Deck 2: Strategy and Tactics of Distributive Bargaining

Question 1

Alternatives are important because they give the negotiator the power to walk away from any negotiation when the emerging deal is not very good.

Answer 1

True

Question 2

In some ways, the ultimate weapon in negotiation is to threaten to terminate negotiations.

Answer 2

True

Question 3

Reticence increases the likelihood of making verbal slips or presenting any clues that the other side could use to draw conclusions.

Answer 3

False

Question 4

Schedule manipulation can be used to squeeze negotiations into the last remaining minutes of a meeting in order to extract concessions from one party.

Question 5

When acting as if the decision to close the deal has already been made, the negotiator is using the "assume the close" tactic of closing the agreement.

Question 6

Central to planning the strategy and tactics for distributive bargaining is effectively locating the other party's resistance point.

Question 7

The resistance point is the point beyond which a person will not go and would rather break off negotiations.

Question 8

A positive bargaining zone occurs when the buyer's resistance point is above the seller's.

Question 9

Although disruptive action tactics can work, they may also produce anger and escalation of conflict.

Question 10

The spread between the resistance points is called the bargaining agreement.

Question 11

If one side is not prepared to make concessions, the other must capitulate or the negotiations will deadlock.

Question 12

The more attractive the other party's alternatives, the more likely he or she will be to maintain a low resistance point.

Question 13

Most hardball tactics are designed to either enhance the appearance of the bargaining position of the person using the tactic or to detract from the appearance of the options available to the other party.

Question 14

To communicate the most effective message, a negotiator should try to send a consistent message through both the opening offer and stance.

Question 15

Many people use distributive bargaining strategies and tactics almost exclusively, negotiators don't need to understand how to counter their effects.

Question 16

Distributive bargaining is basically a competition over who is going to get the most of a limited resource.

Question 17

Channeling all communication through a team spokesperson reduces inadvertent revelation of information.

Question 18

An offer that may have been rejected had it emerged as a result of concession making may be accepted when it is presented as a fait accompli.

Question 19

The objective of both parties in negotiation is to obtain as little of the bargaining zone as possible.

Question 20

Whether or not one or both parties in a distributive bargaining situation achieve their objectives will depend upon the strategy and tactics they employ.

Question 21

A small concession late in negotiations may indicate that there is little room left to move.

Question 22

Aggressive tactics include a relentless push for further concessions.

Question 23

A negative bargaining range occurs when the buyer's resistance point is above the seller's.

Question 24

The more you can do to convince the other party that his or her costs of delay or aborting negotiations will be costly, the more likely he or she will be to establish a modest resistance point.

Question 25

Studies indicate that negotiators who make low or modest opening offers get higher settlements than do those who make extreme opening offers.

Question 26

Anything outside the bargaining zone will be summarily rejected by one of the negotiators.

Question 27

Distributive bargaining strategies are the only strategies that are effective in interdependent situations.

Question 28

Parties feel better about a settlement when negotiations involve a progression of concessions.

Question 29

Negotiations with a positive settlement range are obvious from the beginning.

Question 30

Hardball tactics can be handled by discussing or ignoring them.

Question 31

The resistance point is the point at which a negotiator would like to conclude negotiations.

Question 32

Distributive bargaining strategies and tactics are quite useful when a negotiator wants to maximize the value obtained in a single deal.

Question 33

Each party's resistance point is openly stated at the conclusion of negotiations.

Question 34

If a major concession has been made on a significant point, it is expected that the return offer will be on the same item or one of similar weight and comparable magnitude.

Question 35

It is important to signal to the other party with either behaviour or words that the concessions are almost over.

Question 36

A resistance point will be influenced by the cost an individual attaches to delay or difficulty in negotiation.

Question 37

The snow job tactic occurs when negotiators overwhelm the other party with so much information that they have trouble determining which information is real or important.

Question 38

The first step for a negotiator completing a distributive bargaining negotiation is to obtain information about the other party's outcome values and resistance points.

Question 39

In "calculated incompetence," the negotiator is intentionally given false or misleading information to reveal to the other party.

Question 40

Selective presentation can be used to lead the other party to form the desired impression of your resistance point or to open up new possibilities for agreement that are more favourable to the presenter than those that currently exist.

Question 41

Disruptive action tactics can cause

A) embarrassment.
B) increased costs.
C) anger.
D) escalation of conflict.
E) all of the answers are correct

Question 42

Distributive bargaining strategies

A) are the most efficient negotiating strategies to use.
B) are used in all interdependent relationships.
C) are useful in maintaining long term relationships.
D) can cause negotiators to ignore what the parties have in common.
E) none of the answers are correct

Question 43

The objective of both parties in distributive bargaining is to obtain as much of what as possible?

