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Hugo went on a recent trip to Bali where he is on a beginner's yoga retreat. He has got a day off and has decided to go to the nearby market to purchase gifts for his family. He is especially interested to buy an impressive gift for his wife Lyn. In the course of his shopping, he stumbles upon a beautifully finished hand-painted silk shawl which he feels will be the perfect gift for her given its light weight and convenience to carry it with him in the flight. Thereafter, he asks the seller Susilo to quote him a price for the shawl. In response, Susilo compliments him for his excellent taste and assures his that the lady for whom he is purchasing would appreciate it. Further, he quotes the price of the shawl to be $200. He assures Hugo, that it is a 'very good price'.
Hugo ponders for a while and makes a counter offer of $140 but without insulting Susilo in any manner or the product. In response, Susilo begins to detail about the material and its premium quality. Hugo was aware that the material cost for the shawl itself will be more than the offered price as his wife designed and painted silk scarfs as a hobby and to gift it to her friends often on the occassion of thanksgiving.
Susilo then offers Hugo other products and shows him a small, kitsch-woven handbag given he is intending to pay $140. Hugo realising that he may have misjudged the price ignores the handbag offer and instead tells the seller he can give $170 for the scarf and says that's the most he thinks is reasonable given the product.
Susilo shakes his head and says if Hugo could consider paying $190 then he could go ahead with the deal. Further, he says if Hugo can't pay as much, he will consider selling the scarf to someone else later. Hugo offers $180 and says that is the most he is willing to pay. Susilo pauses and reaches out for a handmade card and offers to sell him the scarf along with the card and also wrap the scarf and put the handmade card for free. Susilo says in return of the same I will expect to be paid $185.
In light of the aforesaid situation, answer the following with justification-
1. What should Hugo do? Should he accept or walk away? What would you do if you were Hugo?
2. Who do you think negotiated more effectively? Provide your reasons for the answer.
the assignment is unmarked