Deck 2: Preparation: What to Do Before Negotiation

Question 1

Andrea,the CEO of a medium scale manufacturing company,is negotiating with the representatives of the employee's union.She accepts the demands of the union immediately to avoid a strike though the demands inflict a financial burden on the company.Andrea has acted as a(n)________ negotiator in this negotiation.

A) underaspiring
B) overaspiring
C) positional
D) grass-is-greener

Answer 1

A

Question 2

Positional negotiators very often tend to be ________.

A) cynical
B) egocentric
C) accommodating
D) intuitive

Answer 2

B

Question 3

A positional negotiator is also known as a(n)________.

A) underaspiring negotiator
B) visioning negotiator
C) overaspiring negotiator
D) grass-is-greener negotiator

Answer 3

C

Question 4

Any set of terms superior to the negotiator's BATNA is not desirable.

Question 5

What is the key to successful negotiation?

A) motivation
B) compromise
C) preparation
D) capitulation

Question 6

The winner's curse is attributed to an underaspiring negotiator.

Question 7

The ________ negotiator wants what the other party does not want to give-and does not want what the other party is willing to offer.

A) overaspiring
B) grass-is-greener
C) egocentric
D) underaspiring

Question 8

Sam and Chelsea meet to negotiate a business arrangement between their companies.Chelsea has done a lot of research beforehand and is very well prepared for the meeting when compared to Sam.Sam believes that better solutions are arrived at through intuition,spontaneity,and working hard at the negotiation table.Whom do you think will be more successful at negotiating?

A) Neither because successful negotiation requires hard bargaining and very little preparation, intuition or spontaneity.
B) Chelsea, because the 80-20 rule applies to negotiation: About 80% of your effort should go toward preparation; 20% should be the actual work involved in the negotiation.
C) Sam, because the 80-20 rule applies to negotiation: About 20% of your effort should go toward preparation; 80% should be the actual work involved in the negotiation.
D) While preparation is important, whoever has the "killer instinct " will be more successful at negotiating, because the "killer instinct" plays a much bigger role in negotiation than preparation.

Question 9

Though a negotiation blunder,the winner's curse can be remedied in many cases.

Question 10

The reference point,focal point,and reservation point all mean the same.

Question 11

At the negotiating table,Leo and David take opposite viewpoints of the matter in discussion.Leo takes offence at David's comments because he views any opposition as an ego threat.It is safe to assume that Leo is a(n)________ negotiator.

A) cynical
B) accommodating
C) positional
D) intuitive

Question 12

Most people are risk-seeking when it comes to losses,and risk-averse when it comes to gains.

Question 13

As a mixed-motive enterprise,negotiation is a two-pronged process that involves both ________ and ________.

A) cooperation; coercion
B) cooperation; gut feeling
C) competition; coercion
D) cooperation; competition

Question 14

The fixed-pie perception is seldom erroneous.

Question 15

A positional negotiator is one who ________.

A) is under pressure to clinch the offer and consequently accepts the offer despite better alternatives
B) sets a low target point and is immediately granted the offer
C) selectively seeks information that confirms what he or she believes to be true
D) sets the target point too high and refuses to make any concessions

Question 16

Julia visits a furniture manufacturer to get a deal for furnishing her house.Julia thinks the prices quoted by him are very high and asks for a better deal.The shopkeeper is firm on the prices and refuses to give her any discount.The shopkeeper is a(n)________ negotiator.

A) positional
B) underaspiring
C) triumphant
D) grass-is-greener

Question 17

The longer the temporal distance between the act of negotiation and the consequences of negotiated agreements,the better the agreement.

Question 18

In a negotiation,the person who stands to gain the most by changing the other faction's mind should be the most persuasive.

Question 19

Many people's BATNAs are uncertain because potential alternatives arrive sequentially.

Question 20

A focal point is the pivot for successful negotiations.

Question 21

Issues with single agendas are often ________ in nature.

A) fixed sum
B) integrative
C) lose-lose
D) win-win

Question 22

Which of the following is a characteristic of BATNA?

A) inflexible
B) unrealistically optimistic
C) spontaneous
D) time sensitive

Question 23

While preparing for negotiations,the negotiator fails to evaluate his reservation points.What downside can the negotiation process have?

