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Q:
Negotiators who make multiple equivalent offers enjoy more profitable negotiated outcomes.
Q:
Negotiating each issue separately does not allow negotiators to make trade-offs between issues.
Q:
The illusion of transparency occurs when negotiators believe they are revealing more than they actually are.
Q:
A win-win negotiation is only achieved when parties make equal concessions or split the difference.
Q:
Negotiators should always use premature concessions to gain the other party's trust.
Q:
False conflict occurs when people believe that their interests are incompatible with the other party's interests when, in fact, they are not.
Q:
It is similarities in preferences, beliefs, and capacities that may be profitably traded off to create joint gain.
Q:
Discuss the guidelines for distribution of resources.
Q:
Discuss the significance of procedural justice during negotiation.
Q:
Which of the following types of comparisons is most likely to inspire people to greater achievement?
A) upward comparison
B) horizontal comparison
C) downward comparison
D) lateral comparison
Q:
Which of the following rules of fairness is most likely to be related to incidents involving nurturing and personal development?
A) the equality rule
B) the needs-based rule
C) the equity rule
D) the reciprocal rule
Q:
In which of the following cases would an equity-based allocation of resources be most indicated?
A) The Accounts team received a cash reward for being the top-performing team in the company. The team decided to split the cash among all members.
B) A popular course at a university attracts a large number of candidates because the course is subsidized. The university needs to allot the few seats among the many applicants.
C) An organization that collects funds for charity receives applications from a number of charities each year.
D) A start-up is in the process of arranging healthcare insurance for its employees.
Q:
The equity rule states that ________.
B) benefits should be proportional to need
C) everyone should receive equal benefits
D) distribution should be proportional to a person's contribution
Answer: D
Q:
Which of the following is an instance of the application of the needs-based rule?
A) the U.S. legal system
B) the U.S. welfare system
C) the freemarket system
D) the two-party system
Q:
The free market system in the United States is an example of the ________ rule.
A) equality
B) welfare-based allocation
C) equity
D) needs-based allocation
Q:
Which of the following fairness principles prescribes equal shares for all?
A) blind justice
B) equity rule
C) welfare-based allocation
D) reciprocal rule
Q:
Negotiators often use one of three fairness principles when it comes to slicing the pie. Which of the following is one of these three principles?
A) the procedural rule
B) the needs-based rule
C) the traceability rule
D) the reciprocal rule
Q:
Which of the following statements is true regarding face threat sensitivity (FTS)?
A) People with high FTS have little or no ability to detect and respond to face threats.
B) A seller who has little or no reaction to a face threat is said to have high FTS.
C) A negotiator's FTS is the likelihood of having a negative reaction to a face threat.
D) In employment negotiations, job candidates are less likely to make win-win deals if they have low FTS.
Q:
Lewicki and Stark identified five types of behavior that some consider to be unethical in negotiations. One of them is traditional competitive bargaining. Which of the following is an example of traditional competitive bargaining?
A) inappropriate information gathering
B) denying information that weakens your position
C) attempting to get your opponent fired
D) exaggerating an initial offer or demand
Q:
Ben is negotiating a sales contract. The most valuable piece of information Ben can have about the counterparty is ________.
A) the counterparty's target point
B) the negotiator's surplus expected by the counterparty
C) the counterparty's reservation point
D) the bargaining surplus expected by the counterparty
Q:
Once you have offered a concession, you should wait for the counterparty before making further concessions. This conclusion rests on which of the following assumptions?
A) Your counterparty has a very low reservation point.
B) Unilateral concessions decrease the size of the bargaining zone.
C) Your counterparty's offer is not at their reservation point.
D) Your counterparty's first offer is now the anchor point.
Q:
Which of the following is a negotiation method in which parties avoid escalating conflict to reach mutual settlement within the bargaining zone?
A) the GRIT model
B) a blue ocean strategy
C) Porter's Five Forces model
D) the Diamond model
Q:
Which of the following statements is true regarding effective concessions?
A) The party who made the opening offer should avoid making any concessions to its offer.
B) To maximize their slice of pie, the negotiators should make larger and more frequent concessions.
