Deck 13: Negotiation and Conflict Management

Question 1

Everyone negotiates something every day.

Answer 1

True

Question 2

Deciding the physical location of where to negotiate is an unimportant part of any planning process.

Answer 2

False

Question 3

Effective negotiators are unwilling to make counterproposals.

Answer 3

False

Question 4

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.

Question 5

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

Question 6

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

Question 7

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

Question 8

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

Question 9

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 10

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 11

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

Question 12

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

Question 13

Negotiation is a simple skill that applies to only a few purchasing and supply managers.

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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 19

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

Question 20

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

Question 21

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

Question 22

It is unimportant for the negotiator to have adequately prepared and established a thoughtful BATNA for each issue until after the negotiation has begun.

Question 23

An experienced negotiator does not need to practice or rehearse a complex negotiation before commencing the formal negotiation.

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

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 31

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 32

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

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

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

Question 38

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.

Question 39

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

Question 40

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

Question 41

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

Question 42

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 the above.

Question 43

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 44

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

Question 45

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 46

Which of the following is not one of the popular definitions of negotiation as presented in the text?

A) A negotiation is an interactive communication process that may take place whenever we want something from someone else or another person wants something from us.
B) Negotiation is the process of communicating back and forth for the purpose of reaching a joint agreement about differing needs or ideas.
C) Negotiating is the end game of the sales process.
D) Negotiation is to be used only to get the absolutely lowest price from a supplier.
E) Negotiation is a process of formal communication, either face-to-face or via electronic means, where two or more people, groups, or organizations come together to seek mutual agreement about an issue or issues.

Question 47

Step 2 of Triangle Talk is _____.

A) apply strategy to win the negotiation
B) know exactly what they want
C) know exactly what you want
D) propose action in a way they can accept
E) use power to get exactly what you want

Question 48

A/An _____ is considered to be a negotiated outcome that the negotiator must have in order to reach a successful outcome to the negotiation.

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

Question 49

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

Question 50

Step 3 of Triangle Talk is _____.

A) apply tactics to win the negotiation
B) know exactly what you want
C) use power to get what you want
D) propose action in a way they can accept
E) know exactly what they want

Question 51

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 52

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 53

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

Question 54

The negotiator's _____ is the unspoken motivation or reason that underlies any given negotiation position.

A) want
B) need
C) interest
D) BATNA
E) bargaining zone

Question 55

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 56

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

Question 57

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 table and implement his or her next-best option.

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

Question 58

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 59

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

Question 60

A/An _____ refers to those negotiated outcomes that a negotiator would like to have as opposed to those outcomes that must be achieved.

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

Question 61

A/An _____ is a method or scheme devised for making or doing something to achieve a desired end.

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

Question 62

_____ 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 63

_____ 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 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

_____ 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 66

_____ 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 67

_____ is a negotiation tactic that is a test of acceptability.

A) Take-it-or-leave-it
B) Best and final offer
C) Price increase
D) Trial balloon
E) Honesty and openness

Question 68

Which of the following is not one of the reasons that negotiators frequently fall short of their goals or reach an impasse?

A) They neglect the other party's problems.
B) They focus too much on price.
C) They focus too much on common ground.
D) They neglect their BATNAs.
E) They focus on interests rather than on positions.

Question 69

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 to document that mastery.

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

Question 70

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 71

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

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

Question 72

Negotiation _____ refers to the overall approach used to reach a mutually beneficial agreement with a supplier that holds different points of view from the buyer.

A) tactics
B) positioning
C) strategy
D) conflict
E) None of the above.

Question 73

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

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

Question 74

_____ is ready access to relevant and useful information and relies on trying to influence the other party through the cogent presentation of facts, data, information, and persuasive arguments.

A) Information power
B) Reward power
C) Coercive power
D) Legitimate power
E) Referent power

Question 75

_____ is/are the ability to influence another person or organization to do something.

A) Positions
B) Planning
C) Strategy
D) Power
E) None of the above.

Question 76

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

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

Question 77

_____ includes the ability to punish the other party - financially, physically, emotionally, or mentally.

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

Question 78

The area of overlapping positions among issues, when there is one, between the negotiators is termed the _____.

A) concurrent zone
B) agreement possibility
C) positive position
D) objective
E) bargaining zone

Question 79

The basis of _____ is 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 80

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

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