When threats and encouragements are effective in bargaining: The case of credit collectors

We hypothesise that the effectiveness of threats and encouragements is contingent on the intended recipient's level of negative affect, as evidenced by his/her negative affective display. Therefore, bargainers can be more effective if, as they make offers, they condition any threats or encouragements on the recipient's affective display. We test this hypothesis using 5561 verbal exchanges that occurred during 192 telephone conversations between credit collectors and debtors. Collectors were most effective in motivating debtors to discuss terms to resolve their debt if they: (1) threatened recipients who were nonresponsive and did not show any negative affect; and (2) encouraged recipients who displayed negative affect. This result suggests that making threats and encouragements contingent on a recipient's displays of negative affect may be an important but frequently overlooked component of bargaining.