Negotiations Quiz MC

When Max Bazerman tells the story of the taxi in Bangkok, Thailand, which of the principles governing when to negotiate is he covering? When negotiating sends the wrong signal When time is money When relationships might suffer When your BATNA stinks--and everyone knows it

When time is money

The following is a strategy for building trust and sharing information with the other negotiator. 1. Understand and speak their language 2. Increase the ties that bind 3. Build trust when you're not negotiating 4. All of the above 5. Just b and c

4. All of the above

According to the five strategies for eliciting information from reticent negotiators, it is generally safe to give away the following information to the other party. 1. Information regarding your priorities across different issues 2. Your reservation value 3. Both a and b 4. None of the above

1. Information regarding your priorities across different issues

In a negotiation, what is a BATNA? 1. It is the course of action you would pursue if you cannot reach an agreement 2. It is the lowest value you would accept in the negotiation 3. It is your target - what you would like to achieve in the negotiation 4. It is your reservation value

1. It is the course of action you would pursue if you cannot reach an agreement

In a negotiation, what is a reservation value? 1. It is the lowest value you would accept in the negotiation 2. It is the price you hope to achieve in the negotiation 3. It is the minimum amount that you think is fair 4. It is what you originally paid for the item you are selling

1. It is the lowest value you would accept in the negotiation

According to the five strategies for eliciting information from reticent negotiators, one should do the following. 1. Negotiate multiple issues simultaneously and make multiple offers simultaneously 2. Remain silent for the entire negotiation. Even the most reticent and withdrawn negotiators will be unable to bear hours of silence and eventually speak 3. Both a and b 4. None of the above

1. Negotiate multiple issues simultaneously and make multiple offers simultaneously.

Which of the following is most true about negotiation? 1. Negotiation is a skill that can be taught 2. Shooting from the hip or 'winging it" can be extremely effective strategies 3. Negotiators should rely on gut instinct 4. People are intrinsically either good or bad at negotiation

1. Negotiation is a skill that can be taught

When preparing for a multi-issue negotiation, how should one determine reservation value? 1. One should use their own scoring system to calculate an overall package reservation value 2. One should enter a negotiation without a reservation value in order to stay flexible 3. One should have a reservation value for each individual issue 4. None of the above

1. One should use their own scoring system to calculate an overall package reservation value

Should you propose a post-settlement settlement (PSS) after completing a long negotiation? 1. Yes, a PSS can lead to Pareto improvements 2. Yes, a PSS gives you an opportunity to back out of a recently signed deal and renegotiate a better outcome 3. No, a PSS will be interpreted as reneging on the recently signed deal and can derail a negotiation 4. No, a PSS is pointless because both parties are unwilling to give up any more ground after signing an agreement

1. Yes, a PSS can lead to Pareto improvements

Why is Haggling a necessary part of every negotiation? 1. Because neither party wants to reveal their reservation point 2. Because neither party wants to concede too much, so each side concedes only in response to the other's concessions 3. Because seasoned negotiators enjoy the give-and-take 4. Because people are not comfortable with silence

2. Because neither party wants to concede too much, so each side concedes only in response to the other's concessions.

How important is estimating your counterparty's BATNA and reservation value? 1. It is nice to do and normally has a small positive effect on the final outcome 2. It can make the difference between negotiating a good deal and a great deal. 3. Their BATNA is important to understand, but quantifying their reservation value is impossible. 4. It is of limited value. You should spend time instead quantifying your own BATNA and reservation value.

2. It can make the difference between negotiating a good deal and a great deal.

What strategy is an important execution strategy for value creation in multi-issue negotiations? 1. Negotiate methodically by going through issues one at a time 2. Negotiate multiple issue simultaneously and make package offers 3. Start with the easy issues individually to build rapport before moving on to the more challenging issues 4. None of the above

2. Negotiate multiple issue simultaneously and make package offers

Which of these does NOT typically drive satisfaction with a negotiations outcome? 1. The degree to which they felt respected 2. The amount of the Zopa that they claimed 3. The degree to which they felt the outcome was equitable 4. The degree to which they believe they got a good deal

2. The amount of the Zopa that they claimed

Should a negotiator try and add issues to a negotiation if their goal is to create value? 1. Yes, more issues will distract the other party and allow one to control the negotiation process and claim more value for themselves 2. Yes, more issues mean more currency which makes it easier to find opportunities for logrolling 3. No, more issues make the negotiation more complex which can distract one from claiming the most value for themselves 4. No, one should only stick to a preset plan and focus on their already established issues during a negotiation to ensure value creation

2. Yes, more issues mean more currency which makes it easier to find opportunities for logrolling.

What should a negotiator do to prepare for a multi-issue negotiation if their goal is to create value? 1. Identify your own multiple interests 2. Identify the other party's multiple interests 3. Both a and b 4. None of the above

