AU Department of Marketing Management

UNIT 3: NEGOTIATION ACROSS CULTURE

Introduction
Negotiation involves dealing people from different cultures having varying traditions, values
ways of handling deals. Therefore, the understanding of cultural differences in negotiation is
essential as it might critically affect the negotiation outcome. In this unit discussion are
presented to appreciate the importance of cultural understanding in negotiations. The unit also
discusses the nature and characteristics of culture. It also explains how to win the heart of
others by showing sentiment to others culture.
3.1. The Nature and Characteristics of Culture
Culture is an inclusive term that can be conceptualized in many different ways. Culture is a
set of traditional beliefs and values that are transmitted and shared in a given society. Culture
is also the total way of life and thinking patterns that are passed from generation to
generation. Culture means many things to many people because the concept encompasses
norms, values, customs, art, and mores.
3.1.1 Characteristics of Culture
i. Culture is prescriptive.
It prescribes the kinds of behavior considered acceptable in the society. The prescriptive
characteristics of culture simplify a consumer’s decision-making process by limiting product
choices to those which are socially acceptable. It creates problems for those products not in
tune with the consumer’s cultural beliefs.
ii. Culture is socially shared.
Culture, out of necessity, must be based on social interaction and creation. It cannot exist by
itself. It must be shared by members of a society, thus acting to reinforce culture’s
prescriptive nature. Example: Chinese parents at one time shared the preference of wanting
their girl children to have small feet. Large feet, was viewed as characteristics of peasants and
low-class people and were scorned.
iii. Culture facilitates communication
Culture usually imposes common habits of thought and feeling among people. Thus, within a
given group culture makes it easier for people to communicate with one another. Culture may
also impede communication across groups because of a lack of shared common cultural
values. Advertising and promotion require special attention because they play a key role in
communicating product concepts and benefits to the target segment.

1|Page
AU Department of Marketing Management

iv. Culture is learned

Culture is not inherited genetically. It may be learned and acquired. Socialization or
enculturation occurs when a person absorbs or learns the culture in which he /she is raised. In
contrast, if a person learns the culture of a society other than the one in which he or she is
raised, the process of acculturation occurs.
v. Culture is subjective:
People in different cultures often have different ideas about the same object. What is
acceptable in one culture may not necessarily be so in another. In this regard, culture is both
unique and arbitrary. As a result, the same phenomenon appearing in different cultures can be
interpreted in every different manner.
vi. Culture is enduring
Culture is shared and passed from generation to generation. It is relatively stable and
somewhat permanent. Old habits are hard to break, and a people tend to maintain its own
heritage in spite of a continuously changing world.
vii. Culture is dynamic
Culture is passed along from generation to generation, but one should not assume that culture
is static & immune to change. Culture is constantly changing-it adapts itself to new situations
and new sources of Knowledge. Japanese tastes, have been changing from a diet of fish and
rice to an accommodation of meat and dairy products.
3.1.2. Influence of Culture in Negotiation / Communication
A country can be classified as a high–context culture or a low-context culture. This
classification provides an understanding various cultural orientations and explains how
communication is conveyed and perceived.
i. Low - context cultures:
North America and Northern Europe (Germany, Switzerland, and Scandinavian countries) are
low -context cultures.
In these types of society, messages are explicit and clear in the sense that actual words are
used to convey the main part of information in communication.
The words and their meanings, being independent entities, can be separated from the context
in which they occur. What is important, then, is what is said, not how it is said and not in the
environment within which it is said.
ii. High - context cultures

