UGBA 105 FINAL TERMS (E+D) Questions + Answers Graded A+
2 views 0 purchase
Course
UGBA 105 TERMS
Institution
UGBA 105 TERMS
Scarcity - ️️Things that are hard to obtain are viewed as more valuable. We use
availability as a cue, less = better. We don't want to miss out on an opportunity (FOMO).
Difficulty (including price) as a heuristic value signal
We want what we may not be able to get reactance
Often overlaps ...
UGBA 105 FINAL TERMS (E+D)
Scarcity - ✔️✔️Things that are hard to obtain are viewed as more valuable. We use
availability as a cue, less = better. We don't want to miss out on an opportunity (FOMO).
Difficulty (including price) as a heuristic value signal
We want what we may not be able to get reactance
Often overlaps with social proof (if everyone doing it it must be good)
Ex: only 3 items left, expires today, limited edition
Before negotiation - ✔️✔️-Be prepared mentally by having done your homework.
-Determine the incentives of the person you will be negotiating with.
-Determine your starting point, trade-offs, and bottom line.
-Look for hidden agendas, both your own and the parties with whom you are negotiating
You should think from your point of view
Brainstorm alternatives, as many as possible
Evaluate each alternative
At this snapshot in time, your best alternative is your RP
Improve it
Think of their point of view
Estimate their BATNA
Treat this estimate as a hypothesis to be explored and updated
The role of expectations, goals, and first offers in negotiation - ✔️✔️Opening offers,
opening stances, and initial concessions are elements at the beginning of a negotiation
that parties can use to communicate how they intend to negotiate
-Where will you start? (opening offer; exaggerate or moderate?)
-What is your attitude? (opening stance; friendly or competitive?)
-Should any settlements be made?(concessions; small or large?) (defines the initial
bargaining range)
-These should all pair together (i.e. moderate opening offer, reasonable and cooperative
attitude, and reasonable/larger initial concessions with more flexibility )
Bargaining range / Bargaining zone - ✔️✔️Zone of Positive Agreement between a
sellers resistant point and a buyers resistant point. (Seller RP < Buyer RP)
Negative bargaining zone: No overlap between buyers RP and sellers RP (Seller RP >
Buyer RP)
This zone determines how easy it will be to come to agreement or if it is possible at all
, Reservation point / Walkaway point. - ✔️✔️the preferred price is someone's target
point or aspiration. Asking price is the initial price set by the seller. Reservation price is
the most someone will pay as a buyer.
Your 'bottom line' in negotiation. It is the point you will absolutely not got over...your
limit. This point is the source of power for each side. if you can identify this point you
should manage it (write down before and show no one)
BATNA: Best alternative to a negotiated agreement - ✔️✔️Similar to opportunity cost, it
is the alterative left if a negotiated agreement is not reached. Their BATNA is a source
of power for them (weak BATNA is weak power, but both BATNAs may be weak)
Shows how likely an agreement will be reached
Concession patterns and negotiation. - ✔️✔️Remember the law of effect (positive or
negative consequences of concessions, a concession is a reward to the other person)
Think about what negotiation tactic you are encouraging with concessions. Think about
using extinction.
Thinking about how happy you are with a deal can be dependent on how other person
deals with you.
Looking at behavior can tell you how close you are to the RP. Close to door, waiting
until the last second for a final bid,
strategy for distributive negotiations - ✔️✔️Harness the power of expectations
Set optimistic but justifiable goals
Build your justifications & your commitment
Anticipate and prepare for their justifications
Know your B.A.T.N.A - Make it better
Research the other party's B.A.T.N.A. - Make it worse
Make the first offer (if you are prepared)
Make bi-lateral, not unilateral concessions
Watch the magnitude and timing of your concessions
Purely distributive - zero sum negotiation - ✔️✔️a situation in which one person's gain
is another's loss.
Integrative - variable sum negotiation - ✔️✔️A game in which the sum of the payoffs to
the players at the different outcomes varies. Can create value to both players. Changes
the bargaining zone with new items.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ACADEMICMATERIALS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
