BUS 101: Used Car Negotiation Field Research Report Analysis

This report presents a field research analysis of a used car negotiation involving a BMW M6, focusing on the perspectives of the buyer, seller, and an observer. The negotiation took place in Edmonton, Canada, and involved a buyer seeking a price within a specific range and a seller aiming for a higher price. The report details the negotiation fundamentals, strategies employed by both parties, including the buyer's willingness to walk away and the seller's use of conversation expansion beyond money. It highlights the tension experienced and the effectiveness of the techniques used in managing the negotiation. The report also discusses ethical considerations and alternative negotiation tactics, such as anchoring, and concludes with recommendations for buyers and sellers to create mutually beneficial agreements, emphasizing the importance of market knowledge and emotional detachment. The report provides an overview of the negotiation process and the effective strategies used by both parties.

Used Car Field Research Report
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Table of Contents
Introduction.................................................................................................................................................2
Negotiation Fundamentals...........................................................................................................................2
Conclusion and Recommendations..............................................................................................................4
References...................................................................................................................................................5

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Introduction
The vehicle that has been negotiated is BMW M6 which is designed with unique
performance. The power of the car is generated from a 560-hp 4.4-liter twin V-8 mated to a six-
speed manual or seven-speed automatic. This is considered as one of the most popular and
demanded car. The dealership of BMW M6 car in Edmonton, Canada is Kijiji Autos. The dealer
of Kijiji Autos provides all types of BMW vehicles to the customers. The buyer was negotiating
for BMW car because it is the original Canadian owned car. The buyer was interested in this car
because of its unique features where it consists of suspension tuning and multiple performance
models. The car also possesses 3m paint protection and diamond coat paint protection. In order
to purchase this car the price range of the buyer was $30,500.00 whereas the price range set by
the seller was $39,500.00.
Negotiation Fundamentals
Based on this incident the observer noticed that both buyer and seller want to gain profit
through the car. The buyer was interested in buying the car at a lower price while the seller was
interested to sell the car at higher price in order to receive more profits. However, both the buyer
and seller have equal rights to gain profit by setting a desirable price range (Holmes,
Beitelspacher, Hochstein & Bolander, 2017). In order to negotiate the price range of BMW M6
car, the buyer applied a strategy of comparing the price of a similar car with other dealerships in
Edmonton. The seller has adopted the strategy of selling the car to a private party in order to get
highest price for the car. It has been noticed by the observer that both the parties, the buyer and
the seller were facing tensions during negotiation process. The buyer and seller possess different
objectives and strategies to buy and sell the used car (Bui & Jung, 2019).

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The negotiation technique used by the buyer to negotiate the price of the used car namely
BMW M6 is the willingness to walk away. The observer observed that the buyer makes use of
this strategy as he knew that it is difficult for a seller to lose a customer (Fleming & Hawes,
2017). On the other hand, the seller used the strategy of expanding the conversation beyond
money. It is used by the seller because it is the most common negotiation technique where the
seller gives a discount on the car (Song et al., 2016). Both these techniques proved to be
effective as they helped in managing the negotiation tension that occurred between two parties
(Keizer et al., 2017). As mentioned earlier the buyer set a particular price range for purchasing
BMW M6 but the seller was not ready to sell the car at such a low price. Thus, the buyer decided
to walk away from the place instead of buying the car. Meanwhile, the seller also applied the
technique of selling the car by providing a discount. Hence, both the techniques proved to be
effective in managing the conflict related to buying and purchasing the used car.
As per the observer, the negotiation tactics that would be used by other seller based on
negotiation is ethical consideration. While dealing with a buyer to sell a used car an ethical
negotiation will be more effective (Li, Liu, Li & Xu, 2018). By using these tactics the seller
could ensure the buyer that they can rely upon them while purchasing a used car. This tactic
makes the seller be honest about the car and its price (Baarslag, Hendrikx, Hindriks & Jonker,
2016). Moreover, the other buyer could make use of anchoring tactic where the buyer shares a
target price for the product such as a budget cap to anchor the negotiating range. However, the
negotiation closed by mutual understanding between both the parties where the parties set a
desired price range for the used car (Hayder & Husain, 2018). In order to improve the close of
the negotiation both the parties should not afraid of a loss and confidently set an appropriate
target.

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Conclusion and Recommendations
In order to buy or sell a used car, it is highly recommended to the buyer and seller to
create a mutually beneficial agreement that would benefit both the parties. It has been observed
that the buyer and seller get emotionally attached to each other that puts a negative impact on
their buying and selling process. As a result, both the parties should not get emotional while
executing the process of negotiation. Both the parties must have a piece of detailed knowledge
about each other market and the price to gain profit. This involves alternatives, value as well as
assets if the deal falls through. Research beforehand helps in getting overall knowledge about the
product and gain profitability. Therefore, it is necessary for a buyer and a seller to have complete
knowledge about the marketplace in order to buy a product. Following this strategy would be
advantageous not only for the buyer but also for the seller.
The paper provided a brief description of BMW M6 that has been negotiated for along
with its dealership in Edmonton. It presented the perspective of buyer, seller, and observer
related to buying and selling of the used car. It discussed the negotiation strategies, techniques,
and tactics used by the buyer to get the product at a low price and the seller to sell the product in
such a price range to gain profit. It demonstrated the effectiveness of the negotiation strategies
used by both parties to buy and sell the car. It has been observed within the paper that by
implementing efficient and effective techniques both the parties have managed negotiation
tension successfully. It can be seen that by making use of proper negotiation strategies it is
possible to accomplish the process effectively. It also provided other effective negotiation
strategies that would be beneficial for both the parties to achieve their target.

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References
Baarslag, T., Hendrikx, M. J., Hindriks, K. V., & Jonker, C. M. (2016). Learning about the
opponent in automated bilateral negotiation: a comprehensive survey of opponent
modeling techniques. Autonomous Agents and Multi-Agent Systems, 30(5), 849-898.
Bui, K. H. N., & Jung, J. J. (2019). Computational negotiation-based edge analytics for smart
objects. Information Sciences, 480, 222-236.
Fleming, D. E., & Hawes, J. M. (2017). The negotiation scorecard: a planning tool in business
and industrial marketing. Journal of Business & Industrial Marketing, 32(4), 519-524.
Hayder, W. A., & Husain, M. H. (2018). Intelligent Application Implementation Model for
Automated Agent Negotiation. Kurdistan Journal of Applied Research, 3(1), 68-74.
Holmes, Y. M., Beitelspacher, L. S., Hochstein, B., & Bolander, W. (2017). “Let's make a deal:”
Price outcomes and the interaction of customer persuasion knowledge and salesperson
negotiation strategies. Journal of Business Research, 78, 81-92.
Keizer, S., Guhe, M., Cuayáhuitl, H., Efstathiou, I., Engelbrecht, K. P., Dobre, M., ... & Lemon,
O. (2017). Evaluating persuasion strategies and deep reinforcement learning methods for
negotiation dialogue agents. In Proceedings of the 15th Conference of the European
Chapter of the Association for Computational Linguistics: Volume 2, Short Papers (Vol.
2, pp. 480-484).
Li, X., Liu, F., Li, A., & Xu, L. (2018). Business Negotiation based on Extenics. Procedia
computer science, 139, 521-528.

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Song, S., Hao, J., Liu, Y., Sun, J., Leung, H. F., & Zhang, J. (2016). Improved EGT-Based
robustness analysis of negotiation strategies in multiagent systems via model
checking. IEEE Transactions on Human-Machine Systems, 46(2), 197-208.