Negotiation: Seeking satisfaction

When you enter a business negotiation, it is likely that you expect to achieve your goals. You are seeking to satisfy your expectations. Because you are practical, you know that your goals may be satisfied within a certain range of comfort (e.g. you are willing to pay anywhere from $x to $y). You also know that there is a probability you will not get exactly what you expect.

To explain how this works, we need to understand the expected-satisfaction theory. This theory discusses how both parties in a negotiation have expectations about the result of the negotiation, and that these expectations may not be equal.

In order to better understand the theory, let’s look at several underlying propositions:

• All transactions are based on future expectations of satisfaction

• It is improbable that both parties will gain equal satisfaction from a negotiation.

• Value systems are different, therefore parties may have different perceived satisfaction from achieving the same goals.

• Share bargaining is a rationing process where one party’s gains are based on the other party’s losses.

• Satisfaction is the most intangible yet important part of a negotiation.

• Parties can only assume what will satisfy the other party, and therefore, must test these assumptions.

Both parties enter a negotiation with expectations; and when a deal is reached, each party may have come away with a different level of satisfaction with the outcome.

Do you always meet your expectations in a negotiation? Are you always satisfied with the results?