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If you simply assert that three speeds are adequate for "around here," you may be missing his underlying interests. The customer may not be planning on using the bicycle "around here." Or he may think that people won’t think he is "cool" if he only has a three-speed – if you know why he thinks he will need ten speeds, then you can better assess whether your bicycle will meet his needs.

Similarly, if you jump to the conclusion that "price" is the real issue, then, by lowering the price, you may be "solving" the wrong problem. You’ll have not addressed his concerns, plus you’ll get a lower price.

 

A Good Rule of thumb: When the other person complains, ask a question so that you will better understand his or her underlying interests.

Factors that make integrative bargaining more likely

There are several situational factors that make integrative bargaining more likely: These are listed below:

-A motivation to work together (e.g., a rare opportunity that requires both sides to work together to obtain).

-The fact that you must live and/or work together after the agreement is negotiated.

-A common enemy (or threat).

-Expanding resources (e.g., company sales and revenues are up).

-Bargaining calmly and without anger.

-Belief in the validity of the other side’s underlying interests (if not their initial bargaining position).

-Open and honest information sharing (this is not the time to bluff or to give a laundry list of "throw-away" demands).

 

Review Question:

Which type of situational factor makes integrative bargaining LESS likely?
Click here if you think this is the best answer. A common enemy.
Click here if you think this is the best answer. A rare opportunity that requires the two sides to work together.
Click here if you think this is the best answer. Shrinking resources.
Click here if you think this is the best answer. Open and honest information sharing.
Click here if you think this is the best answer. A belief in the validity of the other side’s underlying interests.

 

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