MODULE 5

PERSUASION & TACTICS

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1. INTRODUCTION
The emphasis in many negotiation training courses falls strongly on the use of
tactics, which is unfortunate as these are inclined to be highly manipulative and are
easily spotted by experienced negotiators.

Tactics are actions, or inactions, that support the achievement of strategy-related

goals, and promote or hinder actions or inactions undertaken by another party.
A party involved in a negotiation may, for example, choose to slow-up or to expedite
a certain process within its control, such as the transmission of a document, as this
may have a strategic impact.

Prior to the 1980’s, many companies concentrated largely on tactically orientated

negotiation training, failing to appreciate that in order for negotiation to deliver
enduring results, it cannot merely rely on tactics. Although tactics, when skilfully and
sparingly used, do deliver results, such results are often of a short-term nature and
fail to take into account that the quality of the relationship built within a negotiation is
ultimately the determining factor as to whether the agreement will be honoured or
not. In addition there is the question of ethics, since many tactics are experienced as
being highly manipulative and are therefore not conducive to a climate of mutually
beneficial gain.

Once negotiators become au fait with a mutual gains approach to negotiation, their
need for tactics, especially manipulative tactics which are designed to extract value
from the other party without contributing reciprocal value, greatly decreases.
Negotiation where both parties consciously endeavour to create mutually beneficial
value has little need of tactics of the kind often espoused in popular literature on
negotiation.

Regrettably, negotiators often have to engage in negotiations with parties that have a
strong tactical approach. Knowledge of the tactics that could be employed is
therefore essential, as this enables a negotiator to counter whatever tactics are used
by declaring his/her awareness of them to the other party and expressing his/her
discomfort at an approach that is not aligned to seeking a sustainable, mutually
beneficial outcome.

When countering tactics it is important that negotiators do not do it in a personal way.

The approach should focus on the tactics and should not in any way attack the
dignity of the other party. Tactics per se do not make of a negotiator a manipulator.

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Negotiators frequently use tactics as a result of the restrictive one-dimensional
training that they have received, not appreciating the long-term consequences.
There is also the danger that a perceived tactic may in practice be the way that a
particular person has of acting or reacting.

A valid test for any approach that a negotiator may wish to adopt is to ask whether it
would be acceptable to a friend or family member.

2. PERSUASION
The scientific study of the process of social influence stretches back over half a
century, commencing in earnest with the propaganda, public information and
persuasion programmes of World War II. Since then, many social scientists have
investigated the ways in which one individual is able to influence another’s attitudes
and behaviour.

For the past 30 years Robert Cialdini has investigated the primary factors that induce
people to say ‘Yes’ to a request. He has discovered that six basic tendencies of
human behaviour underlie a positive response, namely;

§༊ Reciprocation;
§༊ Consistency;
§༊ Social validation;
§༊ Liking;
§༊ Authority; and
§༊ Scarcity.

According to Cialdini, these six tendencies play a very important part in governing our
business dealings, societal involvements and personal relationships, and some
knowledge of these six rules of persuasion is therefore crucial to negotiators.

2.1 Reciprocation
Cialdini’s research has revealed that reciprocity is one of the most powerful
determinants of human behaviour, and therefore also of negotiator behaviour.
According to the law of reciprocity, a negotiator making a concession to another party
is not giving something away. Given that all cultures train their members in
reciprocation; this concession registers an obligation to reciprocate with the other
party.

To demonstrate the power and durability of this law, Cialdini quotes an occurrence
involving Mexico and Ethiopia. In 1975, at the time of the Mexico City earthquake,
despite famine, deprivation and great suffering, Ethiopia donated a relatively large
amount to Mexico to assist in dealing with the consequences of this natural disaster.
On investigating the reasons for this apparent absurdity, Cialdini discovered that
Ethiopia made this contribution to reciprocate the assistance Mexico had provided to
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Ethiopia when that country had been invaded by Italy some fifty years before.
Notwithstanding a gap of fifty years since Mexico has assisted Ethiopia, the law of
reciprocity prevailed.

Unfortunately, many negotiators are oblivious to the moment of power in negotiation

when, immediately after they have made a concession and the other party
recognises this concession with a ‘Thank you’, they respond to such a ‘Thank you’
(whatever form it may take) with an utterance such as “It’s a pleasure”; “No big deal”;
or “Forget it”. This effectively removes the saddle of obligation from the other party
and thereby the possibility of reciprocation. A far better response would be “I know
you will do the same for me” which does not squander this powerful obligation.

Another application of this law involves situations where large requests made by
negotiators meet with a bland ’No’. Their natural inclination at that point is to retreat
from the negotiation, accepting that there is no way forward.

Fortunately, this is not the case, as reciprocation is still possible if they do not retreat
from the negotiation, but remain in the negotiation and offer the other party a
concession with regard to the initial large request, thus registering an obligation with
the other party that is often powerful enough to get that party to respond with a
concession of its own by agreeing to the lesser request.

2.2 Consistency
The second law of persuasion relates to the human desire to appear and act
consistently. A negotiator can employ this law by getting the other party in a
negotiation to agree to co-operate in defining the negotiation issues, developing
options and setting the agenda. According to this law, the other party will, having co-
operated in terms of the process, then experience a psychological urge to continue
acting consistently in terms of the other phases of the negotiation.

To support this conclusion, Cialdini cites a real-life occurrence, in which Gordon

Sinclair, a well-known Chicago restaurant owner, in 1998 used this law to largely
solve the problem of restaurant patrons who frequently reserve a table but, without
notice, fail to appear. Sinclair asked his receptionist to change two words in what
she said to callers requesting reservations. Instead of using her usual request to
patrons to “Please call if you have to change your plans”, she said, “Will you please
call if you have to change your plans?” and then politely awaited a response. By
waiting for a response, she induced patrons to fill the pause with a public
commitment that, as the results prove, directed their future behaviour.

Getting a party to agree to co-operate in seeking a mutually beneficial outcome to a

negotiation, very often exerts a powerful influence on the rest of the negotiation, as
that party will then have a strong urge towards behaving consistently.

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2.3 Social validation
A further important law relates to our tendency to look to what others do, or have
done, when we decide what to do in a certain situation. Taking advantage of social
validation, negotiators can stimulate compliance by demonstrating (or merely
implying) that others, just like the other party, have previously supported the
suggested option/solution.

The power of social validation was confirmed in a study involving fund-raisers, where
some were asked to show homeowners a list of the neighbours who had donated to
a local charity. This resulted in a significant increase in contributions. In addition,
researchers found that the longer the list was, the greater the effect it had.

If used incorrectly, as in many health campaigns, this law can result in outcomes
opposite to those intended. Were a negotiator to point out to the other party that
most companies lose out by not applying the solutions it proposes, this could
boomerang in that it could cause the other party to see the negative responses of
these companies as social validation, thus strengthening its resolve not to co-
operate.

2.4 Liking
“Affinity,” “rapport” and “affection” are all described as feelings of connection between
parties. However, the word “liking” most faithfully captures the concept and has
become the standard designation in the social science literature. People prefer to
say ‘Yes’ to those they like.

Negotiators can access the power of this law by ensuring that they establish a
positive climate at the outset of the negotiation, and continue to maintain this climate
throughout the negotiation. Liking is also promoted by ensuring that the negotiation
team has a good balance between task and relationship negotiators, and that those
aspects of similarity between the negotiator and the other party are emphasised.

Research has convincingly shown that liking is related to familiarity (as in

Tupperware marketing), physical attractiveness, some form of connection between
the parties (eg. attending the same university, playing for the same sports team),
compliments, praise, co-operation and a common dislike.

2.5 Authority
Expert worship is alive and well, and negotiators would be foolish if they did not
utilise the seeming blind willingness of parties to accept so-called expert opinion.
Negotiators, who are able to back up options with factual evidence from relevant
experts, often succeed in advancing a negotiation towards their preferred option.

