Selling and Sales Chapter 12
As a win-lose tactic, buyers bring up a minor point first to distract sellers from considering the main issue during negotiation meetings. This tactic is known as _____.
red herring
What should salespeople do when a negotiation meeting with a buyer is over? (Check all that apply.)
Get the written form of any negotiated agreements from the buyer Carry out postnegotiation evaluation
Which of the following is true of formal negotiations?
They are generally organized only for important prospective buyers.
A national account salesperson is responsible for _____.
providing information about competing firms
NeoBooks Inc., a printing company, signs a sales contract for 100 digital printers with Colorz Inc., a printer manufacturing company. During the first week of the installation of the printers, sales team of NeoBooks Inc. states that they need to renegotiate the price of the printers as other printer manufacturing companies have introduced cheaper printers. The tactic used by NeoBooks Inc. illustrates the concept of _____.
sneak attack
In the context of the strategies for dealing with win-lose negotiators, which of the following is true of the strategy "Warn, but don't threaten"?
A warning is different from a threat.
Which of the following preliminary activities should sellers engage in before starting a negotiation? (Check all that apply.)
Arranging for refreshments Participating in friendly conversations
Identify a guideline to choose a location to hold a negotiation meeting between a buyer and a seller.
Choose a site free from distraction for both the seller and the buyer.
Which of the following are roles of the leader of a seller team in complicated negotiations? (Check all that apply.)
He or she keeps track of conflicts that have been discussed or resolved. He or she maps out what is addressed and what is yet to be discussed.
Identify a true statement about an agenda of a negotiation meeting between a buyer and a seller.
It is preferable to avoid putting key issues at the very first in the agenda.
Identify the traits of people who resolve conflict in an accommodating mode. (Check all that apply.)
Obedience to another person's order Highly generous
Identify a true statement about negotiation jujitsu used by a salesperson to deal with a buyer's browbeating strategy in a negotiation meeting.
The salesperson takes a step back from the buyer's attack and directs the buyer back to the issues being discussed.
At a negotiation meeting with a buyer, a seller's opening price position was $1,000. The seller agrees to lower the price to $850 at the end of the meeting. Identify a true statement about this scenario.
The seller has granted a concession.
Identify a guideline to make concessions effectively as part of negotiations.
The seller should avoid making concessions until all of a buyer's demands and opening position are known by the seller.
Identify a general guideline for a selling firm to select a team to engage in a negotiation session.
The seller's team should be the same size as the buyer's team.
In the context of information control, which of the following is true of buyers?
They attempt to gain as much knowledge as possible about the selling team and the team's plans.
How should sellers respond if a buyer makes browbeating comments during a negotiation meeting?
They should not let the comments influence them.
Identify a true statement about people who resolve conflict in a competing mode.
They surround themselves with subordinates who agree to their ideas.
Identify a characteristic of people who resolve conflict in a compromising mode.
They try to find a quick, mutually acceptable solution that partially satisfies both parties.
Why do buyers engage in an emotional outburst tactic during negotiation meetings?
To make sellers feel uncomfortable
When are buyers likely to walk away from a negotiation?
When they consider an opening position to be unrealistic
A negotiation is likely to result in high outcomes irrespective of time pressure if both parties have _____.
a win-win perspective
People in a(n) _____ are the exact opposite of people in a competing mode.
accommodating mode
As part of planning strategies for negotiations with buyers, firms develop alternative paths to the same goal. This method is known as
adaptive planning
A listing of what will be discussed and in what sequence in a negotiation meeting between a buyer and a seller is known as a(n)
agenda
Some buyers will attempt to engage in a win-lose tactic of beginning to negotiate when the other party does not expect it. This tactic is known as
ambush negotiating
Laura, a buyer, and Ted, a seller, are engaged in a negotiation. During the session, Laura responds to Ted's statements about prices by shaking her head sadly and saying, "Our firms have been in this relationship for five years, and yet you offer an unreasonable price that I cannot accept." As a win-lose negotiator, Laura is engaging in _____.
an emotional outburst tactic
Like sellers, buyers _____.
attend seminars about negotiation
During conflict, people who operate in a(n) _____ are unassertive and uncooperative.
