Goldilocks and the Three Levels of Warmth: Curvilinear Effects of Warmth in Negotiation

Abstract: Although negotiators’ demeanors likely influence negotiation processes and outcomes, little research has examined how. The current research examines how varying levels of seller warmth influence buyer trust, information-sharing, and buying intentions. We contrast predictions from Social Exchange Theory, suggesting that positive actions elicit reciprocal positive responses, with research indicating that warmth may signal insincerity. In a vignette study with samples from the U.S. and the U.K., participants responded to a car seller exhibiting low, medium, or highly warm behavior. Results reveal a curvilinear relationship, such that medium warmth generates the most favorable reactions. This relationship holds across both cultures. Further, U.K. participants consistently responded less positively than U.S. participants across all variables, independent of the level of warmth. Pilot data from a follow-up study with U.S. participants negotiating against bots indicated similar curvilinear effects, with medium warmth by the bot-seller generating the highest trust perceptions and price agreements.

Keywords: Negotiation; warmth; experiment