SCM CH 13
A negotiator with _____ is recognized as having accumulated and mastered a high level of knowledge about a particular subject, often coupled with verifiable credentials and stature to document that mastery. a. referent power b. legitimate power c. coercive power d. reward power e. expert power
E
A/An _____ refers to those negotiated outcomes that a negotiator would like to have as opposed to those outcomes that must be achieved. a. need b. BATNA c. position d. interest e. want
E
According to Cialdini, _____ is a principle that says we prefer to be consistent in our beliefs and actions. a. scarcity b. liking c. social proof d. reciprocation e. consistency
E
According to Cialdini, _____ is a principle which states that we are more likely to accept the positions, arguments, and direction from recognized authority figures. a. liking b. consistency c. scarcity d. social proof e. authority
E
In _____, the parties identify more than one issue where disagreement exists and then agree to trade off these issues so that each party has one of its top-priority issues satisfied. a. use non-specific compensation b. cut the costs for compliance c. expand the pie d. find a bridge solution e. logroll
E
The area of overlapping positions among issues, when there is one, between the negotiators is termed the _____. a. concurrent zone b. agreement possibility c. positive position d. objective e. bargaining zone
E
Which of the following is not one of the reasons that negotiators frequently fall short of their goals or reach an impasse? a. They neglect the other party's problems. b. They focus too much on price. c. They focus too much on common ground. d. They neglect their BATNAs. e. They focus on interests rather than on positions.
E
_____ are the action plans designed to help achieve a desired result. a. Arguments b. Questions c. Strategies d. Objectives e. Tactics
E
_____ is a negotiation tactic that often signals the end of a negotiation on a given issue. a. Venue b. Silence c. Planned concessions d. Trial balloon e. Best and final offer
E
_____ is a negotiation tactic that signals that it is now the other party's turn to reciprocate and make a concession on an important issue. a. Venue b. Low ball c. Honesty and openness d. Best and final offer e. Planned concessions
E
_____ means that one party is able to offer something of perceived value to the other party. a. Referent power b. Informational power c. Expert power d. Coercive power e. Reward power
E
_____ occurs as a result of negotiators being immersed in a place in which their established norms have been confronted and may no longer be applicable. a. Win-win negotiation b. Competitive bargaining c. Reciprocation d. Consistency e. Culture shock
E
T/F: A negotiator can automatically assume that the other party thinks the same way he or she does.
false
T/F: A negotiator should ensure that his or her BATNA is revealed to the other party, because the final settlement is unlikely to vary much from that point.
false
T/F: A procurement negotiation seldom affects other stakeholders throughout the organization who have an interest in or will be affected by the negotiation outcomes.
false
T/F: A willingness to offer large concessions is always in the best interests of a buyer.
false
T/F: A win-lose negotiation approach works best for items or services that are important to the buyer's products or business or when the item involves high-dollar items or services where cost control is critical.
false
T/F: According to Karrass, research indicates that e-mail-based negotiations typically take less time to complete than those conducted face-to-face
false
T/F: All buyer-supplier negotiations are relatively straightforward, only requiring rudimentary preparation and planning.
false
T/F: All purchase requirements will require buyers and sellers to conduct a thorough, detailed, and time-consuming negotiation
false
T/F: An experienced negotiator does not need to practice or rehearse a complex negotiation before commencing the formal negotiation.
false
T/F: Deciding the physical location of where to negotiate is an unimportant part of any planning process.
false
T/F: Effective negotiators are unwilling to make counterproposals
false
T/F: Experienced negotiators do not need to understand their counterparts through research and experience.
false
T/F: For the effective negotiator, it is acceptable to give away any concession without getting something of equal or greater value in return.
false
T/F: Good negotiators know that reaching agreement is the end of the negotiation process.
false
T/F: In e-negotiation, status differences are readily apparent, and social norms and behaviors are easier to discern.
false
T/F: In win-win negotiation, if one party gains, it is only at the expense of the other party.
false
T/F: It is easy to develop common ground in the negotiation without knowing what the other party is seeking.
false
T/F: It is unimportant for the negotiator to have adequately prepared and established a thoughtful BATNA for each issue until after the negotiation has begun.
false
T/F: Negotiation is a simple skill that applies to only a few purchasing and supply managers.
false
T/F: Negotiation is noncritical means to convey the buyer's specific sourcing requirements and specifications to its supply base.
false
T/F: People seldom show the tendency to fill in the gaps when a discussion encounters silence
false
T/F: The issues that are most critical to a supplier are likely to be those most critical to a buyer.
false
T/F: There is minimal danger in stereotyping or oversimplifying the cultural characteristics of different countries or regions.
false
T/F: There is minimal likelihood that retaliation or escalation will occur if the power structure shifts unfavorably in the future.
false
T/F: To reach a negotiated agreement using principled negotiation, a negotiator should always focus on the other party's stated position, not his or her underlying interests.
false
T/F: Use of electronic media such as e-mail, texting, and instant messaging, has no measurable impact on the dynamics and effectiveness of a negotiation.
false
T/F: E-negotiators generally ask more questions and tend to make fewer assumptions during the negotiation.
