2.4 Analysis of negotiation two (failure)
This negotiation resulted in an agreement to keep the prices for two products stable and decrease the prices for the other two products.
There are several reasons why the interviewee perceived this negotiation as a failure. First of all, he expected what he calls the lower boundary of his goal range to be achievable, but these expectations were not confirmed. This perception of the outcome is in line with expectancy disconfirmation theory which states that satisfaction is influenced by the positivity of disconfirmation (Oliver, 1977; Oliver & DeSarbo, 1988). In the negotiation, the disconfirmation was negative as the settlement price was lower than expected and therefore, the outcome had a negative …show more content…
The interviewee and his superior adjusted their target point from price increase to price stability upon realizing that the customer’s offer deviates to a high extent from their expectations. Furthermore, it seems like they followed an accommodating strategy, which is a strategy in which one values the relationship over the outcome (Lewicki et al., 2010). They should have planned their concessions beforehand instead of falling for anchoring and giving excessive concessions. Furthermore, they should not have made counteroffers without receiving another offer from the other party (Lewicki et al., 2010). However, they expected the other party to give concessions easily, without having to be convinced with strong …show more content…
In addition to the dissatisfaction about the economic outcome he also was not satisfied with the negotiation process and the behavior of the other party. Although he gained the support of the gatekeeper, he was not able to convince the decider of the negotiation team.
There are several potential reasons why the negotiation did not come to an agreement. First of all, the seller was not able to find out the preferences and priorities of the potential buyer. Maybe the potential buyer changed his mind about the vehicle due to the flaw or tried to focus on it to force down the price. It is likely that he expected the offers made by the seller to still be far above the seller’s reservation price. Therefore, the negotiation ended without a deal due to the parties’ different expectations regarding quality and price of the offering as well as potential for concessions.
Another reason for no settlement could be that the seller at one point made a take-it-or-leave-it offer. There is scientific evidence that negotiators generally resent a take-it-or-leave-it approach, but would have accepted the offer if it was a result of concession making (Lewicki et al.,
This negotiation resulted in an agreement to keep the prices for two products stable and decrease the prices for the other two products.
There are several reasons why the interviewee perceived this negotiation as a failure. First of all, he expected what he calls the lower boundary of his goal range to be achievable, but these expectations were not confirmed. This perception of the outcome is in line with expectancy disconfirmation theory which states that satisfaction is influenced by the positivity of disconfirmation (Oliver, 1977; Oliver & DeSarbo, 1988). In the negotiation, the disconfirmation was negative as the settlement price was lower than expected and therefore, the outcome had a negative …show more content…
The interviewee and his superior adjusted their target point from price increase to price stability upon realizing that the customer’s offer deviates to a high extent from their expectations. Furthermore, it seems like they followed an accommodating strategy, which is a strategy in which one values the relationship over the outcome (Lewicki et al., 2010). They should have planned their concessions beforehand instead of falling for anchoring and giving excessive concessions. Furthermore, they should not have made counteroffers without receiving another offer from the other party (Lewicki et al., 2010). However, they expected the other party to give concessions easily, without having to be convinced with strong …show more content…
In addition to the dissatisfaction about the economic outcome he also was not satisfied with the negotiation process and the behavior of the other party. Although he gained the support of the gatekeeper, he was not able to convince the decider of the negotiation team.
There are several potential reasons why the negotiation did not come to an agreement. First of all, the seller was not able to find out the preferences and priorities of the potential buyer. Maybe the potential buyer changed his mind about the vehicle due to the flaw or tried to focus on it to force down the price. It is likely that he expected the offers made by the seller to still be far above the seller’s reservation price. Therefore, the negotiation ended without a deal due to the parties’ different expectations regarding quality and price of the offering as well as potential for concessions.
Another reason for no settlement could be that the seller at one point made a take-it-or-leave-it offer. There is scientific evidence that negotiators generally resent a take-it-or-leave-it approach, but would have accepted the offer if it was a result of concession making (Lewicki et al.,