Advanced Negotiation Tactics Flashcards

What is the concept of 'anchoring' in advanced negotiation tactics?

Answer: Making an initial high offer to establish a reference point.

Anchoring is a cognitive bias where individuals rely too heavily on the first piece of information offered (the 'anchor') when making decisions. In negotiation, making an initial high (or low, depending on whether you're buying or selling) offer sets a psychological benchmark that influences subsequent discussions and counter-offers. This anchor can pull the final agreement closer to the initial offer, even if the anchor itself was extreme.

What is 'BATNA' and how does it influence advanced negotiation tactics?

Answer: A framework to evaluate alternatives and set negotiation thresholds.

BATNA stands for 'Best Alternative to a Negotiated Agreement' and represents the most advantageous course of action a party can take if negotiations fail. Knowing your BATNA empowers you by defining your walk-away point and strengthening your position, as it provides a clear standard against which any proposed agreement can be measured. A strong BATNA gives you leverage and confidence, while a weak one indicates a greater need for a negotiated settlement.

How does 'framing' influence advanced negotiation outcomes?

Answer: Reframing the situation to make your position seem more favorable.

Framing involves presenting information or proposals in a way that influences how the other party perceives them, often by highlighting certain aspects and downplaying others. By carefully choosing words, analogies, and perspectives, a negotiator can reframe the situation to emphasize the benefits of their offer or the costs of not agreeing, making their position appear more attractive or reasonable. Effective framing can subtly shift the other party's perception and decision-making process.

What is the purpose of 'foot-in-the-door' technique in advanced negotiations?

Answer: To gain the counterpart’s trust before presenting the main request.

The 'foot-in-the-door' technique involves making a small, initial request that is easy for the other party to agree to. Once they have complied with this minor request, they are more likely to agree to a larger, related request later, due to a psychological desire for consistency and commitment. This tactic builds initial rapport and a sense of obligation, making the counterpart more receptive to subsequent, more significant proposals.

How does 'salami slicing' work in advanced negotiation tactics?

Answer: Breaking down larger requests into small, incremental demands to gain agreement.

Salami slicing is a tactic where a negotiator achieves a significant goal by breaking it down into a series of very small, seemingly insignificant concessions or agreements. Each small 'slice' is individually easy to accept, but cumulatively, they add up to the larger desired outcome. This method avoids triggering strong resistance that a single large demand might provoke, gradually moving the negotiation in the desired direction.

Why is 'lowballing' a commonly used tactic in negotiations?

Answer: To start the negotiation at an extremely favorable position.

Lowballing involves making an initial offer that is significantly lower than the actual desired price or value, often with the intention of anchoring the negotiation at that low point. While it can be seen as aggressive, it aims to shift the other party's expectations downwards, making subsequent, slightly higher offers seem more reasonable by comparison. This tactic attempts to gain a substantial advantage from the outset.

What does 'deadline pressure' refer to in advanced negotiation tactics?

Answer: Imposing an artificial deadline to force a quick decision.

Deadline pressure is a tactic used to create a sense of urgency, compelling the other party to make a decision or concede more quickly. By setting an explicit or implicit deadline, negotiators aim to reduce the time available for deliberation, potentially leading the counterpart to make concessions they might not otherwise make under less pressure. This can be effective, but it also carries the risk of damaging relationships if perceived as overly aggressive.

What is the role of 'reciprocity' in advanced negotiation tactics?

Answer: To encourage the counterpart to offer something in return for your concessions.

Reciprocity is a powerful psychological principle where people feel compelled to return favors or concessions. In negotiation, if you make a concession or offer something of value to the other party, they are more likely to feel an obligation to reciprocate with a concession of their own. This tactic can be used to build goodwill and facilitate a give-and-take dynamic, moving towards a mutually beneficial agreement.

Why is 'good cop, bad cop' considered an effective negotiation tactic?

Answer: To manipulate the counterpart through emotional pressure.

The 'good cop, bad cop' tactic involves two negotiators playing contrasting roles: one is aggressive and unreasonable ('bad cop'), while the other is understanding and cooperative ('good cop'). The bad cop creates stress and makes extreme demands, making the good cop's more reasonable (but still favorable to their side) proposals seem much more appealing by comparison. This manipulation of emotional pressure aims to make the counterpart more willing to concede to the 'good cop's' terms to escape the 'bad cop's' demands.