The power of authority as a persuasion tool is borne out by an experiment conducted

at the University of Texas in 1955 by Monroe Lefkowitz, Robert R Blake and
Jane S Mouton, in which they found that a man could increase by 350% the number
of pedestrians who would follow him across a street against a red traffic light by

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changing one simple thing. Instead of dressing casually, he chose signs of authority:
a suit and tie.

2.6 Scarcity
Perceived scarcity is a factor which also has a profound effect on human judgment.
A great deal of evidence shows that items and opportunities become more desirable
as they become less available. People want what they cannot have, or what they
cannot have enough of, be it a product, service or even information.

By alluding to scarcity, negotiators can exert considerable influence on a party to, for
example, purchase a product or service immediately and purchase a larger volume of
a product than they had initially intended.

To accentuate the power of the scarcity principle, Cialdini quotes from the
dissertation of a former student who owned a company that imported beef into the
USA and then sold it to supermarkets. On examining the effects of scarcity and
exclusivity on compliance, this student:

§༊ Instructed his telesales people to call a randomly selected sample of customers

and to make a standard request of them to purchase beef.
§༊ Also instructed the telesales people to do the same with a second random sample
of customers, but to add that a shortage of Australian beef was anticipated. By
adding information that Australian beef was soon to be scarce, purchases more
than doubled.
§༊ Finally, requested his telesales people to call a third sample of customers, to tell
them about the impending shortage of Australian beef and that this information
came from his company’s exclusive sources in the Australian National Weather
Service. Orders received from these customers increased by more than 600%.
They were hit by a double dose of scarcity, for not only was the beef scarce, but
the information that the beef was scarce was itself scarce.

3. FIRST OFFERS
3.1 Description
Whether negotiators are busy negotiating the acquisition of a new business, a
revised wage agreement, or the purchase of a property, one of the negotiators needs
to make the first offer.

The million-dollar questions are:

§༊ Who should make the first offer? and

§༊ How will making, or not making the first offer influence the negotiation process
and the outcome?

The decision as to who should make the opening move frequently causes great
uncertainty and anxiety amongst negotiators. This is especially true when they lack
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reliable information about the other party, as they are then unsure about what offer
that party will accept and what offer is likely to cause the other party to walk away
from the negotiation. It is furthermore also possible that the other party could
deliberately respond with misleading information to gain a negotiating advantage.

Given that most negotiations are initially somewhat vague, a school of thought
believes that the first offer should therefore preferably come for the other party. The
rationale being that an opening offer provides valuable information about a party’s
negotiating position and gives an indication of what type of agreement would be
acceptable. Although this seems to be good advice, it unfortunately fails to take
account of the critical effect first offers have on how negotiators think about the
negotiation process. Reputable psychological research tends to strongly suggests
that negotiators who make first offers often achieve better results.

3.2 First offers as ‘anchors’

Research has established that that the way negotiators perceive the value of any
offer made in a negotiation, strongly correlates to any relevant number related to that
offer. Given that numbers related to an offer tend to have a magnetic effect on the
judgment of negotiators, these numbers are referred to as anchors.

First offers have a strong anchoring effect in situations of great fluidity and
uncertainty, as in the case with many negotiations, as they maintain a strong
influence throughout the negotiation. This influence is so strong that even
negotiators who are aware of the magnetic effect of anchors in terms of their
judgement are often unable to resist this influence. Therefore, their valuations of a
first offer seldom break out of the field of influence of such anchors.

When Greg Northcraft and Margaret Neale researched the phenomenon of anchors
they found that real estate agents provided with manipulated prices lists for
properties (high and low anchors) and thereafter asked to inspect these properties
and appraise their values and purchase prices, all to some degree or other allowed
the list prices to influence their decisions. The list prices clearly caused them to
disregard the important features of the properties.

Thomas Mussweiler of the Institute of Psychology at the University of Würzburg

together with his colleagues conducted a similar experiment where they asked
customers to approach German automotive mechanics (professionals that are
knowledgeable about the true value of cars) with used cars that required numerous
repairs. After offering their own opinion of the value of these cars, they asked the
mechanics for an estimate of the value. 50% of the mechanics were provided with a
low anchor by the customers stating, "I think that the car should sell for about
DM2 800." The other 50% were given a high anchor by the customers stating, "I
think that the car should sell for about DM5 000". Those mechanics who had been
provided with the high anchor estimated the value of the value of the cars to be
DM1 000 above those given the low anchor.

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Even persons who profess that they are wise to anchors are invariable affected by
them. This relates to the fact that high anchors selectively direct attention towards
strong, positive attributes, whereas low anchors selectively direct attention towards
weak, negative attributes.

In the case of the estate agents the high list price directed their attention towards the
positive features of the properties (spaciousness, a pool etc.), while at the same time
moving the negative qualities (a small garden, one garage etc.) to the back of their
minds. The mechanics confronted with a low anchor focused on the wear-and-tear
the vehicles exhibited and did not pay attention to the positive aspects such as low
mileage and the impeccable interiors.

3.3 When to make/not to make first offers

Research into the influence of anchoring strongly suggests that negotiators making a
first offer usually enjoy a substantial negotiation advantage. In numerous studies
sellers making a first offers have been found to achieve higher negotiated prices that
buyers making first offers. Making the first offer anchored the negotiation in the
favour of the sellers.

Furthermore, researchers have also found that the likelihood of a first offer being
made strongly correlates to a negotiator’s confidence and sense of control at the
negotiation table. Those with a lack confidence and who feel disempowered by the
structure of a negotiation or the availability of alternatives are less inclined to make a
first offer.

There is also strong evidence that the size of the first offers influences the outcome
of a negotiation. The higher or more aggressive first offers delivering better
outcomes.

First offers predict final settlement prices better than subsequent concessionary
offers.

Naturally, there are no hard and fast rules that apply in every negotiation situation. It
would clearly not be advantageous for a negotiator to make a first offer when he/she
has inadequate information regarding the other party, and is aware that the other
party is better informed about the issues being negotiated and possess better market
and industry data. Sellers or buyers of property, who make use of experienced real
estate agents, have access to more and better information than buyers and sellers
who act on their own behalf. The lesson to be learned is that negotiators should
prepare well enough to be on par or ahead of the other party in terms of their
knowledge of the issues at hand, and of market and industry trends. This affords
them the necessary confidence to make first offers that will anchor the negotiation in
their favour.

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3.4 How to make a first offer
Although it is clear that first offers should be strong, negotiators should always guard
against becoming so aggressive that they move outside the range of what would be
acceptable to the other party. The fear that many negotiators have concerning the
possibility that aggressive first offers may scare or annoy the other party to the extent
that it would break off the negotiation is often highly exaggerated. It causes most
negotiators to err on the side of over-caution and therefore to forgo optimal
agreements.

Aggressive first offers work in the favour of negotiators for the following reasons:

§༊ Such offers assist sellers to achieve higher final agreements;

§༊ Higher list prices lead to higher final selling prices, as it focuses buyers on the
positive aspects of a purchase; and
§༊ Aggressive first offers create leeway for negotiators to make concessions without
exceeding their BATNA’s.

First offers that are meek generally place heavy limitations on the ability of a
negotiator to grant concessions/counter-concessions and extract
concessions/counter-concessions or not to go beyond their real base. Conversely,
aggressive first offers afford the other party the scope to negotiate concessions,
thereby increasing that party’s sense of achievement and satisfaction, and
consequently the possibility of a mutually beneficial outcome.

Given that first offers provide early insight into the contracting zone and the range of
possible agreements, such offers could, if they are absurdly aggressive, create the
impression that a mutually beneficial agreement is impossible, thus leading to a party
invoking its BATNA.

