QBook UNIT 7 Clear Communication (Asking Questions)

QBook INTRODUCTION  Questions are a very important part of any negotiation.  By asking questions, both sides of a negotiation can make their meaning clear.  In a normal conversation, it is easy to misunderstand someone’s meaning.  During a negotiation, everyone is under some pressure, making it even easier to have a misunderstanding.

QBook INTRODUCTION  Asking questions is a strategy for overcoming those misunderstandings.  Another type of question does not help with understanding but is meant to make the negotiation more difficult.  These questions are often not seeking information but are part of a distributive negotiation strategy.  A negotiator must be able to deal with these questions without becoming angry.

QBook DIALOG (Personal Questions in Bargaining)  Father: You cannot watch any television until you do some work around the house.  Son: I have some questions about what you mean.  Father: It is very simple. Television is conditional on helping around the house.  Son: May I inquire as to what exactly I need to do?  Father: The requirement includes cleaning your room and washing the dishes.  Son: Can your give me a reduction to just cleaning my room?  Father: I think my offer is already very generous. I shouldn’t let you watch any television.  Son: I see your point, but don’t you think if I do all that work first, I’ll be too tired to enjoy any television.  Father: That is a leading question and is not at all what I think. Maybe I should include mopping the floor also.  Son: Stay calm Mom. I think your offer is very reasonable.

QBook DIALOG (Business Questions in Bargaining)  Alex: Our main objection to your first offer is that it includes only two product types.  Fred: What is your requirement?  Alex: We need at least four product types.  Fred: How different do the designs need to be?  Alex: We can leave this question open- ended for now, it really depends on you.  Fred: So you will let us create the design?  Alex: Yes, we don’t have any objection to that.

QBook DIALOG (Business Questions in Bargaining)  Fred: But this is not reasonable since we would have to spend a lot of time and money on new designs you may just reject and we end up with no agreement.  Alex: Let’s not get confrontational.  Fred: Why is this model issue so important to you?  Alex: We are not flexible on this; we must have at least four different models so our stores do not compete against each other.  Alex: So, your strategy is to put different models in different stores?

QBook DIALOG (Business Questions in Bargaining)  Fred: Exactly. Our counteroffer is exactly the same as your first offer, only with more product models.  Fred: What are the total number of units?  Alex: The total units stay the same.  Fred: Can you appreciate we have higher costs if we produce four models?  Alex: Yes, we can see that. What can we do to help you overcome this problem?  Fred: If you could sweeten the deal by increasing the total units, than our per unit cost will be lower.  Alex: The final offer I can make then is 500,000 units, which is a 20 percent increase.

QBook DIALOG (Business Questions in Bargaining)  Fred: That is not exactly generous, but it does help.  Alex: The product design issue is still unresolved.  Fred: As I said, we would like to leave that up to you.  Alex: But your offer is conditional on having four models. I don’t think the product design should stay so informal.  Fred: We can revisit this issue after we have reached agreement out the other details.  Alex: I don’t like postponing such an important issue, but I guess it is reasonable.

QBook VOCABULARY  Agreement (n): Terms all sides of the negotiation find acceptable; A positive end to a negotiation.  Calm (adj): Showing no emotion; Not excited or angry.  Conditional (adj): Depending on something; An action that will be done only if another action is done first.  Confrontational (adj): Showing anger; Objecting to the other side of the negotiation.  Counteroffer (n): An offer or proposal made after rejecting the other side’s offer.  Generous (adj): An offer or part of an offer that is very good for the other side; Giving more than is required.  Inquire (v): To ask a question; Request some information.  Leading (adj): Directing or pushing the other side in a direction during the negotiation; A question that pushes the other side to give the answer wanted.

QBook VOCABULARY  Objection (n): A reason to not agree; Disagreeing with a point from the other side.  Open-ended (adj): Having no limit; A question that allows any answer.  Reasonable (adj): Not asking for too much; Agreeable to both sides.  Reduction (n): The amount some part of an offer is lowered; The lowering of some demand.  Requirement (n): Something that must be done; A point of the negotiation one side is forced to do or accept.  Revisit (v): To consider a point of the negotiation that was already agreed upon; To talk about a point at a later time.  Units (n): A single measure of the products being negotiated.  Unresolved (adj): Some point of the negotiation not agreed on yet; The lack of information both sides can agree on.

QBook FOLLOW UP  When two people communicate, there are many chances for misunderstanding.  The communication model shows that a speaker must take an idea and encode it.  Encoding is influenced by factors such as culture, experience, and emotions.

