Assignment
Experience You will be the buyer or seller of a used car. Procedure 1 (1-2 minutes) Break up into groups of two and sit facing each other, so that you cannot read each other's confidential sheet. Each group should be as far away from other groups as possible, to avoid overhearing each other's conversations. If there is an odd number of students in the class, one student will be an observer or work with the instructor. Select who will be the buyer and who will be the seller of the used car. Procedure 2 (1-2 minutes) The instructor goes to each group and gives each buyer and seller their confidential sheet. Procedure 3 (5-6 minutes) Buyers and sellers read their confidential sheets and write down some plans (what will be your basic approach, what will you say) for the lunch meeting. Procedure 4 (3-7 minutes) Negotiate the sale of the car. Try not to overhear your classmates' conversations. You do not have to buy or sell the car. After you make the sale, or agree not to sell, read the confidential sheet of your partner in this exercise and discuss the experience. Integration (3-7 minutes) Answer the following questions:
1. Which of the nine influencing tactics did you use during the negotiations?
2. Which of the seven types of power did you use during the negotiations? Did both parties believe that they got a good deal?
3. During your planning, did you (1) research the other party, (2) set an objective (price to pay or accept), (3) develop options and trade-offs, and (4) anticipate questions and objections and prepare answers?
4. During the negotiations, did you (1) develop a rapport and focus on obstacles, not the person; (2) let the other party make the first offer; (3) listen and ask questions to focus on meeting the other party's needs; and (4) were you too quick to give in and did you ask for something in return?
5. Did you reach an agreement to sell/buy the car? If yes, did you get exactly, more than, or less than your target price?
6. When negotiating, is it a good practice to ask for more than you expect to receive, or to offer less than you expect to pay?
7. When negotiating, is it better to be the one to give or receive the initial offer?
8. When negotiating, is it better to appear to be dealing with strong or weak power? In other words, should you try to portray that you have other options and don't really need to make a deal with this person? Or, should you appear to be in need of the deal?
9. Can having the power to intimidate others be helpful in negotiations? Conclusion The instructor leads a class discussion, or simply gives the answers to the "Integration" questions, and makes concluding remarks. Apply It (2-4 minutes) What did I learn from this experience? How will I use this knowledge in the future? What will I do differently? Sharing In the group, or to the entire class, volunteers may give their answers to the "Apply It" questions. * Source: The car dealer negotiation confidential information is from Arch G. Woodside, Tulane University. The Car Dealer Game is part of a paper, "Bargaining Behavior in Personal Selling and Buying Exchanges," that was presented at the 1980 Eighth Annual Conference of the Association for Business Simulation and Experiential Learning (ABSEL). It is used with Dr. Woodside's permission.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.