S4. Negotiation strategies: Distributive and pressure tactics

Distributive bargaining strategies

• are the most efficient negotiating strategies to use.

• are used in all interdependent relationships.

• are useful in maintaining long term relationships.

• can cause negotiators to ignore what the parties have in common.

The target point is the

• point at which a negotiator would like to conclude negotiations.

• negotiator’s bottom line.

• first offer a negotiator quotes to his opponent.

• initial price set by the seller.

Starting points

• are usually contained in the opening statements each negotiator makes.

• are usually learned or inferred as negotiations get under way.

• are not known to the other party.

• are given up as concessions are made.

Which of the following terms does not describe the spread between both parties’ resistance points?

• lowball/highball

• bargaining range

• zone of potential agreement

• settlement range

In the distributive bargaining situation, the resistance point is

• an initial price set by the seller.

• a negotiator’s bottom line.

• a target point set by the buyer.

• a negotiator’s optimal goal.

When attempting to weaken the other party’s resistance point, a negotiator may try to

• reduce the other party’s estimate of their own cost of delay or impasse.

• increase the other party’s perception of the value of an issue.

• reduce the other party’s perception that you value an asset.

• reduce the other party’s estimate of your cost of delay or impasse.

Negotiators can take direct action to present facts that will directly enhance their position or make it appear stronger to the other party. Which of the following is not an example of a direct action to alter the other party’s impressions?’

• justifying your position and desired outcome

• displaying an emotional reaction

• picketing

• selective presentation

All of the following tactics are ways to manipulate the cost of delay in negotiations, except

• insert spies into the camp of the other party.

• manipulate the scheduling of negotiations.

• form an alliance with outsiders.

• plan disruptive action.

Negotiators need to screen information about their own positions and represent those positions as they would like the other to believe. Which of the following statements is not true of screening activities?

• Screening activities are more important at the end of negotiation.

• The simplest way to screen a position is to say and do as little as possible.

• During team negotiations, channeling all communication through a team spokesperson is an effective screening technique.

• In group negotiations, a useful screening approach is calculated incompetence.

Which of the following statements concerning positions taken during negotiation is true?

• Party positions typically do not change during negotiation.

• Content characteristics involve how much the issues and options of different issues are worth to a negotiator.

• Research suggests that making the first offer in a negotiation is advantageous to the negotiator making the offer.

• The main decision a negotiator must make about the opening offer is what attitude to adopt during the negotiations.