3.5 The aspiration base & first offers

When negotiators contemplate aggressive first offers, they should make such offers
within the context of the strength of their BATNA, their aspiration base (the target at
which their hopes and desires would be fulfilled) and their real base (the bottom line
beyond which their BATNA kicks in).

Although a clearly defined real base is an extremely important aspect of any

negotiation, it is crucial that negotiators focus their attention on their aspiration base
when developing a first offer. Research findings reveal that negotiators who focus on
their aspiration base when considering first offers tend to make more aggressive first
offers and achieve more beneficial outcomes than negotiators who focus on their real
base.

Another way of ensuring that first offers are not so aggressive as to cause the other
party to walk away from the negotiation is by focusing on the other party’s BATNA,
and real base, and on market trends. John Oesch and Glenn Whyte have found that

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the best first offers tend to be those that fall outside the contracting zone, but are not
sufficiently far beyond the real base of the other party to cause an extreme reaction.

When negotiators become strongly fixated on their aspiration base, they are blinded
to beneficial outcomes that exceed their BATNA’s. Their challenge is to focus on
their aspiration base and make an aggressive first offer, but to remain open to
conceding, thereby preventing the possibility of rejecting beneficial agreements. This
ensures a mutually beneficial agreement.

3.6 Suggested alternative approaches

When a negotiator does not have the opportunity to make the first offer, his/her
protection against anchoring lies in making an aggressive counter-offer firmly based
on the other party’s BATNA, real base and aspiration base, and presenting this offer
in such a way that it creates a positive climate and blunts the other party’s first offer.
The key to protection lies in a negotiator knowing his/her aspiration base and the
limitations of the other party.

Where the other party makes a first offer that is close to the aspiration base of its
counterpart, the immediate inclination is to accept that offer and conclude the
negotiation. Research, however, indicates that immediate acceptance of a first offer
is likely to leave the other party filled with regret and discontent about not having
made a more extreme first offer. It is also likely that doubts may arise about the
quality of the product or service purchased. A dissatisfied party is less likely to live
up to the terms of an agreement and may consequently immediately start plotting
how to amend the agreement, extort concessions or gain revenge. Even highly
acceptable first offers should therefore be met with a request for concessions. If
nothing extra is forthcoming the other party would at least have the satisfaction that it
has achieved a meaningful victory where both parties have benefited.

4. TACTICS, GAMBITS & PLOYS

There are many tactics, gambits and ploys used by negotiators and a brief summary
of those most commonly experienced is presented in Appendix E1.

This summary seeks primarily to inform negotiators of the existence of such tactics,
gambits and ploys in order to equip them to effectively deal with them when they are
used by the other party. The intention is not for negotiators to turn their own
approach to the negotiation into a succession of tactics, gambits and ploys, thereby
harming the relationship and preventing a mutually beneficial agreement from being
achieved.

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5. CASE STUDY & VIDEO PRESENTATIONS
5.1 Video presentations
5.1.1 Twelve Angry Men
In order to accentuate the positive and negative consequences of certain tactics,
excerpts from the 1959 version of Twelve Angry Men are screened and discussed.

5.1.2 Persuasion by Robert Cialdini

The power of persuasion is emphasised by screening a video presentation by Robert
Cialdini (the most frequently quoted international social scientist) on the six Principles
of Persuasion:

§༊§༊ Reciprocation;
§༊§༊ Consistency;
§༊§༊ Social validation;
§༊§༊ Liking;
§༊§༊ Authority; and
§༊§༊ Scarcity.

6. REFERENCES
The following publications were consulted in compiling this module:

Fisher R and Ury W: Getting to Yes. Random House, London, 1999.

Spoelstra M and Pienaar W: Negotiation Theories, Strategies and Skills. Juta & Co,
Kenwyn, 1996.

Lewicki R J, Litterer J A, Saunders D M and Minton J W: Negotiation.

Irwin Mc Graw-Hill, Boston, 1993.

Berry W: Negotiation in the age of integrity. Nicholas Brealy Publishing,

London, 1996.

Cialdini R B: Influence. Science and practice. Allyn and Bacon, Boston, 2001

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MODULE 5
PERSUASION & TACTICS

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SUMMARY

§༊ Principled negotiation heavily relies on the ability to persuade the other party to
move from its initial stance towards a mutually acceptable outcome. This requires
negotiators to understand and be able to apply the basic principles of persuasion
that have been established through behavioural research over a period of
50 years.
§༊ Robert Cialdini, probably the most quoted social scientist of our time, has
abstracted the following six key principles of persuasion:

• Reciprocation - what a negotiator gives to the other party so that party is

obliged to ‘pay back’;

• Consistency – humans, therefore also negotiators, have an inherent desire to

appear and act consistently;

• Social validation – humans, therefore also negotiators, look to what others do,
or have done, when they decide what to do in a specific situation;

• Liking – when there is a feeling of affinity,” “rapport” and “affection” it creates a

connection between the negotiator and the other party, through which the
other party will be inclined to want to work with the negotiator to establish a
mutually acceptable agreement;

• Authority - expert worship is generally prevalent, and negotiators are foolish if

they do not utilise the seeming blind willingness of parties to accept so-called
expert opinion; and

• Scarcity - items and opportunities become more desirable as they become

less available.
§༊ Given the fact that first offers often put down ‘anchors’ in a negotiation that have
the potential to meaningfully influence the outcome, negotiators need to
understand the power of making first offers, when to make and when not to make
such offers, and how to counter first offers.
§༊ Tactics if positively, intelligently and very sparingly used, can assist a negotiator
in advancing a negotiation towards a mutually acceptable agreement.
Unfortunately, they are very often over-used in a manipulative manner with
negative consequences. The best advantage in knowing and understanding

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 tactics is to be able to identify their use before they succeed, and to be able to
counter them in a manner that will not seriously disrupt the negotiation.

§༊ The greatest danger related to the use of tactics lies in the very real possibility
that they will be identified by the other party and seen as an attempt to
manipulate, and in this way so damaging the relationship that the possibility of a
mutually beneficial agreement is seriously compromised.
§༊ Persuasion is a science, not an accumulation of clever tricks, ploys and gambits.

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TACTICS, GAMBITS & PLOYS

SUMMARY

There are many tactics, gambits and ploys that are utilised in negotiation and
included in this appendix is a comparatively brief summary of those which are most
often experienced.

1. THE NIBBLE or ADD-ON

1.1 Description
A favourite technique used by sales persons immediately after they conclude a deal,
is to add additional cost items to the deal.

§༊ Sales person: "With all the features the price is R1 995."

§༊ Client: "Excellent! That is better than I thought."
§༊ Sales person: "Naturally R50 for delivery and R100 for installation needs to be
added.”
The sales person relies on the fact that once a deal is concluded the buyer will relax
and therefore become highly susceptible to add-ons.

Some authors caution that this technique should be used sparingly, as it has the
potential to be the straw that breaks the camels back.

In principled negotiation, all specific cost items should be placed on the table up front
so that these can be dealt with openly. The nibble is not recommended when it adds
significant additional cost.

Children are masters of the nibble.

The nibble is not the preserve of sales persons. Clients can also use it immediately
after a deal is concluded by responding as follows:

§༊ Client: "Thank you. I'll take it, seeing this excellent price includes delivery and
installation. "

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§༊ Sales person: "Well it doesn't really, but I could probably arrange delivery and
installation.”
§༊ Client: "Brilliant!"
§༊ The client derives power from the fact that the sales person becomes highly
vulnerable once the deal is concluded, as there is a reluctance to see all the hard
work undone.
§༊ In the abovementioned example, the sales person could have countered by
responding:
§༊ Sales person: "Come, you already have a great deal. Please be fair.'
§༊ The client could then have countered:
§༊ Client: "Does this mean we start negotiating all over again?"
1.2 Suggested counter-tactics
It often happens that just when the sales person thinks that full agreement has been
reached and the client is ready to sign the contract, the client suddenly asks:
“Transportation and insurance are included, are they not?”

