ch12 - gpbou.weebly.com · ch12 student: _____ 1. in the opening profile alex tagansky suggests...
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ch12Student: ___________________________________________________________________________
1. In the opening profile Alex Tagansky suggests salespeople remember the 5Ps: powerful, performance, prevents, poor, presentation. True False
2. A successful partnership is built on mutual trust that you develop both during and after the negotiation by
following up and delivering on your promises. True False
3. The two radically different negotiation philosophies are win-lose and lose-win.
True False 4. The concept of sellers partnering with clients is an example of a win-win perspective.
True False 5. Everyone is a negotiator.
True False 6. Successful salespeople are natural negotiators.
True False 7. People who fear conflict are poor negotiators.
True False 8. Preparation and planning are the most important parts of negotiation.
True False 9. Power is a critical element when developing negotiation objectives. The best situation is when there is a
distinct difference in power. True False
10. ExpertNegotiator software has everything a salesperson needs to negotiate a contract.
True False 11. When developing objectives, negotiators need to sort out all issues that could arise in the meeting,
prioritizing them by importance to the firm. True False
12. If a buyer's maximum price is less than a seller's minimum price, negotiation is futile.
True False 13. Anticipation of the various negotiation positions that will be adopted by the other side to the negotiation
is impossible. True False
14. The Shepter's sales representative who has developed three alternative strategies to use in order to secure
a premium shelf position is engaging in adaptive planning. True False
15. Negotiations always involve a team of buyers and a team of sellers.
True False 16. PDQ Plastics was correct to consider who would be the leader of the buying team before choosing Tyler
as the selling team leader in the upcoming negotiations. True False
17. The opposite of the competing mode for resolving conflict is the accommodating mode. True False
18. The difference between an avoiding mode and a compromising mode is that negotiators in a
compromising mode are less assertive and less cooperative. True False
19. It is important for all members of the negotiation team to learn as much as they can about the objectives
of the other side and to stay completely informed on the facts and objectives of their own team. True False
20. Ambush negotiation occurs when either party begins a negotiation strategy when the other party does not
expect it. True False
21. An agenda sets boundaries and helps keep parties to the negotiation on track.
True False 22. Once set, a negotiation agenda should not be changed during the negotiation session.
True False 23. 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 tactic weaken it. True False
24. A seller who negotiates a higher price after the price has been agreed upon is engaging in lowballing.
True False 25. The selling team should always refuse buyer nibbling after the contract has been signed.
True False 26. The best defense against the budget limitation tactic by a selling team is for the buying team to do its
homework before the negotiation. True False
27. After being accused of overcharging, Brian steps back and redirects the negotiation back to the issues
being discussed. Brian is engaging in negotiation jujitsu. True False
28. Use of a "red herring" is bringing up a major point first to distract the other side from considering minor
issues. True False
29. All concessions in a negotiation are tentative until the final agreement is reached and signed.
True False 30. The final step in negotiating is post-negotiation selling.
True False 31. According to the text there are two philosophies concerning negotiation:
A. people and technological.B. micro and macro.C. push and pull.D. top-down and bottom-up.E. win-win and win-lose.
32. Li approaches negotiation as a "kill or be killed" activity. He believes his task is to get as much as possible for his company, and if the other side is satisfied with the outcome, he didn't push hard enough. This style of negotiation is called: A. touchdown.B. win-lose.C. civil war.D. go for the throat.E. winner takes all.
33. The outcome of the Super Bowl or the World Series is most like _____ negotiating.
A. terminalB. win-loseC. win-winD. conquestE. one-way
34. In _____ negotiating the negotiator attempts to secure an agreement that satisfies both parties.
A. win-winB. outlineC. moderationD. accommodationE. integrative
35. Sarah is lead negotiator for her company which is attempt to get its products stocked by Target
department store. Sarah explains her position as trying to show the other side how both her company and Target can improve their profits. Sarah is engaging in _____ negotiating. A. win-winB. outlineC. moderationD. accommodationE. integrative
36. Which of the following statements about negotiation selling is FALSE?
A. Negotiation is not consistent with buyer-seller partnering.B.
Negotiations can easily involve many people at the selling firm who are not part of the sales department.
C. Formal negotiations only take place with significant buyers or potential buyers.D. Negotiating is an expensive endeavor.E. Almost anything can be negotiated if the customer is large or important enough.
37. Which of the following statements about negotiation selling is true?
A. Negotiation is not consistent with buyer-seller partnering.B. Negotiations never involve people at the selling firm who are not part of the sales department.C. Formal negotiations can take place with anyone in the buying firm who may be classified as a user.D. Negotiating is less expensive than advertising.E. If the customer is large or important enough, almost anything can be negotiated.