A) the negotiators accepting an offer worse than their BATNA
B) the negotiators rejecting an offer worse than their BATNA
C) the negotiators demonstrating behavior of reactive devaluation
D) the negotiators accepting an offer better than their BATNA

Question 24

What risks must negotiators consider while preparing for negotiations?

A) operational risk, BATNA risk, compliance risk
B) financial risk, operational risk, BATNA risk
C) compliance risk, strategic risk, financial risk
D) BATNA risk, strategic risk, contractual risk

Question 25

What does premature concession mean?

A) when a negotiator decides to make concessions in the terms before the lapse of the agreement period
B) when a negotiator loses ground by to the other party by spelling out her or his alternative terms before required
C) when a negotiator makes concessions in the terms before it can be ratified
D) when a negotiator makes concessions in the terms at the eleventh hour

Question 26

What strategy do Bazerman and Neale recommend to improve BATNA?

A) One must have one's mind set on the target.
B) One must, if necessary, abandon the target completely.
C) One must be ready with alternative and viable options.
D) One must demand more than the determined option.

Question 27

What do you understand by the term "focal point"?

A) the target of the negotiator who suffers from confirmation bias
B) the target points of the negotiator that he or she must focus on solely
C) the target of the negotiator who is egocentric
D) the target of the negotiator who fails to prepare a reservation point

Question 28

Robert was the purchase agent of an office furniture manufacturer.While dealing with one of the vendors,he successfully negotiated the prices for items A and B.However,the vendor was firm on the price that he quoted for item C.Robert unsuccessfully insisted on a getting a discount for C also and eventually declined all the purchase terms offered by the vendor.Which of the following,if true,would contradict the reflection that Robert was engaged in a reactive devaluation?

A) The price quoted for C was much higher than the market price.
B) The vendor had not established a strong relationship with the manufacturer.
C) The vendor was directly procuring the item C.
D) The vendor had offered a lower price during an earlier purchase.

Question 29

After clinching a deal at first shot,a person immediately begins to think of the other alternatives that she could have exercised but did not.What is the person doing in the given situation?

A) conceptual thinking
B) lateral thinking
C) counterfactual thinking
D) critical thinking

Question 30

Having mutually agreed to the negotiation terms put forth by each other,the negotiators of two firms cut a deal.However,there is always the risk associated with the willingness of the other party to honor its terms and live up to its contractual obligations.What risk is this known as?

A) operational risk
B) contractual risk
C) financial risk
D) company risk

Question 31

Negotiators' ________ may lead buyers and sellers to have different valuations for objects.

A) reference points
B) reservation points
C) focal points
D) sunk costs

Question 32

A reference point defines what a person considers to be a ________.

A) liability
B) break even
C) resource
D) profit

Question 33

Analyze the following statements and choose the correct option. Statement 1: Negotiators should ensure that they do not focus on a single issue during negotiations. Statement 2: Negotiations centered on a particular problem are purely fixed-sum.

A) Statement 2 is true but statement 1 is false.
B) Statement 1 and statement 2 are true but statement 2 does not explain statement 1.
C) Statement 1 is true but statement 2 is false.
D) Statement 1 and statement 2 are true and statement 2 explains statement 1.

Question 34

A reservation point is a ________ of a negotiator's BATNA with respect to other alternatives.

A) modification
B) qualification
C) validation
D) quantification

Question 35

Should a negotiator have multiple issues in his negotiation?

A) No, as this can confuse the negotiator as to what terms must be included in the final agreement.
B) Yes, as this way the negotiator is considered as not being positional.
C) No, as this way the negotiator is considered as being positional.
D) Yes, as this way the negotiator may end up conceding prematurely.

Question 36

Jennifer,the sales manager of a firm,does not plan well in advance for her negotiations with clients.Her negotiation often focuses on an arbitrary value that she fixes before the negotiation as a reservation price.This arbitrary value is called a ________.

A) focal point
B) reference point
C) cost point
D) fleeting target

Question 37

What does BATNA mean?

A) Best Alternative To Negate Aggression
B) Bargaining Assets To Negotiate an Agreement
C) Best Alternative To a Negotiated Agreement
D) Begin At The Negotiated Agreement

Question 38

________ cost is money invested in the past which is not retrievable in the present.

A) Opportunity
B) Sunk
C) Product
D) Explicit

Question 39

Reactive devaluation negotiation behavior is exhibited by negotiators who ________.

