Would you negotiate with a Coke machine?

Imagine walking up to a vending machine to buy a Coke. There are no buttons for you to push on the machine so you can make a selection. There is also no price listed on the machine.

As you stand there wondering how to use this technically advanced machine, a light emanates from it and scans you as it begins to feed information about you into its built-in computer processor.

An initial assessment of you begins to take form:

• Are in a suit or in jeans? 
• Are you carrying a briefcase or a laptop?
• Do you have manicured hands or are your hands rough and grease-stained?
• Are you wearing expensive leather shoes or a pair of beat-up work boots?
• How much change do you have in your pocket or purse?

The internal processor begins to process your information and generates a virtual salesperson who appears on the screen located on the front of the vending machine. The salesperson has, of course, been created specifically for you and represents the type of salesperson that you would most likely make a purchase from. 

Virtual salesperson: “What would you like to have today?” 

You: “I’d like a Classic Coke”.

Virtual salesperson: “Ok. Please insert 4 dollars. We also accept debit and credit cards, if you prefer” 

You: “$4.00? That’s ridiculous, I can buy a can of Pepsi around the block for $2”.

Virtual salesperson: “Maybe, maybe not. When was the last time you checked the price on the Pepsi vending machine”?
For $4.00, I’ll also include a bag of peanuts with your Coke.

You: “No thanks. I’m allergic to peanuts”. 

Virtual salesperson: “Ok. $3.50 for a Coke and a package of chocolate chip cookies.

You: “No. I just want a Classic Coke!”

Virtual salesperson goes silent and begins to scan you again.

Are the muscles in your face tense?
Are your hands relaxed?
Are you gritting your teeth?
Are your lips dry?
Are you licking your lips?
Are you swallowing?

The vending machines processor begins another assessment of you. It finds that you exhibit signs of tension and thirst and searches its customer relations database to find its next sales tactic.

What would you do?

1. Stay and negotiate a better deal.

2. Walk away and hope you have better luck negotiating with the Pepsi vending machine.

Technology continues to change the way businesses market its products and services to customers. Although, smart vending machines may not work exactly as described, it is a concept that makes you wonder how technology will change business as we know it.

Narakesari Narayandas, an associate professor of marketing at the Harvard Business School discussed this topic along with other new businesses practices with the parents of its 2001 graduating class. The video is lengthy but brings up some interesting points about how technology is going to change the way businesses operate in the future. 

Click here to view the HBS study and see the video.

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