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INTRODUCTION
Negotiating with the Japanese often irritates American managers because it is an extremely time-consuming, frustrating, and often losing proposition.(1) Since the Japanese have learned the American culture and language, they have a clear advantage in negotiating with American businesses. If Americans are to negotiate successfully, it is essential that they learn the Japanese negotiation style.
BUYER/SELLER RELATIONSHIP IN THE JAPANESE SOCIAL SYSTEM
The Japanese negotiation style is deeply rooted in the social system and cultural values. Much of the negotiation process can be attributed to Japan's vertical society, or the status differences between buyer and seller. There are two basic types of relationships that must be established for successful business negotiations: a "rank" relationship and a personal relationship.
RANK RELATIONSHIPS
In Japan, on all occasions, people first try to ascertain their position, or "rank," in relation to others present, and then they behave according to their position. Japanese feel very uncomfortable if rank is not apparent because they do not know how to act without it. The power position in Japanese business relationships depends on the size and prestige of the company, industry structure, and often, which company is the buyer. Most often, Japanese buyers expect and receive deferential treatment from the sellers. There are a few cases when the sellers are more powerful, such as when there is no competition or when the product has a strong price or quality advantage. The following excerpt explains the very different roles of the buyer and seller in Japan:
In Japan, as in other countries, the "buyer is king," only here he or she is "kinger." Here, the seller, beyond meeting pricing, delivery, special specifications, and the other usual conditions, must do as much as possible to meet a buyer's wishes....Many companies doing business in Japan make it a practice to deliver more than what is called for under the terms of their contracts.(3)
Because the buyer and seller have different status positions, their roles are different and they must behave differently during the entire business relationship. The seller, being in the lower position, uses honorific language, and the buyer, being in the higher position, may speak in less polite terms.
The vertical structure in Japan can sometimes lock Americans out because the structure is dominated...