Deck 13: Formal Negotiation

Question 1

People who fear conflict are poor negotiators.

Answer 1

True

Question 2

The two radically different negotiation philosophies are win-lose and lose-win.

Answer 2

False

Question 3

The opposite of the competing mode for resolving conflict is the accommodating mode.

Answer 3

True

Question 4

Ambush negotiation occurs when either party begins a negotiation strategy when the other party does not expect it.

Question 5

It is important for all members of the negotiation team to learn as much as they can about the objectives of the other side and to stay completely informed on the facts and objectives of their own team.

Question 6

The concept of sellers partnering with clients is an example of a win-win perspective.

Question 7

Anticipation of the various negotiation positions that will be adopted by the other side to the negotiation is impossible.

Question 8

An agenda sets boundaries and helps keep parties to the negotiation on track.

Question 9

Preparation and planning are the most important parts of negotiation.

Question 10

PDQ Plastics was correct to consider who would be the leader of the buying team before choosing Tyler as the selling team leader in the upcoming negotiations.

Question 11

Successful salespeople are natural negotiators.

Question 12

The Shepter's sales representative who has developed three alternative strategies to use in order to secure a premium shelf position is engaging in adaptive planning.

Question 13

Negotiations always involve a team of buyers and a team of sellers.

Question 14

Everyone is a negotiator.

Question 15

Once set, a negotiation agenda should not be changed during the negotiation session.

Question 16

When developing objectives, negotiators need to sort out all issues that could arise in the meeting, prioritizing them by importance to the firm.

Question 17

Power is a critical element when developing negotiation objectives. The best situation is when there is a distinct difference in power.

Question 18

An effective defense against the good guy-bad guy routine is for the selling team to know its position clearly and not to let the buyer's tactic weaken it.

Question 19

The difference between an avoiding mode and a compromising mode is that negotiators in a compromising mode are less assertive and less cooperative.

Question 20

If a buyer's maximum price is less than a seller's minimum price, negotiation is futile.

Question 21

The text says the most important part of negotiation is:

A) the behavior of the individual team members
B) finding the right place for the negotiation meeting
C) allotting enough time to wear down the other side
D) preparation and planning
E) sticking to the agenda

Question 22

In negotiations with Target department store, Frito-Lay representatives could negotiate:

A) the location of point-of-purchase displays of Frito-Lay products
B) delivery schedules
C) how frequently the snacks would be restocked on store shelves
D) what would be done with snacks that had reached their expiration date
E) all of the above

Question 23

The selling team should always refuse buyer nibbling after the contract has been signed.

Question 24

A manufacturer of lawn furniture wants to provide a large resort hotel chain with all of its outside furniture. The buyer and seller are preparing to enter negotiations. Which of the following items are likely to be covered during the negotiations?

A) credit terms and delivery conditions
B) how complaints will be resolved
C) performance guarantees
D) how the furniture will be designed
E) all of the above

Question 25

Negotiation jujitsu is making small concessions one piece at a time.

Question 26

Sarah is lead negotiator for her company which is attempt to get its products stocked by Target department store. Sarah explains her position as trying to show the other side how both her company and Target can improve their profits. Sarah is engaging in _____ negotiating.

A) win-win
B) outline
C) moderation
D) accommodation
E) integrative

Question 27

Which of the following is a good characteristic for a negotiator?

A) a dislike of conflict
B) a lack of a good ethical value system
C) a willingness to take risks
D) a strong need to be liked
E) closed-mindedness

Question 28

A seller who negotiates a higher price after the price has been agreed upon is engaging in lowballing.

Question 29

Which of the following statements about negotiation selling is true?

A) Negotiation is not consistent with buyer-seller partnering.
B) Negotiations never involve people at the selling firm who are not part of the sales department.
C) Formal negotiations can take place with anyone in the buying firm who may be classified as a user.
D) Negotiating is less expensive than advertising.
E) If the customer is large or important enough, almost anything can be negotiated.

Question 30

A manufacturer of cast iron skillets wants to place its skillets on the shelves in every Cracker Barrel restaurant store. According to the text, which of the following would be a negotiable item?

A) prices and pricing allowances for volume purchases
B) inventory levels Cracker Barrel must maintain
C) retail pricing points
D) amount and location of shelf positioning
E) all of the above is negotiable

Question 31

In _____ negotiating the negotiator attempts to secure an agreement that satisfies both parties.

A) win-win
B) outline
C) moderation
D) accommodation
E) integrative

Question 32

All of the following would be a good characteristic for a negotiator EXCEPT:

A) endurance
B) belligerence
C) the ability to tolerate ambiguity
D) the willingness to take risks
E) persistence

Question 33

The best defense against the budget limitation tactic by a selling team is for the buying team to do its homework before the negotiation.

Question 34

Which of the following statements about negotiation selling is FALSE?

