Question
Scenario Introduction: Jim and his pregnant wife, Kelly just bought a new house with a family room that will fit a large TV. Jim recently
Scenario Introduction: Jim and his pregnant wife, Kelly just bought a new house with a family room that will fit a large TV. Jim recently received a $2000 (after taxes) end of the year bonus at work, but they have conflict over how to spend the money.
1.Jim: "I just saw a great 75-inch Sony LED Ultra 4K HD that costs $2600 at Best Buy."
2.Kelly: "I'd like a new TV too, but that sounds really expensive."
3.Jim: "A new TV is going to really show off our new family room, and then we can move the old TV into the office where I know you'd like to have it. You also should see this 75-inch Sony - it's unbelievable - state-of-the-art technology - I absolutely love it!"
4.Kelly: "I don't think we should spend more than $1200 on a TV. $2600, plus tax, seems unreasonable, especially considering the $4000 in credit card debt we have."
5.Jim: "Well, it's my bonus, aren't I entitled to decide how to spend it?"
6.Kelly: "Don't you value what I contribute to this family?"
7.Jim: "Of course. I'm sorry. I've just dreamt about a new TV for a long time. We don't need to spend $2600 - that was just one option. In my research though I've found that to get a decent looking movie-ready TV we should spend at least $1800."
8.Kelly: "I was hoping we could use some money from the bonus to paint the baby's room and by a changing table and dresser for the baby."
9.Jim: "What if I go around to the yard sales and see if I can find a couple of pieces of furniture and work to refinish them over the next few months?"
10. Kelly: "That's a pretty good idea, so why are you so excited about this TV?"
11. Jim: "I want to be able to host football parties. And right now there is a 20% off deal at Best Buy that expires next week. You know how I love a good deal."
12. Kelly: "How about if we agree to spend a lower amount on the TV, I'll make my special meatballs for all your football parties next season."
13. Jim: "Oooh, that's good, I know that's a huge hassle and the guys LOVE them. Thanks."
14. Kelly: "But isn't audio even more important for large TV's? I'd really like a stereo system that makes watching movies great, as I really don't care about football. What audio components do we need and how much will that cost?
15. Jim: "I'm really glad you thought of that, audio is pretty important for football too...let me do some more research."
(...later...)
16. Jim: "Our system is good, but we could really benefit from a SONOS bar, which will cost about $600. It has Alexa built in to it!"
17. Kelly: "Can we get a used one on ebay?"
18. Jim: "Actually, yes, probably for about $400, as long as we don't care how it looks."
19. Kelly: "That's fine with me."
20. Jim: "So how about, combined, we spend $2000 on the TV and speakers combined?"
21. Kelly: "Why don't you sell your comic book collection if you want a TV so bad?"
22. Jim: "Well...I don't really know how much I would get. I also don't know if I want to do that."
23. Kelly: "How about we just spend $1400."
24. Jim: "OK, $1700, but if we go any lower, I'm worried the TV won't look good in the room because it will have to be too small."
25. Kelly: "How about $1500? That should leave enough to paint the baby's room."
26. Jim: "Ok, thanks, I'll try to find something that will work. What if I paint the room next weekend?"
27. Kelly: "Really? That would be a huge help. Deal."
QUESTION 9 At the beginning of the negotiation, Kelly's resistance point on the TV is: O a. $1200 O b. $0 O c. $1400 O d. $1500 QUESTION 10 By the end of the negotiation, Kelly's resistance point on the TV is: O a. $1500 O b. 50 O c. $1400 O d. $1200 QUESTION 11 The ZOPA at the beginning of the negotiation is O $1400 O -$600 O $600 O $0Step by Step Solution
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