38. A manufacturer of lawn furniture wants to provide a large resort hotel chain with all of its outside
furniture. The buyer and seller are preparing to enter negotiations. Which of the following items are likely to be covered during the negotiations? A. credit terms and delivery conditionsB. how complaints will be resolvedC. performance guaranteesD. how the furniture will be designedE. all of the above
39. In "Negotiations: The Road to Success is Paved with Hard Work" medical software salesman Ben Johnson did all of the following EXCEPT ___________ to get the sale. A. met with the IT director, the chief information officer and the CEOB. set up a demo for the IT directorC. assisted with confirmation of the weaknesses in the competitor's softwareD. took the decision makers to another hospital to see the software in actionE. negotiated a detailed contract
40. In negotiations with Target department store, Frito-Lay representatives could 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 snacks that had reached their expiration date.E. all of the above
41. A manufacturer of cast iron skillets wants to place their skillets on the shelves in every Cracker Barrel
restaurant store. According to the text, which of the following would be a negotiable item? A. prices and pricing allowances for volume purchasesB. inventory levels Cracker Barrel must maintainC. retail pricing pointsD. amount and location of shelf positioningE. all of the above is negotiable
42. All of the following would be a good characteristic for a negotiator EXCEPT:
A. endurance.B. belligerence.C. the ability to tolerate ambiguity.D. the willingness to take risks.E. persistence.
43. Which of the following is a good characteristic for a negotiator?
A. a dislike of conflictB. a lack of a good ethical value systemC. a willingness to take risksD. a strong need to be likedE. closed-mindedness
44. The text says the most important part of negotiation is:
A. the behavior of the individual team members.B. finding the right place for the negotiation meeting.C. allotting enough time to wear down the other side.D. preparation and planning.E. sticking to the agenda.
45. Usually the best place to hold negotiations is:
A. the buyer's offices.B. a neutral site.C. alternate between buyer's offices and seller's offices.D. seller's offices.E. seller's factory.
46. When and where negotiations take place is important. Experienced negotiators usually prefer to begin
negotiations: A. first thing Monday morning.B. immediately after lunch on Monday or Tuesday.C. Thursday evenings.D. on a morning in the middle of the workweek.E. during the weekend.
47. What a negotiation team hopes to accomplish in a given negotiation session is the team's: A. minimum position.B. target position.C. opening position.D. maximum position.E. decisive position.
48. As the selling team from A.C.Doyle Food Service plans for its next negotiation session with New
Bedford College, they hope to acquire the contract to supply the college's food service for the next academic year for $1.4 million. At the start of the session, Doyle's chief negotiator plans to ask for $1.65 million, but Doyle would accept the contract at any amount above $1.3 million. $1.4 million is Doyle's: A. minimum position.B. target position.C. opening position.D. maximum position.E. decisive position.
49. Chip 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 service at the fraternity house. He would like a Monday-Wednesday-Friday schedule, but would accept a Monday-Thursday arrangement, but he has just asked for daily trash pick-up Monday through Friday. The Monday-Wednesday-Friday arrangement is Chip's: A. minimum position.B. target position.C. opening position.D. maximum position.E. decisive position.
50. Arnet will be representing Jackson Hauling, a new commercial garbage collection service in a negotiation
with the house manager of one of the local university's social fraternities. Arnet plans to suggest that her company could place a larger dumpster behind the fraternity house than the current service company provides and pick up the group's trash twice each month. She hopes the frat will accept a once a week pick-up using the current size dumpster, and she knows that because Jackson is a "small time" start up company with only a limited number of trucks, the most she can offer is twice weekly pick-up. Weekly pick-up is Arnet's _____ position. A. minimumB. targetC. openingD. maximumE. decisive
51. In preparing for a negotiation session, the negotiator should decide ahead of time, what is the "worst" deal
he or she will accept. That deal is known as the _____ position. A. minimumB. targetC. openingD. maximumE. decisive
52. As the selling team from A.C.Doyle Food Service plans for its next negotiation session with New Bedford College, they hope to acquire the contract to supply college's food service for the next academic year for $1.4 million. At the start of the session, Doyle's chief negotiator plans to ask for $1.65 million, but Doyle would accept the contract at any amount above $1.3 million. $1.3 million is Doyle's: A. minimum position.B. target position.C. opening position.D. maximum position.E. decisive position.
53. Mack is the house manager for his campus chapter of Sigma Chi, a social fraternity. He is negotiating
with Hemphill Hauling for trash pick-up service at the fraternity house. He would like a Monday-Wednesday-Friday schedule, but would accept a Monday-Thursday arrangement, but he has just asked for daily trash pick-up Monday through Friday. The two-day trash pick-up schedule is Mack's: A. minimum position.B. target position.C. opening position.D. maximum position.E. decisive position.