A) Negotiation is not consistent with buyer-seller partnering.
B) Negotiations can easily involve many people at the selling firm who are not part of the sales department.
C) Formal negotiations only take place with significant buyers or potential buyers.
D) Negotiating is an expensive endeavor.
E) Almost anything can be negotiated if the customer is large or important enough.

Question 35

Li approaches negotiation as a "kill or be killed" activity. He believes his task is to get as much as possible for his company, and if the other side is satisfied with the outcome, he didn't push hard enough. This style of negotiation is called:

A) touchdown
B) win-lose
C) civil war
D) go for the throat
E) winner takes all

Question 36

The final step in negotiating is post-negotiation selling.

Question 37

After being accused of overcharging, Brian steps back and redirects the negotiation back to the issues being discussed. Brian is engaging in negotiation jujitsu.

Question 38

The outcome of the Super Bowl or the World Series is most like _____ negotiating.

A) terminal
B) win-lose
C) win-win
D) conquest
E) one-way

Question 39

All concessions in a negotiation are tentative until the final agreement is reached and signed.

Question 40

According to the text there are two philosophies concerning negotiation:

A) people and technological
B) micro and macro
C) push and pull
D) top-down and bottom-up
E) win-win and win-lose

Question 41

Chip is the house manager for his campus chapter of Beta Theta Pi, a social fraternity. He is negotiating with Jackson Hauling for trash pick-up service at the fraternity house. He would like a Monday-Wednesday-Friday schedule, but would accept a Monday-Thursday arrangement, but he has just asked for daily trash pick-up Monday through Friday. The Monday-Wednesday-Friday arrangement is Chip's:

A) minimum position
B) target position
C) opening position
D) maximum position
E) decisive position

Question 42

There are 14 different types of Victoria Gourmet Blends of herbs and spices. It is a small Massachusetts-based business that wants to be carried in the Vermont Country Store catalog. In return for the catalog carrying its product line, Victoria Taylor, the owner of the company, is willing to give the catalog retailer a five percent quantity discount. If that doesn't get her product into the catalog, she is willing to give credit terms of 5/30, n/60, EOM. If that doesn't work, she will offer to split the shipping costs. What type of pre-negotiation planning has Taylor engaged in?

A) flexible implementation
B) agenda determination
C) adjustable implementation
D) triple bypass preparation
E) adaptive planning

Question 43

Which of the following statements about negotiation teams is FALSE?

A) Negotiation preparation includes deciding who will offer the concessions to be made by the team.
B) Nonverbal signals to other members of the negotiation team are an important part of what must be prepared.
C) Negotiation preparation includes deciding who will answer what types of questions.
D) In general, the buyer's team should be larger than the seller's team.
E) Salespeople rather than corporate officers are often selected to serve as team leaders for selling teams in negotiation sessions.

Question 44

____________________ is developing alternative paths to the same negotiation goal.

A) Dual adaptation
B) Maneuverable accomplishment
C) Adjustable implementation
D) Dual distribution
E) Adaptive planning

Question 45

Arnet will be representing Jackson Hauling, a new commercial garbage collection service in a negotiation with the house manager of one of the local university's social fraternities. Arnet first plans to suggest that her company could place a larger dumpster behind the fraternity house than the current service company provides and pick up the group's trash twice each month. She hopes the frat will accept a once a week pick-up using the current size dumpster, and she knows that because Jackson is a "small time" start up company with only a limited number of trucks, the most she can offer is twice weekly pick-up. Twice monthly pick-up is Arnet's _____ position.

A) minimum
B) target
C) opening
D) maximum
E) decisive

Question 46

To allow room for concessions, the expectations expressed in the negotiating team's opening position should be:

A) higher than its minimum position
B) higher than its target position
C) unrelated to its target or minimum position
D) lower than its target position
E) lower than its minimum position

Question 47

Mack is the house manager for his campus chapter of Sigma Chi, a social fraternity. He is negotiating with Hemphill Hauling for trash pick-up service at the fraternity house. He would like a Monday-Wednesday-Friday schedule, but would accept a Monday-Thursday arrangement, but he has just asked for daily trash pick-up Monday through Friday. The two-day trash pick-up schedule is Mack's:

A) minimum position
B) target position
C) opening position
D) maximum position
E) decisive position

Question 48

Which of the following is NOT one of the conflict handling behavior modes discussed in the text?

A) competing
B) accommodating
C) avoiding
D) colluding
E) compromising

Question 49

What a negotiation team hopes to accomplish in a given negotiation session is the team's:

A) minimum position
B) target position
C) opening position
D) maximum position
E) decisive position

Question 50

Which of the following statements about negotiation teams is true?

