Many American executives misunderstand the social dynamics...

Many American executives misunderstand the social dynamics of buyer-seller relationships in Japan and therefore undermine their chances of selling products there, according to USC marketing Prof. Wesley Johnston.

Based on a negotiating simulation conducted at USC, academic literature and field observations, Johnston concluded that in Japan, sellers put themselves in a subservient position vis-a-vis the buyer rather than maintaining the rough social equality prevalent in most American business relations.

By not recognizing this social norm, Johnston said, Americans trying to sell in Japan often try to be friendly with their Japanese counterparts, calling them by their first names, for example, without realizing that this is perceived as an insult. They thus torpedo their chances of making a sale.

By the same token, when buying from the Japanese, American purchasing managers do not take advantage of their perceived superior status by bargaining hard, Johnston added. They thus often fail to get as good a deal as they might.