54. Arnet will be representing Jackson Hauling, a new commercial garbage collection service in a negotiation
with the house manager of one of the local university's social fraternities. Arnet first plans to suggest that her company could place a larger dumpster behind the fraternity house than the current service company provides and pick up the group's trash twice each month. She hopes the frat will accept a once a week pick-up using the current size dumpster, and she knows that because Jackson is a "small time" start up company with only a limited number of trucks, the most she can offer is twice weekly pick-up. Twice monthly pick-up is Arnet's _____ position. A. minimumB. targetC. openingD. maximumE. decisive
55. A negotiation team's initial position in a given negotiation session is the team's:
A. minimum position.B. target position.C. opening position.D. maximum position.E. decisive position.
56. As the selling team from A.C.Doyle Food Service plans for its next negotiation session with New
Bedford College, they hope to acquire the contract to supply college's food service for the next academic year for $1.4 million. At the start of the session, Doyle's chief negotiator plans to ask for $1.65 million, but Doyle would accept the contract at any amount above $1.3 million. $1.65 million is Doyle's: A. minimum positionB. target positionC. opening positionD. maximum positionE. decisive position
57. Pete is the house manager for his campus chapter of Beta Theta Pi, a social fraternity. He is negotiating with Hemphill Hauling for trash pick-up service at the fraternity house. He would like a Monday-Wednesday-Friday schedule, but would accept a Monday-Thursday arrangement, but he has just asked for daily trash pick-up Monday through Friday. Pete's request for daily trash pick-up is his: A. minimum position.B. target position.C. opening position.D. maximum position.E. decisive position.
58. To allow room for concessions, the expectations expressed in the negotiating team's opening position
should be: A. higher than its minimum position.B. higher than its target position.C. unrelated to its target or minimum position.D. lower than its target position.E. lower than its minimum position.
59. ____________________ is developing alternative paths to the same negotiation goal.
A. Dual adaptationB. Maneuverable accomplishmentC. Adjustable implementationD. Dual distributionE. Adaptive planning
60. Harry and Ernie are brothers. Both are students at New Bedford College. They share a car and an
apartment. Although next Saturday is Harry's day to have the car, Ernie wants it. To persuade Harry to let him have the car, Ernie is prepared to offer to clean their apartment for the next three weeks. If that fails, he will offer his brother $35. If the monetary offer is unacceptable, Ernie will offer Harry the car both weekend nights of the two weeks that follow this Saturday. Ernie is engaging in: A. flexible implementation.B. agenda determination.C. adjustable implementation.D. triple bypass preparation.E. adaptive planning.
61. There are 14 different types of Victoria Gourmet Blends of herbs and spices. It is a small Massachusetts-
based business that wants to be carried in the Vermont Country Store catalog. In return for the catalog carrying its product line, Victoria 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, EOM. If that doesn't work, she will offer to split the shipping costs. What type of pre-negotiation planning has Taylor engaged in? A. flexible implementationB. agenda determinationC. adjustable implementationD. triple bypass preparationE. adaptive planning
62. A meeting in which people are allowed to creatively explore different methods of achieving goals is
called a(n): A. brainstorming sessionB. agenda conferenceC. fact-finding forumD. idea interchangeE. caucus
63. The selling team for NevaFlat Tire Company is meeting to try to creatively develop strategies for their upcoming negotiations with the management of GM's Saturn plant. NevaFlat would like to become the preferred supplier of tires to Saturn. The NevaFlat people are engaged in a(n): A. caucus.B. agenda conference.C. fact-finding forum.D. idea interchange.E. brainstorming session.
64. Which of the following statements about negotiation teams is true?
A. Generally, the selling team should try to outnumber the buying team.B. Because of the interaction among team members, individual creativity is stifled.C. Increasing the number of team members increases the chance for a "stupid" mistake.D.
The more people involved on each side, the better, since there will be less reason for someone to delay decision making due to the need for a missing person's input.
E. Each team member should have a defined role in the session. 65. Which of the following statements about negotiation teams is FALSE?
A. Negotiation preparation includes deciding who will offer the concessions to be made by the team.B.
Nonverbal signals to other members of the negotiation team are an important part of what must be prepared.
C. Negotiation preparation includes deciding who will answer what types of questions.D. In general, the buyer's team should be larger than the seller's team.E.
Salespeople rather than corporate officers are often selected to serve as team leaders for selling teams in negotiation sessions.
66. The modes of conflict handling are based on the dimensions of:
A. technical skills and people skills.B. assertiveness and cooperativeness.C. avoiding and confronting.D. competing and accommodating.E. acceptance and persistence.
