Sunday, November 16, 2014

A632.4.5.RB - Deception in Negotiations

People mislead others for a variety of reasons, especially when making business deals.  In some cases, this is very common as both the buyer and the seller are trying to get the best deal possible.   Many people see the cost of lying is less than the benefits of lying; therefore, lying seems like the best option in certain situations.  (Hoch, Kunreuther, & Gunther, 2001)  There are several ways you can evaluate information and prepare yourself for negotiations. 

The first step you can take is to establish trust.  Establishing trust will reduce the chance that others will employ defensive justification during negotiations.  (Hoch, et al., 2001)  Another step you can take is to ask direct questions.  When something is specifically addressed, it makes it more difficult to lie about it on the spot.  People are less likely to deceive you if you are asking direct questions.    Going along with asking direct question is to listen carefully.  The more you listen, then you more you can understand how qualified this person is.  Listening carefully will also provide you with more questions to ask later on.  Lastly, it is important to pay attention to non-verbal cues.  Sometimes these can speak louder than verbal cues.  After asking a question, pay attention to changes in blinking, breathing, and other physical shifts.  While this isn’t always completely accurate, it can be a good indicator that someone may be deceiving you. 

A recent negotiation I participated in, in which I had been misled was when I purchased my first car.  While I prepared for this, as I knew car dealers are most likely trying to deceive you, I still felt that I could have done better during the negotiations.  This was my first experience buying a car on my own.  I researched online and found the perfect car at a great price, but I unfortunately didn’t research enough and my lack of knowledge made me end up paying more.  I noticed, however, that arriving prepared did work to my advantage.  I was trading in my old car and brought along the market value in both the condition I felt it was in, as well as the condition below that.  In both estimates, the car was valued significantly higher than what the dealership was going to give me.  I showed them my paperwork and managed to double the price they were going to give me.  It was still less than what it should have been, but I felt it was a step in the right direction for understanding negotiations in situations like this better for next time. 

A time in which I may have overstated a claim happened recently at my current job.  I work at a higher end, experience based retailer.  People shopping in the store usually spend several hours walking around and looking at the artwork and displays we have, as well as the product we sell.  It’s a unique place that offers a variety of quality pieces for both home and apparel.  I have a lot of experience working in high end retail stores, so I know the type of customer we get.  They usually do not want to know how much they’re spending and expect the best quality product, so when we have someone come in and ask a question as to why the product is worth the money, it can catch you off guard.  I first worked for a company called Yves Delorme, which is a high-end bedding store.  When I started the job, I was well versed in why the products were as expensive as they were.  With my background in fibers, I understood a great deal of why the product was high quality, but expressing that to a customer can sometimes be difficult.  I felt it was appropriate to review why the particular goose down feathers we used were best for comforters, or why our sheets were a higher quality even though the thread count seemed low to the average customer that walked in.  It was an educational opportunity for me to share with our customers, so that they could understand why they were spending their money here and not somewhere else.  At my new retailer I work for, we get more of a variety of customers since it caters to both young and older women, as well as people looking to decorate their home.  Because of this demographic mix, we sometimes get a variety of responses to our prices.  The products we sell are not our brand, but other brands that represent the look of the store.  I had a customer ask my why a particular top was as expensive as it was, and I honestly didn’t have an answer for her.  I was not prepared with knowledge of that particular top and the brand, so I said it was a high-quality fabric.  I felt guilty, but it’s near impossible to know the product specs for every item in our store, as we have a lot of inventory that changes often.  She ended up purchasing the product. 

From my previous experience, I generally do not like to lead people on to buy things that they might not feel comfortable spending that kind of money on.  I always think about myself and being in a position where I know I shouldn’t be spending money on something, but all I need is someone to say “oh just get it! You’ll love it”. I find that difficult to do.  I usually try to find out about the person and what they’re looking for and then show them the best options for what they need.  It is the ultimately their decision to purchase or not, given the information I have provided.



   Hoch, S., Kunreuther, H., & Gunther, R. (2001). Wharton on making decisions. New York: Wiley.

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