Negotiation Terminology – 27 Definitions You Should Know

If you’re preparing for negotiation it’s important to be prepared. This list contains negotiation terminology and definitions you should know. Actually, you could even use this list as a mental checklist to make sure you’re fully prepared.

Do you want to learn how to prepare the ultimate negotiation strategy for business? Enroll in our Data-Driven Procurement Certificate Program today!

Let’s get started with our negotiation terminology.

Negotiation terminology

Acting as a Principle

Negotiators who act as principles represent their own interests. If they are negotiating as part of a team, they may include agenda items that represent their interests alone.

Anchoring and Adjustment

An opening position, from which a negotiator incrementally moves away (gains or losses) during a negotiation. The choice of an anchor may be based on faulty or incomplete information, and can potentially be misleading.

Agenda

A plan for how a negotiation will progress.

Aspiration Point

Optimal settlement point that a negotiator hopes to achieve.

Bargaining Zone

The gap between the respective resistance points of each party.

BATNA (Best Alternative To a No Agreement)

This is your back-up plan.

Consistency Principle

The need to appear consistent in beliefs, feelings, and behaviors, not only to others but to ourselves, too.

Distributive Negotiation

A negotiation technique and/or type that seeks to gain at the opponent’s loss. Any situation in which one person’s gain is exactly equal to the opponent’s loss is considered distributive. Haggling over $100 is an example of distributive negotiation.

Dyadic Negotiation

A negotiation between two persons, as opposed to negotiations in which more parties are involved.


Editor’s note:

The Data-Driven Procurement Certificate program teaches you the skills needed to drive better, fact-based decisions that ultimately benefit both organizations and its employees. As a data-driven procurement manager, you will have a comprehensive analytics skill set that will enable you to replace gut feeling with crystal clear analysis and help to achieve deals with results you have been dreaming of.

Limited Authority

A negotiating gambit whereby a negotiator says he cannot make a decision and must resort to a higher authority.

Linkage Effect

When one deal point of a negotiation is attached to another.

Negotiating Gambit

A strategy in negotiating that should be avoided because it damages relationships.

Negotiating Roles

Different people in a negotiating team can have different roles such as primary negotiator, Kinetic and paralanguage expert, etc.

Non-verbal cues

Body language gives away how a person is feeling and what s/he is thinking. This is closely related to kinesics.

Package

An offer that has many elements.

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Limited Authority

A negotiating gambit whereby a negotiator says he cannot make a decision and must resort to a higher authority.

Linkage Effect

When one deal point of a negotiation is attached to another.

Negotiating Gambit

A strategy in negotiating that should be avoided because it damages relationships.

Negotiating Roles

Different people in a negotiating team can have different roles such as primary negotiator, Kinetic and paralanguage expert, etc.

Non-verbal cues

Body language gives away how a person is feeling and what s/he is thinking. This is closely related to kinesics.

Package

An offer that has many elements.

Paralanguage

Variations in speech — pitch, loudness, tempo, tone, duration, laughing, crying —how things are said.

Position

Statement of what a person/party wants in a negotiation.

Reciprocity Principle

Occurs when a negotiating party feels obligated to return in kind what the other side has offered or given them. This principle might result in one side making a concession because the other side has done the same.

Resistance Point (RP)

The point beyond which a person/party will not go. The lower limit of the range of acceptable negotiation outcomes.

Winner’s Curse

Occurs when your aspiration point is too low. You accept a deal and wonder whether your opponent would have given you a better deal had you been more persistent.

 

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