67. Which of the following is NOT one of the conflict handling behavior modes discussed in the text?
A. competingB. accommodatingC. avoidingD. colludingE. compromising
68. LaVerne approaches every negotiation as if it were a war. She forcefully seeks every concession she can
get from the other side. "There are two kinds of people in the world," she says, "winners and losers." LaVerne's mode of resolving conflict is: A. competing.B. accommodating.C. avoiding.D. colluding.E. compromising.
69. Roy is power-oriented. He does not tolerate people on his negotiating team who do not go along with his
ideas. Roy's approach to resolving conflict is exemplary of the _____ mode. A. competingB. accommodatingC. avoidingD. collaboratingE. compromising
70. People who negotiate in a highly cooperative and unassertive fashion are those who resolve conflict in a(n) _____ mode. A. competingB. accommodatingC. avoidingD. collaboratingE. compromising
71. "Well, if that's what it will take to business with you," Brian replied meekly, "then I think that's what we
should do." It appears Brian approaches conflict resolution in a(n) _____ mode. A. competingB. accommodatingC. avoidingD. collaboratingE. compromising
72. Researchers found that _____ type of negotiators sometimes seek win-lose agreements in which they are
the losers. A. competingB. avoidingC. accommodatingD. collaboratingE. compromising
73. Vince was negotiating a catering contract with Kevin for the annual corporate Memorial Day picnic.
Vince really didn't want to concede to Kevin's demands for unlimited seconds on fried chicken without any increase in what the company paid, but he did it anyway--without any counter-balancing concession from Kevin. Vince seems to approach negotiation in a(n) _____ mode. A. competingB. collaboratingC. concedingD. accommodatingE. compromising
74. When it comes to negotiations, people who resolve conflicts in the _____ mode are often both
uncooperative and unassertive. A. competingB. accommodatingC. avoidingD. collaboratingE. compromising
75. Tony doesn't like conflict. In a negotiation he's likely to say very little. He rarely objects to what the other
side proposes, and he seldom agrees to anything. He really acts as if he does not want to be involved in the negotiation at all. His approach to conflict resolution is the _____ mode. A. competingB. accommodatingC. avoidingD. collaboratingE. compromising
76. When a food provider service representative announced that the company would be making deliveries every two weeks instead of weekly, the university cafeteria manager acquiesced even though this delivery schedule would probably lead to some shortages as her staff learned to make longer-term plans. Since the cafeteria manager's approach to conflict resolution is to escape all negotiation, it can be said that his approach is the _____ mode. A. competingB. concedingC. avoidingD. collaboratingE. compromising
77. 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. help reach agreements which do not usually maximize the satisfaction of both parties.D. would not tend to suggest, "Let's just split the difference".E. are generally very cooperative and very unassertive.
78. A salesperson who uses the _____ mode is attempting to arrive at a win-win situation. However, the
agreement typically reached does not maximize the satisfaction of either of the parties. A. competingB. accommodatingC. avoidingD. collaboratingE. compromising
79. "Look, it's a pretty good deal for your company and mine, too. Let's just sign the contracts and call it a
day," said Nora. Nora's statement is typical of the _____ mode of conflict resolution. A. competingB. accommodatingC. avoidingD. collaboratingE. compromising
80. The supermarket chain and the representatives from the orange growers' cooperative are having extended
negotiations as a result of a late freeze and an early drought that has reduced the U.S. orange production. After 4-hours of grueling negotiations, the orange grower's cooperative representative was tired of hearing one of the members of the supermarket team asking, "Can't we all just get along and split the extra costs down the middle?" This supermarket team member that was annoying the coop rep was apparently using the _____ mode to handle conflict resolution. A. competingB. accommodatingC. avoidingD. collaboratingE. compromising
81. A person who is both cooperative and assertive is in the _____ mode.
A. competingB. accommodatingC. avoidingD. collaboratingE. compromising
82. Emily opened the 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've each satisfied our objectives as much as was possible under the circumstances, I'm going to consider this negotiation a failure." Emily's approach to negotiation is the _____ mode. A. competingB. accommodatingC. avoidingD. collaboratingE. compromising
83. The best situation, from a negotiation standpoint, would be for both teams to have members who
generally: A. use collaboration to resolve conflicts.B. are high in cooperation and low in assertion.C. are low in both cooperation and assertion.D. use accommodation to resolve conflicts.E. use compromise to resolve conflicts.
