Should Salespeople Always Collaborate with Customers?

A national random sample of industrial salespeople was surveyed to assess the effects of collaborating negotiation on sales performance. The responses from 241 salespeople were analyzed using ordinary least squares regression. The results indicated that, in general, collaborative negotiation improved sales performance. However, the effects of collaborative negotiation was a function of perceived customer dependence and the type of sales position. For example, for institutional sellers, perceived customer dependence positively moderated the effect of collaborative negotiation on sales performance. On the other hand, for order takers, perceived customer dependence negatively moderated the effect of collaborative negotiation on sales performance. Consequently, sales training programs should enable salespeople to assess perceived customer dependence and encourage them to engage in collaborative negotiations only when that is in the best interest of the selling firm. Based on the results, managerial implications and directions for future research were provided.