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Comm 151- Chapter 13

Negotiations

QuestionAnswer
Distributive vs Integrative Negotiations Distributive negotiations- assumes a zero sum, win-lose situation in which a fixed asset is divided up between the parties Integrative negotiations- assumes that a mutual problem solving can result in a win-win situation, enlarge the assets being divided
Distributive Negotiation o Threats and promises- implying that you will punish/reward in the future o Firmness versus concessions- waiting for the other party to give in; leads to reciprocation o Persuasion- verbal persuasion or debate; effective as expert, likable and unbiased
Integrative Negotiation Copious Information Exchange Framind Differnces as Opportunities Cutting Costs Increasing Resources Introducing Subordinate Goals
Third Party Involvement Mediation Arbitration
Why Negotiate? Create Value (maximize) Claim Value
Proper preparation of negotiation self assessment assessment of other party situational assessment
Reservation Point Lowest value you will accept before you decline the offer
BATNA Best Alternative To Negotiating Agreement
Know Yourself Target BATNA Get Multiple Offers (social proof phenomenon) RP
Know Your Opponent insight on reputation of company what's their position of interest what's your opponents BATNA
Know the Situation environment matters
Created by: c.bertrand