At this point, the sales person naturally feels the urge to grant these final
concessions for the sake of obtaining the final signature. Succumbing is, however,
not the correct response. The sales person should rather choose the trading route
by responding: “Where our contracts stipulate that we pay for transportation and
insurance, there is an add-on of 3% to the price. The answer to your question is
therefore yes, if you are willing to pay the extra 3%. We will then gladly cover the
cost of these two items.”

When a new request is suddenly raised, it is good practice to immediately enquire

what the underlying interest/need is, as there may be a creative way of fulfilling it in a
manner that does not unduly erode value for either of the parties.

Nibbling and other unpleasant surprises can be prevented by ensuring that what is
included in a deal and what is excluded from a deal is explained as early as possible
in the negotiation. This prevents a negotiator suddenly finding him-/herself in a
position of psychological disadvantage.

2. FUNNY MONEY
2.1 Description
After a buyer has, for example, negotiated a great deal on the purchase of a car the
following could ensue:

§༊ Sales person: "You have made a truly outstanding purchase. Congratulations!

All that now remains is for us to fill out the contract. Before we, however, do that I
need to inform you that for a mere additional payment of R50 per month you
could be the proud owner of the classic model. For such a small increase in your
instalment, an increase you definitely will not even feel, it would be a real shame
not to buy the top of the line. Don’t you agree?”

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Unless the buyer is very careful, he/she is likely to spend considerably more over the
payment period than initially intended.

2.2 Suggested counter-tactics

The counter to the funny money approach is similar to that recommended in the case
of the nibble.

3. THE FLINCH
3.1 Description
§༊ Sales person: "So with all the abilities I demonstrated, your price is R2 950?”
§༊ Client: "What! How much? R2 900? That's a hell of a lot of money my friend.'"
§༊ Sales person: "Naturally that price includes a carry-in warranty and installation.”
§༊ Client: "R2 900 is still big money.”
§༊ Sales person now makes a concession: "Naturally we will throw in some
software for your new computer.”
Failure to flinch in the case of a low offer, leads the party making the low offer to
conclude that the other party has yet to reach its real base. This could then result in
added pressure to lower the price even further.

By merely accepting an offer without flinching, an opportunity to achieve a better

price is lost, leaving the other party feeling that it has not achieved an optimal
outcome.

3.2 Suggested counter-tactics

Non-verbal reactions such as a sudden gasp for air and a facial expression of
surprise and shock are commonly used as a means of flinching. Given that such
reactions are often instantaneous, primarily visual and usually not immediately
perceived as being flinching, makes them particularly dangerous. Such expressions
of shock and disgust are often more believable than vocal utterances. Effectively
combating flinching requires negotiators to constantly remain aware of the possibility
of flinching, and to evaluate whether every expression or utterance conveys a
genuine need or is a tactic designed to lower expectations. Identifying flinching is the
best protection.

Since a flinch in essence is an expression of disappointment, a negotiator should use

it as an opportunity to enquire what the cause for this reaction is, by asking: “I detect
that you look surprised.” “What is it you were expecting?” This reframes the
interaction, placing the focus on the other party’s unrealistic expectation, moving it
away from your unrealistic price/terms.

4. REFERRING TO HIGHER AUTHORITY

4.1 Description
Mandated authority presents itself in two main forms:

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§༊ The other party is only able to negotiate certain items, whilst others are fixed by a
higher authority. Sometimes this is referred to as ‘Limited Authority’.
§༊ Final approval resides with a higher authority.
A good counter-strategy is to ask the other party at the outset who the decision-
makers are and who has the authority to take final decisions. The time and energy
invested in a negotiation could be wasted by not asking, as this would open a
negotiator to the other party playing the higher authority card at a key point in the
negotiation.

Although a negotiation may not start out with the final decision-maker present, it is
not wasted time to first interact with a lower authority to build a relationship, as such
persons often are able to exert considerable influence with higher level authorities.
What is, however, essential, is that the lower level authority appreciates that at some
point there will be the need to interact with those authorities that can conclude a final
agreement.

In the example below the client should possibly have enquired who he/she would be
required to speak to in the event of the repair bill not being acceptable, or have
requested a signed quote upfront that he/she could compare with market trends.

§༊ Client: "I'm very unhappy with the repair bill for my car. It’s absurdly high for the
job you did! I refuse to pay.”
§༊ Workshop manager: "What you must appreciate, Sir is that I am only an
employee. If you refuse to pay I am prevented from releasing your car. I have no
authority to change the bill.” (A very neat deferral.)
§༊ Client: "Who has the authority?”
§༊ Workshop manager: "The Service Director at our head office in Cape Town.”
4.2 Suggested counter-tactics
Negotiators can counter deferral as a ploy by probing for information relating to such
decision-makers during the Negotiation Preparation Phase so as to be able to involve
them in the negotiation if necessary.

5. THE BOTTOM LINE

5.1 Description
§༊ Sales person: "Forgive me for taking this much of your time, but I am convinced
this car is a real winner, is it not? It has all the bells and whistles!"
§༊ Client: "I sincerely appreciate the time you devoted, but this is not what I am
after. I need something more practical and affordable.” (Client gets up and starts
moving away.) "Is this in all fairness, the best price for this car?"
Given that the sales person has invested much time and energy in securing this deal,
it is understandable that he/she is concerned about translating this time investment
into a deal. This concern could easily result in the sales person making a big
concession as a last ditch effort to secure the deal.

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5.2 Suggested counter-tactics
A skilled buyer would respond as follows to such a bottom line concession:
"I possibly reacted too hastily. Are you saying that the car is available for your latest
price? "

6. THE VICE
6.1 Description
Think of an art lover in an art gallery with the expectation of buying a painting for a
good price.

§༊ Sales person: "Our very best price is £15 000.”

Despite this price being lower than what the client expected, the client displays
reluctance by responding with dismay and shock

§༊ Art Lover: "How much did you say? You will need to greatly improve on that!"
6.2 Suggested counter-tactics
No matter how good the response of the sales person is, the experienced buyer
continues to apply the vice. A viable counter is for the sales person to reveal his/her
bottom line immediately, or to respond with "Precisely how much better do you think I
will need to do?" Responding in this manner not only compels the other party to spell
out the expected concession, but also prevents the sales person from making an
unnecessarily large concession.

7. GOOD GUY/BAD GUY

7.1 Description
Imagine a sales person and the owner of a property negotiating with the prospective
buyer of this property.

§༊ Owner: "I apologise, but I am not prepared to spend more time on this
negotiation. I am compelled to leave now, as I see no likelihood of a meaningful
offer. Go well! “(Owner gets up and leaves, slamming the door on the way out.)
§༊ Sales person: "I apologise for my client’s reaction. Although he's inclined to be
a difficult person, it is still my wish that you will succeed in buying this property. I
am going to see what I can do to ensure this.”
§༊ Buyer: "Will you be able to change your client’s mind?" (This poses a danger, as
the buyer is in effect giving the sales person the right to take over the negotiation.
This could result in the buyer feeling committed to accept the deal the sales
person is going to propose.)
The buyer’s best counter response would be to inform the owner and the sales
person that he/she is aware of the ploy being used, thereby nullifying the ploy.

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7.2 Suggested counter-tactics
Despite extensive literature on this ploy, many negotiators still fail to detect it. Faced
by two or more negotiators; one demanding concessions and the other showing
compassion for the cause of the other party, negotiators are often, due to a natural
inclination to reciprocate the kindness of the good guy, duped into doing something
which is opposed to their best interests. Some negotiators have refined this ploy to
the extent that not both the good and bad guys need to be present in the negotiation.
They merely refer to this other guy and his/her demands for concessions, eg. a boss.

