Mkt 353 First Exam

Front 1

“two or more parties with common (and conflicting) interests
who enter into a process of interaction with the goal of
reaching an agreement (preferably of mutual benefit).

Back 1

negotiation

Front 2

4 Reasons for Negotiation:

Back 2

1. Prefer to work outside the rules
2. Prefer to work towards agreement rather than fight openly
3. No existing set of rules for the situation
4. Conflicts of interests

Front 3

3 Obstacles to Negotiation:

Back 3

1. Parties belief that their position in the right one
2. Parties fear of conceding to much
3. Parties fear of losing “face”

Front 4

3 Elements of Negotiation Architecture:

Back 4

1. Negotiation Environment
2. Negotiation Setting
3. Negotiation Process

Front 5

Business climate-beyond your control

Back 5

Negotiation Environment

Front 6

Relative power of the negotiators and their interdependence

Back 6

Negotiation Setting

Front 7

Events and interactions that take place between the parties to reach an agreement

Back 7

Negotiation Process

Front 8

11 Stages of Negotiation:

Back 8

1. Initial Planning and Fact Finding
2. Orientation at the Site Prior to
Negotiations
3. Non-task
4. Task-related Exchange of Information
5. Resistance
6. Reformulation of Strategy
7. Hard Bargaining and Decision Making
8. Persuasion
9. Concessions
10. Agreement
11. Follow up

Front 9

8 Characteristics of a Successful Negotiator:

Back 9

1. Observant
2. Good Listener
3. Patient
4. Sense of humor
5. Flexibility
6. Think before they speak
7. Realistic
8. Knowledge of the other party’s culture and organization

Front 10

All learned behaviors and values that
are transmitted through shared
experience to an individual living
within a society

Back 10

culture

Front 11

8 Effects of Culture on Negotiation:

Back 11

1. Communication between parties
2. Nature of the agreement
3. Negotiation protocol
4. Perception and Use of Time
5. Perception of group vs. individual
6. Selection of negotiators
7. Varying definitions of negotiation
8. Willingness to take risks

Front 12

Loss of familiar clues leads to anxiety, confusion

Back 12

culture shock

Front 13

5 Barriers of Communication:

Back 13

1. Lack of common symbols
2. General statements
3. Bypassing
4. Pointing and Associating
5. Semantics

Front 14

Two Areas of Culture are most important for negotiators to understand:

Back 14

1. Traditions, etiquette, and behavior of the group
2. Players and the process

Front 15

Culture, values, rules, and regulations of a business

Back 15

corporate culture

Front 16

11 Dimensions of Cross-Cultural Etiquette:

Back 16

1. Greetings
2. Formality
3. Gift giving
4. Touching
5. Eye Contact
6. Deportment
7. Emotions
8. Silence
9. Eating
10. Body language
11. Punctuality

Front 17

4 Impacts of Culture on Negotiations:

Back 17

1. Block out information inconsistent or unfamiliar with culturally grounded assumptions

2. Limit the range of strategies developed

3. Impelling the ethnocentric observer to an incorrect attribution of motive

4. Projecting meaning onto other party’s words or actions

Front 18

4 Components of Hall's Cultural Framework:

Back 18

1. Communication
2. Relationships
3. Time
4. Space

Front 19

Hofstede's 5 Cultural Dimensions:

Back 19

1. Masculinity/ Femininity
2. Uncertainty avoidance
3. Long Term Orientation
4. Individualism
5. Power distance

Front 20

4 Major Determinants of Negotiating Style:

Back 20

1. Cultural background
2. Context of the discussions
3. Professional responsibilities
4. Goal of the negotiator

Front 21

5 Negotiation Styles:

Back 21

1. Dodger
2. Dreamer
3. Haggler
4. Competitor
5. Problem Solver

Front 22

What is the importance of planning in negotiations?

