Deck 13: Negotiation and Conflict Management

Question 1

The purchasing cycle begins with identifying (or anticipating) a specific need or requirement for a part component, raw material, subassembly, service, piece of equipment, or finished good to be sourced to conduct or support organizational operations.

Answer 1

True

Question 2

An important part of negotiation is realizing that the process involves relationships between people, not just organizations.

Answer 2

True

Question 3

The caveat to the best and final offer tactic is that the person making the best and final offer must be prepared to actually end the negotiation if the other party does not accept the offer.

Answer 3

True

Question 4

All purchase requirements will require buyers and sellers to conduct a thorough, detailed, and time-consuming negotiation.

Question 5

A negotiator should ensure that his or her BATNA is always revealed to the other party because the final settlement is unlikely to vary much from that point.

Question 6

To reach a negotiated agreement using principled negotiation, a negotiator should always attempt to focus on the other party's stated position, not his or her underlying interests.

Question 7

Negotiation is more appropriate when other issues besides price are important or when competitive bidding will not satisfy the buyer's requirements on various issues.

Question 8

Parties may behave differently when negotiating electronically than they do in person.

Question 9

Effective negotiators are unwilling to make counterproposals.

Question 10

There is minimal danger in stereotyping or oversimplifying the cultural characteristics of different countries or regions.

Question 11

A procurement negotiation seldom affects other stakeholders throughout the organization who might have an interest in or will be affected by the negotiation outcomes.

Question 12

When a negotiator is planning an upcoming negotiation, it is imperative to prioritize all of the potential issues to be negotiated into needs and wants, thereby knowing what must be achieved and what can be exchanged for something else of value.

Question 13

A win-lose negotiation approach works best for items or services that are important to the buyer's products or business or when the item involves high-dollar items or services where cost control is critical.

Question 14

E-negotiators generally ask more questions and tend to make fewer assumptions during the negotiation.

Question 15

The bargaining zone represents the heart of the negotiation process, as any proposal or counterproposal offered outside of this range is likely to be rejected by the other party because it is not what he or she is willing to settle for.

Question 16

All negotiation settlements must ultimately be judged in light of the other viable alternatives that existed at the time of the agreement.

Question 17

For the effective negotiator, it is acceptable to give away a concession without getting something of equal or greater value in return.

Question 18

According to Karrass, research indicates that e-mail-based negotiations typically take less time to complete than those conducted face-to-face.

Question 19

All buyer-supplier negotiations are relatively straightforward, only requiring rudimentary preparation and planning.

Question 20

Negotiation is a noncritical means to convey the buyer's specific sourcing requirements and specifications to its supply base.

Question 21

Negotiation is a relatively simple process and a soft skill that applies only to a few supply managers.

Question 22

Referent power is most successful in negotiation when the referents are aware that a counterpart identifies with or has an attraction to them.

Question 23

Use of electronic media such as e-mail, texting, and instant messaging, has no measurable impact on the dynamics and effectiveness of a negotiation.

Question 24

Knowledgeable negotiators do not need to understand their counterparts through research and experience.

Question 25

In win-win negotiation, if one party gains, it is only at the expense of the other party.

Question 26

During an international negotiation, an interpreter might verbally communicate yet not fully convey the significance of unspoken actions, signals, and customs that may be invisible to the foreign or nonnative negotiator.

Question 27

Sharing the underlying interests behind a position may cause a negotiator's power to shift toward the other party, ultimately resulting in a less than desired outcome.

Question 28

The manner in which a negotiator approaches concession making is an important part of every successful negotiation strategy.

Question 29

The effective use of information in a negotiation does not necessarily mean open and complete sharing.

Question 30

An experienced negotiator has no need to practice or rehearse a complex negotiation before commencing the formal negotiation.

Question 31

People seldom show the tendency to fill in the gaps when a discussion encounters silence.

Question 32

An integral part of negotiation involves each party trying to persuade the other party to do something that is in its own best interests.

Question 33

A willingness to offer large concessions is always in the best interests of a buyer.

Question 34

It is easy to develop common ground in the negotiation without knowing what the other party is seeking.