2|Page
AU Department of Marketing Management

Japan, France, Spain, Italy, Asia, Africa, and the Middle Eastern Arab nations, in contrast are
high- context cultures.
In such cultures, the communication may be indirect, and the expressive manner in which the
message is delivered becomes critical. Because of the verbal or word’s part do not carry most
of the information, much of the information is contained in the non-verbal part of the
message to be communicated.
The context of communication is high because it includes a great deal of additional
information, such as the message sender’s values, position, background, and associations in
the society. As such the message cannot be understood without its context.
According to Hall, cultures also vary in manner by which information processing occurs.
There are two types information processing: Monochromic and polychromic.
iii. Monochromic cultures
Some cultures handle information in a direct, linear fashion and are thus, monochromic in
nature.
Schedules, punctuality, and a sense that time forms a purposeful straight line are indicators of
such cultures.
Being Monochromic however is a matter of degree. Although the Germans, Swiss, and
Americans are all monochromic cultures, The Americans are generally more monochromic
than most other societies, and their fast tempo and demand for instant responses are often
viewed as pushy and impatient.
iv. Polychromic cultures
In this type of culture people work on several fronts simultaneously instead of pursuing a
single task. Both Japanese and Hispanic cultures are good examples of polychromic cultures.
The Japanese are often misunderstood and accused by westerners of not volunteering detailed
information.
The truth of the matter is that the Japanese do not want to be too direct because by saying
things directly they may be perceived as being insensitive and offensive.
3.2. Adopt a Persuasive Style
To work with your counterpart to create value and at the same time to claim sufficient value
for yourself you should adopt a persuasive style. A persuasive negotiator:
 Understands the other side’s story
 Is open to persuasion
 Is both empathetic and assertive
 Uses reciprocity to build trust

3|Page
AU Department of Marketing Management

 Matches appeals to the other side’s circumstances

 Recognizes how people process information. Let’s look briefly at each of
these points.
i. Understand Their Story
Different people interpret the same information or event differently. What set of facts,
assumptions, and world view causes the other side to interpret things the way that they do?
What are you missing?
ii. Be Open to Persuasion
If you are not (or do not appear to be) open to persuasion, your counterparts very likely will
sense that and adopt a similar stance. Being open to persuasion is persuasive.
iii. Be both Empathetic and Assertive
Robert Mnookin has identified two key dimensions of negotiation behavior: empathy and
assertiveness. You are empathetic when you try to understand the interests and desires and
motivations of the other side. You are assertive when you make your interests and demands
clearly known to the other side.
iv. Frame Proposals in Terms of What They Care About
You are always more persuasive when you frame your proposals in terms of the values,
beliefs, goals, and incentives of the recipient and you deliver them in language used by the
recipient. An associate of Rupert Murdoch remarked that, as a buyer, Murdoch “understands
the seller and, whatever the guy’s trying to do, he crafts his offer that way.”
v. Seek Agreements that Feel Fair to Both Sides
At the end of the day, as noted earlier, most of us want to believe that the agreement we
reached was both fair and reached by a fair process. So, your preparations for negotiations
should include:
(1) developing compelling, fact-based arguments supporting your position;
(2) identifying fairness rationales likely to be advanced by your counterpart; and
(3) formulating counterarguments disputing the fairness of the counterpart’s rationales.
vi. Persuade with Stories, as well as Analysis
Many business people try to hammer away at those they’re trying to persuade with
compelling facts, logic, and analysis. But this may not be the most effective way to get people
to act. In fact, psychologists have monitored subjects’ brain activity during various kinds of
persuasive appeals and have noted that many people’s brains tend to “go dark” (i.e., show
little brain activity) when presented with fact/logic-based appeals. In contrast, when people