What is crucially important is for negotiators to identify the use of this ploy
immediately and to remember that good guy is a façade and is not honestly fighting
their cause. The dynamics can often be changed by a negotiator pointing out this
ploy in a friendly way and remarking “This reminds me of a wonderful interrogation
scene from an old police movie where the good guy/ bad guy routine was brilliantly
enacted. I know you guys would not intentionally be using this ploy, so should we not
rather focus on the reason why are here today?”

An alternative approach would be to focus on the bad guy, ignoring the good guy, as
the bad guy is the party whose interests need to be satisfied.

8. THE SET-ASIDE
6.1 Description
Picture a meeting where a procurement manager is negotiating with a representative
from a printing firm.

§༊ Procurement manager: "We only do business with companies that give us a

sixty-day payment period. I really do not understand why we are wasting our time
when you cannot provide the same terms.”
The representative of the printing firm realizes that the negotiation is in danger of
collapse even before it is possible to establish a relationship and get the issues into
the open. In the case of an inexperienced negotiator, this could lead to an
unwarranted concession or to the collapse of the negotiation.

§༊ An experienced negotiator would probably respond as follows: "Could we

put this issue aside while we first try to establish whether there are other interests
we both share?" (Using the put-aside suggestion strengthens the verbal request.)
6.2 Suggested counter-tactics
Your best method of safeguarding yourself stems from a combination of preparing
thoroughly to predict and then understanding what they should and will be asking for.
Check their expressed interests against your expectations. Then develop your
interpersonal perceptions to notice when the other party is being economical with the
truth; there are always signs. You are strongly advised to hone your senses and it is
recommended that you train and gain practice in the following areas: body language,
behavioural psychology and linguistics.

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7. THE HOT POTATO
7.1 Description
The Hot Potato tactic relates to the childhood game in which a hot potato is passed
from one child to another. Since a child cannot hold onto the potato for more than a
moment, it is rapidly passed from one player to the next. The ownership of the
responsibility for the hot potato is rapidly passed on to the next player. The
underlying assumption is that no one wants to accept responsibility for wasting the
food. The one who drops the hot potato is the loser.

In business literature, the “Potato” is referred to as the “Monkey”, with the same
principle applying.

§༊ Buyer: "I only have R250 000 available." (The other party now owns the
problem.)
§༊ To this, a skilled real estate professional would respond: "I fully grasp your
situation. Were I therefore to find an excellent property that meets your needs,
but is marginally beyond your budget, you would want to at least see the property,
or should I only offer it to other buyers?"
A skilled real estate negotiator neatly passes ownership of the problem back to the
buyer, thereby testing the validity of the buyer’s statement about limited financial
ability.

7.2 Suggested counter-tactics

Very simple, pass it back to the other party!

8. SPLITTING THE DIFFERENCE

8.1 Description
Experienced negotiators know how to convince the other party to split the difference.

§༊ Buyer: "Your asking price is R9 000 for this car, whereas I only have R8 000. I
am saddened by the fact that a mere R1 000 prevents us from doing business.
Would there be another way of ensuring that we are able to do business?"
§༊ Seller: "I definitely would like to sell my car to you. Could we split the
difference?”
§༊ Buyer: "What do you mean? Are you proposing that we split the difference
between your R9 000 and my R8 000, and that I therefore pay you R8 500?
Although this sounds perfectly fair to me, I first need to discuss this with my wife.
Is it in order if I use your phone?"
§༊ Buyer after phone call to wife: "I did my best. It truly is a pity that we are
unable to do business over a mere R500." (The initial R1 000 difference is now
forgotten.)
§༊ Seller: "If we split the R500, will that be acceptable?"

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§༊ Buyer: "Do I understand you correctly that you are proposing we settle at
R8 250? Is that what you are saying?"
§༊ Seller: “Why not if that is acceptable to you?"
8.2 Suggested counter-tactics
A negotiator has two choices;

§༊ To allow the difference to be split a second time; or

§༊ If R8 500 is his/her Real Base to activate the BATNA!

9. THE TRADE-OFF
9.1 Description
§༊ Printer: "We have a problem delivering the letterheads you requested by 30 July.
I am afraid they will not be ready before 15 August. We regret this, but have done
everything possible to meet your request. I trust this will be in order."
§༊ Skilled negotiator: (Sees this as an opportunity and understands the
importance of stopping further erosion.) "I'm not at all sure. As you know we
have very tight deadlines. I'll have to see what is possible. If I succeed I would
need to know what you are going to do for me in return."
§༊ Printer: "I am not sure. What about the possibility of my providing you with an
additional 1 000 copies at no cost?"
There are cases where it is appropriate to bank any 'debt' for use in future.

9.2 Suggested counter-tactics

A printer who is a principled negotiation may have commenced this conversation by
providing a sincere apology, thereby not incurring a penalty of the magnitude above.

10. THE WALK-AWAY

10.1 Description
Once a negotiator becomes fixated in the sense that he/she must have something,
there is a big erosion of power. To think along the lines of once-in-a-lifetime deals
causes negotiators to become emotionally trapped and therefore unable to walk
away if required.

The ability to walk away, although never lightly contemplated, constitutes real power
in a negotiation.

10.2 Suggested counter-tactics

Similar to that suggested in the case of the Withdrawn offer (see §17 below).

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11. DELAYING & STALLING
11.1 Description
When one party deliberately employs delaying tactics, the other party should resist
the temptation to focus on their behaviour of that party, but should concentrate rather
on the intention that underlies that behaviour. Once a party understands that it is the
underlying purpose of the other party to wear it down, force capitulation or achieve
greater flexibility, this tactic is pretty easy to handle.

11.2 Suggested counter-tactics

The best counter to this ploy is to remain emotionally detached and resist deadlines
whether self-imposed or imposed by the other party. Declaring to the other party that
this tactic is known, and therefore will not succeed, is a highly effective response by
the recipient party. Another very useful counter is for a negotiator to set the other
party a deadline that is well within his/her own deadline.

12. PRE-CONDITIONS
12.1 Description
Negotiators often acquire concessions by merely consenting to negotiate.

§༊ Manager: “If you give me the sole right to market your products we can talk, but
only then.”
The inexperienced negotiator easily falls prey to this tactic and then finds that his/her
options are restricted even before the negotiations commence.

12.2 Suggested counter-tactics

Pre-conditions are best countered by simply ignoring them and putting aside the
issues to which they relate.

13. PERSONAL ATTACKS

13.1 Description
Personal attacks in a negotiation are often deliberate attempts to disrupt the other
party and to cause that party to respond emotionally. Negotiators therefore
constantly need to be careful not to be lured into emotional traps of this nature.

13.2 Suggested counter-tactics

Merely smiling when personal attacks are made is a very powerful way of stifling
such attacks. They are often defused by also pointing out that such attacks are
contrary to the mutual gains approach initially agreed,

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14. PRECEDENTS
14.1 Description
§༊ Employee: "Why must I? If John was not required to do it, why should I?”
(Claims a precedent has been set in the past.)
§༊ Manager: "This is a new situation we have never experienced before. There are
totally different circumstances." (The manager is not prepared to rationalise.)
14.2 Suggested counter-tactics
Valid precedents should be accepted.

Since prevention is better than cure, negotiators should avoid setting precedents.

15. WITHDRAWN OFFER

15.1 Description
This tactic is used at any time during a negotiation. The threat of withdrawing an
agreement that has already been concluded is most often used when a party
threatens to walk away from the negotiation.

§༊ Marketing Manager: "I regret to inform you that my sales manager has just
informed me that I misquoted the price. What I quoted is far below the real price.
l therefore have to withdraw the price I offered.
§༊ Buyer (frequent response): "I'm sorry; it’s far too late now to retract! We accept
your offer!"
15.2 Suggested counter-tactics
Should the Marketing Manager now reluctantly concede, the other party feels good at
gaining what they "could not have"?

A good counter to this ploy is to walk away as a test of the validity.

