Scientific articles contain valuable management implications, but are usually not very easy to digest. We summarize the core results so that you can use the latest research findings for your company.
What is the article about?
B2B negotiations often involve information asymmetry, where one party possesses more knowledge than the other. This imbalance can create uncertainty and mistrust. While sharing information can help alleviate concerns, if the motives behind it appear questionable, skepticism increases. Additionally, negotiators frequently use time pressure as a tactic to accelerate decision-making.
This study explores how time pressure, combined with the strategic disclosure of relevant information, influences trust, FOMO (Fear of Missing Out), and decision-making willingness. Through three experiments involving 409 decision-makers from procurement and sales, the research examines mechanisms that either build or erode trust.
What are the key findings?
The findings reveal that time pressure affects negotiations differently depending on its source. Deadlines imposed by buyers often trigger suspicion, whereas time pressure initiated by sellers, when applied strategically, can strengthen trust and increase purchase commitment. Moreover, time pressure amplifies FOMO among buyers, prompting them to make faster decisions, while sellers remain largely unaffected. In highly competitive markets, urgency accelerates deals, whereas in less contested environments, trust plays a more decisive role.
What does this mean for companies?
B2B sellers can enhance their negotiation strategies by focusing on three key areas:
- Maintaining trust under time pressure: Justify deadlines credibly to prevent customer skepticism. Transparent communication and well-founded time constraints build trust and support confident decision-making.
- Closing knowledge gaps: Provide buyers with relevant and precise information to facilitate informed decisions. A well-informed negotiation environment fosters long-term collaboration and strengthens customer relationships.
- Effectively communicating urgency: Combine clearly stated deadlines with strategically shared information for selected customers. This reinforces the importance of timely action while maintaining trust and credibility.
Original text:
Ahmad, F. (2024). Source-oriented asymmetric information sharing in B2B negotiations: Two sides of time pressure. Industrial Marketing Management, 117, 114–130.