Negotiation Final Essay

7 Found helpful • 9 Pages • Essays / Projects • Year: Pre-2021 • Previously uploaded under: MGMT300 - The Art Of Negotiation

The opening offer can be seen as one of the most important throughout the negotiation as it provides a foundation to begin with while giving an insight as to the strategy the seller is to use. It is evident that the initial offer of £35,000 indicates that both myself and the seller had set a target or reservation point during her planning. By letting the seller offer first and following a distributive strategy I had formulated, she had used a highball strategy in order to set an unrealistic price based on what would benefit her and Mr Soles the most. From here I began to use screening tactics in order to draw information out of the seller such as the purpose of Mr Soles selling the car, what she herself wanted out of the deal and most importantly the overall originality and condition of the car. It was crucial for me to avoid the anchoring effect the information provided to might have and to consistently challenge what was explained by the seller. Studies have shown that in order to build long-term relationships within other parties asking questions is extremely effective in breaking down barriers which can be translated to negotiations by consistently asking questions throughout the deal in order to what the seller would like out of it, essentially taking a mix between distributive and integrative strategy (Nicholson, Compeau and Sethi, 2001). One effective technique I had integrated during the deal was attempting to persuade of the BATNAs which Mrs Austin would be obliged to accept after the seller stalled her offer. By doing so it incorporates a last resort intimidation strategy to sway her opinion of the seriousness of the purchase of this car and whether a lower price would ensure its sale, enabling the price to ultimately drop to £23,000. However, I pursued further for a greater bargain.

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