Behaviour Change

PROPAGANDA FOR CHANGE is a project created by the students of Behaviour Change (ps359) and Professor Thomas Hills @thomhills at the Psychology Department of the University of Warwick. This work was supported by funding from Warwick's Institute for Advanced Teaching and Learning.

Wednesday, March 12, 2014

Negotiation in Friends - Phoebe the Haggler

Phoebe’s initial attempt at a disinterested approach is used to try and convince the seller that they are not desperate to purchase the ring. This gives the impression that they are less likely to pay more for something that they do not strongly desire however this effect, if it had any impact in the first place, is counteracted by Chandler’s excitable behaviour that makes it very clear that the ring is the one he has been waiting for. Perhaps if Chandler had been more silent during the negotiation then the outcome would have worked more in their favour.
The price is stated as $8,600. Phoebe technically follows the anchoring framework by offering a much lower price ($10) however the suggestion is too ridiculous, it may have been more successful if it was realistic as anchors have been found to strongly influence the final outcome of a negotiation (Malhotra & Bazerman, 2007). However, the fact that Phoebe made the first offer may have worked in their favour to get them the final $600 reduction in price as research has shown that those making the first offer often receive better final outcomes (Galinsky & Mussweiler, 2001).
A criticism of Chandler’s approach is he is not aware of his alternatives and seems to have done little research before shopping for the ring. He also does not ask many questions about the ring however the seller offers information which does heighten the rings perceived value e.g. ‘this ring is from the 1920’s, it is a one and a half carat diamond with sapphires on either side.’ If Chandler was more knowledgable on the topic then he may have had an advantage and been able to ask questions to strengthen his negotiation.
The Zone of Possible Agreement is barely explored, Chandler states that he can only afford $8000 and this is agreed upon relatively quickly by the seller. Yes he ‘saved’ $600 but if he had employed some of the techniques mentioned and been more enthusiastic about negotiating then he may have been far more successful in getting it at a cheaper price.

Blog #5
Katie Ashcroft
Galinsky, A. D., & Mussweiler, T. (2001). First offers as anchors: the role of perspective-taking and negotiator focus. Journal of Personality and Social Psychology, 81, 657-670.
Malhotra, D., & Bazerman, M. H. (2007). Negotiation genius: How to overcome obstacles and achieve brilliant results at the bargaining table and beyond. New York: Bantam Books.


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