Anchoring Framing

Anchoring

Definition: Making the first offer to set a reference point influencing subsequent negotiations.

Purpose: To establish advantageous reference points.

Example Scenario: When negotiating salary, you anchor high with a number slightly above industry standards to improve your final outcome.

How to Counter: Reject the initial anchor clearly, offering a reasonable counter-anchor based on market data.

Highball/Lowball

Definition: Starting negotiations with extremely high or low offers to steer toward your ideal outcome.

Purpose: To manipulate expectations toward a favorable middle-ground.

Example Scenario: A buyer makes an exceptionally low offer on a house to encourage price concessions.

How to Counter: Respond firmly with objective benchmarks to reset realistic expectations.

Framing

Definition: Shaping perceptions of value or fairness through selective information presentation.

Purpose: To influence how options are evaluated.

Example Scenario: Highlighting a product’s long-term reliability rather than short-term price.

How to Counter: Consider alternative frames or perspectives when evaluating offers.

Quick Check 🚀

# What is the primary purpose of anchoring? 1. [ ] Finalize deals quickly 1. [x] Set a negotiation reference point 1. [ ] Increase rapport instantly 1. [ ] Confuse the negotiation partner # Highball/Lowball tactics involve: 1. [ ] Offering a fair price 1. [x] Starting negotiations with extreme offers 1. [ ] Quickly concluding the discussion 1. [ ] Using silence effectively # Framing primarily helps negotiators: 1. [ ] Hide information 1. [x] Shape the perception of value or fairness 1. [ ] Delay negotiations indefinitely 1. [ ] Immediately finalize agreements # Scenario: You want $10,000 for your car. What anchoring price should you initially ask for? 1. [ ] $ 9,500 1. [ ] $10,000 1. [x] $12,500 1. [ ] $25,000 # Scenario: You're negotiating salary and want at least $60,000. Your initial anchor might be: 1. [ ] $60,000 1. [x] $68,000 1. [ ] $55,000 1. [ ] $59,000 ---