Negotiation Advocacy

Full Answer Section

        Value in Negotiation:

• Anchoring: The initial offer sets an anchor point for further negotiation.
• Reciprocity: The concession made from the high initial offer can create a sense of obligation for the other party to reciprocate with their own concessions.
• Psychological Perception: The more reasonable offer seems more appealing compared to the initial extreme offer.

Win-Win Negotiation Tactics using Contrast Principle: Tactic 1: High-Ball, Low-Ball, then Compromise:

• Example: Sharon starts by proposing a high severance package (e.g., 6 months' salary) but clarifies this is outside the typical range. She then presents a lower, more realistic severance offer (e.g., 3 months' salary) while framing it as a concession.
• Value: This tactic anchors the negotiation at a higher value and emphasizes the concession Sharon makes, potentially leading Alice to feel she's receiving a good deal with the lower offer.

Tactic 2: Anchoring with Benefits, Focus on Value:

• Example: Sharon starts by outlining a standard severance package (e.g., 2 months' salary). However, she emphasizes additional benefits like continued health insurance, outplacement services, and a glowing letter of recommendation.
• Value: This tactic highlights the overall value proposition beyond just the base salary, making the standard severance package seem more attractive in comparison.

Increased Likelihood of Success:

• Both tactics leverage the contrast principle to make the final offer seem more reasonable and valuable to Alice.
• Highlighting concessions or additional benefits creates a sense of reciprocity, encouraging Alice to make concessions herself.
• Focusing on the overall value proposition (financial security, career support) can lead to a win-win outcome where both parties feel they achieved their goals.

Importance of Win-Win Outcomes:

• Fosters positive relationships: A win-win outcome creates a sense of fairness and can preserve a positive relationship between the parties, even if they part ways.
• Encourages future collaboration: Positive negotiation experiences can pave the way for future collaboration, even if the parties are on opposite sides in the future.
• Increased compliance: When both parties feel they achieved something, they're more likely to comply with the final agreement.

In conclusion, the contrast principle is a powerful tool in negotiation. By strategically using high-ball offers, emphasizing concessions, and focusing on the overall value proposition, negotiators like Sharon can increase the likelihood of achieving a win-win outcome that benefits both sides. Striving for win-win solutions fosters positive relationships, encourages future collaboration, and leads to more sustainable agreements.  

Sample Answer

     

The Contrast Principle in Negotiation: Achieving Win-Win Outcomes

The Contrast Principle:

The contrast principle, developed by Robert Cialdini, states that our perception of value is influenced by the comparison between things we experience in succession. In negotiation, this means that presenting an extreme offer initially can make a subsequent, more reasonable offer appear more attractive.