4|Page
AU Department of Marketing Management

hear vivid stories or analogies, their brains light up, or become more active, and they tend to
have much higher retention of the implications of what they’ve heard.
vii. Inoculate Against Potentially Disadvantageous Arguments
From a psychological standpoint, it doesn’t matter much whether you address the
counterarguments at the end or intersperse them throughout in your appeal. However, there
are tactical considerations. For example, if you are presenting your argument in a context
where you are likely to be interrupted and unable to complete the full argument, start with a
clear presentation of your own complete argument before dealing with the counterarguments.
viii. Build Both Substantive and Relationship Credibility
Building credibility along two dimensions your knowledge and your relationships can
enhance your persuasiveness. You will be more persuasive on subjects in which you are
perceived to have expertise. On the relationship level, establishing and continually
strengthening your relationships with the other side will also go a long way toward making
you more persuasive. If you don’t have a strong relationship with your counterparts, look to
bring in people who already have one.
ix. Match Your Appeal to Where the Other Side Is
Conversations take place on multiple levels: the rational, the emotional, and the identity level.
The rational conversation is all about facts: What happened, and what should happen? Who
said what, and who did what? Many negotiators try to operate only on the rational level and
are uncomfortable about acknowledging feelings in the context of a professional negotiation.
But the fact is, many meaningful negotiations raise feelings, and some raise strong feelings.
Rather than denying that fact, acknowledge it, and tailor your approach to take account of
emotional issues. And pay attention as well to identity issues the most fundamental issues of
self-image and who we are: good/bad, competent/incompetent, and so on.
x. Respond to the Emotion When Your Counterpart Displays Emotion
A counterpart who is angry, tense, or hurt is unlikely to react constructively to or even be able
to hear a rational appeal. While you normally want to move to the rational level in the
negotiation, you often have a choice about whether to respond to the substance or respond to
the emotion. It is usually better to respond first to the emotion and its underlying basis: “It
sounds like you are pretty unhappy. I imagine I would be unhappy too if I understood the
situation as you did.” But being empathetic does not mean that you have to accept
responsibility for the other person’s feelings or allow these feelings to serve as a basis for
action. Remember: be both empathetic and assertive. Once your counterpart’s feelings are

5|Page
AU Department of Marketing Management

better understood and acknowledged, he or she may be able to engage more effectively in
substantive discussion.
xi. Deal with Your Feelings, Too
You have feelings, too, and these are likely to be engaged by a difficult negotiation. You will
be more effective if your feelings don’t seep out in the form of barbed comments, sarcastic
questions, or the inability to listen. You need to find an effective way to express your feelings
without asking the other side to take responsibility for your feelings. One way to do this is to
make “I” statements rather than “your” statements. Rather than saying, “You are
untrustworthy,” try, “When you make me a verbal offer and then follow up with a letter of
intent that doesn’t seem to match it, it becomes hard for me to trust you.”
xii. Make Your Appeal Work through Their Cultural Filters
Culture matters in negotiation. You and your counterparts may have very different cultural
perspectives on the purpose of the negotiation, on communication, and on appropriate and
constructive behavior. Is a long silence awkward, a sign of respectful consideration, or a
tactic to get the other side to blurt out something of use? When your negotiation crosses
national borders or straddles other kinds of divides a conscious focus on culture can be
helpful to effectively create and claim value.
Culture (whether national, corporate, or professional) is embodied in expectations of more
than surface behavior. Indeed, while surface behavior is the tip of the iceberg, deeper
culturally based issues are like the invisible mass under the surface, far more likely to cause a
deadly crash. Think of it as a kind of checklist as you move into less familiar territory. If you
aren’t confident in a given category, seek advice. If you are negotiating in a culture in which
agreements follow from relationships, as is often the case, for example, in South America,
you’re generally well advised to Cultural Expectations in Negotiation.
3.3. Role of Expectations
i. Deeper Expectations
 Negotiation objective: Is the ultimate goal of negotiation more a signed contract or a
relationship between the two sides?
 Fundamental view of negotiation process: Is negotiation a process through which
both sides can gain, or through which one side gains and the other lose?
 Social unit Is it an individualistic or group-oriented culture?

