Deck 12: Formal Negotiating

Question 1

Ambush negotiation occurs when either party begins to negotiate with a win-lose strategy when the other party does not expect it.

Answer 1

True

Question 2

A company's sales representative who develops three alternative strategies to secure a premium shelf position engages in adaptive planning.

Answer 2

True

Question 3

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

Answer 3

True

Question 4

Negotiators in a compromising mode of resolving conflict are less assertive and less cooperative than those in an avoiding mode.

Question 5

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

Question 6

In win-lose negotiating,the negotiator attempts to secure an agreement that satisfies both parties.

Question 7

In general,the seller's team should be the same size as the buyer's team.

Question 8

Generally,negotiators cannot anticipate buyers' negotiating position.

Question 9

Negotiations differ from regular sales calls in that they involve lesser intensive planning and a smaller number of people from the selling firm.

Question 10

Successful salespeople always make great negotiators.

Question 11

Putting the key issues at the beginning in the agenda is advantageous.

Question 12

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

Question 13

Experienced negotiators find weekends the best time for negotiating.

Question 14

The best negotiation situation is when there is a distinct difference in power.

Question 15

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

Question 16

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

Question 17

To allow for concessions,the target position should reflect higher expectations than the opening position.

Question 18

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

Question 19

Formal negotiations generally take place only for very large or important prospective buyers.

Question 20

Negotiation is only done with new buyers.

Question 21

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

Question 22

After being told of a budget limitation during a negotiation session,a seller must never propose a lower price.

Question 23

A manufacturer of cast iron skillets wants to place its skillets for sale in a major retail store.Which of the following would be a negotiable item?

A) Prices and pricing allowances for volume purchases
B) Inventory levels the retail store should maintain
C) Retail pricing points
D) Location of shelf positioning
E) All of the above

Question 24

Which of the following refers to the bargaining process through which buyers and sellers resolve areas of conflict and arrive at agreements?

A) Commercialization
B) Attribution
C) Crowdsourcing
D) Brainstorming
E) Negotiation

Question 25

A manufacturer of lawn furniture wants to sell its furniture to a large chain of resorts.The buyer and seller prepare for the negotiations.Which of the following items are likely to be covered during the negotiations?

A) Credit terms and delivery terms and conditions
B) How complaints will be resolved
C) Delivery schedules
D) How the furniture will be designed
E) All of the above

Question 26

Red herring is a win-win tactic that involves bringing up a major point first to distract the other side from considering minor issues.

Question 27

Which of the following is a desirable trait of a negotiator?

A) A fear of conflict
B) Belligerence
C) A willingness to take risks
D) Constant resistance to change
E) Introversion

Question 28

To develop long-term partnerships with buyers,sellers should try to get every concession possible out of their buyers.

Question 29

Which of the following statements is true about negotiations?

A) Negotiations are also known as sales presentations.
B) Negotiations exclude people from the selling firm who are not part of the sales department.
C) Formal negotiations can take place with anyone who is classified as a buyer or user.
D) Negotiating is a less expensive endeavor as it hardly requires people to spend time.
E) If the customer is large or important enough, almost anything can be negotiated.

Question 30

While holding formal negotiations with Target department store,Frito-Lay representatives can 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 the packs that cross the expiry date.
E) all of the above

Question 31

Sarah is a lead negotiator for her company,which wants to sell its products to Target department store.Sarah explains to the managers at Target how both her company and Target can improve their profits.Which of the following philosophies of negotiation is Sarah exemplifying?

A) Win-win
B) Zero-sum
C) Distributive
D) Positional
E) Hard-bargaining

Question 32

In win-win not yet negotiating,the buying team achieves its goals while the selling team doesn't.

Question 33

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 negotiating tactic weaken it.

Question 34

Generally,the goal of negotiation is to develop a short-term partnership with a buyer.

Question 35

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

Question 36

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

A) win-win
B) hard-bargaining
C) zero-sum
D) positional
E) distributive

Question 37

The outcome of the Super Bowl or the World Series illustrates _____ negotiation.

