Bargaining & Negotiation
Distributive bargaining is a ___________ form of negotiation.
Win-lose
___________ are the primary focus of distributive bargainers.
Positions
When the other party makes the first offer, and the offer is extreme, negotiators commonly react by:
Thinking that their initial offer was too optimistic, and revising it to be less favorable to themselves.
Asking for more than you expect, using silence, and using time to your advantage are examples of _________ used in distributive bargaining.
Tactics
Adjustments or reductions to demands are called:
Concessions
Bogey, good cop-bad cop, and lowball-highball are examples of
Dirty Tricks
Saying, “This is the best I can do,” or “I cannot move any farther” is an example of:
A final offer
Determining positions, and setting reservation process and target points should all take place during:
The strategy implementation stage of the negotiation.
Deceiving and bluffing, and concealing and distorting information are:
tactics you can use to help you gather information about the other party.
An example of an ethically questionable tactic is…
refusing to make concessions
Conditions that suggest using distributive negotiation
Goals are in fundamental conflict, the relationship is not a high priority, resources are limited, and trust and cooperation are lacking.
“You must reduce shipment costs by $0 per package or we will give our business to your competitor.” This is an example of:
A commitment
Equality fairness norms
relationship goals, ongoing relationships, and allocating rewards (NOT: Personal development goals)
Distributive negotiation should be the negotiation style of choice when parties are mainly interested in:
Claiming the most value for themselves.
Distributive bargaining tactics:
Estimate the other party’s resistance points, set your targets high, be willing to walk away. (NOT: Do not make the first offer.)
Aspiration levels are the outcomes that you realistically hope to achieve
True
The more attractive your BATNA is, the harder it is for you to walk away from the negotiation without reaching agreement
False
Most people bargain collaboratively.
False
Parties are more likely to reveal their BATNAs than their resistance points
True
You increase your negotiating power by not revealing your BATNA.
False
When negotiating distributively, the parties are expected to make offers and counteroffers before reaching an agreement.
True
An effective way to gain information and concessions is to respond to the other negotiator’s argument or offer with silence.
True
Negotiators who begin with a tough stance and make few early concessions, and later make larger concessions, elicit more concessions from the other party than negotiators who begin with generous concessions and then become tough and unyielding.
True
Providing explanations for your offers is typically more persuasive than providing an emotional appeal.
True
The party that does most of the talking puts the other party at a disadvantage.
False
Integrative negotiation is a _________ form of negotiation
Win-Win
Defining the situation, identifying interests, and building rapport:
Take on more importance in integrative negotiation than in distributive negotiation.
To separate the person from the problem:
consider the roles of emotions, perceptions, and communication.
When negotiating integratively, the focus is on:
Interests
What is not appropriate when negotiating integratively?
Compromise
Separating the person from the problem is an example of an integrative negotiation ___________.
Tactic.
Asking open-ended, probing questions, asking for clarification regarding what the other party said, and not blaming the other party when a problem arises are all examples of:
Tools to help gain a shared understanding between the negotiating parties
Fears, concerns, and unmet needs refer to a negotiator’s:
Interests
What pertains to the tangible issues that are being negotiated?
Substantive interests
Instrumental interests refer to
When you value or need something because it will help you in the future.
Focusing on interests during the negotiation:
Expands the number and type of solutions that will help both sides.
The solution process in which parties maximize joint gain by funding trades that capitalize on their differences is called:
Logrolling
you are meeting your manager to discuss getting a raise. To support the amount of the new salary that you will ask for, you show your manager the salary range for someone in your job, based on a salary survey conducted by a reputable human resources consulting firm. You explain that your job responsibilities match those of others whose salary falls in the top quarter of the range. This is an example of:
Using objective criteria to evaluate options
Integrative negotiation begins with:
Investigating how to expand the pie
When brainstorming, negotiators should not:
search for the single best answer
Using objective criteria is most effective when each party searches for its own criteria as opposed to searching for objective criteria together.
False
It is inappropriate to be aggressive when negotiating integratively
False
To negotiate optimally, each party’s interests should be kept secret from the other party.
False
The best approach when discussing issues is to focus on one issue at a time
False
Once trust is broken it cannot be restored into a negotiation relationship
False
Distributive negotiation offers more opportunities to find solutions that are acceptable to both parties than integrative negotiation.
False
Interests can be intrinsic or instrumental
True
Negotiators who make multiple equivalent offers have more difficulty finding integrative solutions
False
Legal requirements, relevant precedents, customs, market prices or wages, professional standards and policies are examples of objective criteria.
True
Trust is important to successful integrative negotiation.
True
Closing the negotiation begins:
During your preparation for the negotiation
Emphasizing to the other party how much the party will save relative to the party’s costs is an example of:
Framing
Negotiating parties who are more concerned about the risk of change than they are about the risk of failing to change are being influenced by
Status quo bias
What is an example of a default option?
“Check this box if you do not want to receive our weekly email newsletter.”
The sequential questions closing tactic involves:
Asking a series of questions, all of which are designed to illicit a “yes” from the other party.
“If we do not receive your signed mortgage application and application fee by 5PM today, the interest rate will increase by a quarter of a percent.” This is an example of
An exploding offer.
“If you accept the transfer, you will not only get a rise, but you will also get a promotion and an added week of vacation.” This is most likely appealing to the other party’s
Interests
If your opening offer is $15k and the dealer starts the price at $20k, and you agree on $17.5k without either party making any other concessions, the dealer and you have used which of the following closing tactics?
Compromise
You can put 20% down and get a 7% interest rate, or put 30% down and get a 6.75% interest rate is an example of which of the following closing tactics?
Multiple equivalent options
Which of the following is not a typical cause of a party’s reluctance to agree to the offer?
The solution appears too easy.
Exploding offers and sequential questions are not advisable to use if
You want to preserve or build the relationship between parties
Understanding and overcoming objections and persuading the other party to say yes is most effective when done:
Throughout the negotiation
Drawing diagrams and providing word pictures that demonstrate the positive outcomes that the other party will realize are especially effective methods for overcoming which of the following objections?
It does not work for me
The best closing tactic:
Avoid alienating the other party
Proposals that did not involve the other party’s input are more likely to be:
rejected.
Successfully closing a deal or settling a dispute requires you to convince the other party why or how your proposal satisfies your interests.
False
How you close the deal is related to how successfully the terms of your agreement are implemented.
True
Inviting the other side for constructive criticism of your proposals as you develop them is a good tactic for overcoming the other party’s objections to your proposals.
True
Requiring a short deadline for the other party’s review of a complex proposal will typically work in your favor.
False
Pointing out that the other party will incur costs if he or she takes time to think over the deal is an effective way to prevent losing the deal.
True
Offering to compromise is an example of a closing tactic
True
Splitting the difference between the last two offers is an even split only if the opening offers were equivalent from a theoretically correct settlement point, and if the concessions that both parties make are equal.
True
It is not always necessary to use closing tactics.
True
Using closed-ended questions is recommended once negotiators reach the closing stage
False
Reframing your offer is an effective way to overcome objections.
True