3. Both a and b

In the Moms.com negotiation, how should negotiators balance the issue of value creation and claiming value? 1. Even if it comes at the your own expense, you should NOT claim any value for yourself and try to create value for the other party 2. Negotiators should always prioritize claiming value and ignore creating value. There is nothing to be gained by being collaborative in the case study. 3. Claiming value is an important component of the negotiation process in the case study but negotiators should not let claiming value derail their value creation strategies 4. None of the above

3. Claiming value is an important component of the negotiation process in the case study but negotiators should not let claiming value derail their value creation strategies

What is the most common mistake in negotiation? 1. Faulty preparation 2. Over preparation 3. Lack of preparation 4. Failure to meet counterparty face-to-face

3. Lack of preparation

How should one face unfavorable demands from the other party? 1. One should stand their ground, be direct, and reject the demand if it will substantially degrade their own outcome 2. One should adopt a defensive posture and find a way to avoid accepting the demand without degrading relations with the other party 3. One should use the demand to try and learn about the other party's underlying interests and take it as an opportunity to create value 4. One should immediately respond by making a similarly outrageous demand to force the other party to give up some ground

3. One should use the demand to try and learn about the other party's underlying interests and take it as an opportunity to create value

Can leveraging differences in a multi-issue negotiation create value? 1. No, differences lead to conflict which will make it harder to create value with the other party 2. No, negotiators should focus solely on finding common ground with the other party to build a better relationship 3. Yes, differences in priorities can be leveraged by negotiators through logrolling to create value 4. Yes, by leveraging differences one can convince the other party to make greater concessions to claim value for oneself

3. Yes, differences in priorities can be leveraged by negotiators through logrolling to create value.

What is a Pareto improvement? 1. A revision or addition to the agreement that leaves you better off at the expense of the other party 2. A revision or addition to the agreement that leaves the other party better off at your expense 3. A revision or addition to the agreement that leaves both you and your other party with a more equal share of the "pie" than before 4. A revision or addition to the agreement that leaves at least one party better off without making anyone worse off

4. A revision or addition to the agreement that leaves at least one party better off without making anyone worse off

Which of the following is NOT a way to respond to an initial offer in order to protect yourself from anchoring?

4. Aggressively probe to understand the basis for their initial offer

Which tactics are most helpful to understanding your counterparties reservation point before the negotiation? 1. Researching and connecting with objective information sources 2. Learning from others who have participated in similar negotiations with your counterparty 3. Identifying and questioning your critical assumptions 4. All of the above

4. All of the above

An important goal of negotiation is claiming and/or creating value. What is value? 1. Dollars 2. Happiness 3. Whatever people find useful or desirable 4. All of the above

4. All the above

What is the ZOPA in a negotiation? 1. The set of all possible deals that would be acceptable to both parties 2. The space between the buyer's reservation value and the seller's reservation value 3. The 'lay of the land' for the negotiation, but not where the negotiation will end. 4. All of the above.

4. All the above

In making a first offer to anchor negotiations, which of the following is NOT a good strategy for sizing the offer? 1. Making the most aggressive offer that you can justify. 2. Setting the highest realistic target 3. Keeping the entire Zopa in play by making an offer outside your counterparties reservation point 4. Basing the offer on your reservation point

4. Basing the offer on your reservation point

How should one gather information when it comes to investigative negotiation? 1. Listen very carefully to what the other party wants 2. Spend most of your own speaking time telling the other party what you want or need for yourself 3. Find out why people want certain things instead of only focusing on the what 4. Both a and b

4. Find out why people want certain things instead of only focusing on the what

Which of the following is NOT a good way to respond to an initial offer that is well above your target? 1. Making a counteroffer to improve your outcome, and your counterparty's satisfaction 2. Giving something back, if it can strengthen the relationship 3. Stepping back and questioning your evaluation of the ZOPA based on the new information provided 4. Grinning and accepting the offer immediately.

4. Grinning and accepting the offer immediately.

According to the seven principles of investigative negotiation, how should one act if negotiations are met with a rejection? 1. Accept defeat without asking why and continue negotiating without learning anything from this negotiation 2. Threaten the other party and coerce them into reconsidering your offer by any means necessary even even if it requires acting unethically/illegally 3. Abruptly discontinue communications with the other party and never negotiate with them again 4. None of the above

4. None of the above

How should one act if the demands of both parties are incompatible? 1. Continue negotiating to try and reconcile the demands no matter how long it takes 2. Make a large concession to progress the negotiation and build rapport with the other party 3. Threaten to walk away from the negotiation and force the other party into a position where they must compromise 4. Probe deeper to find the other party's underlying interests and seek to reconcile those interests