Question 35

Excessive formality in negotiation can effectively constrain the parties and restrict the free exchange of ideas and solutions.

Question 36

When preparing for a negotiation with a supplier located in another country, companies must invest in substantial extra time and effort in planning for the negotiation to accommodate new language translations, travel, modes of transportation, and other foreign business requirements.

Question 37

A tactic used during one negotiation may not be successful or applicable to another negotiation, even with the same counterpart.

Question 38

Packaging issues together risks undermining an entire negotiation if the parties reach impasse on a single issue within the linked proposal.

Question 39

Before actual negotiations begin, the parties need to believe realistically that they can reach an agreement.

Question 40

Good negotiators know that reaching agreement is the end of the negotiation process.

Question 41

According to Cialdini, _____ is a principle that says we prefer to be consistent in our beliefs and actions.

A)scarcity
B)liking
C)social proof
D)reciprocation
E)consistency

Question 42

Deciding the physical location of where to negotiate is never an important part of any planning process.

Question 43

Negotiators who interact face-to-face are more likely to reach agreement and avoid impasse than their e-negotiation counterparts in similar circumstances.

Question 44

Everyone negotiates something every day.

Question 45

_____ is a negotiation tactic that involves taking a time out.

A)Silence
B)Venue
C)Caucus
D)Take-it-or-leave-it
E)Low ball

Question 46

_____ is a negotiation tactic that involves one party, often the seller, offering an unusually low price to receive a buyer's business.

A)Low ball
B)High ball
C)Boulwarism
D)Caucus
E)Trial balloon

Question 47

The basis of _____ refers to the official job position or title that an individual holds, rather than the characteristics of the individual him/herself.

A)informational power
B)referent power
C)legitimate power
D)coercive power
E)expert power

Question 48

In e-negotiation, status differences are readily apparent, and social norms and behaviors are easier to discern.

Question 49

The issues that are most critical to a supplier are likely to be those most critical to a buyer.

Question 50

Step 1 of Triangle Talk is _____.

A)know exactly what they want
B)propose action in a way they can accept
C)know exactly what you want
D)apply tactics to win the negotiation
E)None of these answers.

Question 51

Many negotiators fail to prepare adequately before entering into a negotiation, oftentimes because of a very short timeframe in which to make a deal.

Question 52

A negotiator can automatically assume that the other party thinks the same way he or she does to create common ground.

Question 53

In _____, the parties work closely together to identify new and creative ways to expand available resources or generate new value obtained through a negotiated agreement.

A)logroll
B)use non-specific compensation
C)cut the costs for compliance
D)expand the pie
E)find a bridge solution

Question 54

There is minimal likelihood that retaliation or escalation will occur if the power structure shifts unfavorably in the future.

Question 55

It is not important for the negotiator to have adequately prepared and established a thoughtful BATNA for each issue until after the negotiation has begun.

Question 56

A/An _____ is an aspiration or vision to work toward in the future.

A)need
B)objective
C)plan
D)BATNA
E)position

Question 57

According to Cialdini, _____ is a principle which states that people feel an obligation to give something back of equal or greater value to someone else after we have received something of perceived value from them.

A)social proof
B)authority
C)consistency
D)reciprocation
E)scarcity

Question 58

_____ involves inventing new options that satisfy each party's needs.

A)Expand the pie
B)Find a bridge solution
C)Logroll
D)Cut the costs for compliance
E)Use non-specific compensation

Question 59

A/An _____ is an item or topic to be resolved during the negotiation.

A)BATNA
B)issue
C)interest
D)position
E)fact

Question 60

Analyzing the other party requires a thorough assessment of the relative strengths and weaknesses of the parties, as well as the particulars for each individual issue to be negotiated.

Question 61

_____ occurs as a result of negotiators being immersed in a place in which their established norms have been confronted and may no longer be applicable.

A)Win-win negotiation
B)Competitive bargaining
C)Reciprocation
D)Consistency
E)Culture shock

Question 62

_____ is a negotiation tactic that often signals the end of a negotiation on a given issue.

A)Venue
B)Silence
C)Planned concessions
D)Trial balloon
E)Best and final offer

Question 63

Which of the following is not a reason for negotiating with suppliers?​

A)The total contract value or volume is large.
B)The purchase is for widely available, commodity-like goods.
C)The purchase involves utilization of capital-intensive plant and equipment.
D)The purchase involves a special or collaborative relationship.
E)The supplier will perform important or significant value-added activities.

