Negotiating style: local norms

Social atmosphere: When negotiating with Saudis, it is important to spend time engaging in small talk before getting down to business. Tea or coffee is usually served to create a social atmosphere in which the two parties can get to know each other before the negotiation starts.

Initial meetings: Several initial meetings may take place in which no business is discussed. Even so, these meetings are very important in the long term, as they provide time to build relationships. Saudis will not discuss business deals without feeling as if they know and trust the other party. Although these meetings can be quite long, it is important not to show impatience to get down to business. It is best to avoid any attempt to turn the conversation toward business matters. Foreign managers should show genuine interest in their Saudi counterparts, as this will facilitate the progress of the negotiation and win favor.

Bargaining: Historically, Saudis were traders, and even in the present day, they are often shrewd negotiators who expect and enjoy give-and-take in almost every aspect of business. In the Saudi marketplace, buyers and sellers may start with very high or low offers and haggle back and forth before reaching an agreement. However, bargaining in a business negotiation is more straightforward, with opposing sides generally starting with more realistic initial offers.

Fate: Like their counterparts throughout the Arab world, Saudis often use the expression, "In sha'Allah," which means, "If God wills." The attitude underlying this expression, which might be used in the context of a negotiation or meeting, may manifest itself in a reluctance to commit to a schedule or to do too much planning, as one's fate is essentially in God's hands, and people cannot ultimately control the future.

Selling

Local norms

The importance of personal relationships in Saudi Arabia also extends to the vendor/customer relationship. A strong personal bond between companies and their distributors and vendors is essential for facilitating business sales.

Gift giving: Is an important aspect of customer-vendor relations in Saudi Arabia. Although it is not customary to give gifts at first meetings, they are an important aspect of building relationships in subsequent encounters.

Foreign products: Are available and perceived to have high quality; famous brands are highly appreciated by Saudi consumers, some of whom have sizable disposable incomes.

Advertising: Must show sensitivity to Muslim sensibilities. Women in ads must be fully clothed or shown in silhouette and must not reveal their faces, hair, or other body parts. Men are also modestly displayed relative to ads in many other countries.

E-business

In a culture that has a lack of options for public activities, shopping has become a major form of entertainment enjoyed by the whole family. Partly for this reason, some Saudis have been slow to embrace e-commerce, although the number of people purchasing software, electronics, and travel reservations online is growing rapidly.

Modernization of Saudi Post: A turning point was the modernization of Saudi Post in 2007-2008; previously, there was no address system and therefore no mail delivery to individual homes. Saudi Post undertook an ambitious project to create a high-tech system of address-mapping, sorting, delivery, and tracking which has opened up many more opportunities for the e-commerce industry.

Women entrepreneurs & shoppers: In addition, e-commerce is becoming a popular outlet for women entrepreneurs, as they can set up business without leaving the home or dealing with men. The

Internet has also allowed women to shop for items from all over the world without leaving their

homes, and as a result, women now account for a large percentage of all Internet users in Saudi Arabia.

Customer service

Customer support: Customers have increasingly high expectations regarding prompt delivery of goods and availability of a qualified technical-support staff. As the market in Saudi Arabia is becoming increasingly competitive, it is important to offer excellent sales service and customer support in order to gain new clients and maintain relationships with existing ones.

Service: The idea that the customer is always right exists in Saudi Arabia, but is not practiced widely in stores and restaurants. Service may be slower than some foreigners are used to, but asking repeatedly for help may not make things go faster. They do not like a pushy attitude and believe in the philosophy that "when it happens, it happens." There may be long lines for services such as banking.

Date: 2015-12-11; view: 776