A) bargaining range
B) resistance point
C) target point
D) bargaining mix
E) none of the answers are correct

Question 44

Parties feel better about a settlement when negotiations involve a(n)

A) immediate settlement.
B) single round of concessions.
C) progression of concessions.
D) fait accompli.
E) all of the answers are correct

Question 45

The bargaining range is defined by

A) the opening stance and the initial concession.
B) the initial round of concessions.
C) the bargaining mix and the opening stance.
D) the opening offer and the counteroffer.
E) all of the answers are correct

Question 46

The snow job tactic occurs when negotiators give the other party too little information.

Question 47

Starting points (or initial offers)

A) are usually contained in the opening statements each negotiator makes.
B) are usually learned or inferred as negotiations get under way.
C) are not known to the other party.
D) are given up as concessions are made.
E) none of the answers are correct

Question 48

Research and practical experience suggest that a large majority of agreements in distributive bargaining are reached when the deadline is

A) near.
B) flexible.
C) past.
D) undefined.
E) none of these answers are correct

Question 49

The target point is the

A) point at which a negotiator would like to conclude negotiations.
B) negotiator's bottom line.
C) first offer a negotiator quotes to his opponent.
D) initial price set by the seller.
E) none of the answers are correct

Question 50

One way negotiators may convey the message that "this is the last offer" is by making the last concession substantial.

Question 51

Hardball tactics are infallible if used properly.

Question 52

The more you can convince the other party that your costs of delay or aborting negotiations are what, the more modest the other's resistance point will be as well?

A) high
B) modest
C) extreme
D) low
E) none of the answers are correct

Question 53

The opening stance is

A) another name for the first round of concessions.
B) the first price that a buyer quotes to a seller.
C) the attitude to adopt during the negotiation.
D) a package of concessions.
E) all of the answers are correct

Question 54

The more you can convince the other that you value a particular outcome outside the other's bargaining range, the more pressure you put on the other party to set what kind of a resistance point?

A) high
B) low
C) modest
D) extreme
E) none of the answers are correct

Question 55

What is expected from a particular outcome when the resistance point is established?

A) costs
B) value
C) timeliness
D) importance
E) none of the answers are correct

Question 56

Good distributive bargainers will

A) begin negotiations with the other party with an opening offer close to their own resistance point.
B) ensure that there is enough room in the bargaining range to make some concessions.
C) accept an offer that is presented as a fait accompli.
D) immediately identify the other party's target point.
E) all of the answers are correct

Question 57

To respond to hardball tactics, a negotiator must identify the tactic quickly and understand what it is and how it works.

Question 58

What action can be taken after the first round of offers?

A) hold firm
B) insist on the original position
C) make some concessions
D) make no concessions
E) all of the answers are correct

Question 59

What statement about concessions is false?

A) Concessions are central to negotiations.
B) Concession is another word for adjustments in position.
C) Concession making exposes the concession maker to some risk.
D) Reciprocating concessions is a haphazard process.
E) all of the answers are correct

Question 60

Hardball tactics work most effectively against powerful, well-prepared negotiators.

Question 61

List two situations when distributive bargaining strategies are useful.

Question 62

What are the four important tactical tasks for a negotiator in a distributive bargaining situation?

Question 63

Aggressive behaviour tactics include

A) the relentless push for further concessions.
B) asking for the best offer early in negotiations.
C) asking the other party to explain and justify their proposals item by item.
D) forcing the other side to make many concessions to reach an agreement.
E) all of the answers are correct

Question 64

Define BATNA.

Question 65

Hardball tactics are designed to

A) be used primarily against powerful negotiators.
B) clarify the user's adherence to a distributive bargaining approach.
C) pressure targeted parties to do things they would not otherwise do.
D) eliminate risk for the person using the tactic.
E) all of the answers are correct

Question 66

How can a negotiation that begins with a negative bargaining range be resolved?

Question 67

What are the three ways to manipulate the costs of delay in negotiation?

Question 68

Define selective presentation.

Question 69

When successive concessions get smaller, the most obvious message is that

A) the negotiator is reaching the fatigue point.
B) the resistance point is being reached.
C) the concession maker's position is weakening.
D) the negotiator has passed the resistance point.
E) none of these answers are correct

Question 70

What is the simplest way to screen a position?

Question 71

What characteristics of the original offer, opening stance and opening concession signal a position of firmness? Of flexibility?

Question 72

What can happen when one or both parties do not think they got the best agreement possible?

Question 73

Define distributive bargaining.

Question 74

What are the disadvantages of making a more extreme opening offer?

Question 75

Describe the use of emotional reaction.

Question 76

A negative bargaining range occurs when:

Question 77

Why is it advantageous to make an extreme opening offer?

Question 78

Define calculated incompetence.

Question 79

Concession making

A) indicates an acknowledgment of the other party.
B) shows a movement toward the other's position.
C) implies a recognition of the legitimacy of the other party's position.
D) recognizes the other party's position.
E) all of the answers are correct

Question 80

The snow job tactic occurs when

A) the other party acts cool and aloof
B) it's cold outside
C) negotiators overwhelm the other party with too much information
D) none of the answers are correct
E) all of these answers are correct