false
A/An _____ is also known as the negotiator's bottom line or reservation point, that is, that point in the negotiation where it is most advantageous for the negotiator to walk away from the table and implement his or her next-best option. a. BATNA b. position c. interest d. need e. want
A
According to Cialdini, _____ is a principle which states that we look to the behavior of others to determine what is desirable, appropriate, and correct. a. social proof b. liking c. consistency d. scarcity e. authority
A
In _____, one party achieves his or her objective on an issue, whereas the other receives something else of value as a reward for going along. a. use nonspecific compensation b. logroll c. expand the pie d. find a bridge solution e. cut the costs for compliance
A
_____ is a negotiation tactic that involves one party, often the seller, offering an unusually low price to receive a buyer's business. a. Low ball b. High ball c. Boulwarism d. Caucus e. Trial balloon
A
_____ seeks to expand the value or resources of outcomes available to all parties through cooperative negotiation. a. Win-win negotiation b. Distributive bargaining c. Competitive bargaining d. Lose-lose negotiation e. Open-table bargaining
A
In negotiation, a/an _____ is a reality or truth that the parties can state and successfully verify. a. fact b. issue c. position d. interest e. BATNA
A
_____ is ready access to relevant and useful information and relies on trying to influence the other party through the cogent presentation of facts, data, information, and persuasive arguments. a. Information power b. Reward power c. Coercive power d. Legitimate power e. Referent power
A
A _____ is a movement away from a negotiating position that offers something of value to the other party in order to ultimately gain something else of value. a. reward b. concession c. coercive maneuver d. tactic e. strategy
B
A/An _____ is an aspiration or vision to work toward in the future. a. need b. objective c. plan d. BATNA
B
A/An _____ is an item or topic to be resolved during the negotiation. a. BATNA b. issue c. interest d. position e. fact
B
A/An _____ is considered to be a negotiated outcome that the negotiator must have in order to reach a successful outcome to the negotiation. a. want b. need c. BATNA d. position e. interest
B
According to Cialdini, _____ is a principle which states that we work well and are more agreeable with people we like or who are like us. a. leverage b. liking c. authority d. reciprocation e. consistency
B
Step 2 of Triangle Talk is _____. a. apply strategy to win the negotiation b. know exactly what they want c. know exactly what you want d. propose action in a way they can accept e. use power to get exactly what you want
B
Which of the following is not a reason for negotiating with suppliers? a. The total contract value or volume is large. b. The purchase is for widely available, commodity-like goods. c. The purchase involves utilization of capital-intensive plant and equipment. d. The purchase involves a special or collaborative relationship. e. The supplier will perform important or significant value-added activities.
B
_____ includes the ability to punish the other party - financially, physically, emotionally, or mentally. a. Reward power b. Coercive power c. Legitimate power d. Expert power e. Referent power
B
_____ is a negotiation tactic that involves taking an abnormally high initial position on an issue. a. Low ball b. High ball c. Best and final offer d. Curve ball e. Knuckleball
B
_____ means that two or more parties are competing over a fixed sum value with the winner taking all or the larger share. a. Lose-lose negotiation b. Win-lose negotiation c. Winner-take-all negotiation d. Integrative bargaining e. None of the above.
B
_____ involves inventing new options that satisfy each party's needs. a. Expand the pie b. Find a bridge solution c. Logroll d. Cut the costs for compliance e. Use non-specific compensation
B
_____ is a negotiation tactic that involves not immediately responding when the other party makes an offer in the hope that an awkward silence will encourage further offers or concessions from the other party. a. Trial balloon b. Silence c. High ball d. Questions e. Planned concessions
B
In _____, one party (usually the buyer) gets a lower price as the parties work jointly to reduce the seller's costs or the joint transaction costs of doing business together. a. logroll b. expand the pie c. cut the costs for compliance d. find a bridge solution e. use non-specific compensation
C
Negotiation _____ refers to the overall approach used to reach a mutually beneficial agreement with a supplier that holds different points of view from the buyer. a. tactics b. positioning c. strategy d. conflict e. None of the above.
C
Step 1 of Triangle Talk is _____. a. know exactly what they want b. propose action in a way they can accept c. know exactly what you want d. apply tactics to win the negotiation e. None of the above.
