terms l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Terms PowerPoint Presentation
Download Presentation
Terms

Loading in 2 Seconds...

play fullscreen
1 / 10

Terms - PowerPoint PPT Presentation


  • 340 Views
  • Uploaded on

Terms Distributive negotiation Reservation Price BATNA Target Price Bargaining Zone/ZOPA negative positive Distributive Negotiation Single issue Your loss is my gain Slicing the Pie How do you get the biggest piece? Preparation Offers Alternatives Concessions

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Terms' - Jims


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
terms
Terms
  • Distributive negotiation
  • Reservation Price
  • BATNA
  • Target Price
  • Bargaining Zone/ZOPA
    • negative
    • positive
distributive negotiation
Distributive Negotiation
  • Single issue
  • Your loss is my gain
slicing the pie
Slicing the Pie
  • How do you get the biggest piece?
  • Preparation
    • Offers
    • Alternatives
    • Concessions
accepting first offers
Accepting First Offers

How do you feel when the other party accepts your first offer?

I should have asked for more

Maybe I just got into a bad deal

Less satisfaction

Do not accept first offers

They are just that – an opener

Expectation to negotiate

offers
Offers
  • Folklore says to let the other party make the first offer
    • Is that a good idea?
  • Anchoring
    • People tend to focus heavily on the first offer
    • First offer correlates .85 with the final price
offers continued
Offers (continued)
  • What if the other party makes the first offer?
    • Immediate counteroffer
    • Take away the psychic hold of the 1st offer
batna
BATNA
  • Best Alternative to a Negotiated Agreement
    • The lowest acceptable value to an individual for a negotiated agreement
  • Develop alternatives so you know at what point to stop negotiating
  • Gives you the POWER to walk away
    • If we cannot receive an offer of X-amount for the house, then what will you do?
        • Rent it out?
what s your bottom line
What’s your bottom line?
  • “Tell me the bare minimum you would accept and I’ll try and throw in something extra”
  • “Why don’t you tell me the very maximum you are willing to pay, and I’ll try and I’ll see if I can shave off a bit”
concessions
Concessions
  • Need some cushion (Target price versus reservation price)
  • Make the first concession
    • Why?
    • Norm of reciprocity
    • Positive feelings
  • Magnitude of concessions
    • Less and less to signal you are reaching the end
reaching agreement
Reaching Agreement
  • If you reach an agreement you like, do you still care about how the other party negotiated?