Apart from
Russell Peters racist comments, his humor is an accurate portrayal of various
cultures. This video highlights the fact that Indians cannot live without a
bargain and Chinese don’t like to give a bargain. This was highlighted when
Russell asked for a reduction in price for a bag that cost $35, sold by a
Chinese man. This process involved two main negotiation techniques, which in
the end didn’t even yield a successful buy.
The first technique
used, involved a higher authority. When Russell asked the Chinese man to reduce
the price he responded by saying he will confront his wife first. This is used
as a delaying tactic, and gives the buyer an impression that they can’t talk to
the real decision maker. As a result, the buyer feels pressured to negotiate at
a price with the seller to avoid the delay and unpredictability of the situation
(Schatzki, 2004).
The second
technique used was knowing your best alternatives to the negotiated agreement
(BATNA). In this case, when Russell asked for a further reduction in the
discounted price the chinese man indicated that he was providing the best deal
for the bag compared to alternatives. However Russell didn’t know the price of
his alternatives so he was pressured to give into the price. According to Brett,
Pinkley and Jackofsky ( 1996),
negotiators with BATNA have higher individual outcomes than those who
don’t. Therefore in this case Russell didn’t know his BATNA and therefore was
more unable to get what he wanted when negotiating.
In conclusion,
by using the authoritative figure the buyer felt like he was in a weaker
position which can make the buyer give into the seller more. Secondly knowing
their BATNA would put the buyer in a stronger position to bargain as they know
what they are competing against.
Schatzki, Michael. (2004). Managing the Sales
Negotiation Process. The Negotiator
Magazine.
Brett, J. F., Pinkley,
R. L., & Jackofsky, E. F. (1996). Alternatives to having a BATNA in dyadic
negotiation: The influence of goals, self-efficacy, and alternatives on
negotiated outcomes. International Journal of Conflict Management, 7(2),
121-138.
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