84. Ambush negotiation:
A. can occur during meetings prior to the negotiation meeting.B. is sometimes called a sneak attack.C. can occur during installation of a new product.D. is a win-lose tactic.E. is accurately described by all of the above
85. While the installers were laying the tile in the restaurant's newly refurbished restrooms, the buyer calmly
told the seller, "We need to renegotiate the price on this tile. I have learned that you charge a 50 percent markup, and as a small business owner, I find that unacceptable." The buyer is using: A. a low blow.B. a sneak attack.C. a flanking maneuver.D. blindsiding.E. negotiation free-for-all.
86. The human resource director has been directed to set up a weekend executive retreat next month at some
resort location not more than five hours from the company's home office. The director had great difficulty in finding such a location on such short notice, but he is very pleased with what has been negotiated. As he prepares to leave the resort office, the resort owner casually mentions if your group is not checked out by 9:00 a.m. Sunday, I'll have to charge them for a full day." The resort owner is using: A. a low blow.B. ambush negotiation.C. a flanking maneuver.D. blindsiding.E. counterarguments.
87. Which of the following statements about negotiation preliminaries is FALSE?
A. Every effort should be made to ensure a comfortable environment for all parties to the negotiation.B. Try to arrange seating so that members of the two sides are intermingled.C. Try to avoid engaging in small talk before getting down to business.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.
88. Which of the following statements about negotiation preliminaries is true? A. Negotiation preliminaries are more important in U.S. business meetings than in international ones.B. Set the room temperature colder than normal to speed up the actual negotiation process.C. Spend time just prior to the negotiation honing negotiation skills, not making idle chitchat.D. Create an agenda that states what will be discussed and in what sequence.E. Make sure the negotiation room has a round table to make all participants feel equal.
89. Which of the following statements about agendas for negotiations is important?
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.E. None of the above statements about agendas for negotiations is important.
90. Why is it usually advantageous to place key issues of the negotiation near the end of the agenda?
A. It provides an opportunity to learn the other side's bargaining style and concession routines.B. It saves time if agreement can't be reached on the small stuff there is no need to discuss the key issues.C.
By conceding most of the smaller issues in the early going, 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 then be more likely to agree as they become tired and are hurrying to conclude the negotiations.
E.
Actually, key issues should be handled as early as possible in case some interruption prevents finishing the agenda.
91. 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 during the meeting of what has been decided and what needs to be decided is an effective way of keeping negotiations on track.
D. Keep in mind that during negotiations, people need to save face.E. All of the above would be appropriate guidelines for effective negotiations.
92. All of the following are typical tactics of win-lose negotiators EXCEPT:
A. lowballing.B. negotiation jujitsu.C. good guy―bad guy routine.D. browbeating.E. emotional outbursts.
93. 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?" What method of win-lose negotiation is exemplified here? A. lowballingB. negotiation jujitsuC. good guy―bad guy routineD. browbeatingE. emotional outbursts
94. The florist had agreed to the purchase of a new $640 refrigeration display cabinet for fresh-flower arrangements. As the salesperson for the cabinet is leaving, she says, "Did I remember to tell you that there is a $100 delivery fee in addition to the agreed upon price for the unit?" The salesperson is using: A. intimidation.B. browbeating.C. a countertrade.D. a flanking movement.E. lowballing.
95. The florist had agreed to the purchase of a new $650 refrigeration display cabinet for fresh-flower
arrangements. As the salesperson for the cabinet is leaving, she says, "Did I remember to tell you that there is a $100 delivery fee in addition to the agreed upon price for the unit?" What is the BEST way for the florist to respond to this question? A. "I refuse to pay it because it was not part of our finalized agreement."B. "Okay. I expected some extra costs."C.
"Deliver the cabinet as scheduled, but just understand I shall report you to the Better Business Bureau."
D. "You're crazy if you think I can't see what you're playing."E. "I don't want to pay it, but I guess I have to since I agreed to buy the cabinet."
96. "Oh by the way, the loan contract will require that your company maintain a checking account at this
bank with a minimum balance of $7,000 or be subject to a 2 percent upward adjustment in the interest rate while the balance is below the minimum," said the banker just as the entrepreneur thought the start-up loan for her new business venture was settled. The banker is practicing: A. intimidation.B. browbeating.C. face saving.D. good guy―bad guy.E. lowballing.
97. The salesperson selling radio ad time was pleased that he had come to an agreement with the largest
retailer in town. As he was leaving the office, the retailer's media buyer asked, "Even though those rates don't take effect for two weeks, do you think you could apply those rates to our next two weeks of advertising time?" The media buyer was: A. playing hardball.B. nibbling.C. shaving dollars.D. browbeating.E. whittling.
98. "It's a great contract, and we look forward to you supplying our widgets for a long time to come," said
Bert Buyer as he passed the signed contract across the table to Sabrina Seller. "Do you suppose," he continued, "that on this first order you could pay the freight charges instead of shipping FOB factory?" Bert is: A. scratching.B. milking.C. shaving.D. nibbling.E. whittling.
