Wearing that suit to negotiations does make sense, says this PhD candidate
Wearing that expensive suit for a top-level meeting makes sense, according to Tina Dudenhöffer’s doctoral research at the Amsterdam Business School. Negotiations are not only about rational strategies and power dynamics; everyday signals can also strongly influence the outcome.
Tina, what do we already know about how people negotiate?
“We all negotiate everywhere, at home, about our holiday destination or at a market in Dubai. In my research I looked specifically at business negotiations.”
“In negotiation research, a lot is known about tactics and strategy. The effect of the first offer you make, for example. And the role of gender: we know that men ask for a raise more often than women, for example.”
“But what happens when two people sit across each other at the table and the negotiation begins? Which verbal and non-verbal signals or paraverbal signals (aspects of a voice that influence the message, such as pitch, volume, speaking rate, intonation and pauses, ed.) are sent and what effect do they have on the outcome? The literature says little about this. I have always been interested in this type of human interaction and wanted to investigate it.”
What tips can you give for successful negotiation?
“In general: be aware that emotions play an important role in negotiations. We know that showing anger leads to a better proposal from the other party. However, there is also a downside: the chance that the same party will want to negotiate with you again decreases.”
“We discovered that showing disappointment is even more beneficial. This often results in an even better financial proposal, without the adverse consequences.”
“We don’t suggest using emotions as a strategy but rather being aware of them. It is important to note that we are talking about authentic emotions here. Putting on an act can be counterproductive.”
What other conclusions did you draw?
“Metacommunication can be helpful. For example, announcing your behaviour with phrases such as: ‘Let me make you a proposal.’ That gives the impression of transparency and improves the relationship perceptions. Explaining why you have made a choice by saying ‘let me explain why…’ on the other hand decreases the negotiation partner’s impression of the overall relationship.”
“Your appearance also influences the outcome. A smart suit or a representative outfit often gives you more confidence.”
“Our research also shows that when women dress femininely, such as in clothing with a low neckline, this results in a higher financial offer from the male counterpart. This is despite the fact that men claimed that they do not take clothing choices into account in their considerations.”
Does this also work the other way around? What should a man wear to get a better offer?
“That would need to be investigated further; at this point, I can only speculate.”
What should you definitely not do in a negotiation?
“Express happiness or show guilt during the negotiation This often leads to the other party negotiating even harder. The important take-away is that different emotions have different consequences and we can’t make predictions merely based on valence (the pleasantness or unpleasantness of an emotion, ed.).”
“But more than just giving tips, I want this research to make people aware that all these everyday signals, such as clothing, emotions and choice of words, and the tone of your voice, play a role in negotiations. If we are aware of this, we can all become better negotiators.”
Tina Dudenhöffer will defend her thesis entitled Perception management in negotiations: How conversations shape negotiation outcomes on Monday 15 September at 1 p.m. The defence will take place in the Agnietenkapel.