C
The basis of _____ is the official job position or title that an individual holds, rather than the characteristics of the individual him/herself. a. informational power b. referent power c. legitimate power d. coercive power e. expert power
C
The negotiator's _____ is the unspoken motivation or reason that underlies any given negotiation position. a. want b. need c. interest d. BATNA e. bargaining zone
C
_____ is a negotiation tactic in which the negotiator insists on negotiating in a location that is more favorable to him/her. a. Consistency b. Caucus c. Venue d. Low ball e. High ball
C
_____ is a negotiation tactic that involves taking a time out. a. Silence b. Venue c. Caucus d. Take-it-or-leave-it e. Low ball
C
A negotiator's _____ can be defined as his or her opening offer, which represents the optimistic (or ideal) value of the issue being negotiated. a. interest b. need c. BATNA d. position e. want
D
A/An _____ is a method or scheme devised for making or doing something to achieve a desired end. a. want b. objective c. BATNA d. plan e. position
D
According to Cialdini, _____ is a principle which states that people feel an obligation to give something back of equal or greater value to someone else after we have received something of perceived value from them. a. social proof b. authority c. consistency d. reciprocation e. scarcity
D
All of the following are effective e-negotiating practices except _____. a. use a blended negotiation, starting with an initial face-to-face meeting or a telephone call to build essential rapport with the other party b. establish common ground and interests to build mutual trust c. use "emoticons" to counter the lack of nonverbal awareness d. forward e-mail negotiations to the other party's immediate superior for verification e. proofread the entire message, including addressees, before sending the e-mail out
D
In _____, the parties work closely together to identify new and creative ways to expand available resources or generate new value obtained through a negotiated agreement. a. logroll b. use non-specific compensation c. cut the costs for compliance d. expand the pie e. find a bridge solution
D
Step 3 of Triangle Talk is _____. a. apply tactics to win the negotiation b. know exactly what you want c. use power to get what you want d. propose action in a way they can accept e. know exactly what they want
D
The source of _____ comes from interpersonal appeal based on socially acceptable individual qualities and attributes, such as one's personality or attractiveness. a. informational power b. expert power c. coercive power d. referent power e. physical power
D
Which of the following is not one of the popular definitions of negotiation as presented in the text? a. A negotiation is an interactive communication process that may take place whenever we want something from someone else or another person wants something from us. b. Negotiation is the process of communicating back and forth for the purpose of reaching a joint agreement about differing needs or ideas. c. Negotiating is the end game of the sales process. d. Negotiation is to be used only to get the absolutely lowest price from a supplier. e. Negotiation is a process of formal communication, either face-to-face or via electronic means, where two or more people, groups, or organizations come together to seek mutual agreement about an issue or issues.
D
_____ is a negotiation tactic that is a test of acceptability. a. Take-it-or-leave-it b. Best and final offer c. Price increase d. Trial balloon e. Honesty and openness
D
_____ is/are the ability to influence another person or organization to do something. a. Positions b. Planning c. Strategy d. Power e. None of the above.
D
T/F: A tactic used during one negotiation may not be successful or applicable to another negotiation, even with the same counterpart.
true
T/F: All negotiation settlements must ultimately be judged in light of the other viable alternatives that existed at the time of the agreement.
true
T/F: An important part of negotiation is realizing that the process involves relationships between people, not just organizations.
true
T/F: An integral part of negotiation involves each party trying to persuade the other party to do something that is in its best interests
true
T/F: Analyzing the other party requires a thorough assessment of the relative strengths and weaknesses of the parties, as well as the particulars for each individual issue to be negotiated.
true
T/F: Before actual negotiations begin, the parties need to believe realistically that they can reach an agreement.
true
T/F: During an international negotiation, an interpreter might verbally communicate yet not fully convey the significance of unspoken actions, signals, and customs that may be invisible to the foreign or nonnative negotiator.
true
T/F: Everyone negotiates something every day
true
T/F: Excessive formality in negotiation can effectively constrain the parties and restrict the free exchange of ideas and solutions.
true
T/F: Many negotiators fail to prepare adequately before entering into a formal negotiation oftentimes because of a very short timeframe in which to make a deal.
true
T/F: Negotiation is more appropriate when other issues besides price are important or when competitive bidding will not satisfy the buyer's requirements on various issues.
true
T/F: Negotiators who interact face-to-face are more likely to reach agreement and avoid impasse than their e-negotiation counterparts
true
T/F: Packaging issues together risks undermining an entire negotiation if the parties reach impasse on a single issue within the linked proposal.
true
T/F: Parties may behave differently when negotiating electronically than they do in person.
true
T/F: Referent power is most successful in negotiation when the referents are aware that a counterpart identifies with or has an attraction to them.
true
T/F: Sharing the underlying interests behind a position may cause a negotiator's power to shift toward the other party, ultimately resulting in a less than desired outcome.
true
T/F: The bargaining zone represents the heart of the negotiation process, as any proposal or counterproposal offered outside of this range is likely to be rejected by the other party because it is not what he or she is willing to settle for.
true
T/F: The caveat to the best and final offer tactic is that the person making the best and final offer must be prepared to actually end the negotiation if the other party does not accept the offer.
true
T/F: The effective use of information in a negotiation does not necessarily mean open and complete sharing.
true
T/F: The manner in which a negotiator approaches concession making is an important part of every successful negotiation strategy.
true
T/F: The purchasing cycle begins with identifying (or anticipating) a specific need or requirement for a part component, raw material, subassembly, service, piece of equipment, or finished good to be sourced to conduct or support organizational operations.
true
T/F: When a negotiator is planning an upcoming negotiation, it is imperative to prioritize all of the potential issues to be negotiated into needs and wants, thereby knowing what must be achieved and what can be exchanged for something else of value.
true
T/F: When preparing for a negotiation with a supplier located in another country, companies must invest in substantial extra time and effort in planning for the negotiation to accommodate new language translations, travel, modes of transportation, and other foreign business requirements.
true