99. "You can take this proposal and shove it up your nose!!" shouted the buyer. "I can't believe you wasted the time of six people to bring us all together to listen to that kind of garbage! Can you offer a single reason why this meeting should continue?!" The buyer is apparently using the _____ tactic. A. lowbrowB. good guy―bad guyC. emotional outburstD. United NationsE. jujitsu
100.The buyer leapt to her feet and declared, "I have never been more humiliated in my whole life. Do you
honestly expect me to take this offer back to my supervisor? I'll be fired on the spot." The buyer is apparently using the _____ tactic. A. lowbrowB. good guy―bad guyC. emotional outburstD. United NationsE. jujitsu
101."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 budgeted $700 for expansion, and your shelves are list priced at $800." The buyer is: A. using a budget bogey.B. lowballing.C. using the good price―bad price routine.D. browbeating.E. nibbling.
102.The buyer says, "We have 23 employees and would need 23 ammonia monitoring badges. As I
understand you, five badges cost about $250, and if my math is right, that's $1250. We only have $1,000 in our budget for these badges." And then buyer sits quietly waiting for the seller to respond. What win-lose negotiation tactic is being used here? A. a budget bogeyB. lowballingC. the good price―bad price routineD. browbeatingE. nibbling
103.During the 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." The buyer was: A. using a resource bogey.B. lowballing.C. the good guy―bad price guy.D. browbeating.E. nibbling.
104.The negotiators included bank loan officers and a group of entrepreneurs who wanted funding for an Internet retailing site to sell athletic footwear. During a lull in the conversation, one of the loan officers announced, "I don't know whether investing in your idea is such a good idea. I read yesterday in Business 2.0 that Internet apparel retailers spend more than 100 percent of their sales on marketing and advertising. With spending like that, how can investing you be a wise decision?" The loan officer was using the negotiation technique called: A. nibbling.B. browbeating.C. lowballing.D. highriding.E. bogeyman.
105.A good way to deal with a buyer who tries to browbeat you in a negotiation is to:
A. use the emotional outburst as a reply.B. use the budget limitation tactic.C. refuse to continue the negotiation session until more suitable arrangements can be made.D. withdraw your previous concession.E. use negotiation jujitsu.
106.When one of the buyers suddenly asked, "Don't you feel guilty using so much migrant labor to pick the
vegetables," the seller could respond, "We care about these workers. We provide them with medical care. We have also set up a daycare center for their children. Without our jobs some of these people would have to live in their cars." The seller is using _____ to respond. A. negotiation jujitsuB. highballingC. a flanking maneuverD. a trump cardE. negotiation synergy
107.Negotiation jujitsu would be an appropriate response when the buyer tries:
A. using a resource bogeyB. lowballingC. the good guy--bad price guyD. browbeatingE. nibbling
108.The salesperson for Windy Ridge Design, a company that manufactures manikins that can be posed
showing how to use a variety of different products, wanted to sell a female manikin to Harkness Gift Shop and ship it using FOB factory. The salesperson agreed to a (n) _____ when he agreed to ship FOB destination. A. concessionB. outside mediationC. appropriationD. synergistic responseE. negotiation fallacy
109.Which of the following statements about concessions is true?
A.
Making a concession before the other side can present its position is an excellent way to preempt control of the meeting.
B. Concessions should gradually increase in size.C. Once made, a concession cannot be withdrawn.D. Be flexible, if it is necessary to abandon your objectives to get an agreement, be willing to adjust.E. None of the above statements about concessions is true.
110.Which of the following statements about concessions is FALSE? A.
Making a concession before the other side can present its position is as excellent way to preempt control of the meeting.
B. Never make a concession without getting one in return.C. If a requested concession does not meet your objectives, decline it.D. Start your negotiations without preconceived notions.E. Don't continue to demand concessions just because you know you can get them.
111.Which of the following statements about concessions is FALSE?
A. Don't assume the buyer will automatically understand the value of your concessions.B. Concessions should gradually increase in size.C. Don't automatically agree to "split the difference."D. Use silence to strengthen your position.E. Don't accept the buyer's first attempt at a concession.
112.Which negotiating strategy is consistent with partnering and how?
113.Why would it be unlikely for Coca-Cola to enter into formal negotiations with Hiram's Convenience
Mart?
114.PetSource sells a variety of pet food products such as Sheba and Pedigree. It is currently in negotiation
with PETsMART, a superstore for pet products. The PetSource sales team wants to hold the meetings in its new conference facilities. How should PETsMART's representatives reply to this request?
115.Create three statements describing ABC beverage company's target, minimum, and opening negotiating
positions.