16. THE DECOY

16.1 Description
This is a highly contentious area that poses the question: “How can you know
whether the other party is being totally honest when disclosing its interests?”

Might the other party be ‘loading the dice’ in its favour through adding false surplus
interests into its agenda (you are hearing about 13 interests, when in truth they only
have 10)?

Two examples of how this can create a win-lose in their favour:

§༊ First danger is of your making an exchange on an invalid interest of theirs, only

later to have them drop this exchange from the deal – leaving you with an interest
of yours that is not met, and them with a deal that satisfies all of their interests.

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§༊ Second danger is for the other party to agree to ‘forget’ about their fictitious
interests if you will forget about your real interests.
There are various methods of handling this dishonest tactic. Your being thorough
may be sufficient. So remember to get to their motivation for each interest by asking
how each interest helps them. Then work together in ranking their interests. If you
feel suspicious, trust your hunches and probe further, research more widely and
withdraw to regroup.

This ploy involves asking for something that you do not want and that you very well
know the other party is unable to give, and then, when a negative response is
received, following up with a request for a trade-off.

§༊ Manager: "I need these files within 30 days. (Knows that 90 days is the minimum
time needed to fulfil this order.)
§༊ Sales person: "90 days is the minimum time we need."
§༊ Manager: "What! You are leaving me with a very costly problem. What must I
do in the meantime? I cannot live with 90 days!"
§༊ Sales person: "I'll tell you-what we can do. I'm willing to give you a discount of
5c per file. What do you say?" (The sales person does not want to lose the deal.)
The 30 days was a mere decoy to secure a concession.

16.2 Suggested counter-tactics

Your best method of safeguarding yourself stems from a combination of preparing
thoroughly to predict and then understand what they should and will be asking for.
Check their expressed interests against your expectations. Then develop your
interpersonal perceptions to notice when the other party is being economical with the
truth. There are always signs and you are strongly advised to hone your senses. It is
recommended that you train and gain practice in the following areas: body language,
behavioural psychology and linguistics.

17. THE PUPPY DOG

17.1 Description
This description derives from the situation where the kids want a dog and the parents
are very apprehensive.

§༊ Sales person in pet shop: "Take it home for the weekend and see if you like it."
(The sales person knows that once the dog has been in the home for a weekend
it will be nearly impossible to return it, as the other party will then be emotionally
involved.)
Think of an estate agent that takes a photo of you, your wife and your children in
front of a beautiful home and then gives it to you to take home.

Think of the photocopier the sales person places in your office with 'no obligation to
buy’.

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17.2 Suggested counter-tactics
The best counter is to not accept such offers or to avoid becoming emotionally
ensnarled and obligated.

18. THE CALL GIRL

18.1 Description
The value of a service rendered diminishes very quickly after it has been delivered.
When a concession is made it must therefore immediately be followed by a request
for a counter-concession. To delay would mean allowing the value of the concession
to diminish. This is the reason why fees are often negotiated up front.

18.2 Suggested counter-tactics

It is very important to remember that concessions prior to the commencement of a
negotiation cannot be seen as part thereof.

19. EXTREME OFFERS

19.1 Description
If you are the buyer, you will hear the seller ask for a lot more than you expected. If
you are the seller, the buyer will offer you far less than you expected. The intention
is to lower your expectations and thereby gain a concession without having to make
one in return. The risk is that you will be offended and enraged, refusing to have any
further dealings with the other party.

It’s important to note that the other party’s culture may dictate this tactic as standard
practice. A German or American trading in China will grow accustomed to extreme
proposals. If the culture in which you must operate dictates extreme opening offers,
then you are recommended to blend in and take advice on how to play by their rules.

19.2 Suggested counter-tactics

To generalise, in western countries, separate the person from their behaviour or
tactic. If you are surprised, show your surprise and allow yourself to laugh. This can
diffuse the situation and facilitate a deal. An extreme counter-proposal is not
generally recommended. Let the other side know that their expectations need to be
adjusted, and use other deals as precedents to persuade them by how much.

20. CHERRY PICKING

20.1 Description
Buyers can model their perfect deal through shopping around and getting many bids
before coming to you. They may come to you with a proposal that fully satisfies their
interests on price and discount structures, quality, service, timescales etc. Often they
may tell you that “This is what the competition is offering us, so you’ll need to at least
match it!”

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In reality they would have ‘cherry picked’ the most desirable offerings from each of
your competition’s proposals. This should be seen as an attempt at unethical
framing. See Module 8 for a discussion on framing.

20.2 Suggested counter-tactics

By asking exactly who you are being played off against, you are better able to satisfy
your own interests. Enquire into who it was that offered them this dream deal, and
whether this company indeed did offer them an identical deal to the one you have to
beat. If it seems too good to be true you may be right! Take time out to do your
market research and examine the named competitors standard conditions and
current deals. If at all possible, talk with your competition.

Draw the other side’s attention to the principle of trading and mutual concession
making. Explain that in order to make the deal worthwhile you will need to gain
something in return for varying your offer in favour of their cherry picked deal.
Perhaps you will be the one with the challenging task of bringing this buyer’s
expectations back down to earth, and perhaps you will win the deal in so doing.

21. COMPETITION
21.1 Description
The law of supply and demand comes to us in many guises. Similar to ‘Cherry
Picking’ you may hear that your competitor offered the same deal for a lower price.
You may be told that unless you meet their price the contract will have to go out for
bids. More subtle, may be allusions to conversations or products of your
competitors. Perhaps you will notice a competitor’s product catalogue on their desk
with post-it notes marking several pages.

Often you will be faced with a generalisation of “Everyone else is providing this
service as standard”. Of course you will want to challenge this generalisation
immediately, lest it sticks and they start believing their own claim. Ask exactly whom
they have spoken with, and then proceed to compare your offering to the other party
in detail. Do not take their word for it; make your own enquiries if you do not already
know what your competition is offering.

21.2 Suggested counter-tactics

First establish exactly how comparable your competitors’ offering really is. Quality,
volume, service, delivery, time-scales and payment terms need to match to make for
a meaningful price comparison. Very rarely will your offering be totally
undifferentiated from the competition. Ideally your due diligence preparation would
have armed you with information on your competitors value proposition. Work in
order to differentiate your offering so as not to be commoditised and beaten down on
price.

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22. LIMITS
22.1 Description
Limits range from money, to time (deadlines as mentioned above), to capacity, to
personnel and more. The most feared limit to a sales person is limited money.

§༊ Buyer: “We love you, your product and organisation - we just can’t afford to pay
more than X.”
Perhaps you can deliver within their stated limit, ensure that you apply the trading
principle and get something back for making this concession.

§༊ Sales Person: “If I sell at X, then you will need to forgo your after-sales support
and reduce warranty to 1 year.”
22.2 Suggested counter-tactics
The best means of dealing with Limits is to attempt to reframe. The literature,
specifically the Cialdini’s of the world, effectively shows by means of empirical
research that, when the risk of losing a valuable product or service is fully
understood, the limiting restrictions are brought into proper perspective.

§༊ Sales Person: “Yes we do need to work to your budget. Let’s also remember
that we are talking about saving your company 2000 hours per year here, worth
which is worth X2 discounted over 10 years. So the real cost isn’t X, it’s the risk of
not saving X2.”

For more detailed discussion on Cialdini see MODULE 5 §2 on Persuasion.

23. TAKE IT OR LEAVE IT!

23.1 Description
This tactic is confrontational and sometimes even hostile. Focus on the interest
behind the demand, and then work together with the other party to create options that
allow the interest to be met in another way.

“The workers won’t accept less than a 2% increase in salary, take it or leave it!” can
be met with “I understand the workers need 2% more in salary, so please help me to
understand what they will be doing with 2% more?”

It may be that this money would go towards their retirement plans. If so, the
company could offer to increase the pension contributions to meet the desired
security levels. Until you know why they want a 2% rise, you are not in any position
to create alternatives.

