The Favor Request Effect: Requesting a Favor from Consumers to Seal the Deal
48 Pages Posted: 6 Dec 2015 Last revised: 25 Dec 2015
Date Written: December 4, 2015
In situations in which consumers and sellers negotiate on price, the seller’s goal is to complete the sale at a profitable price. We demonstrate that sellers that pair a discounted offer with a favor request can increase the probability that a consumer will accept the deal, an effect we refer to as the “favor request effect.” We show the favor request effect across multiple shopping contexts and multiple types of favor requests (experiment 1) and in negotiations involving real financial consequences (experiment 2). We then show that the favor request effect operates by increasing consumers’ perceptions that the interaction with the seller is reciprocal, which in turn increases their confidence that they have obtained the lowest price (experiments 3 and 4). Finally, we explore the moderating role of the magnitude of the discount offered on effectiveness of the favor request (experiment 5).
Keywords: persuasion, negotiation, personal selling, reciprocity, pricing
JEL Classification: M00, M3, M30, M37
Suggested Citation: Suggested Citation