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Extant literature has studied how customer–salesperson price negotiations evolve in “normal” circumstances. However, recent economic recessions illustrate the need to advance theory on the question of how price negotiations evolve in “abnormal” times when customer demand significantly contracts beyond expected variation. In response to this gap in the literature, this study uses a multi-method design to investigate price negotiations during exceptional demand contractions. Our results from a theories-in-use study reveal that during such circumstances, salespeople’s perceived dependency on customers increases while customers’ perceived dependency on salespeople decreases. The inherent “power shift” should benefit customers in subsequent price negotiations. However, customers are less likely to capitalize on their power if they have a close relationship with a salesperson, implying that salespeople do not have to concede on price negotiations. This effect is likely due to increased sympathy during periods of exceptional demand contractions. The authors further validate key propositions from this qualitative study in a field study and a scenario-based experiment. Altogether, this study suggests that managers should not be too hasty in approving and encouraging salespeople to offer unnecessary price discounts during exceptional demand contractions as buyers may become more sympathetic and lenient during price negotiations.

With permission of SAGE Publishing

This case is a set of five vignettes describing career shocks experienced by managers. The stories behind the vignettes were presented by respective protagonists to an executive coach immediately after experiencing a career shock. They can be used for discussion of the topic of career shocks or as exercises in executive coaching or career counseling.

To study the effect of congestion on the fundamental trade-off between diagnostic accuracy and speed, we empirically test the predictions of a formal sequential testing model in a setting where the gathering of additional information can improve diagnostic accuracy, but may also take time and increase congestion as a result. The efficient management of such systems requires a careful balance of congestion-sensitive stopping rules. These include diagnoses made based on very little or no diagnostic information, and the stopping of diagnostic processes while waiting for information. We test these rules under controlled laboratory conditions, and link the observed biases to system dynamics and performance. Our data shows that decision makers (DMs) stop diagnostic processes too quickly at low congestion levels where information acquisition is relatively cheap. But they fail to stop quickly enough when increasing congestion requires the DM to diagnose without testing, or diagnose while waiting for test results. Essentially, DMs are insufficiently sensitive to congestion. As a result of these behavioral patterns, DMs manage the system with both lower-than-optimal diagnostic accuracy and higher-than-optimal congestion cost, underperforming on both sides of the accuracy/speed trade-off.

© 2023, INFORMS

We introduce a model of a rational credit card user's rather complex usage choices and develop an empirical framework to test its predictions. Employing a large national database of U.S. card accounts, we estimate how prices impact card usage and find that price effects are mostly well explained within our model. An exception is less borrowing in response to declining late-fees among low credit-score (subprime) users. Extension of our model based on "focusing theory" predicts this behavior. It also implies substantial indirect benefits of the CARD Act's late-fee cap due to subprime users re-focusing toward reducing their debt.

What defines success in executive education? Satisfied participants? Great scores on a post-training quiz? Participants using what they learned back on the job to influence important organizational metrics and KPIs? The article examines the case for taking a more results orientated approach to training design and evaluation for executive level education. Using the example of a TRATON executive education program, it sheds light on how to define a successful return via an impact map and how to shift from an event to a journey paradigm by combining a learning, a behavioral change, and a support layer.

View the book “Grasselli, N. (Ed.) (2023). The future of executive education. Learning leadership in a digital age” here.

An increased focus on co-creation in program design seeks to better meet the needs of the modern knowledge worker—setting a new standard for leadership development

View the book “Grasselli, N. (Ed.) (2023). The future of executive education. Learning leadership in a digital age” here.

What are the skills needed to lead a digital transformation today & how can leaders avoid digital transformation traps? This chapter brings forward an actionable route to making digital transformation work.

View the book “Grasselli, N. (Ed.) (2023). The future of executive education. Learning leadership in a digital age” here.

Why we cry at movies and what Hollywood can teach us about transferring our skills from the stage to the camera”. Tips for effective virtual communication in the “new normal” by using the ABC of virtual emotional intelligence:
A: Authorize emotion;
B: Be aware of the tacit;
C: Care and be compassionate.

View the book “Grasselli, N. (Ed.) (2023). The future of executive education. Learning leadership in a digital age” here.