Chapter 6: Perception, Cognition, and emotion

Question 1

What is perception

Answer 1

Perception is:

• The process by which individuals connect to their environment.
• (How one assigns meaning to messages and events**)
• A complex physical and psychological process
• A “sense-making” process

Question 2

Explain the process of perception (%-Step)

SARTB

Answer 2

Stimulus–>Attention–>Recognition–>Translation–>Behaviour

People often interpret their environment in order to respond appropriately

Complexity of situation makes it impossible to process information

People develop shortcuts to process information and these shortcuts create perceptual errors

Question 3

What are the examples of perceptual distortion

Answer 3

Selective perception
 Projection
 Stereotyping
Halo effects

Question 4

What is selective perception

Answer 4

The perceiver singles out information that supports a prior belief but filters out contrary information. E.g. Confirmation bias

Question 5

What is Projection

Answer 5

 Arises out of a need to protect one’s own self-concept
 People assign to others the characteristics or feelings that they possess themselves
 “If I am agitated, I assume he is also agitated.”

Question 6

What is stereotyping

Answer 6

Occurs when an individual assigns attributes to another solely on the basis of the other’s membership in a particular social or demographic category

Question 7

What are halo effects

Answer 7

Occur when an individual generalizes about a
variety of attributes based on the knowledge of one positive/negative attribute of an individual

Question 8

What is framing

Answer 8

 The framer defines the issue at stake in a certain way to
close a deal, reach consensus or win an argument.

( Frames are like lenses you choose to put on and drive the issues in a negotiation**)

(Framing an issue in negotiations means that you’re focusing attention on one aspect of an issue and leaving other aspects out**)

(Framing calls attention to what you believe is the most important, or advantageous, aspect of the issue at hand**)

Question 9

What are examples of framing

Answer 9

• Substantive – concerned with key issue
• Outcome – results based, distributive
• Aspiration – broad based results, integrative * Process – process oriented
• Other frames – Attribute, Goal, Risky Choice

Question 10

What is attribute framing

Answer 10

Highlighting one characteristic of an object or situation in either a positive or a negative light.

Highlighting a desirable attribute makes the consumer take action.

Highlighting an undersirable attribute makes the customer less likely to take action.

Question 11

What is Goal Framing

Answer 11

 Providing emphasis on the negative outcome if person does not participating.

 When the Singaporean is told that he/she will miss out on free gift by not participating, the customer is more likely to take action.

 Understand their fears and negative associations - FOMO

Question 12

What is risky choice framing**

Answer 12

In risky choice framing, two choice options are manipulated so that one option represents a sure gain or loss and the other represents a risky alternative with numeric probability.

People tend to take more risks when options highlight the avoidance of losses than when they highlight comparable gains

Question 13

What is an example of risky choice framing **

(Think of Asian Disease Problem)

Answer 13

Outbreak of an unusual Asian disease, which is expected to kill 600 people.
* Some subjects are then presented with options A and B.

 A: If this program is adopted, 200 people will be saved.
 B: If this program is adopted, there is a one-third probability that 600 people will be saved and a two-thirds probability that no people will be saved.

• Other subjects are presented with options C and D.
   C: If this program is adopted, 400 people will die.
   D: If this program is adopted, there is a one-third probability that nobody will die and a two-thirds probability that 600 people will die. (chance of survival)
• Subjects tend to prefer the sure option when given options A and B, but tend to prefer the gamble when given options C and D. Note, however, that options A and C are equivalent, as are options B and D.

(Subjects thus appear to be risk-averse for gains and risk- seeking for losses (Kahneman and Tversky 1979).***)

Question 14

What are cognitive biases in negotiation**

Answer 14

Negotiators have a tendency to make systematic errors when they process information. These errors, collectively labeled cognitive biases, tend to impede negotiator performance.

Question 15

What are examples of cognitive biases

Answer 15

• Escalation of commitment
  (Irrational )
• Mythical fixed-pie beliefs
• Anchoring and adjustment
• Availability of information
• The winner’s curse
• The law of small numbers
• Self-serving biases * Endowment effect

Question 16

Explain escalation of commitment and mythical fixed pie beliefs

Answer 16

• Escalation of commitment (Irrational)
   Negotiators maintain commitment to a course of action even when that commitment constitutes irrational behavior not consistent with reason
• Mythical fixed-pie beliefs
   Negotiators assume that all negotiations (not just some) involve zero sum or win-lose

Question 17

What is anchoring and adjustment

Answer 17

A standard (anchor) or familiar position, point
Gains or losses (adjustment) are measured against this position
The anchor might be based on faulty or incomplete information, thus be misleading

Question 18

What is availability of information and winner’s curse

Answer 18

• Availability of information
   Operates when information that is presented in vivid or
  attention-getting ways becomes easy to recall.
   Becomes central and critical in evaluating events and options
• The winner’s curse
   The tendency to settle quickly on an item and then subsequently feel discomfort about a win that comes too easily

Question 19

What is the law of small numbers

Answer 19

The tendency of people to draw conclusions from small sample sizes

Question 20

What is self serving bias and endowment effect

Answer 20

• Self-serving biases
   Take credit for success, blame others for your
  shortcomings
• Endowment effect
  The tendency to overvalue something you own or believe you possess

Question 21

How to manage misperceptions and cognitive bias

Answer 21

1. Be aware of negative aspects of these biases
2. Be curious why other party has certain view point
3. may require you to “educate” them on facts without them losing face

Question 22

What is the ladder of inference

Answer 22

From bottom:

Pool of available data –> selection of data–> contextualization and meaning –> conclusions and positions