What is Leverage? Key Concepts in Negotiation

The video explores the concept of leverage in negotiation, emphasizing its role as a compelling advantage. It critiques the traditional view of leverage as a monopoly or privileged information, highlighting the risks of misuse, such as damaging relationships and reputation. The video suggests that leverage can come from various sources, including influence, persuasion, value, and fairness. It concludes by encouraging a broader understanding of leverage beyond coercion or monopoly.

What is a traditional view of leverage in negotiations?

• A substantial advantage like a monopoly

• An irrelevant factor in negotiations

• A minor advantage in discussions

• A disadvantage in competitive markets

What can be a consequence of using leverage to excessively increase prices?

• Improved market competition

• Enhanced brand reputation

• Increased customer loyalty

• Damaged long-term relationships

How is leverage compared to a crowbar in the video?

• It is a tool that can fix any problem

• It is a tool that should be used carefully

• It is a tool that is always damaging

• It is a tool that is rarely effective

What is a key factor that can enhance leverage through persuasion?

• Reducing product prices

• Ignoring customer needs

• Highlighting long-term benefits

• Focusing on product features

Why is fairness considered an important source of leverage?

• Because it is irrelevant to most people

• Because it is a legal requirement

• Because humans are naturally inclined towards fairness

• Because it is the easiest way to win a negotiation