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The difference between Chinese and Western negotiations

E. Alan Buttery, Hawkesbury Campus, University of Western Sydney, Australia
T.K.P. Leung, Department of Business Studies, The Hong Kong Polytechnic University, Kowloon, Hong Kong
Abstract
Guanxi is the foundation of Chinese business negotiations. The paper explains the meaning of Guanxi and uses it to differentiate between the characteristics of Chinese and Western negotiations in the Marketing context. Guanxi is a characteristic of Chinese culture and provides a starting point for understanding the Chinese negotiating style. Western cultures have inherently different characteristics. As culture is so important in the negotiation process, the paper also reviews the five dimensions of culture as outlined by Hofstede (1991) and places these in the Chinese context.
Article Type:
Research paper
Keyword(s):
China; Marketing concepts; Marketing strategy; National cultures; Negotiating; Relationship marketing.
Journal:
European Journal of Marketing
Volume:
32
Number:
3/4
Year:
1998
pp:
374-389
Copyright ©
MCB UP Ltd
ISSN:
0309-0566
Introduction
Marketing has been defined in a number of ways, but invariably effective marketing is associated with the need to link producers and consumers (McCarthy and Perreault, 1993) or the need to facilitate exchanges (Kotler and Chandler, 1990; Lamb et al., 1994; Zikmund and D’Amico, 1989). Bennet (1988) on behalf of the American Marketing Association defines marketing as “the process of planning and executing the conception, pricing, promotion, and distribution of ideas and goods, and services to create exchanges that satisfy individual and organisational objectives”. Thus marketing is largely, but not solely, about negotiating and considering how to influence and carry out negotiations in order to facilitate exchange.
It has a wider context of highlighting the market, then segmenting it and identifying target market segments. It is concerned with understanding buyer behaviour within segments and choosing the appropriate strategies which involve how to position the product in the customer’s mind. It is also about retaining customers through offering quality, reliability and service and ensuring the whole system hangs together by developing a feedback and control system. The marketing effort in the wider context thus sophisticates the exchange process.
This is highlighted by the fact that at some point, no matter how simple or complex the marketing system, negotiations between buyers and sellers take place. When buying decisions are sizeable or complex, and especially when overseas negotiations are involved, negotiation techniques can play a major role in the successful conclusion of the business deal. It is unrealistic to assume that one negotiation style fits all cultures.
The development of the paper

References
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[Manual request] [Infotrieve]
Baker, M.J. (1992), Marketing Strategy in Management, Macmillan Press, Essex., .
[Manual request] [Infotrieve]
Bennett, P.D. (1988), Dictionary of Marketing Terms, American Marketing Association, Chicago, IL., .
[Manual request] [Infotrieve]

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