4. Probe deeper to find the other party's underlying interests and seek to reconcile those interests

Which tactic below is NOT helpful to understanding your counterparties reservation point during the negotiation? 1. Combining anchoring, interrogating, and sounding informed in your questions 2. Asking questions that challenge your own assumptions 3. Asking indirect questions to understand context 4. Sharing your reservation point in order to trigger reciprocity

4. Sharing your reservation point in order to trigger reciprocity

What is the value of making the opening offer to anchor the negotiations? 1. It ensures that an aggressive stance and takes control of the negotiation 2. There is no value to making the opening offer 3. It ensures capturing the majority of the Zopa 4. The anchor strongly affects the final outcome of the negotiation

4. The anchor strongly affects the final outcome of the negotiation

In their discussion on upsetting the balance of power, Bazerman and Malhotra recommend which of the following strategies? Increase your strength by building coalitions with other weak parties Leverage the power of your extreme weakness Understand and attack the source of power All of the above

All of the above

What are signs that not making a deal is the best possible outcome? The counterparty cannot beat or match your other offers Instead of trying to meet your needs, they are trying hard to convince you that your interests are not what you think they are Despite your best efforts, they will not answer any of your questions, nor will they ask you about your needs and interests All of the above

All of the above

What is CQ? A skill that can be practiced by reading people in low-pressure situations Your cultural intelligence quotient The ability to make sense of unfamiliar contexts and adapt to them All of the above

All of the above

Which of the following is a common mistake when dealing with irrational negotiators? Mistaking uninformedness for irrationality Interpreting hidden constraints as irrationality Failing to uncover hidden interests that could appear as irrationality All of the above

All of the above

Which of the following is a smart alternative to lying? 1. Prepare to answer difficult questions 2. Try not to negotiate or respond to questions while under pressure 3. Offer to answer a different question 4. All of the above

All of the above.

The taxi story appears a second time in the book, but in a new context. What is the principle it illustrates the second time? Do not negotiate when your BATNA is weak Do not undervalue your own time Do not negotiate when it's not culturally appropriate None of the above

Do not negotiate when it's not culturally appropriate

What is the main takeaway from the story of the Daimler/Chrysler merger? Don't over-rely on cultural stereotypes in negotiation All differences in cross-cultural negotiations are driven by culture Cross-cultural mergers are unlikely to succeed Cultural differences are an acceptable excuse for negotiating dishonestly

Don't over-rely on cultural stereotypes in negotiation

Which of the following statements is correct? Experience is critical to being a good negotiator. Expertise is the academic study of negotiation. Experience matters more than expertise in negotiation. Experience is what you gain when you engage in a particular behavior (such as negotiation) many times. Expertise is what you gain when you are able to infuse your experience with a "strategic conceptualization" of what you are doing. None of the above

Experience is what you gain when you engage in a particular behavior (such as negotiation) many times. Expertise is what you gain when you are able to infuse your experience with a "strategic conceptualization" of what you are doing.

In the story of the Harvard professor who stole manure from a local farmer, what was his gravest negotiation error? Over-preparing Agreement bias Failing to understand that he had a weak BATNA All of the above

Failing to understand that he had a weak BATNA

In the story of corporate diplomates negotiating a cross-border deal in the future, which of the following questions did they pose? How does your firm's culture align with the culture of your country? How will changing laws affect the wisdom of the transaction Are you negotiating similar deals with any other firms? None of the above

How will changing laws affect the wisdom of the transaction

Which of the following is a recommended strategy for dealing with threats? Meet the counterparty's threat with one whose consequences are worse Neutralize any additional threats they might be tempted to make Engage a third party to take your side None of the above

Neutralize any additional threats they might be tempted to make

Which of the following is NOT a recommended strategy for dealing with anger? Sidestep the emotion Give voice to their anger Seek to understand why they are angry None of the above

None of the above

Which of the following is NOT one of the tips given for fostering cross-cultural partnerships? Prepare to adapt Respect differences Research their culture Expect to be surprised

Research their culture

Which of the following strategies is NOT recommended when you are negotiating without power? Overcome your weakness by leveraging their weakness Don't reveal that you are weak Reveal your BATNA to bring quick closure Strategize on the basis of your entire negotiation portfolio

Reveal your BATNA to bring quick closure

Which approach best summarizes the key takeaway from the passage on the Cuban Missile Crisis? None of the above That national pride is not an important consideration in political negotiation The value of using back channels to negotiate The importance of placing oneself in the counterparty's shoes

The importance of placing oneself in the counterparty's shoes

Weakness in negotiation results when: 1. The other side's BATNA is relatively strong and your BATNA is relatively weak 2. The counterparty is older and more experienced than you 3. None of the above 4. There is no ZOPA

The other side's BATNA is relatively strong and your BATNA is relatively weak