avoiding mode
Peter, a salesperson, is a member of a seller's team at a negotiation session with a buyer. During the session, he does not attempt to satisfy the seller's needs or the needs of the buyer. He refrains from striving for any kind of agreement with the buyer. Peter is operating in a(n) _____.
avoiding mode
Selling firms engage in a meeting in which people are allowed to creatively explore various methods of achieving goals to create negotiation strategies that will meet a firm's objectives. This meeting is called a(n)
brainstorming session
The budget limitation tactic, which is a strategy used by win-lose negotiators, is also known as a(n)
budget bogey
People who resolve conflict in a(n) _____ are both assertive and cooperative.
collaborating
Jonathan, a salesperson, is at a negotiation session with a buyer regarding the discounts offered on a product. He wants to find a mutually beneficial solution by offering a discount that is reasonable for both parties. He aspires to create a win-win solution. Jonathan is operating in a(n) _____.
collaborating mode
Based on negotiation profiles, people who resolve conflict in a(n) _____ are assertive and uncooperative.
competing mode
People who resolve conflict being in the middle in terms of cooperativeness and assertiveness operate in a(n) _____.
compromising mode
In a negotiation meeting, one party makes a(n) when it agrees to change a position in some fashion.
concession
When selecting a location to hold a negotiation meeting, experienced negotiators _____.
consider the middle of a workweek best for negotiations
As a strategy used by win-lose negotiators, sometimes, buyer teams will try to appeal to seller teams' human nature by engaging in a(n) tactic.
emotional outburst
An ideal response by a seller to a buyer's browbeating comments during a negotiation meeting is to _____.
exercise negotiation jujitsu
During negotiation meetings, people should save _____, which is the need for a constructive identity or self-concept.
face
True or false: Successful salespeople always make great negotiators.
false
During a negotiation meeting, Matthew, a member of a buyer's team, asks a seller's team for a 20 percent discount on wireless keyboards. Robert, another member of the buyer's team, interrupts Matthew and says that the seller can offer an 18 percent discount as the buyer has been a good customer for a long time. The seller's team perceives this as a win-win solution and accepts the buyer's terms. Based on the strategies used by win-lose negotiators, this scenario exemplifies the concept of the _____.
good guy-bad guy routine
Joseph, a salesperson, plans to conduct a negotiation meeting on the price of digital printers with a buyer team. In the context of making concessions effectively, Joseph should _____.
help the buyer team perceive the value of any concessions he agrees to
The good guy-bad guy routine of win-lose negotiators is based on the _____.
hurt and rescue principle
In comparison with lowballing, nibbling _____.
is a much smaller request
Isabella, a salesperson, plans to conduct a negotiation meeting with a buyer team. In the context of making concessions effectively, Isabella should _____.
know the best alternative to a negotiated agreement (BATNA)
When one party intentionally underestimates or understates a cost during a negotiation meeting, _____ occurs. It is a strategy used by win-lose negotiators.
lowball
The absolute lowest level a selling firm will accept at a negotiation session is known as the _____.
minimum position
In comparison with regular sales calls, negotiations involve _____.
more intensive planning
The bargaining process through which buyers and sellers resolve areas of conflict and arrive at agreements is known as _____.
negotiations
In a negotiation, high time pressure results in _____ when either one or both parties decide to take a win-lose perspective.
nonagreements and poor outcomes
The best defense sellers should use against budget limitation tactics used by buyers is to _____.
possess alternative programs that involve cost reduction measures
An attribute of people who resolve conflict in a collaborating mode is that they _____.
strive to maximize the satisfaction of both parties at a negotiation session
When selecting a team leader for a negotiation session, a seller's management should _____.
take into account the anticipated leader of the buyer team
What a selling firm hopes to achieve at a negotiation session with a buyer is known as the _____.
target
To permit concessions, the opening position in a negotiation should indicate higher expectations for the seller team than the team's _____.
target position
True or false: All concessions a seller offers during a negotiation meeting with a buyer are tentative until the final agreement is reached and signed.
true
True or false: During a negotiation meeting, the best response from a seller's team to a buyer's team that uses the lowballing tactic is to say no.
true
True or false: In a negotiation meeting between a seller team and a buyer team, a round table seating arrangement is likely to help the parties feel that they are dealing with a common task and promotes a win-win atmosphere.
true
Typically, a good negotiator should be _____.
willing to take risks
