The Art of the Banking Deal: Effective Negotiation Strategies for Customers
Bank customers face obstacles securing favorable terms, but effective negotiation strategies exist. This paper examines customer preparation resources, relationships, confidence levels, and compromise solutions as negotiator attributes impacting bank interactions. Quantitative experiments assessed outcomes, satisfaction, flexibility, and profit constraints across manipulated negotiation episodes. Customers accessing external benchmarking data secured substantially better mortgage rates/fees. Compromise stances also associated strongly with mutual satisfaction levels. Assertive negotiation confidence helped overcome inertia and loss aversion psychological barriers. Bank profit motivations promoted rigid constraints, but small concessions maintained revenue targets. Enhanced information resources and collaborative compromises emerge as key strategies for customers negotiating more successfully with banks.
Keywords: bank negotiations, consumer finance, customer satisfaction, compromise solutions, information barriers, assertive negotiation