QBook FOLLOW UP  The message is next converted into words, which is of course a language and can include other things like codes from body language.  Decoding takes place when the listener tries to understand what the speaker is saying.

QBook FOLLOW UP  Communication theory tells us that even though the message appears clear to both sides, the meaning is actually quite different.

QBook FOLLOW UP  There are two basic types of questions: Positive and Negative.  Positive questions help to make the negotiation clear and overcome the problems shown in the communication model.  These questions can be answered, leading to building the relationship, especially in an integrative negotiation situation.

QBook FOLLOW UP (Positive Questions) Positive Questions Examples Who, what, where, when, why questionsWho will benefit from this change? What are the main features you are looking for? Where can we help you the most? When do you expect the shipment? Why is this feature so important to you? Open-ended questionsHow do you like our new offer? What are your thoughts on this offer? Can you tell us what you are looking for? Leading questions Don ’ t you think this offer includes everything you asked for? Wouldn ’ t you agree this price reduction is very generous? It looks like this is the best offer you can get; isn ’ t that true? Calm (not confrontational) questionsWhat inventory level do we need before you will place an order? How much more do we need to improve to meet the new quality requirements? Where can we make changes to the product that you would like?

QBook FOLLOW UP (Positive Questions) Positive Questions Examples Planning questionsIf we make these changes, can we expect an order? How long after the new samples are complete will we have to wait for a decision? If we place an order today, how much product will be ready by the end of the month? Complimenting questionsCan we see some of your other very famous products? Will we be able to obtain the high quality you are known for? Can you share some of your excellent experience about this type of product in the U.S. market? Insight questionsHow did you come up with that number? Can you explain how you came to that conclusion? What exactly is your thinking on this matter? Focus questionsHow much is that per unit? Exactly how many days will production take? How many units do you expect to sell in the first three months? Getting feelingsWhat is your impression of this proposal? How do you feel about our progress so far? Do you have any feelings about this direction?

QBook FOLLOW UP  Negative questions usually do not have an answer.  These questions are not really questions at all but an attempt to influence the negotiation by pressuring the other side.  In an integrative negotiation setting negative questions can help gain an advantage.

QBook FOLLOW UP (Negative Questions) Negative Questions Examples Perspective questionsCan you see that this price puts us in a very bad market situation? You are not trying to get more profit at our expense, are you? You don ’ t want us to lose money on this deal, do you? Loaded questionsDo you mean these are all the options there are? Are you saying you don ’ t want to find a fair deal? These terms don ’ t seem fair, don ’ t you agree? Emotional questions Don ’ t you think this offer is just a joke? Are you kidding? You don ’ t expect us to take this serious, do you? Impulse questionsIf we give in to you on this point what will we tell our other customers? How can we possibly run a business with offers like this? Can you tell me how I can pass this on to my manager without getting fired? Trick questionsWill you accept this offer or just not get any sales? Can you agree now or will we postpone? Must we continue with these meaningless details?

QBook FOLLOW UP  When facing a tough situation in a negotiation, some questions can be helpful in making some progress.

QBook FOLLOW UP (Though Questions) Though Questions QuestionAnswer Take it or leave it.If we were able to find a more attractive alternative, would you still want me to take it or leave it? Does a decision have to be made now, or can we take some time? Why do you feel pressure to finish the negotiation now? Our deadline is today at noon.Can we negotiate about this deadline? Can I do something to take some of the deadline pressure off of you? What is so special about noon? If you cannot give us the lowest industry prices, we cannot deal. What is the reason for such a demand? What do you think my company sees as a fair price? How does this demand fit in to a long-lasting relationship? We simply cannot go on.What can both of us do to close the difference between us? Can we think of anything else both sides can offer to get this moving again? What exactly can we give you right now to wrap up this deal? I ’ m just not sure this is the best we can get. What is the best alternative to my offer? If you don ’ t accept this offer, what do you think you can get that is better? Are you sure there is a better offer out there? I ’ m not sure you are giving us as good an offer as you have given others. Don ’ t you think we want to give you the best offer? Why would we want to be unfair to you? Don ’ t you agree each deal is complex and so a little bit different? If you don ’ t accept this offer, you won ’ t be able to even enter this market. Don ’ t you think we should both get what we want from this negotiation? Can you see that a statement like that is giving me pressure? Is there a reason you feel a need to threaten us?