A632.4.5.RB – Deception in Negotiations
When it
comes to negotiations or times where an individual has a specific interest in
getting rid off something, over misrepresentation can be present in one way or
another. A study found that “28 percent of negotiators lied about a common interest
issue during negotiations, while another study found that 100 percent of
negotiators either failed to reveal a problem or actively lied about it during
negotiations if they were not directly asked about the issue” (Hoch &
Kunreuther, 2005, p. 1996). With that
understanding, it is no secret that people are willing to do whatever it takes
to get what they want or need. Hence, the Wharton’s textbook (2005) presented
six different approaches to evaluate information during a negotiation. In my
opinion, the four most important ways to guard against deceptions are: (1) Ask
direct questions; (2) Listen carefully; (3) Pay attention to nonverbal cues;
and (4) Keep records and get things in writing.
Asking
direct questions, I find is one of the most important steps into preventing
deceptions. You will be surprise how often people do not ask the right
questions fearing to upset the seller or sound inappropriate. Such problem
leads to sellers getting away with many lies. I will never forget that one time
where my husband and myself wanted to lease a car. I remember went to every
single dealer close to us and tried to get the best deal possible. On our last
stop to Nissan, we were greeted by one of the sales person. He was very
attentive and tried to please our curious minds with everything we wanted.
After dealing with us for about an hour, we decided we had liked one specific
car and would to start our negotiations. The sales person took us to the
manager’s office and that is where our nightmare started. We explained to the
manager, we only wanted to put two thousand dollars down and have no more than
a two hundred and fifty monthly payment, and nothing else. He tried to play the
“I cannot do much with the price of the cars as it is all set up in the
computer,” game. After discussing and attempting to get what we wanted; we
realized the negotiation was not going anywhere. Tired of going back and forth,
we told them both, the manager and the sales person, thank you for all they
have done and that we were leaving.
The
manager, with a snarky smile, told us that we were not going to be able to find
a better deal than theirs, thinking that would stop us from leaving. We knew
exactly what we wanted and we were not going to settle for any more. As we were
walking out the door, and by the way, it was raining. The manager came by
running and told us, he was going to work the numbers for us and have us take
the car we wanted at the price we had first proposed. We were not afraid of asking the right
questions, and therefore; we asked him, didn’t you just told us that there was
nothing you could do about the numbers since the “computer” controls that? The manager
was in disbelieve how out-front we were and made an excuse that he had
contacted higher levels of management and had begged them to make it happened
for only us; all of that in less than three minutes. Obviously, the seller
wanted to get the most they could out of the car but we, the buyers, felt the
need to get the better deal. In the end, it is very mind boggling to see how
far are people willing to go to get the most monetary value out of something.
On the
other hand, listening carefully is another important step to take when
negotiating. Sellers have the perfect opportunity to sweet talk to you if you
are not fully alert. Similarly, paying attention to nonverbal cues plays hand
in hand with listening carefully. Hoch and Kunreuther suggested that when
listening to people’s responses to important questions, to “focus on visual
clues such as increased blinking, changes in respiration, and reduced
gesticulation” (2005, p. 2092). It is fascinating to see how nervous sellers
would get when trying to sell a lie. It is known that secret service agents
have the ability to read through lies. Nevertheless, “bear in mind that
detecting lies is very difficult, cult, and that many people are overconfident
in their ability to detect deception” (Hoch & Kunreuther, 2005, p. 2092).
Furthermore,
keeping records and having things in writing can help people avoid many
problems. Without a doubt, a signed tangible record can prove many things. When
I used to work for an attorney’s office, everything that was discussed with the
clients was recorded and then we transferred into a transcript that the client
had to sign. In many occasions, clients called wanted to dissolved their
settlement, when they in fact were well aware that once the offer was taken,
there was no looking back as our contract suggested. When in doubt, the
attorney would have the client come in to reread the contract he or she signed.
I am really
not a person that likes to overstate anything when trying to sell or trying to
have someone commit to it. Nevertheless, my husband has always made fun of me
for overpricing some furniture I wanted to sell previously. I have a hard time
letting go of my belongings, especially when I have taken well care of them.
Therefore, in some occasions, I have priced my belonging more than they are
value but ended up selling them for way less. And I believe I do that because I
know that if I start with a low price, I will end up getting less than I expect
but I have never lied on the condition of anything. So, I am not willing to go
too far to leverage my position.
References
Hoch, S. J., & Kunreuther, H. C. (2005). Wharton on
making decisions. (1st edition.). Hoboken, NJ: John Wiley & Sons Inc.
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