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Negotiations > Ch.2 > Flashcards

Ch.2 Flashcards

1
Q

The distributive bargaining situation goals

A
  • Goals of one party are usually in fundamental and direct conflict with the goals of the other party
  • Resources are fixed and limited
  • Maximizing one’s own share of resources is the goal
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2
Q

what is a target point

A

This is your goal. Be optimistic but realistic

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3
Q

Resistance point

A

A price or outcome below which you will not go

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4
Q

asking price or initial offer

A

initial price set by the customer or seller

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5
Q

What is the bargaining zone/ zone of potential agreement

A

the space between the two parties’resistance points

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6
Q

What is a positive bargaining zone

A

When the buyer’s resistance point is above the seller’s

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7
Q

What is a negative bargaining zone

A

The seller’s resistance point is above the buyer’s, and the buyer won’t pay more than the seller will minimally accept. ( so hard to reach an agreement. One party would have to change its resistance point)

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8
Q

What is the role of alternatives to a negotiated agreement? (BATNA)

A

Alternatives give the negotiator power to walk away from the negotiation

If alternatives are attractive, negotiators can: Set their goals higher. Make fewer concessions

If there are no attractive alternatives:
Negotiators have much less bargaining power

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9
Q

If alternatives are attractive, negotiators can:

A

Set their goals higher
Make fewer concessions

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10
Q

If there are no attractive alternatives

A

Negotiators have much less bargaining power

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11
Q

Fundamental strategies to win a negotiation:

Push for _________ near opponent’s ________ _________
Get the other party to change their ___________ ____________by influencing their_______

Convince the other party that this settlement is the _________ ________

A

settlement, resistance point

resistance point beliefs

best possible

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12
Q

Fundamental strategies to win a negotiation:

If settlement range is negative, either:
- Get the other side to change ________ __________
- Modify __________ ___________ resistance point

A

best possible
your own

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13
Q

The objective of both parties is

A

to obtain as much of the bargaining zone as possible. To reach an agreement as close to the other party;s resistance point as possible

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14
Q

If the other party sees that you need a settlement quickly and cannot defer it. Is this an advantage or a disadvantage for them?

A

Advantage for the other party. The other party will set a more demanding resistance point.

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15
Q

The more a person needs a settlement, the more _____ they will be in setting a resistance point.

A

modest.

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16
Q

If you convince the other party that they BATNA is not as good, then, they might adjust their ______ ______

A

resistance point

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17
Q

What is indirect assessment (approach to Assess the Other Party’s Target, Resistance Point and Cost of Termination)

A

Determining what information an individual likely used to set target and resistance points and how they interpreted this information.

18
Q

Direct assessment (approach to Assess the Other Party’s Target, Resistance Point and Cost of Termination)

A

Sometimes, the other party will provide accurate information about their targets, resistance points and expectations.

19
Q

Manage the Other Party’s Impressions

A
  • screen your behavior
  • direct action to alter impressions
20
Q

Assess the Other Party’s Target,
Resistance Point and Cost of Termination, indirectly and directly

A

Indirectly:
Determine information opponent likely used to set:
- Target
- Resistance Points
Directly
Opponent reveals the information

21
Q

Screen your behavior

A

screen your behavior:
- Concealment ( say and do as little as possible to not give cues to the other party)
- Calculated incompetence: constituents do not give the negotiating agent all the necessary information, making it impossible for the agent to lead info. ( lawyers, real estate agents, etc)
- limit themselves ( ex: I will talk to my wife first)

22
Q

Direct action to alter impressions

A
  • Selective presentation : negotiators reveal only facts necessary to support their case
    Present facts that enhance one’s position
  • Emotional reactions (e.g. a flinch): letting a negotiation counterpart see your negative reaction increases the likelihood that you will claim more value.
23
Q

Ways to modify the other party”s perception

A
  • Make outcomes appear less attractive
  • Make the cost of obtaining outcomes appear higher
  • Make demands and positions appear more/less attractive to the other party
  • Interpret for the other party what the outcomes of his/ her proposal will really be (i.e. highlighting something that has been overlooked).
    Conceal information.
24
Q

Manipulate the Actual Costs of Delay or Termination

A

Negotiators have deadlines. there is that time pressure:

Plan disruptive action
- Raise the costs of delay to the other party
Form an alliance with outsiders
- Involve (or threaten to involve) other parties who can influence the outcome in your favor
Schedule manipulations
- One party is usually more vulnerable to delaying than the other ( ex: business people going overseas to negotiate)

25
Q

What are some tactical tasks

A
  • Assess the other party’s target, resistance point, and cost of terminating negotiations
  • Manage the other party’s impression of the negotiator’s target, resistance point, and cost of terminating negotiation
  • Modify the other party’s perception of his/her own target, resistance point, and cost of terminating negotiation
  • Manipulate the actual costs of delay or termination
26
Q

Positions taken during negotiations

A

At the beginning, each party takes a position, then the other party will typically change their position in response to info from the other party
- opening offers
- phantom anchors
-opening stance
- initial concessions

27
Q

An opening offer is ___ to the negotiator bc

A

Advantageous to the negotiator making the offer because they can anchor the negotiation
An ambitious opening offer gives the negotiator room for movement and time to learn about the other’s priorities.

28
Q

Phantom offers

A

Provide economic benefits by reducing the magnitude of the counteroffers made by the opposing side
Ex: I was going to offer to pay 20 500 but instead I can offer 21 000.

More value claimed by the party making the initial offer
People who use this technique are also perceived as more manipulative, which may impact reputation and relationships

29
Q

Opening stance

A

What is your attitude to adopt during the negotiation?
Competitive? Moderate?

30
Q

Initial concessions

A

An opening offer is usually met with a counteroffer; these two offers define the initial bargaining range

Symbolic message to the other party about how you will proceed

31
Q

What is the role of concessions

A

Without them, there is either capitulation or deadlock. Good distributive bargainers will not begin the negotiation with an opening offer too close to their own resistance point. They will make sure to have enough bargaining range to make some concessions.

32
Q

Final offer

A

This is all I can do”
Convey the message that there is no further room for movement. The final offers has to be large enough to be dramatic yet not so large that it creates the suspicion that the negotiator has been holding back.

33
Q

Tactics for Closing the Deal

A
  • Provide alternatives (2 or 3 packages): packages that are more or less equivalent in value.
  • Assume the close
  • Split the difference: split the difference between the two offers.
  • Exploding offers (extremely tight deadline): convince the other party to accept the settlement and to stop considering alternatives.
  • Deal sweeteners (save a special concession for the close)
34
Q

_______ tactics are not recommended to use.

A

Hardball tactics

35
Q

How to respond to hardball tactics

A

Ignore them
Discuss/label them
Respond in kind
Co-opt the other party (befriend them before they use it on you)

36
Q

\What are some typical hardball tactics(7)

A
  • Good Cop/ Bad Cop
  • Lowball/Highball
  • Bogey
  • The Nibble
  • Intimidation
  • Aggressive Behaviour
  • Snow Job (overwhelm the other party with information)
37
Q

The nibble explain

A

a small concession sought close to the end of the deal( ex: a free tie with the suit). This amount is to small to loose the deal over, but large enough to upset the other party

38
Q

The bogey, explain

A

(playing up an issue of little importance. Later in the negotiation, the issue can be traded for issues that are actually important

39
Q

Lowball/Highball

A

( starting with a ridiculously low or high opening offer)

40
Q
A

Negotiations (5 decks)

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