|
|
Effective Negotiation Training Can Demonstrate That Losing Can Be More Effective Than Winning
We are not specially fond of losing. Everybody loves a success and it is important for us all to be on the winning side. As a matter of fact, it is essential for people to be on the winning side that research demonstrates that typically we have an incredibly an interesting approach to handling the potential risks.
In an area of research called Prospect Theory, Kahneman and Tversky looked into the apparent flaws and contradictions in human behaviour. They discovered that research subjects when offered an option prepared in one way might present risk-averse conduct but when offered essentially the same option formulated in a different way the same research subjects might display risk seeking behaviour.
A key result of the study done by Kahneman and Tversky is that they discovered that people's attitudes towards risks related to potential gains can be very different from their behaviour towards risks connected with potential losses.
For instance, when subjects are given a choice between getting $1000 with certainty or getting a 50% chance of getting $2500, they will often well choose the certain $1000 rather than the uncertain chance of getting $2500 even though the mathematical expectation of the uncertain option is $2500. This is a perfectly reasonable mindset that is described as risk aversion.
But Kahneman and Tversky also discovered that the same people when confronted with a specific loss of $1000 versus a 50% chance of no loss or a certain loss of $2500 do often select the risky alternative. This is known as risk seeking behaviour.
What this means for you in terms of your business negotiation or negotiation training is that it is recommended that you tell your counterparts the things they stand to do away with if they do not move in the direction that you are recommending. It is always a good idea to tell your counterparts what they stand to acquire by moving in your direction but the power of your argument will be improved if you could add to the benefits the specific things that they will fall short on if they do not move in your direction.
This type of loss framing is most powerful if it is coupled with the Scarcity principle of influence which states that we associate more worth to those things that are significantly less available. We should therefore concentrate on those things that are uniquely associated with our own arguments and in addition to pointing out the benefits associated with going in our direction we should also mention the specific, unique things that our counterpart might stand to forfeit if they don't move in our direction.
Using negotiation skills such as loss framing to your advantage is a sure way that you can apply the concept of losing to assist you to win.
Secret Of Moneymaking Marketing
There are three factors that can influence a person. These three things are imagination, language, and perception systems. Combine these three factors and you will win the competition.
Apply Your Negotiation Skills To Manage Stressful Discussions
Difficult conversations present themselves from time to time. Perhaps you need to tell someone that their services are no longer required or perhaps you have done something for which you need to apologise.
Improve Your Negotiation Skills By Discovering The One Element That Separates The Men From The Boys During A Negotiation Deal
Understanding your counterparts interest in your negotiations is one of the most imporant elements to attain and ensure profitable, gratifying and long term business relationships.
1 Simple Negotiation Skills Technique That Will Immediately Produce Better Negotiation Results
Research has proven that high objectives will constantly outdo low aspirations and if you therefore exaggerate your expectations at the negotiation table, you will continously influence your negotiation outcomes positively
Sales Education For Today's Industry Atmosphere
Sales coaching is a tool of modern day sales and was totally unnecessary in days gone by when people frequented local businesses in their small towns as a matter of course. Because of limited opportunities and means of travel, the local hardware store and grocery were usually the first choice for most people's needs
Applying Negotiation Skills During The 5 Stage Process To Attaining Successful Deals In China
In order to achieve success in your business negotiations in China, you will have to understand that as an outsider, doing business is completely different than what most people are familiar with.
Sales Coach To Boost Your Sales Team
Whether you are starting your own business or you have a well established firm, increasing clients and sales are the most vital things needed to keep a business growing. To achieve the best business results, you should hire a sales coach.
|
More Articles
Blogroll
|