A) integrative
B) win-lose
C) interest-based
D) principled
E) cooperative

Question 38

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

Question 39

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

Question 40

All of the following are desirable traits of a negotiator EXCEPT:

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

Question 41

Negotiators in the accommodating mode are usually _____.

A) assertive
B) uncooperative
C) generous
D) power-oriented
E) disobedient

Question 42

Ernie wants Harry's car for a weekend.To persuade Harry to let him take the car,Ernie prepares to offer to clean Harry's apartment for three weeks.If he still disagrees,Ernie plans to offer him $35.If this does not work,then Ernie decides he would let Harry stay in his apartment for two weeks.Ernie is engaging in:

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

Question 43

Which of the following is NOT a conflict-handling mode?

A) Competing
B) Accommodating
C) Avoiding
D) Agitating
E) Compromising

Question 44

The selling team from A.C.Doyle Food Service is planning a negotiation session with New Bedford College.The team is hoping to acquire the contract to supply food to the college for the next academic year for $1.4 million.At the start of the session,Doyle's chief negotiator plans to quote $1.65 million,but later decides that they would accept the contract for any amount above $1.3 million.Considering the chief negotiator's decision,$1.65 million is Doyle's:

A)minimum position.
B)target position.
C)opening position.
D)fixed position.
E)average position.

Question 45

Vince,a part-time caterer,negotiates a catering contract with Kevin for the annual corporate Memorial Day picnic.Vince does not want to concede to Kevin's demands for unlimited seconds on fried chicken without any increase in what the company pays.However,he accepts the contract without any counter-balancing concession from Kevin.Vince resolves the conflict in the negotiation in a(n)_____ mode.

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

Question 46

Which of the following statements is true about planning for the negotiation session?

A) Experienced negotiators find weekends and after-hours best for negotiations.
B) A buyer's office is typically the best place to hold negotiation sessions.
C) Time allotted to a negotiation session should be no more than a few hours.
D) Individuals should prepare themselves emotionally for the stress that will occur within a negotiation session.
E) To allow for concessions, the opening position should reflect lower expectations than the target position.

Question 47

Jane doesn't like conflict.In a negotiation,she rarely objects to what the other side proposes,and she seldom agrees to anything.She acts like she does not want to be involved in the negotiation at all.Jane is most likely to resolve conflict in negotiation in a(n)_____ mode.

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

Question 48

Mac is the house manager for his campus chapter of Sigma Chi,a social fraternity.He is negotiating with Hemphill Hauling for trash pick-up services at the fraternity house.He prefers a three-days-per-week trash pick-up schedule,but he is also willing to accept a two-days-per-week arrangement.While negotiating with the company,he asks for daily trash pick-up service.The two-day trash pick-up schedule is Mac's:

A) minimum position.
B) target position.
C) opening position.
D) maximum position.
E) average position.

Question 49

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

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

Question 50

Roy is power oriented.He does not tolerate people on his negotiating team who do not go along with his ideas.Roy's resolves conflict in the _____ mode.

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

Question 51

Which of the following statements is FALSE about negotiation teams?

A) The team leader will manage the actual negotiation session.
B) Because of team members' different backgrounds, the group as a whole tends to be more creative than one individual could be.
C) Negotiation preparation includes deciding who will answer what types of questions.
D) In general, the seller's team should be larger than the buyer's team.
E) Salespeople rather than executives on the team are often selected to serve as team leaders since they possess intimate knowledge of the buyers and their needs.

Question 52

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

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

Question 53

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

A) equal to its target position.
B) higher than its target position.
C) equal to the buyer's minimum position.
D) lower than its target position.
E) lower than its minimum position.

Question 54

The selling team from A.C.Doyle Food Service is planning a negotiation session with New Bedford College.The team is hoping to acquire the contract to supply food for the college in the next academic year for $1.4 million.At the start of the session,Doyle's chief negotiator plans to quote $1.65 million,but later decides that they would accept the contract at any amount above $1.3 million.Considering the chief negotiator's decision,$1.4 million is Doyle's:

A)minimum position.
B)target position.
C)opening position.
D)maximum position.
E)average position.