A) Generally, the selling team should try to outnumber the buying team.
B) Because of the interaction among team members, individual creativity is stifled.
C) Increasing the number of team members increases the chance for a "stupid" mistake.
D) The more people involved on each side, the better, since there will be less reason for someone to delay decision making due to the need for a missing person's input.
E) Each team member should have a defined role in the session.

Question 51

Usually the best place to hold negotiations is:

A) the buyer's offices
B) a neutral site
C) alternate between buyer's offices and seller's offices
D) seller's offices
E) seller's factory

Question 52

Harry and Ernie are brothers. Both are students at New Bedford College. They share a car and an apartment. Although next Saturday is Harry's day to have the car, Ernie wants it. To persuade Harry to let him have the car, Ernie is prepared to offer to clean their apartment for the next three weeks. If that fails, he will offer his brother $35. If the monetary offer is unacceptable, Ernie will offer Harry the car both weekend nights of the two weeks that follow this Saturday. Ernie is engaging in:

A) flexible implementation
B) agenda determination
C) adjustable implementation
D) triple bypass preparation
E) adaptive planning

Question 53

The selling team for NevaFlat Tire Company is meeting to try to creatively develop strategies for their upcoming negotiations with the management of GM's Saturn plant. NevaFlat would like to become the preferred supplier of tires to Saturn. The NevaFlat people are engaged in a (n):

A) caucus
B) agenda conference
C) fact-finding forum
D) idea interchange
E) brainstorming session

Question 54

A negotiation team's initial position in a given negotiation session is the team's:

A) minimum position
B) target position
C) opening position
D) maximum position
E) decisive position

Question 55

A meeting in which people are allowed to creatively explore different methods of achieving goals is called a (n):

A) brainstorming session
B) agenda conference
C) fact-finding forum
D) idea interchange
E) caucus

Question 56

The modes of conflict handling are based on the dimensions of:

A) technical skills and people skills
B) assertiveness and cooperativeness
C) avoiding and confronting
D) competing and accommodating
E) acceptance and persistence

Question 57

Pete is the house manager for his campus chapter of Beta Theta Pi, a social fraternity. He is negotiating with Hemphill Hauling for trash pick-up service at the fraternity house. He would like a Monday-Wednesday-Friday schedule, but would accept a Monday-Thursday arrangement, but he has just asked for daily trash pick-up Monday through Friday. Pete's request for daily trash pick-up is his:

A) minimum position
B) target position
C) opening position
D) maximum position
E) decisive position

Question 58

In preparing for a negotiation session, the negotiator should decide ahead of time, what is the "worst" deal he or she will accept. That deal is known as the _____ position.

A) minimum
B) target
C) opening
D) maximum
E) decisive

Question 59

When and where negotiations take place is important. Experienced negotiators usually prefer to begin negotiations:

A) first thing Monday morning
B) immediately after lunch on Monday or Tuesday
C) Thursday evenings
D) on a morning in the middle of the workweek
E) during the weekend

Question 60

Arnet will be representing Jackson Hauling, a new commercial garbage collection service in a negotiation with the house manager of one of the local university's social fraternities. Arnet plans to suggest that her company could place a larger dumpster behind the fraternity house than the current service company provides and pick up the group's trash twice each month. She hopes the frat will accept a once a week pick-up using the current size dumpster, and she knows that because Jackson is a "small time" start up company with only a limited number of trucks, the most she can offer is twice weekly pick-up. Weekly pick-up is Arnet's _____ position.

A) minimum
B) target
C) opening
D) maximum
E) decisive

Question 61

Researchers found that _____ type of negotiators sometimes seek win-lose agreements in which they are the losers.

A) competing
B) avoiding
C) accommodating
D) collaborating
E) compromising

Question 62

People who use the compromising mode to resolve conflicts:

A) attempt to find the best solution that will completely satisfy all parties
B) generally give up more than an accommodator but less than a competing person
C) help reach agreements which do not usually maximize the satisfaction of both parties
D) would not tend to suggest, "Let's just split the difference"
E) are generally very cooperative and very unassertive

Question 63

The supermarket chain and the representatives from the orange growers' cooperative are having extended negotiations as a result of a late freeze and an early drought that has reduced the U.S. orange production. After 4-hours of grueling negotiations, the orange grower's cooperative representative was tired of hearing one of the members of the supermarket team asking, "Can't we all just get along and split the extra costs down the middle?" This supermarket team member that was annoying the coop rep was apparently using the _____ mode to handle conflict resolution.

A) competing
B) accommodating
C) avoiding
D) collaborating
E) compromising

Question 64

"Look, it's a pretty good deal for your company and mine, too. Let's just sign the contracts and call it a day," said Nora. Nora's statement is typical of the _____ mode of conflict resolution.

