Chapter 9 Flashcards
Negotiation
process by which joint decisions is made by two or more parties
Distributive Sales Negotiation Approach
focus on single issue, such as reaching an agreement on price
Integrative Sales Negotiation Approach
focus on resolving more than one issue of which the buyer and seller may have different priorities
Building Block for Effective Sales Negotiation
Bargaining styles, personality factors, goals and expectations, interests and priorities, leverage, relationship norms
Thomas-Kilmann Instrument (TKI)
“concern for production” and “concern for people” became “assertiveness” dimension and “cooperativeness” dimension
Five bargaining styles
avoiding, compromising, accommodating, competing, collaborating
Good faith
parties have some capacity and will to compromise in ways that accommodate the other party’s interests
Bad faith
a party enters a negotiation with no intent to compromise on their interests in any way
Positions
the “what.” Summary statements that approximate what the negotiator wants
Interests
the “why.” Negotiator’s underlying reasons, motivations, or priorities
Positive leverage
having something of value that the other side wants
Negative leverage
one side has the power to take something away from
the other side
Prospect theory
seeing losses as much more significant that we view gains of equal value
Framing
the way a proposal is presented relative to other issues or factors
Situational Matrix
perceived conflict over the negotiated issues and perceived importance of future relationships with that buyer
