Negotiation
Decision situation matrix
2 negotiation approach
Integrative
Distributive
Definition
negotiation strategy
consider your side
consider opponent
interest conflict (maximize own share)
fix-sum game
BATNA
reservation price
define your aspiration level
other party's BATANA/ reservation price
aggresive first offer
how to make concession
Best alternative to a negotiated agreement
=BATNA+/-transactional cost enact BATNA
impact of anchor
final agreement strongly influence by initial offer, but increase the risk of cutting bargaining zone
allow room to concession, each time smaller
rationale for every concession
after getting all demands
reciprocated互惠的
focus on strength be realistic but optimistic
Bargaining zone
Analyse issues, BATNA, reservation price, interest, position
use negotiation to collect info
First enlarge the pie than cut it
two ways
make proposal with all issues
ask what's wrong with issues
don't argue, just listen
build trust by sharing (keep reservation price)
trade off when there's difference in preference
firm on interest
issue by issue
package
subsequent distributive negotiation, easy have argument
understand priority
find issues to trade off
felxible
Compare
Distributive
Integrative
only one issue
opposing interest
divide the pie
my win, you lost
click to edit
multiple issue
increase the benefits of each side
enlarge the pie
always involve distributive component
6 persuasion tactic
social proof
Liking
Authority
Scarcity
Commitment
Reciprocity
repay other give us
behave consistently, internally motivated
more people think we are right
physically attractive, similar to us (work with people we like)
(limited number, time limited more value)
How to make first offer
extreme, Justify with BATNA and goals
consider timing, other side's alternative
more complex, greater anchoring advantage
talk your offer as long as possible