Brand Relevance in Business Negotiations - A Conceptual Approach

Within today’s increasingly competitive business environment, branding is crucial for business success. In the past decades, marketing science has researched the numerous effects of brands on intra-organizational and inter-organizational behaviors and processes. In this regard, it is rather surprising that up to now the relevance of brands in negotiations, as one of the most central decision-making processes in business, remains an open research field. It is critical that one better understands the importance of branding as it affects negotiation behaviors and outcomes. The present conceptual study aims to close this research gap. By following an interdisciplinary approach, the study observes two key effects. First, as suggested by the social identity approach, brand membership cause goal-congruence between the organization and the negotiators and enhances negotiators self-esteem. Secondly, according cognitive approaches, the brand frame externally affects counterpart’s perception and behaviors. Internal and external effects influence negotiation outcomes.