In your negotiations with an important customer, you realize that the two of you are focused on a single issue –price. What strategies could you employ to give this negotiation a more integrative focus?

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Question context: in a negotiation with a key customer, both sides fixate on price. The goal is to shift toward an integrative approach that expands the issue space beyond price to include preferences and tradeoffs.
Option 1: 'share your BATNA so they can meet your minimum price' - Revealing BATNA can be risky. It may anchor the other party to your fallback option or erode your leverage, and it doesn't necessarily promote an integrative discussion of interests and tradeoffs beyond price. This approach could limit creativity if the other party focuses on the minimum acceptable outcome rather than exploring mutual gains.
Option 2: 'initially make large concessions, then make them smaller to get a deal' - This is a classic hardball tactic that can undermine trust and signal a willingness to concede without ensuring value for both sides. It tends to keep the negotiation parked on price and may prevent exploring broader interests or exchanging information about underlying needs, preferences, and constraints that would support integrative outcomes.
Option 3: 'discuss your target price' - Discussing a target price can be a step toward transparency, but if framed narrowly around a single price point, it may still maintain a focus on price rather than on underlying interests. Without additional information about preferences or tradeoffs, this alone may not sufficiently promote integrative bargaining.
Option 4: 'don't share any information' - Withholding information generally prevents the other party from understanding your interests, priorities, and constraints. This inhibits joint problem solving and the identification of tradeoffs that could create value, making integrative bargaining unlikely.
Option 5: 'reveal some information about your preferences and priorities to make tradeoffs' - This option aligns with integrative bargaining principles. By sharing general preferences and priorities, you enable the other party to understand what matters most to you and where you can make reasonable tradeoffs. This encourages joint problem solving, expands the issue space beyond price, and helps uncover options that satisfy both sides’ interests, increasing the likelihood of a mutually beneficial agreement.

33:620:302:01 MANAGEMENT SKILLS Final Exam

In your negotiations with an important customer, you realize that the two of you are focused on a single issue –price. What strategies could you employ to give this negotiation a more integrative focus?

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