116.Based on the dimensions of assertiveness and cooperativeness, researchers have identified five negotiation modes. List them.
117.Describe a salesperson that uses a competing mode of negotiation.
118.Create a good guy-bad guy dialogue including a response to it.
119.What is the best response when the buying team attempts lowballing?
120.Newbook publishing has just negotiated a contract with an important author. At the end of the
negotiations the author, Pat Conray, throws in a "nibbling" request. Create a nibbling request that Pat might state.
121.What is the best way to respond to a negotiator who has just thrown his pen across the room and
screamed, "We can't pay anymore for what you are willing to offer! You can't get blood from a turnip!"?
122.Create a plausible browbeating followed by a negotiation jujitsu scenario.
123.Describe any three guidelines mentioned in the text for making concessions.
124.(p.321) What are the 5Ps advocated by Alex Tagansky in the opening profile?
125.Goodway sells portable pressure washers for cleaning everything from drip pans to delicate air
conditioner coils. The machines cost $850 each. A sales team from Goodway is entering negotiations with a large poultry processing company with plants all over the Southeast. Its objective is to sell the processor 40 of the pressure washers with a 5 percent quantity discount and a sharing of all shipping costs, but it will walk away from the negotiation table satisfied if it can convince the processor to buy 20 with only a 2 percent discount and pay all shipping costs. What other type of objective does it need to develop?
126.What type of meeting allows attendees to creatively explore various methods of achieving goals?
127.The goal is to buy new x-ray equipment for the hospital's oncology unit. If the negotiation team cannot get the x-ray equipment salesperson to agree to FOB destination, it will try to get a 5 percent reduction in price, failing that the negotiation team wants 3/10, net 30 arrangement. What kind of planning has the hospital negotiation team done prior to the beginning of the negotiation?
128.Briefly describe an individual who resolves conflict in a competing mode.
129.What mode of negotiation is the exact opposite of the one used by people who solve conflict in a
competing mode?
130.Salespeople who are both assertive and cooperative, attempting to seek the satisfaction of both parties are
using what negotiation mode?
131.What is the term used to describe the actions of a negotiation team member that tries to begin the
negotiation during the preliminaries when the other party is not expecting it?
132.When Betty asked the sales rep to free shipping and a 40 percent reduction in price, the sales rep was stunned. Betty's partner injected, saying free shipping and a 20 percent reduction in price would be more reasonable. Betty and her partner are using what negotiating strategy?
133.After completing negotiations for the new computer system, Jane, the salesperson, added "Oh, there is
also a $5,000 installation and instruction charge. What is Jane doing?
134.The flower wholesaler thought negotiations were over when the flower growers' cooperative
representative announced, "We'll be shipping the first part of your order next week. I do need to tell you that our shipping costs will be 1 percent higher than last year because of the purchase of a new refrigerated delivery truck." The entire sale was over $30,000, and the 1 percent increase amounted to about $300. What negotiation technique did the coop representative use?
135.What is another name for a budget limitation tactic?
136.Aaron deflected the browbeating from one of the buying team member and refocused deliberations to the
issue being discussed. What negotiation strategy was Aaron using?
137.After lengthy negotiations regarding technical aspects of the a major machinery purchase, the buying team mentions they will need deliveries to be made on Saturdays in order to avoid disrupting existing production. What is the buying team doing?
