Basic Concepts of Negotiation

Question 1

What are the 3 most common negotiating strategies? (DIM)

Answer 1

1.) Distributive negotiation
2.) Integrative negotiation
3.) Mixed-motive negotiation

Question 2

Distributive negotiation?

Answer 2

Trying to meet all the clients needs with no compromises.

Question 3

Integrative negotiation?

Answer 3

Finding a middle-ground where both clients are happy & receive benefits.

Question 4

Mixed-motive negotiation?

Answer 4

Making compromises and add value only if it benefits your client, not because you care about the other party.

Question 5

5 styles of negotiation? (CACCA)

Answer 5

1.) Collaborative
2.) Accommodative
3.) Compromising
4.) Competitive
5.) Avoidance

Question 6

Collaborative negotiation style?

Answer 6

Working together for mutual benefit.

Question 7

Accommodative negotiation style?

Answer 7

Compromising to keep the other party happy.

Question 8

Compromising negotiation style?

Answer 8

Meeting in the middle and making a deal that is not ideal for either party.

Question 9

Competitive negotiation style?

Answer 9

Taking as much as possible and compromising as little as possible.

Question 10

Avoidance negotiation style?

Answer 10

Both parties list their requirements and don’t negotiate.

Question 11

Bargaining range?

Answer 11

The prices between the buyer’s and seller’s reservation points.

Question 12

Expanding the pie?

Answer 12

Adding extra value to the negotiation such as fixtures and fittings.

Question 13

Position?

Answer 13

Outlining what your client wants and will not concede on.

Question 14

Interests?

Answer 14

Both parties list their requirements and what they are willing to negotiate on.