A) competing
B) accommodating
C) avoiding
D) collaborating
E) compromising

Question 65

When a food provider service representative announced that the company would be making deliveries every two weeks instead of weekly, the university cafeteria manager acquiesced even though this delivery schedule would probably lead to some shortages as her staff learned to make longer-term plans. Since the cafeteria manager's approach to conflict resolution is to escape all negotiation, it can be said that his approach is the _____ mode.

A) competing
B) conceding
C) avoiding
D) collaborating
E) compromising

Question 66

Which of the following statements about negotiation preliminaries is FALSE?

A) Every effort should be made to ensure a comfortable environment for all parties to the negotiation.
B) Try to arrange seating so that members of the two sides are intermingled.
C) Try to avoid engaging in small talk before getting down to business.
D) If the buying team arranges a physical arrangement that places the selling team at a disadvantage, the selling side should stop the meeting until better arrangements are made.
E) As much as possible, the selling team should try to establish a win-win environment.

Question 67

A person who is both cooperative and assertive is in the _____ mode.

A) competing
B) accommodating
C) avoiding
D) collaborating
E) compromising

Question 68

A salesperson who uses the _____ mode is attempting to arrive at a win-win situation. However, the agreement typically reached does not maximize the satisfaction of either of the parties.

A) competing
B) accommodating
C) avoiding
D) collaborating
E) compromising

Question 69

LaVerne approaches every negotiation as if it were a war. She forcefully seeks every concession she can get from the other side. "There are two kinds of people in the world," she says, "winners and losers." LaVerne's mode of resolving conflict is:

A) competing
B) accommodating
C) avoiding
D) colluding
E) compromising

Question 70

Emily opened the negotiation session by saying, "I think we're all here today looking for a win-win deal. Unless we all leave this table feeling that we've each satisfied our objectives as much as was possible under the circumstances, I'm going to consider this negotiation a failure." Emily's approach to negotiation is the _____ mode.

A) competing
B) accommodating
C) avoiding
D) collaborating
E) compromising

Question 71

People who negotiate in a highly cooperative and unassertive fashion are those who resolve conflict in a (n) _____ mode.

A) competing
B) accommodating
C) avoiding
D) collaborating
E) compromising

Question 72

Ambush negotiation:

A) can occur during meetings prior to the negotiation meeting
B) is sometimes called a sneak attack
C) can occur during installation of a new product
D) is a win-lose tactic
E) is accurately described by all of the above

Question 73

Tony doesn't like conflict. In a negotiation he's likely to say very little. He rarely objects to what the other side proposes, and he seldom agrees to anything. He really acts as if he does not want to be involved in the negotiation at all. His approach to conflict resolution is the _____ mode.

A) competing
B) accommodating
C) avoiding
D) collaborating
E) compromising

Question 74

When it comes to negotiations, people who resolve conflicts in the _____ mode are often both uncooperative and unassertive.

A) competing
B) accommodating
C) avoiding
D) collaborating
E) compromising

Question 75

The best situation, from a negotiation standpoint, would be for both teams to have members who generally:

A) use collaboration to resolve conflicts
B) are high in cooperation and low in assertion
C) are low in both cooperation and assertion
D) use accommodation to resolve conflicts
E) use compromise to resolve conflicts

Question 76

"Well, if that's what it will take to business with you," Brian replied meekly, "then I think that's what we should do." It appears Brian approaches conflict resolution in a (n) _____ mode.

A) competing
B) accommodating
C) avoiding
D) collaborating
E) compromising

Question 77

While the installers were laying the tile in the restaurant's newly refurbished restrooms, the buyer calmly told the seller, "We need to renegotiate the price on this tile. I have learned that you charge a 50 percent markup, and as a small business owner, I find that unacceptable." The buyer is using:

A) a low blow
B) a sneak attack
C) a flanking maneuver
D) blindsiding
E) negotiation free-for-all

Question 78

Roy is power-oriented. He does not tolerate people on his negotiating team who do not go along with his ideas. Roy's approach to resolving conflict is exemplary of the _____ mode.

A) competing
B) accommodating
C) avoiding
D) collaborating
E) compromising

Question 79

The human resource director has been directed to set up a weekend executive retreat next month at some resort location not more than five hours from the company's home office. The director had great difficulty in finding such a location on such short notice, but he is very pleased with what has been negotiated. As he prepares to leave the resort office, the resort owner casually mentions if your group is not checked out by 9:00 a.m. Sunday, I'll have to charge them for a full day." The resort owner is using:

A) a low blow
B) ambush negotiation
C) a flanking maneuver
D) blindsiding
E) counterarguments

Question 80

Vince was negotiating a catering contract with Kevin for the annual corporate Memorial Day picnic. Vince really didn't want to concede to Kevin's demands for unlimited seconds on fried chicken without any increase in what the company paid, but he did it anyway--without any counter-balancing concession from Kevin. Vince seems to approach negotiation in a (n) _____ mode.

A) competing
B) collaborating
C) conceding
D) accommodating
E) compromising