What is the Bargaining strategy?
What is the Bargaining strategy?
- Bargaining is the method of negotiating a price of product so that it can be mutually acceptable to everyone.
- Bargaining strategy is a technique for better understanding and communication between parties to reduce or eliminate the chances of conflicts between them.
- Various types of bargaining strategy
1- Distributive bargaining strategy
- This strategy is competitive in nature which involves competition among parties involved in bargaining process.
- The end result of this strategy is win or profit for one party while loss for other party.
- This type of bargaining strategy is used for short term planning since it involves conflicts between parties.
- The resources available are divided in equal ratio among parties irrespective of their need or demand.
- The distributive bargaining strategy focuses on maximum profit for a party without considering the quantity of loss occurred by other party.
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