Back 22

By failing to prepare, you are preparing to fail

Front 23

7 Key Factors in Planning Negotiations:

Back 23

1. Know your position
2. Know the other party's position
3. Know the competition
4. Know the negotiation limits
5. Develop strategies and tactics
6. Define the issues
7. Plan the negotiation meeting

Front 24

negotiator's most preferred point; an ideal settlement

Back 24

target point

Front 25

negotiator is indifferent between reaching a settlement and walking away from negotiation

Back 25

reservation point

Front 26

Best Alternative To a Negotiated Agreement

Back 26

BATNA

Front 27

region between parties' reservation points

Back 27

bargaining zone

Front 28

7 Advantages of Negotiating at Home:

Back 28

1. Have more confidence
2. More comfortable
3. Control over where the other party is and what they are doing
4. Less expensive
5. Able to play host and maybe establish some obligation on the part of the other party
6. Support systems are close by
7. More familiar environment

Front 29

3 Disadvantages of Negotiating at Home:

Back 29

1. Harder to claim that you have limited authority and walk out
2. Weaknesses in the organization are harder to hide
3. Hosting can turn into 24 hour a day gig if the other country has certain expectations of the host.

Front 30

3 Advantages of Negotiating There:

Back 30

1. Can learn a lot more about your potential partner and their strengths/weaknesses
2. Often treated like royalty
3. More able to claim limited authority and walkout of negotiations when they are not going your way

Front 31

6 Disadvantages of Negotiating There:

Back 31

1. Suffer from jet lag
2. More expensive
3. More easily distracted, especially if you have never been to that country
4. Away from home and familiar comforts
5. The longer the negotiations drag, the more likely you are to give in on certain points just to be able to go home.
6. Harder to get information

Front 32

2 Reasons to start high in negotiations:

Back 32

1. Be prepared to justify the costs
2. Often come away with higher settlements

Front 33

2 Reasons to start low in negotiations:

Back 33

1. Can get you invited to the negotiations
2. Can get your foot in the door

Front 34

6 Deceptive Tactics:

Back 34

1. Traditional competitive bargaining
2. Emotional manipulation
3. Misrepresentation
4. Misrepresentation to opponent's networks
5. Inappropriate information gathering
6. Bluffing

Front 35

5 Rules of Making Concessions in Negotiations:

Back 35

1. DO NOT make concessions too early in the game
2. Find out why the initial offer was rejected before you make a concession
3. Make a counter offer only after you have asked all the questions
4. Inexperienced negotiators often make concessions right after the initial offer is rejected
5. Flexibility is important in negotiations

Front 36

6 Categories of Influence in Negotiations:

Back 36

1. Reciprocity
2. Consistency
3. Liking
4. Authority
5. Social Proof
6. Scarcity

Front 37

2 Traditional Views of Ethics:

Back 37

1. Teleological
2. Deontological

Front 38

Concerns for duty to the collective

Do what is right or as society dictates is right

Back 38

Deontological

Front 39

Concern for consequences of a given behavior

The ends justify the means

Back 39

Teleological

Front 40

4 Standards of Ethics in Negotiations:

Back 40

1. Rule Ethics
2. End-result Ethics
3. Social Contract Ethics
4. Personalistic Ethics

Front 41

While we tend to take an absolutist
approach when judging others ethical behavior

"It is wrong to lie"

We tend to take a relativist approach to our own ethical behavior

"The lie I told was perfectly justifiable under the circumstances"

Back 41

Absolutist-Relativist Disparity

Front 42

8 Ways to Justify Unethical Actions:

Back 42

1. Unavoidable
2. Harmless
3. Will help avoid negative consequences
4. Will produce good consequences
5. Altruistically motivated
6. "They had it coming" or "They deserved it"
7. "They are going to do it anyway, so I will do it first"
8. Fair and appropriate to the situation

Front 43

6 Verbal Tactics to determine when the other side is being deceptive:

Back 43

1. Futility portrayal
2. Intimidation
3. Discomfort and relief
4. Bluffing
5. Among others
6. Gentle prods

Front 44

4 Determinants of International Ethical Behavior:

Back 44

1. Political factors
2. Age and gender
3. Cultural Dimensions
4. Economic factors

Front 45

7 Common Concerns in the Opening Offer:

Back 45

1. Be realistic
2. Be clear and positive
3. Imply flexibility
4. Create interest
5. Demonstrate confidence
6. Promote goodwill
7. Stress mutual benefits