Negotiation Fundamentals & Strategies Flashcards

Which of the following best describes 'integrative potential' in a negotiation?

Answer: The degree to which parties' priorities differ, enabling mutually beneficial trades

Integrative potential exists when parties value the same issues differently, creating opportunities for trade-offs that make both parties better off than a simple compromise.

The 'good cop / bad cop' tactic is most effective because it:

Answer: Creates psychological pressure while offering an apparently reasonable alternative

The tactic uses contrast — the 'bad cop' creates pressure and the 'good cop' offers relief — psychologically steering the target toward concessions to the 'reasonable' party.

In cross-cultural negotiation, which dimension reflects whether a culture prioritizes group consensus over individual decision-making?

Answer: Individualism vs. collectivism

Hofstede's individualism vs. collectivism dimension determines whether negotiators represent personal interests or group consensus, which significantly affects decision speed and authority.

What risk does over-reliance on a single negotiation tactic create?

Answer: It makes the negotiator predictable and easier to counter

Predictability in tactics allows the opposing negotiator to anticipate moves and prepare effective countermeasures, weakening the overreliant negotiator's position.

Which of the following represents an example of 'contingent contract' use in negotiation?

Answer: Structuring the deal so payment depends on future performance outcomes

Contingent contracts resolve disagreements about the future by tying deal terms to actual outcomes, allowing parties with different forecasts to bet on their beliefs.

Why is building rapport with a counterpart considered a foundational negotiation skill?

Answer: It reduces defensive behaviors and increases information sharing, expanding integrative potential

Rapport lowers psychological defenses, encouraging greater openness about interests and priorities, which enables the discovery of value-creating trade-offs.

When evaluating whether to accept a final offer, a negotiator should primarily compare it to:

Answer: Their own BATNA

A deal should be accepted only if it is better than the negotiator's BATNA — the best alternative available outside this negotiation — regardless of how it compares to earlier offers.