Is Salesperson Attractiveness a Boon or a Bane? The Moderating Role of Perceived Labor Cost-To-Price Ratio in Retail Bargaining

This research examines the important but unexamined effects of salesperson attractiveness on consumer bargaining behavior in retail contexts. In line with our theorizing, three studies demonstrate that the effect of salesperson attractiveness on consumer bargaining depends on their general beliefs regarding the impact of labor costs on retail prices. While consumers bargain less with an attractive salesperson when their labor costs-to-price (LP) ratio beliefs are relatively low, they bargain harder with an attractive, as opposed to a less attractive, salesperson, when their LP ratio beliefs are relatively high. As well, we provide evidence for the process, based on the salesperson's perceived trustworthiness and consumers' consequent bargaining stance toward her.