Question 55

Susan's Gourmet Blends is a small Massachusetts-based business that wants its products to be marketed in the Delmonte Country Store catalog.In return for the catalog carrying its product line,Susan 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.If that doesn't work,she will offer to split the shipping costs.Which type of pre-negotiation planning is Susan engaging in?

A) Flexible implementation
B) Agenda determination
C) Adjustable implementation
D) Triple bypass preparation
E) Adaptive planning

Question 56

Experienced negotiators typically prefer to begin negotiations:

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

Question 57

Which of the following statements is true about negotiation teams?

A) The selling team should be typically larger than the buying team.
B) Because of the interaction among team members, individual creativity is stifled.
C) It is always easier to reach a decision when there are a higher number of team members.
D) It always takes lesser time to reach a decision when there are more people involved on each side.
E) Each team member should have a defined role in the session.

Question 58

Jack 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 services at the fraternity house.He prefers a three-days-per-week trash pick-up schedule,but he is also willing to accept a two-days-per-week arrangement.While negotiating with the company,he asks for daily trash pick-up service.The three-day trash pick-up schedule is Jack's:

A) minimum position.
B) target position.
C) opening position.
D) maximum position.
E) average position.

Question 59

Typically,the best place to hold a negotiation is at:

A) the buyer's office.
B) a neutral site.
C) both the buyer's office and the seller's office, alternatively.
D) the seller's office.
E) the seller's factory.

Question 60

People who resolve conflict in negotiations in the _____ mode are often both uncooperative and unassertive.

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

Question 61

A negotiator says "Can't we all just get along and split the extra costs down the middle?" From the above statement,it can be said that the negotiator is using the _____ mode for conflict resolution.

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

Question 62

While the installers were laying tiles in the restaurant's newly refurbished restrooms,the buyer calmly tells the seller,"We need to renegotiate the price of these tiles.I have learned that you charge a 50 percent markup,and as a small business owner,I find that unacceptable." In this scenario,the buyer uses:

A) browbeating.
B) a sneak attack.
C) a flanking maneuver.
D) trial balloons.
E) a red herring tactic.

Question 63

The representative of a packaged food service informed Carla,the cafeteria manager of a university,that the company would be making bulk deliveries every two weeks instead of its current weekly service.Carla complied even though this delivery schedule would require her to make extra arrangements to store the food.In this scenario,Carla's approach to conflict resolution reflects the _____ mode.

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

Question 64

A florist agrees to purchase a new $640 refrigeration display cabinet for fresh-flower arrangements.After delivering the cabinet,the salesperson says to the florist,"Did I mention that there is a $100 delivery fee in addition to the price of the unit?" The win-lose strategy that the salesperson uses is:

A) intimidation.
B) browbeating.
C) countertrade.
D) flanking movement.
E) lowballing.

Question 65

Emily opens a 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 have satisfied our objectives as much as possible under the given circumstances,I'm going to consider this negotiation a failure." Emily most likely resolves conflict in the _____ mode.

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

Question 66

The human resource director of a software firm arranges a weekend executive retreat for a few employees at a resort.As he prepares to leave the resort office after paying an advance,the resort owner says,"If your group does not check out by 9:00 a.m.tomorrow,I'll have to charge them for the entire day." Which of the following negotiating tactics does the resort owner use?

A) Trial balloons
B) Ambush negotiation
C) A flanking maneuver
D) A red herring attack
E) Browbeating

Question 67

Which of the following statements is true about negotiation preliminaries?

A) Negotiation preliminaries are more important in U.S. business meetings than in international ones.
B) The room temperature should be set colder than normal to speed up the actual negotiation process.
C) Time should be spent just prior to the negotiation to develop negotiation skills, not for engaging in friendly conversations.
D) An agenda that states what will be discussed and in what sequence should be created.
E) Key issues should always be placed first in the agenda so that it will be very advantageous.