C) Negotiators should offer only a single concession at a time and avoid frequent concessions.
D) Negotiators should make consistently greater concessions than the counterparty.
Q:
It is an almost universal norm that concessions take place in a quid pro quo fashion, meaning that negotiators expect ________.
A) that the party who made the opening offer should make the highest concession
B) the opening offer to be the anchoring offer
C) a back-and-forth exchange of concessions between parties
D) the final offer to be very close to the opening offer
Q:
________ concessions are concessions made by one party.
A) Distributive
B) Singular
C) Unilateral
D) Representative
Q:
You are negotiating an important sales contract for your organization. Which of the following, if true, would increase the risk of you being anchored by the other party's opening offer?
A) You have a weak BATNA.
B) You have not yet planned your opening offer.
C) The other party's opening offer is less than your reservation point.
D) The other party's opening offer falls in the bargaining zone.
Q:
Once you have made an offer, you should ________.
A) wait for other party's response before revising it
B) revise it only if it exceeds the party's target point
C) revise it if it falls in the bargaining zone
D) avoid revising it and try to make it your final offer
Q:
Which of the following statements is true regarding a first offer?
A) Your first offer should specify a range.
B) The first offer should specify the bargaining zone.
C) Your first offer should be your final offer.
D) The first offer generally acts as an anchor point.
Q:
The first offer that ________ acts as a powerful anchor point in negotiation.
A) creates the focusing effect
B) falls within the bargaining zone
C) creates the chilling effect
D) sets low aspirations
Q:
The strategy of making one's first offer one's final offer is known as ________.
A) illusion of control
B) the blue ocean strategy
C) the gambler's fallacy
D) boulwarism
Q:
The ________ occurs when the negotiator's first offer is immediately accepted by the counterparty.
A) framing effect
B) winner's curse
C) distinction bias
D) chilling effect
Q:
Negotiators who focus on their target points do better in terms of slicing the pie but these negotiators do not feel as satisfied as negotiators who focus on their reservation point or BATNA. This is known as the ________.
A) goal-setting paradox
B) chilling effect
C) winner's curse
D) minimal group paradigm
Q:
The party who ________ obtains a better final outcome.
A) focuses on avoiding negative outcomes
B) sticks to their reservation point
C) sets low aspirations
D) makes the first offer
Q:
During a negotiation which of the following is likely to result in greater profit?
A) making your first offer your final offer
B) focusing on avoiding negative outcomes
C) setting easy and nonspecific goals
D) setting high aspirations and focusing on them
Q:
During a negotiation you should ________.
A) set your aspirations low in order to avoid disappointment later
B) make your first offer slightly lower than the other party's reservation point
C) make sure that your first offer creates the chilling effect
D) set your reservation point slightly higher than the other party's target point
Q:
Which of the following is known as an anchor point?
A) the offer which creates the chilling effect
B) the highest target point in the negotiation
C) the first offer made during the negotiation
D) the lowest reservation point during the negotiation
Q:
Robert is negotiating a contract. In which of the following situations is it appropriate for Robert to reveal his reservation point?
A) Robert knows that the other party has a great BATNA and an aggressive reservation price.
B) Robert has a poor BATNA and a weak reservation price.
C) Robert knows the other party's target point and finds it high.
D) Robert does not have time to negotiate and senses that the bargaining zone may be very small.
Q:
Samantha is negotiating a contract. Which of the following is likely to be the most difficult problem she faces during the negotiation?
A) determining her own target point
B) analyzing the terms of the contract
C) understanding the legalities of the contract
D) identifying the other party's reservation point
Q:
Negotiations are said to have a mixed-motive nature because ________.
A) negotiators are motivated to maximize the bargaining surplus
B) negotiators find it difficult to determine the other party's reservation point
C) negotiators are motivated to cooperate as well as compete with each other
D) negotiators try to settle the agreement at the central point in the bargaining zone
Q:
The total surplus of the two negotiators adds up to the size of the ________ surplus.
A) target
B) bargaining
C) reservation
D) participative
Q:
The positive difference between the settlement outcome and the bargainer's reservation point is the ________ surplus.
