Lesson 10: Customer Negotiation Flashcards
What is negotiation?
Dialogue between two or more parties
What is the intent of most negotiations?
- Reach an understanding
- Resolves points of difference
- Gain advantage in the outcome of dialogue
- Craft outcomes to satisfy various interests
What are some critical things to know when in negotiations?
- Knowledge or information
- Time or deadline pressure
- Strength or power
What are some things involved in negotiation in SE?
- Pricing & deal-making
- Reaching agreement
- Resolving conflicts & issues
- Building long-terms relationship
What are the different negotiation styles?
- Competing
- Accommodating
- Avoiding style
- Collaborating
- Compromise
Competing style
-Known as “win-lose” approach
- Involves assertive & uncooperative behavior, often seeking personal advantage
- Characterized by aggressive & dominant behavior
What are some advantages to the competing style?
- Can lead to quick decisions
- Good for non-repeat situations
- Enables self-protection
What are some disadvantages to competing style?
- Damages relationships
-Short term focus - Potential for retaliation
Accommodating style
-Characterized by extreme cooperation, sometimes neglecting the negotiator’s own needs
-Demands considerable flexibility & readiness to cater to the other party’s needs
- Preferred by individuals prioritizing relationships above immediate negotiation results
What are some advantages to the accommodating style?
- Relationship preservation
-De-escalating conflicts - Long-term gains
What are some disadvantages to the accommodating style?
- Personal sacrifice
-Risk of exploitation
-May lead to resentment
Avoiding style
-Involves steering clear of conflict or negotiation
-Typically used by those who perceive negotiation as unpleasant or detrimental
-Often characterized by postponing, ignoring, or sidestepping the issue
What are some advantages to the avoiding style?
- Reduces stress
-Buys time
-Appropriate for trivial matters
What are some disadvantages to the avoiding style?
- Unsolved issues
-Missed opportunities
-Can damage relationship
Compromising style
-Viewed as a “ middle ground” approach
- Involves give & take with both parties willing to make a concession
-Typically used when time is limited or as a temporary solution when parties have equal power & similar goals
What are some advantages to the compromising style?
-Quick resolution
- Fairness
- Maintains relationships
What are some disadvantages to the compromising style?
- May overlook better solutions
- Potential for exploitation
- Risk of “splitting the difference”
Collaborating style
- Known as the “win-win” approach
-Involves cooperation to understand both parties’ needs & wants
-Seeks solutions that fully satisfy the interacts of all parties - Encourages open communication, trust, & mutual respect
- Often leads to innovative solutions
What are some advantages to the collaborating style?
- High levels of satisfaction
- Relationships building
-Problem solving
What are some disadvantages to the collaborating style?
- Time-consuming
-Not suitable for all situations
-Risk of manipulation
What are the different negotiation strategies?
- Anchoring
- Framing
- Mirroring
Anchoring
Setting a reference point or starting to influence the perception of value or price
When should you use the Anchoring strategy?
When initiating the negotiation or presenting an offer to shape the other party’s expectation & anchor them to a specific value
Framing
Presenting information or issues in a particular context or perspective to influence decision-making
When should you use framing?
When framing a proposal or presenting options to emphasize certain aspects or create a favorable perception of the options
Mirroring
Mirroring the behavior, body language, or communication style of the party to establish rapport & build trust
When should you use mirroring?
Seeking to establish a positive connection with the other party & foster a collaborative atmosphere
What are the stages in the negotiation process?
- Preparation (gathering & analyzing information)
- Interacting (exchanging demands & constraints)
- Clarifications of goals (understanding each party’s needs & wants)
- Negotiate win-win outcomes ( striving for mutually beneficial results)
- Agreement- (finalizing terms & conditions)
- Implementation (putting the agreed terms into action)
Why is preparation important?
-Reduces uncertainty
- Increases confidence
-Improves outcomes
What are the steps involved in preparations?
- Gather information
2, Analyze conflict - Set objectives
- Assess knowledge, power, deadlines
- Identify bottom line & BATNA
What does BATNA mean?
Best alternative to a negotiated agreement
Interacting focuses on ____________ two way communication
Dialogue
What are the 3 basic skills used in interacting?
- Active listening
- Tactful questioning
- Careful observing
