytic study was based on a dataset of 13 video-recorded B2B sales meetings in Finland.

Keywords

Business meetings conversation analysis customer interaction industrial marketing institutional interaction questions sales encounters service price software-as-a-service

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