23.2 Suggested counter-tactics

If you suspect a bluff, a good way to expose the bluff is to ask “If we were to agree to
your demand, then would you be prepared to sign the contract here and now?” If
you don’t ask this question, you run the risk of making a concession only to face

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another demand. Often you will flush out more of their interests through asking this
question.

Similar is “You are going to have to do better than that!” Again, we recommend your
asking: “How much better, and if we do, will you be willing to sign here and now?”
You are not committing yourself, but merely exposing their intentions. Another
response is to use the trading principle: “If we reduce your price, then we need you to
increase your order.”

24. POWER OF PRINT & POLICIES

24.1 Description
We tend to lend the written word and company policies more weight and credibility
than the spoken word and requests. For this reason we recommend that you list
your prices in writing rather than mentioning them verbally. Written words are viewed
in the light of enhanced legitimacy, and are therefore less often challenged.

24.2 Suggested counter-tactics

If you are presented with a price or company policy, ask who originally formulated the
price or policy, and what interests it was intended to serve. They may not have
thought about this policy before, and may realise that it is either defunct or does not
apply.

If you are shown a list of client company names, choose a couple of companies and
ask for details of what work they did, when, what the results were, whether they have
testimonies to show.

25. APPEAL TO EMOTIONS OR MORALS

25.1 Description
You will hear the other side framing their appeal as being the ‘fair’ or ‘right’ way. By
so doing the result is that by disagreeing with their proposal, you run the risk of being
branded ‘unfair’ or ‘wrong’.

§༊ “If we agree to pay in 30 days, then it’s only fair that you let us have our standard
5% discount.”
§༊ “Let’s be fair and share the costs on this.”
§༊ “If I take this deal back to my boss, he will chew my ear off! Can you please help
me out just a little?”
25.2 Suggested counter-tactics
Remind the other party that you earned your trusted position through trading in
negotiations. If you make this concession for them, you will need a concession in
return. If there are interests of yours that are not fully met, now is the time to bring
them up. “If I give you a discount of 5%, then I need you to add product group Y to
this order.”

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The moral appeal could mask an interest that has yet to be fully satisfied. In the third
example you could enquire “So what interests would your boss want met, can you
rank them?”

26. APPEALING TO AUTHORITY

26.1 Description
This is also known as ‘Name Dropping’. The other party may mention having done
business with a VIP or an esteemed company. Alternatively they may display in their
office pictures of themselves shaking hands with great leaders, such as Nelson
Mandela. The danger lies in the human tendency of wanting to do business with
people who are well connected.

26.2 Suggested counter-tactics

Most important is to recognise what is happening and not to allow yourself to be
influenced or swayed to treat this person any differently than you would have done
without this information.

If you think they are stretching the truth, enquire into what they did with the person or
company, be interested and ask for details. If they mention a company ask for the
name and position of the person they dealt with. If they become vague or change the
topic you can draw your own conclusions.

27. DEFAULT
27.1 Description
The default tactic tests your thoroughness and diligence. You are given a benefit
such as extra service or more of the product, along with a contractual term or note
saying that they assume these terms are to your liking. The onus falls upon you to
get in touch with the other party and explain that you did not ask for these additional
products or services. If you are lazy and either do not read all communication, or do
not take action, you will be setting a precedent of tacit agreement that is difficult to
escape from at a later stage.

27.2 Suggested counter-tactics

It is best to be firm when responding to a default tactic. Let the other party know that
you understand the intention behind the products, and that you would value them
clearing all variations to the agreement personally.

28. DELIBERATE MISTAKE

28.1 Description
This tactic plays on your ethics or lack thereof. You may be baited with a contract or
offering that is clearly to your advantage – contrary to your discussions. The danger
lies in your eagerly signing before the other party realises their error or omission, only
to have this matter brought to your attention and corrected later on.

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28.2 Suggested counter-tactics
It is recommended that you point out the error or omission as soon as you notice it.
This tactic, as with the others, has a way of boomeranging to catch up with you in the
medium- to longer-term.

29. PLANTED INFORMATION

29.1 Description
In general, it is human nature to trust what we have learned about the other party by
coincidence, over what the other party is telling is about themselves. It is largely for
this reason that (friendly) mergers and acquisitions (M&A) are often only announced
shortly before being agreed between parties. The risk exists of the press publishing
an unfounded and speculative article, thereby shooting holes in the trust that has
steadily been building between companies and their shareholders. There are many
case histories documenting how one side ‘leaked’ information to the press in order to
tilt the M&A negotiation in their favour.

29.2 Suggested counter-tactics

As far as is practical, research the information at your disposal, and resist reacting on
the spur of the moment. If you have a good relationship with the other party, you can
save a lot of time by sharing the information with them face-to-face, and asking for
the truth behind it. If they verify the rumour to be true, ask for their sources.

30. RELYING ON AUTHORITIES

The use of authorities is appropriate when the issue in question requires specialised
knowledge or skill that the ordinary person does not possess. If the issue is not a
technical one, if it is a matter of common sense, or if it is a value judgment, a political
view, or an observation about human nature, then the ordinary person is capable of
understanding the evidence for it and should not be asked to rely on someone else's
judgment.

31. WITHDRAWAL
Withdrawal comes in two main forms:

§༊ Withdrawal of a previously agreed term or tentative agreement; or

§༊ Withdrawal from the negotiations altogether.

With the first, the other party will ask to draw back their side of an already agreed
tentative agreement. Be careful to understand how circumstances have changed to
justify their changed need. Consult your notes to see what you had promised in
return, and remind them that you too will need to withdraw this item in return.
Enquire as to what interests they are looking to satisfy, and look at together creating
new options. Corporate negotiations are typically highly complex – requiring parties
to sense when changes in circumstances and negotiating parties demand a re-visit.

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You will need to judge as to whether the second is a tactic or a real withdrawal.
Listen very carefully to their wording to identify whether they are providing you with a
conditional withdrawal. “We are going to have to break off discussions with your
insistence on a 50% share in this venture!” Here you are given the 50% share
condition/demand to overcome, without knowing their underlying interest. Start by
pacing areas you know you are in agreement over. Your overarching reason for
meeting, your sharing interests, and the areas agreed so far. Once you are both back
in an agreement frame, enquire into why they don’t want you to have a 50% share. I
may be that in China joint ventures are controlled by the government. Perhaps you
can appoint the CEO whilst they appoint the Chairperson, and your decision making
procedures allow you to veto any proposals despite their 51% share. They get the
public perception of control, you get equal say.

32. FOOT-IN-THE-DOOR
Negotiators encourage the other party to agree to a small, rather insignificant
request, and then follow this up with a larger and more important request after
agreement to the small request has been obtained. The rationale being that by
agreeing to a small request, negotiators positively alter their self-perception.
Because they start to see themselves as co-operative, they experience psychological
pressure to agree to larger requests to maintain this positive self-image.

Friedman and Fraser (1996) found that 55% of housewives who had agreed to sign a
petition in support of safe driving (a small request) later agreed to erect a large and
unsightly billboard (large request) in the front of their homes. This finding strongly
contrasts with the 17% level of agreement for housewives who had not been
confronted with the small request prior to the bigger request.

A clever way of using this tactic is for negotiators to initially suggest, “Let us start by
agreeing in principle”, and then at a later stage substantially increasing the request.
Alternatively, a negotiator could start out by proposing to a retailer that they test the
market for the product or service at no promotional cost initially and that, depending
on customer reaction, they thereafter discuss payment and a permanent relationship.

33. DOOR-IN-THE-FACE/BANANA TECHNIQUE

This is the reverse of the foot-in-the-door technique. In this case, the negotiator
makes a large request and then follows it up with a smaller request that is still larger
than the other party anticipated. The rationale is based on the negotiator being so
taken aback by the first large offer, that the second smaller offer looks much more
reasonable than it really is, and he/she is therefore inclined to accept the latter offer.