6|Page
AU Department of Marketing Management

 Power/decision making: Does the other side make decisions in an authoritarian

fashion, with one key person? Is it a small group process? Is there a formal or
informal hierarchy involved? Is consensus required?
 Implementation: How likely and expected is literal implementation of the
agreement? Or is the deal merely a starting point for further negotiation?
ii. Surface and Process Expectations
 Team organization and representation: What level, type, and number of team
members are expected?
 Etiquette: Introductions, business cards, gifts, and socializing before substance of
negotiation; expected deference, etc.
 Formality level: How formally does a negotiator talk to others, use titles, dress,
speak, and interact with other people?
 Communication: Do negotiators place emphasis on direct and simple methods of
communication,
 or do they rely on indirect and complex methods? Is persuasion, for example, fact-
based and technical in nature, driven by deductive logic, argued from precedent, or a
function of the status of the would-be persuader?
 Emotional expression: Do negotiators show or hide their feelings; that is, do they
exhibit a high or low degree of emotionalism?
 Risk and uncertainty Tolerance: Do participants have a high or low propensity to
take risks and handle uncertainty while negotiating?
 Sensitivity to time: How important is it to minimize the time spent negotiating? Do
negotiators exhibit a high or low degree of impatience and urgency? Many or few
interruptions? Long- or short-time horizon?
 Building an agreement: Does an agreement begin from general principles and
proceed to specific items, or does it begin with agreement on specifics and build “up”
to an overall deal?
 Form of agreement: Do negotiators prefer detailed contracts or agreement on general
principles?
 Begin by developing relationships, rather than jumping into the details of the deal.
If the other side expects agreement to follow from the development of general principles as
might be the case in France, for example don’t come into the first meeting with a detailed
term sheet. Instead, be prepared to introduce general principles and work out the conception

7|Page
AU Department of Marketing Management

of the deal first. Getting the right cultural filters in place national or otherwise is an important
input to our method. How the other side sees its interests (both in substance and in the
process of negotiation) and understands the game you are jointly playing and what its
expectations are of that game should be key inputs into your tactical choices.
3.4. Showing Sentiment to Others
The potential to create value does not mean that claiming tactics go away or are somehow
irrelevant. Negotiators who emphasize the outcomes and behaviors they want to promote, as
opposed to those they want to avoid, tend to do better in the kinds of situations we’ve been
discussing. Focusing on the opportunity the possibilities of creating value and claiming a full
share, on a long-term basis is likely to cause you to reach and sustain attractive agreements in
your negotiations.
Effective tactics must productively manage the tension between the cooperative moves
necessary to create value jointly and the competitive moves to claim it individually. This
means eliciting enough information to generate good options while managing your
vulnerability.
• Ask, listen, and learn:
• Listen actively.
• Ask open-ended questions rather than yes/no questions: “What if? Why? Why not?
How would that work for you?”
• Bring a designated listener.
• Divulge information strategically:
• Begin with the end: At the beginning, jointly envision the pot of gold at the end of the
rainbow, perhaps by writing a press release in advance on the hoped-for outcome that
meets everyone’s core interests.
• Use the norm of reciprocity to build trust and share/gain information: start by offering
low- risk information and ratchet up.
• Present multiple equivalent offers.
• Sequence issues carefully and negotiates in packages.
• Foster an appealing, productive negotiation process by establishing a positive
atmosphere:
• Psychologically place the parties’ side by side against the problem rather than face-to-
face against each other.
• Focus on advancing interests rather than arguing positions.
• Focus on the future instead of the past and on problem solving instead of blaming.

8|Page
AU Department of Marketing Management

• Focus on disaggregated fact-based communications rather than high-level assertions.

• Adopt a persuasive style and be open to persuasion.
• Be both empathetic and assertive.
• Tell stories as well as using facts and logic.
• Inoculate against potentially disadvantageous arguments.
• Match your appeal to where your counterparts are and how they process information.
• Make your appeal work through their cultural filters. For the deal that “lets them have
your way,” write your counterparts’ victory speech, showing their key audiences why
accepting your proposal was a wise decision.

9|Page