A) reservation
B) target
C) bargaining
D) negotiator's
Q:
William and Ben are negotiating a maintenance contract. To maximize his slice of the pie, William should ensure that the settlement is as close to ________ as possible.
A) Ben's reservation point
B) his own reservation point
C) Ben's target point
D) the central point in the bargaining zone
Q:
Bargaining surplus is the amount of overlap between ________.
A) the buyer's target point and the seller's reservation point
B) the buyer's and seller's target points
C) the buyer's and seller's reservation points
D) the buyer's reservation point and the seller's target point
Q:
Which of the following statements is true regarding a bargaining zone?
A) The negative bargaining zone indicates that there is no positive overlap between the parties' target points.
B) The bargaining zone is the range between the negotiators' target points.
C) The final settlement of a negotiation will fall somewhere below the seller's reservation point and above the buyer's target point.
D) In a positive bargaining zone, negotiators' reservation points overlap.
Q:
Robert wants to sell his old table to Mike. The lowest price Robert is willing to accept is $75 but he wishes to sell it at $105. The highest price Mike is willing to pay for the table is $82 but he wishes to purchase it at $73. What is the value of the bargaining zone?
A) $7
B) $23
C) $2
D) $32
Q:
The final settlement of a negotiation will fall somewhere ________.
A) above the buyer's target point and below the seller's reservation point
B) above the seller's reservation point and below the buyer's reservation point
C) below the buyer's target point and above the seller's reservation point
D) above the buyer's reservation point and below the seller's target point
Q:
The zone of possible agreements (ZOPA) is the range between ________.
A) the buyer's and the seller's target points
B) the seller's target point and the buyer's reservation point
C) the buyer's and the seller's reservation points
D) the buyer's target point and the seller's reservation point
Q:
Equity is often used to allocate benefits, but equality is more commonly used to allocate burdens.
Q:
During a negotiation, you should only walk away from the bargaining table if your BATNA is more attractive than the counterparty's offer.
Q:
Negotiators who make larger and more frequent concessions maximize their slice of the pie, compared to those who make fewer and smaller concessions.
Q:
Your first offer should not be a range.
Q:
It is to a negotiator's advantage to set a high, somewhat difficult aspiration point early in the negotiation.
Q:
It is appropriate for negotiators to reveal their true reservation price if they trust and like the other party or desire a long-term relationship.
Q:
Since a BATNA is based on subjective factors, it is usually not verifiable.
Q:
The best possible economic outcome for a negotiator is the one that just meets the counterparty's reservation point.
Q:
The negative bargaining zone indicates that there is no positive overlap between the parties' target points.
Q:
In a positive bargaining zone, the most the buyer is willing to pay is greater than the least the seller will accept.
Q:
What strategy do Bazerman and Neale recommend to improve BATNA?
A) One must have one's mind set on the target.
B) One must, if necessary, abandon the target completely.
C) One must be ready with alternative and viable options.
D) One must demand more than the determined option.
Q:
Kim is undergoing training to improve her negotiating skills and her BATNA. Kim is dynamic and hardworking; she is also prone to being unrealistically optimistic about most negotiations. What
conclusion about BATNA can we draw from Kim's example?
A) Negotiators should constantly attempt to improve their BATNAs.
B) Your BATNA should not change as a result of the other party's persuasion techniques.
C) A BATNA is not something that a negotiator wishes for; rather, it is determined by objective reality.
D) Many negotiators are reluctant to recognize their BATNAs and confuse them with their aspiration point.
Q:
Which of the following is a characteristic of BATNA?
A) inflexible
B) unrealistically optimistic
C) spontaneous
D) time sensitive
Q:
Robert was the purchase agent of an office furniture manufacturer. While dealing with one of the vendors, he successfully negotiated the prices for items A and B. However, the vendor was firm on the price that he quoted for item C. Robert unsuccessfully insisted on a getting a discount for C also and eventually declined all the purchase terms offered by the vendor. Which of the following, if true, would contradict the reflection that Robert was engaged in a reactive devaluation?
A) The price quoted for C was much higher than the market price.
B) The vendor had not established a strong relationship with the manufacturer.