ch12 Key 1. (p. 321) FALSE 2. (p. 321) TRUE 3. (p. 322) FALSE 4. (p. 322) TRUE 5. (p. 322) TRUE 6. (p. 322) FALSE 7. (p. 324) TRUE 8. (p. 325) TRUE 9. (p. 325) FALSE 10. (p. 326) FALSE 11. (p. 327) TRUE 12. (p. 327) TRUE 13. (p. 328) FALSE 14. (p. 328) TRUE 15. (p. 328) FALSE 16. (p. 328) TRUE 17. (p. 331) TRUE 18. (p. 331) FALSE 19. (p. 332) FALSE 20. (p. 332) TRUE 21. (p. 333) TRUE 22. (p. 334) FALSE 23. (p. 335) TRUE 24. (p. 337) TRUE 25. (p. 337) FALSE 26. (p. 338) FALSE 27. (p. 338) TRUE 28. (p. 339) FALSE 29. (p. 339) TRUE 30. (p. 340) FALSE 31. (p. 322) E 32. (p. 322) B 33. (p. 322) B 34. (p. 322) A 35. (p. 322) A 36. (p. 322-323) A
37. (p. 322-323) E 38. (p. 323) E 39. (p. 323) C 40. (p. 323) E 41. (p. 323) E 42. (p. 325) B 43. (p. 325) C 44. (p. 325) D 45. (p. 326) B 46. (p. 326) D 47. (p. 327) B 48. (p. 327) B 49. (p. 327) B 50. (p. 327) B 51. (p. 327) A 52. (p. 327) A 53. (p. 327) A 54. (p. 327) C 55. (p. 327) C 56. (p. 327) C 57. (p. 327) C 58. (p. 327) B 59. (p. 328) E 60. (p. 328) E 61. (p. 328) E 62. (p. 328) A 63. (p. 328) E 64. (p. 328) E 65. (p. 329) D 66. (p. 329) B 67. (p. 331) D 68. (p. 331) A 69. (p. 331) A 70. (p. 331) B 71. (p. 331) B 72. (p. 331) C 73. (p. 331) D 74. (p. 331) C
75. (p. 331) C 76. (p. 331) C 77. (p. 331) C 78. (p. 331) E 79. (p. 331) E 80. (p. 331) E 81. (p. 331) D 82. (p. 331) D 83. (p. 331) A 84. (p. 332) E 85. (p. 332) B 86. (p. 332) B 87. (p. 333) C 88. (p. 333) D 89. (p. 333) E 90. (p. 333) A 91. (p. 332-334) E 92. (p. 335-337) B 93. (p. 335) C 94. (p. 337) E 95. (p. 337) A 96. (p. 337) E 97. (p. 337) B 98. (p. 337) D 99. (p. 337) C 100. (p. 337) C 101. (p. 338) A 102. (p. 338) A 103. (p. 338) D 104. (p. 338) B 105. (p. 338) E 106. (p. 338) A 107. (p. 338) D 108. (p. 339) A 109. (p. 339) E 110. (p. 339) A 111. (p. 339) B 112. (p. 322) The win-win negotiating strategy is consistent with partnering. The win-win strategy attempts to find solutions that satisfy both parties because each party is concerned about the welfare of the other.
113. (p. 322-323) Negotiating is an expensive endeavor because it utilizes so much of many important people's time. Coke will want to invest the time and costs involved in formal negotiation only if the long-term nature of the relationship and the importance of the customer justify the expense. 114. (p. 326) PETsMART should avoid letting PetSource have the home court advantage. They should demand that a neutral location away from any work distractions be found. 115. (p. 327) Answers will vary but the target position should state what ABC hopes to achieve. The minimum position should state what ABC's absolute minimum position is. The opening position should reflect something higher than the target position. 116. (p. 331) The five modes are (1) competing, (2) accommodating, (3) compromising, (4) collaborating, and (5) avoiding. 117. (p. 331) A salesperson that uses a competing mode is generally assertive and uncooperative. He or she pursues his or her own goals at the expense of the other party, attempting to negotiate a win-lose agreement. 118. (p. 335) Answers will vary but it should contain three parts. 1. An outlandish statement or request by a buyer (the bad guy). 2. A more reasonable-sounding suggestion by another member of the buying team (the good guy). 3. A response, restating the selling team's established position. 119. (p. 337) The best response to lowballing is just to say "no," and remind the seller that the negotiation agreement has been finalized. 120. (p. 337) Answers will vary but a nibbling request is a small extra. Pat might ask for more free copies of the book for himself, a slightly higher royalty rate, or a slightly later deadline for delivery of the manuscript. 121. (p. 337) This is typically a technique for creating a win-lose situation. Assuming there is no logical reason for this emotional outburst, the people involved in the negotiation should respond with a gentle but firm reminder of the merits of the offer that produced the outburst. They should also attempt to move the individual who got angry back into a win-win negotiating frame of mind. 122. (p. 338) Answers will vary but browbeating will involve intimidating and making the seller feel less secure about their position. Negotiation jujitsu will involve stepping away from the browbeating and then redirecting the negotiation back to the issues being discussed. 123. (p. 339) There are 15 guidelines listed in the text starting with never make concessions until you know all of the buyer's demands and opening position, and ending with plan the session well. 124. (p. 321) 5Ps: proper, preparation, prevents, poor, performance. 125. (p. 327) Goodway needs an opening position. 126. (p. 328) brainstorming 127. (p. 328) adaptive planning 128. (p. 331) They are assertive and uncooperative. 129. (p. 331) accommodating 130. (p. 331) collaborative 131. (p. 332) ambush negotiating or a sneak attack 132. (p. 335) good-guy, bad-guy 133. (p. 337) lowballing 134. (p. 337) nibbling 135. (p. 338) a budget bogey 136. (p. 338) negotiation jujitsu 137. (p. 339) Using a red herring to distract from major aspects of the negotiation.
ch12 Summary Category # of Question
s
Castleberry - Chapter 12 137
Difficulty: Easy 39
Difficulty: Hard 16
Difficulty: Medium 82