CPN Anchoring & Framing Strategies Flashcards

What is 'anchoring' in negotiation?

Answer: Setting an initial reference point that disproportionately influences subsequent offers and the final outcome

Anchoring establishes an initial figure or position that serves as a psychological reference point, pulling the final outcome toward it.

In negotiation, 'framing' refers to:

Answer: Presenting information in a way that shapes how the other party perceives and evaluates it

Framing shapes perception by emphasizing gains or losses, which influences how the other party evaluates proposals and makes decisions.

According to prospect theory, people are generally:

Answer: More motivated to avoid losses than to achieve equivalent gains

Prospect theory demonstrates that losses loom psychologically larger than equivalent gains, making loss framing a powerful negotiation tool.

A 'gain frame' presents an offer by emphasizing:

Answer: What the other party stands to benefit from accepting the proposal

A gain frame highlights the positive benefits the other party receives, making the offer feel more attractive and worth accepting.

What is a 'loss frame' in negotiation?

Answer: Emphasizing what the other party will lose or miss out on if they do not accept the offer

A loss frame exploits loss aversion by highlighting the negative consequences of rejecting the offer, motivating acceptance.

Which approach best counters an anchor set by the other party?

Answer: Ignore it and immediately introduce your own strong counter-anchor

The most effective counter to anchoring is introducing a strong counter-anchor rather than accepting their reference point and making concessions from it.