Heather owns a hair accessory company. She is looking to negotiate with her fabric supplier, which provides swimsuit material scraps, to reach a mutually beneficial agreement. Heather wants the supplier to consistently provide it with high-quality fabrics at a fair price within the allotted time frames. The fabric supplier would also be able to sell its otherwise unused scraps. The fabric supplier agrees and a formal contract is arranged. In the end, Heather has negotiated a long-term contract with the fabric supplier at a fair price, and the fabric supplier is guaranteed a new stream of business from Heather. Which type of bargaining does this scenario illustrate?

A) distributive bargaining
B) competitive bargaining
C) compromise bargaining
D) integrative bargaining

Question

Taylor Forte · Accepted Answer

Final Answer : D, Explanation :  This scenario illustrates integrative bargaining, where both parties collaborate to find a mutually beneficial agreement that optimizes the outcome for both. Heather and the fabric supplier work together to create a win-win situation, where Heather gets high-quality fabric at a fair price and the supplier gains a new business stream by selling scraps that would otherwise be unused.

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