Question 68

A salesperson who uses the _____ mode tries to reach an agreement that does not completely satisfy either of the parties.

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

Question 69

Which of the following tactics helps sellers deal with browbeating?

A) Lowballing
B) Negotiation jujitsu
C) Good guy-bad guy routine
D) Trial balloons
E) Emotional outbursts

Question 70

Which of the following is an appropriate guideline for effective negotiations?

A) Listening carefully is extremely important.
B) The ability to ask probing questions is important to keep the negotiations on track.
C) Periodic status reports on what has been decided and what needs to be decided is an effective way of keeping negotiations on track.
D) Keeping in mind that during negotiations, people have a desire to retain their positive identities.
E) All of the above would be appropriate guidelines for effective negotiations.

Question 71

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

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

Question 72

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

A) use a collaborating mode to resolve conflicts.
B) are high in cooperation and low in assertion.
C) are low in both cooperation and assertion.
D) use an accommodation mode to resolve conflicts.
E) use a compromising mode to resolve conflicts.

Question 73

"We would love to buy three of the Poly-Tex floral fixtures.It would provide us with much more space to display our plants.Your product matches our needs except for one thing.We have only allocated $700 for expansion,and your shelves are priced at $800." The buyer is:

A) using a budget bogey.
B) lowballing.
C) nibbling.
D) browbeating.
E) using the trial balloons technique.

Question 74

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) pursue their own goals and objectives completely at the expense of the other party.
D) often find a solution that partially satisfies both parties.
E) are generally very cooperative and very unassertive.

Question 75

The leader of the selling team says to the members of the buying team,"Who are you trying to kid? You need my company's filtration systems to maintain your product quality.You're going to have to pay an extra $20 per system and just cut costs somewhere else." Another member of the selling team responds by saying,"Now wait a minute.These are our friends you're talking to.How about we only charge $10 extra per system and split the shipping charges with you? Doesn't that sound fair?" Which method of win-lose negotiation is this scenario most likely to exemplify?

A) Lowballing
B) Negotiation jujitsu
C) Good guy-bad guy routine
D) Browbeating
E) Emotional outbursts

Question 76

Which of the following statements about agendas for negotiations is mandatory?

A) The selling team should always give the buying team responsibility for setting the agenda.
B) So as not to waste time, the key issues should be listed first on the agenda.
C) The buying team should never bring an agenda to the negotiation table.
D) The agenda should never be negotiated by the buyer's team.
E) None of the above statements about agendas for negotiations is mandatory.

Question 77

Why is it usually advantageous to not place key issues of the negotiation at the very beginning of the agenda?

A) It provides an opportunity to learn the other side's bargaining style and concession routines.
B) It saves time as it becomes obvious that if agreement can't be reached on the smaller issues then there is no point in discussing the key issues.
C) By conceding most of the smaller issues in the beginning, the selling team creates a moral "debt," which the buying team is likely to have to repay by conceding on the later, key issues.
D) It allows the team setting the agenda to wear down the other side which will likely result in them agreeing to all the key issues proposed.
E) It provides the sellers an advantage as the buyers lose interest toward the end of the session when the key issues are discussed.

Question 78

During a negotiation,the buyer says,"I would like to do business with your landscaping firm,but companies in your industry don't tend to last more than a couple of years.I heard a rumor that your partner was thinking of selling out his share of this business and starting his own.You must be difficult to work with.Maybe,I should wait." In this scenario,the buyer is:

A) using a budget bogey.
B) lowballing.
C) using the good guy-bad guy technique.
D) browbeating.
E) nibbling.

Question 79

Ambush negotiating:

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

Question 80

Which of the following statements is FALSE about negotiation preliminaries?

A) Every effort should be made to ensure a comfortable environment for all parties in the negotiation.
B) Seating should be arranged such that members of the two sides can interact.
C) Engaging in small talk before getting down to business should be avoided.
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.