The first noticeable point and advantage from Maggie’s side
of the negotiation is that she knows exactly what she wants and how she values
it. She has done her research, she knows the cost of the acting class and that Danny
can afford it. She also knows what he wants and how he values it (he will do
anything to have fake kids to impress the woman of his dreams), by knowing
this, she has created value on her side because she knows that he has no other
alternatives (possible fake kids).
She begins her negotiation with the door in the face
technique (DITF), she asks for more than she expects to get. By starting high,
she creates an anchor so anything she suggests after the initial $600 dollars
and 6 week acting class seems small in comparison; therefore Danny is more
likely to agree to it. By starting high, she sets herself up to make a
reciprocal concession which gives the impression she is lowering her offer and encourages
reciprocity. Cialdini et al. (1975) found that hearing a high request first,
more than doubled the rate of agreement to the second request (50%), than if
the request was heard without the initial high offer (17%).
Secondly, both parties know their best alternative to a
negotiated agreement (BATNA) Danny’s is $500 and Maggie’s is experience, this provides
them each with a reservation price, the worst offer they are willing to take.
This creates a zone of possible agreement which includes anything between ‘for
the experience’ and $500. However, like in most negotiations, they do not know
each others reservation price, this is only stated at the end where Danny tells
Maggie that he would have paid her $500 and Maggie says she would have done it
for the experience.
Other negotiation techniques used:
1)
Maggie states a reason for her initial offer,
she tells Danny that she wants him to pay for the acting class because her mum
can’t afford it. Justifying your offer is often more persuasive (Langer et a.,
1978).
2)
Maggie requests more than one thing at a time, by
negotiating multiple issues at once, she can simultaneously leverage the
differences between her reservation price and his offer.
3)
From the offset, Maggie is already making
contingent concessions, she says “I will do my own hair and makeup” which also encourages
reciprocity.
So the next time you want something from a 10 year old,
think carefully about what you have that they want and what your alternatives
might be.
Cialdini, R. B., Vincent, J. E., Lewis, S. K., Catalan, J., Wheeler, D., & Darby, B. L. (1975). Reciprocal concessions procedure for inducing compliance: The door-in-the-face technique. Journal of personality and Social Psychology, 31(2), 206.
Langer, E. J., Blank, A., & Chanowitz, B. (1978). The mindlessness of ostensibly thoughtful action: The role of" placebic" information in interpersonal interaction. Journal of personality and social psychology, 36(6), 635.
Natalie Nash – Blog 5
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