Question 64

The source of _____ comes from interpersonal appeal based on socially acceptable individual qualities and attributes, such as one's personality or attractiveness.

A)informational power
B)expert power
C)coercive power
D)referent power
E)physical power

Question 65

_____ is a negotiation tactic that signals that it is now the other party's turn to reciprocate and make a concession on an important issue.

A)Venue
B)Low ball
C)Honesty and openness
D)Best and final offer
E)Planned concessions

Question 66

In _____, one party (usually the buyer) gets a lower price as the parties work jointly to reduce the seller's costs or the joint transaction costs of doing business together.

A)logroll
B)expand the pie
C)cut the costs for compliance
D)find a bridge solution
E)use non-specific compensation

Question 67

A/An _____ is also known as the negotiator's bottom line or reservation point, that is, that point in the negotiation where it is most advantageous for the negotiator to walk away from the negotiation at hand and implement his or her next-best option.

A)BATNA
B)position
C)interest
D)need
E)want

Question 68

_____ is a negotiation tactic that involves taking an abnormally high initial position on an issue.

A)Low ball
B)High ball
C)Best and final offer
D)Curve ball
E)Knuckleball

Question 69

A _____ is a movement away from a negotiating position that offers something of value to the other party in order to ultimately gain something else of value.

A)reward
B)concession
C)coercive maneuver
D)tactic
E)strategy

Question 70

_____ is a negotiation tactic in which the negotiator insists on negotiating in a location that is more favorable to him/her.

A)Consistency
B)Caucus
C)Venue
D)Low ball
E)High ball

Question 71

_____ are the action plans designed to help achieve a desired result.

A)Arguments
B)Questions
C)Strategies
D)Objectives
E)Tactics

Question 72

In negotiation, a/an _____ is a reality or truth that the parties can state and successfully verify, especially from an independent third source.

A)fact
B)issue
C)position
D)interest
E)BATNA

Question 73

A negotiator's _____ can be defined as his or her opening offer, which represents the optimistic (or ideal) value of the issue being negotiated.

A)interest
B)need
C)BATNA
D)position
E)want

Question 74

According to Cialdini, _____ is a principle which states that we look to the behavior of others to determine what is desirable, appropriate, and correct.

A)social proof
B)liking
C)consistency
D)scarcity
E)authority

Question 75

In _____, one party achieves his or her objective on an issue, whereas the other receives something else of value as a reward for going along.

A)use nonspecific compensation
B)logroll
C)expand the pie
D)find a bridge solution
E)cut the costs for compliance

Question 76

All of the following are effective e-negotiating practices except _____.

A)use a blended negotiation, starting with an initial face-to-face meeting or a telephone call to build essential rapport with the other party
B)establish common ground and interests to build mutual trust
C)use "emoticons" to counter the lack of nonverbal awareness
D)forward e-mail negotiations to the other party's immediate superior for verification
E)proofread the entire message, including addressees, before sending the e-mail out

Question 77

In _____, the parties identify more than one issue where disagreement exists and then agree to trade off these issues so that each party has one of its top-priority issues satisfied.

A)use non-specific compensation
B)cut the costs for compliance
C)expand the pie
D)find a bridge solution
E)logroll

Question 78

A negotiator with _____ is recognized as having accumulated and mastered a high level of knowledge about a particular subject, often coupled with verifiable credentials and stature that document that mastery.

A)referent power
B)legitimate power
C)coercive power
D)reward power
E)expert power

Question 79

_____ means that one party is able to offer something of perceived value to the other party.

A)Referent power
B)Informational power
C)Expert power
D)Coercive power
E)Reward power

Question 80

_____ is a negotiation tactic that involves not immediately responding when the other party makes an offer in the hope that an awkward silence will encourage further offers or concessions from the other party.

A)Trial balloon
B)Silence
C)High ball
D)Questions
E)Planned concessions