C) The vendor was directly procuring the item C.
D) The vendor had offered a lower price during an earlier purchase.
Q:
What does BATNA mean?
A) Best Alternative To Negate Aggression
B) Bargaining Assets To Negotiate an Agreement
C) Best Alternative To a Negotiated Agreement
D) Begin At The Negotiated Agreement
Q:
Reactive devaluation negotiation behavior is exhibited by negotiators who ________.
A) know what the target is and are willing to make a few minor compromises
B) do not know what the target is and make major compromises
C) know what the target is but end up paying far more than deemed necessary
D) do not know what the target is but do not want what is being offered
Q:
The ________ negotiator wants what the other party does not want to giveand does not want what the other party is willing to offer.
A) overaspiring
B) grass-is-greener
C) egocentric
D) underaspiring
Q:
At the negotiating table, Leo and David take opposite viewpoints of the matter in discussion. Leo takes offence at David's comments because he views any opposition as an ego threat. It is safe to assume that Leo is a(n) ________ negotiator.
A) cynical
B) accommodating
C) positional
D) intuitive
Q:
Positional negotiators very often tend to be ________.
A) cynical
B) egocentric
C) accommodating
D) intuitive
Q:
Julia visits a furniture manufacturer to get a deal for furnishing her house. Julia thinks the prices quoted by him are very high and asks for a better deal. The shopkeeper is firm on the prices and refuses to give her any discount. The shopkeeper is a(n) ________ negotiator.
A) positional
B) underaspiring
C) triumphant
D) grass-is-greener
Q:
Andrea, the CEO of a medium scale manufacturing company, is negotiating with the representatives of the employee's union. She accepts the demands of the union immediately to avoid a strike though the demands inflict a financial burden on the company. Andrea has acted as a(n) ________ negotiator in this negotiation.
A) underaspiring
B) overaspiring
C) positional
D) grass-is-greener
Q:
A positional negotiator is one who ________.
A) is under pressure to clinch the offer and consequently accepts the offer despite better alternatives
B) sets a low target point and is immediately granted the offer
C) selectively seeks information that confirms what he or she believes to be true
D) sets the target point too high and refuses to make any concessions
Q:
A positional negotiator is also known as a(n) ________.
A) underaspiring negotiator
B) visioning negotiator
C) overaspiring negotiator
D) grass-is-greener negotiator
Q:
Sam and Chelsea meet to negotiate a business arrangement between their companies. Chelsea has done a lot of research beforehand and is very well prepared for the meeting when compared to Sam. Sam believes that better solutions are arrived at through intuition, spontaneity, and working hard at the negotiation table. Whom do you think will be more successful at negotiating?
A) Neither because successful negotiation requires hard bargaining and very little preparation, intuition or spontaneity.
B) Chelsea, because the 8020 rule applies to negotiation: About 80% of your effort should go toward preparation; 20% should be the actual work involved in the negotiation.
C) Sam, because the 8020 rule applies to negotiation: About 20% of your effort should go toward preparation; 80% should be the actual work involved in the negotiation.
D) While preparation is important, whoever has the "killer instinct " will be more successful at negotiating, because the "killer instinct" plays a much bigger role in negotiation than preparation.
Q:
What is the key to successful negotiation?
A) motivation
B) compromise
C) preparation
D) capitulation
Q:
As a mixed-motive enterprise, negotiation is a two-pronged process that involves both ________ and ________.
A) cooperation; coercion
B) cooperation; gut feeling
C) competition; coercion
D) cooperation; competition
Q:
The longer the temporal distance between the act of negotiation and the consequences of negotiated agreements, the better the agreement.
Q:
Many people's BATNAs are uncertain because potential alternatives arrive sequentially.
Q:
Most people are risk-seeking when it comes to losses, and risk-averse when it comes to gains.
Q:
The reference point, focal point, and reservation point all mean the same.
Q:
A focal point is the pivot for successful negotiations.
Q:
In a negotiation, the person who stands to gain the most by changing the other faction's mind should be the most persuasive.
Q:
Any set of terms superior to the negotiator's BATNA is not desirable.