A) know what the target is and are willing to make a few minor compromises
B) do not know what the target is and make major compromises
C) know what the target is but end up paying far more than deemed necessary
D) do not know what the target is but do not want what is being offered

Question 40

Kim is undergoing training to improve her negotiating skills and her BATNA.Kim is dynamic and hardworking; she is also prone to being unrealistically optimistic about most negotiations.What conclusion about BATNA can we draw from Kim's example?

A) Negotiators should constantly attempt to improve their BATNAs.
B) Your BATNA should not change as a result of the other party's persuasion techniques.
C) A BATNA is not something that a negotiator wishes for; rather, it is determined by objective reality.
D) Many negotiators are reluctant to recognize their BATNAs and confuse them with their aspiration point.

Question 41

What does a one-shot negotiation mean?

A) a negotiation which leads the other party to concede in the first attempt itself
B) a negotiation in which the deal does not entail any future ramifications accruing to the parties
C) a negotiation wherein there is only one aspiration point that needs to be dealt with
D) a negotiation wherein both the negotiating parties opt for a positional stance

Question 42

Negotiators tend to ________.

A) correctly predict the consequences of final deadlines in negotiation
B) incorrectly predict the consequences of final deadlines in negotiation
C) focus on deadlines' effect on others more than themselves
D) avoid focusing on deadlines' effect on themselves

Question 43

Negotiations can arise from either necessity or ________.

A) opportunity
B) goodwill
C) competition
D) consensus

Question 44

What does the "time horizon" mean?

A) the amount of time till the negotiation terms will be held valid
B) the amount of time between the proposed terms and the acceptance of terms by the other party the amount of time
C) the amount of time taken for the negotiation terms to get sanctioned before they are formally proposed
D) the amount of time between negotiations and the realization of negotiated agreements

Question 45

What is a hidden table?

Question 46

What does ratification mean?

A) the process of rating the aspiration point on a priority basis
B) the process of getting a contract approved by some other group
C) the process of deferring the deadline for negotiation
D) the process of settling a dispute in negotiation process

Question 47

What are the two types of conflicts commonly witnessed in negotiations?

A) functional benefits and consensus conflict
B) line staff conflict and functional conflict
C) line staff conflict and scarce resource competition
D) consensus conflict and scarce resource competition

Question 48

What is a monolithic party?

A) a party which is entirely owned and controlled by one person at the top dictating the negotiation terms and aspirations
B) a party whose members are unanimous in their negotiation terms and aspirations
C) a party which is owned and controlled by multiple people at the top who determine the negotiation terms and aspirations
D) a party whose members are not unanimous in their negotiation terms and aspirations

Question 49

Briefly explain the overconfidence effect.

Question 50

Two negotiators do not see eye to eye in their ideologies and fundamental beliefs.This is known as a(n)________.

A) agreement bias
B) vertical conflict
C) consensus conflict
D) organizational conflict

Question 51

When the negotiation is a transaction situation,________.

A) the parties involved take legal recourse to reach a settlement
B) the parties involved annul the negotiation
C) the parties involved take recourse to their BATNAs
D) the parties involved do not take recourse to their BATNAs

Question 52

The presence of third parties usually ________.

A) escalates the tension in negotiation situations, if the initial parties believe that third parties will favor their own position
B) escalates the tension in negotiation situations, if the initial parties believe third parties will not favor the other party's position
C) defuses the tension in negotiation situations, if third parties believe that the initial parties will favor their own position
D) defuses the tension in negotiation situations, if third parties believe that the initial parties will not favor their own position

Question 53

Why do negotiators avoid revealing their deadlines?

A) because they think that it will not have any impact on the negotiations
B) because they think that the other party cannot take advantage of the situation
C) because they think that it will be construed as a strategic weakness
D) because they think that they can concede at their convenience

Question 54

What does the linkage effect mean in negotiations?

A) the fact that some negotiations affect other negotiations
B) the effect of a negotiation done out of luxury
C) no effect of a negotiation in other negotiations
D) the effect of negotiation done out of necessity