Question

The Simpson Company is negotiating discount terms with Cornwell Manufacturing, a prospective vendor. During the negotiation, Cornwell states that it is willing to offer Simpson a six-percent discount on orders over $50,000. Although Simpson would rather have an eight-percent discount, it agrees to the terms, hoping to obtain something it wants later in the negotiation. This is an example of a

A. concession.
B. withdrawal.
C. plea.
D. position.

Answer 1

In the scenario provided, Simpson Company's acceptance of a six-percent discount instead of their preferred eight-percent discount from Cornwell Manufacturing is an example of a concession, which is a common tactic in negotiations. Option a.

Step-by-step explanation:

The situation described with Simpson Company negotiating with Cornwell Manufacturing and agreeing to a lower discount than desired is an example of a concession option a. A concession in negotiation terms is when one party agrees to a demand or term of the other party that is less favorable than what they originally sought, in the hope of gaining a more desirable outcome later on in the negotiation process. This strategy can be a part of a larger negotiation plan where each side gives and takes to ultimately come to an agreement that is satisfactory to both parties.