Cialdini (1975) found that when persons were asked to contribute a considerable
amount of time to a good cause, most refused (75%), but when the same group was
confronted with a smaller request of the same kind after the larger request, 50%
agreed to the smaller request.

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Union negotiators often use this technique when they start out by asking for a salary
increase of more than twice the inflation rate, and then settle for considerably less.
Although the union negotiator knows that the initial request is very unlikely to
succeed, this is a deliberate strategy to gain room for a concession that the other
party will see as an acceptable compromise; the revised request being small in
relation to the initial request.

34. LOW-BALLING
This technique is based on the assumption that when a negotiator agrees to a small
request, and the size of the request is then immediately increased, the other party is
also likely to accept the larger request. Motorcar sales persons often employ this
tactic when they initially, unknown to the prospective buyer, quote the buyer the price
for the most basic model, while showing the buyer a model with a full house of
accessories. Only once the buyer is psychologically ‘hooked’, do they reveal that key
items such as a radio, air conditioner, airbags, metallic paint, etc. are not included at
the quoted price. They then skilfully shroud the effect that the cost of these items
would have, by contrasting the ‘limited impact’ their individual cost would have in
terms of the basic price and the monthly installment payable over 60 months.

Another example of this technique involves a ‘bland withdrawal’ where a computer

salesperson for example convinces an organisation that its information technology
equipment needs replacing; stressing the many benefits new computers could have
in terms of increased productivity and profitability. Initially the sales person intimates
a ‘low ball’ price that is extremely favourable to the organisation as a way of getting
the responsible manager to evaluate the new computers and enter into a negotiation
about a potential agreement. Once the manager agrees to a deal at the quoted
price, the sales person informs the manager that there seems to be a
misunderstanding about the price, as the so-called quoted price is either totally out of
sync with list prices (then provided in hard copy to the manager), or that his
management (external factor) has unfortunately just informed him/her of an increase
in the price of the computers. The rationale is that, if the increase in the price of the
computers is reasonable, the manager will go ahead with the deal, given the time
and energy invested thus far in the negotiation. Furthermore, there is also the
difficulty people have in rejecting something to which they have agreed.

A further permutation is known as the so-called Caesar’s declaration, where a union

for example agrees to a wage agreement, but immediately requests the management
to add a small something extra that they can take back to their members; the cherry
on the top. In most cases management complies to ensure good future relations.

35. MESSAGE STRUCTURE

Negotiators are not only influenced by what is said, but also by the way in which
words and sentences are arranged. Lewicki (1985) suggests that negotiators should
therefore pay attention to the following principles:

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§༊ When a negotiation contains new information on an issue important to the other
party, the negotiator should place the most persuasive information towards the
end of the message.
§༊ Where a negotiator is of the opinion that the other party will be positively inclined
towards a message, the most important points should come first in the message.
§༊ When a negotiator is unsure about the other party’s interests or whether the other
party is familiar with the certain arguments, strong points should be at both the
beginning and the end of the message.

Bettinghaus (1966) adds to Lewicki by pointing out that important points should be
made early in a message when the topic is known, interesting and/or controversial to
the other party, thus exposing that party to the primacy effect.

The rationale being that the first item to be mentioned in a long list of items is the
most likely to be remembered. Conversely, when a topic is unfamiliar, uninteresting
or unimportant to the other party, that most crucial points should be towards the end
of the message to harness the recency effect, as the last mentioned item is them
most likely to be remembered.

36. ONE- & TWO-SIDED MESSAGES

On the question of one- and two-sided messages, Bettinghaus (1966) recommends
that:

§༊ Negotiators use two-sided messages in the case of an educated other party,

mentioning and criticising the competition.
§༊ Two-sided messages are preferable when the other party disagrees with an
option posed by a negotiator.
§༊ Two-sided messages are more effective in convincing the other party when that
exposing that party to arguments or points of view that differ from that which it
advocates.
§༊ One-sided messages are more effective when the other party already agrees with
the negotiator.
§༊ When presenting two-sided messages the preferred arguments should be
mentioned last.

37. REPETITIVE SUMMARIES

McGuire (1973) stresses the importance of negotiators restating points of view to
change opinions, but warns that overuse of this technique could rapidly diminish its
effectiveness.

McGuire (1973) also found that when negotiators at regular intervals during a
negotiation summarise the negotiation up to that point, and draw explicit conclusions
on behalf of the other party, achieving an agreement is meaningfully enhanced.

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38. PARAPHRASING
Lewicki (1985) considers paraphrasing a very powerful tool in negotiation, as it helps
to confirm that the parties understand each other accurately. He therefore suggests
that negotiators regularly use the following type of introductory sentence, “Let me see
if I understand the point you have just made and where it takes us in this
negotiation.”

39. COGNITIVE DISSONANCE APPROACH

Festinger (1975) states that any negotiator whose behaviour is inconsistent with his
values, experiences cognitive dissonance that creates psychological tension that a
negotiator feels compelled to remove.

He recommends two ways of removing such dissonance:

§༊ By adding a positive cognition; or

§༊ Changing the dissonant cognition so that it is no longer inconsistent.

Festinger mentions the example of an ultra-left wing union representative negotiating

with an ultra-right wing manager about racism and equal treatment for staff. The
conservative manager experiences dissonance and, according to Festinger, has the
following choices to reduce this dissonance:

§༊ Change his attitude about other races;

§༊ Add new information to back up his view on other races;
§༊ Disregard the union request as a ploy to antagonise management; or
§༊ Remove himself from the negotiation.

If the facts supporting the union’s demands were to prove that the management has
acted illegally, and a strike or other industrial action could follow if matters are not
rectified, the manager would be in a bind.

Festinger suggest that the union representative continue arguing his case until the
manager agrees to change the system to provide for equal treatment of staff, as the
only way the manager can reduce his dissonance is to justify such an agreement by
changing his attitude towards other races.

Based on the insights gleaned from research regarding cognitive dissonance,

negotiators should encourage the other party to indulge in actions that are contrary to
its usual behaviour as a way of inspiring attitudinal change by, for example:

§༊ Encouraging the other party to agree to a further meeting;

§༊ Inviting the other party to dinner;
§༊ Getting the other party to agree to a small pilot agreement to pave the way to a
full scale agreement;

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§༊ Inviting the other party to visit your headquarters;
§༊ Issuing a joint media statement;
§༊ Inviting the other party to a sporting occasion; and
§༊ Encouraging a trial of the product or service.

40. LABELLING
Labelling implies that a person’s self-image is reinforced by providing that person
with a name or label, as this tends to encourage behaviour that is consistent with
such a name or label.

Because of the tendency for labels to become self-fulfilling prophecies, negotiators

need to be very cautious about the labels they apply to the other party. Whereas
positive labels can inspire or strengthen positive attitudes and behaviour, negative
attitudes can entrench negative behaviour and prevent the other party from
implementing its desire to act in a co-operative manner.

41. VIOLATION OF EXPECTATIONS

Violation of expectations occurs when a party expects a particular style of negotiation
from the other party and then encounters an entirely different style.

When a negotiator expects an aggressive style, but is confronted by a softly spoken

party, this could result in significant attitudinal change, eg. Nelson Mandela’s
conciliatory approach when released from 25 years of incarceration. Contrary to the
expectation that he would seek revenge, he preached a sermon of forgiveness for
which white South Africa was totally unprepared. This so surprised them that he
instantly became the role model to which all South Africans aspired. He single-
handedly changed apprehension and fear to enthusiastic co-operation.

Lewicki (1985) warns that the reverse to the aforementioned could be true where
negotiators expect a quiet, rational negotiation and are then confronted by a
passionate, emotional party, finding themselves totally unprepared to deal with such
persuasive power.
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