Chapter 13 — Negotiation and Conflict Management
1. Everyone negotiates something every day.
a.
True
b.
False
True
Easy
Analytic
2. Negotiation is a simple skill that applies to only a few purchasing and supply managers.
a.
True
b.
False
False
Easy
Analytic
3. Negotiation is noncritical means to convey the buyer’s specific sourcing requirements and specifications to its supply
base.
a.
True
b.
False
False
Easy
Analytic
4. An important part of negotiation is realizing that the process involves relationships between people, not just
organizations.
a.
True
b.
False
True
Easy
Analytic
5. An integral part of negotiation involves each party trying to persuade the other party to do something that is in its best
interests.
a.
True
b.
False
True
Easy
6. 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.
a.
True
b.
False
False
Moderate
Analytic
7. All negotiation settlements must ultimately be judged in light of the other viable alternatives that existed at the time of
the agreement.
a.
True
b.
False
True
Easy
Analytic
8. 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.
a.
True
b.
False
True
Moderate
Analytic
9. 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.
a.
True
b.
False
False
Easy
Analytic
10. 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.
Analytic
Chapter 13 — Negotiation and Conflict Management
a.
True
b.
False
True
Moderate
Analytic
11. It is easy to develop common ground in the negotiation without knowing what the other party is seeking.
a.
True
b.
False
False
Easy
Analytic
12. A negotiator can automatically assume that the other party thinks the same way he or she does.
a.
True
b.
False
False
Easy
13. 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.
a.
True
b.
False
True
Moderate
Analytic
14. All purchase requirements will require buyers and sellers to conduct a thorough, detailed, and time-consuming
negotiation.
a.
True
b.
False
False
Analytic
15. 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.
a.
True
b.
False
True
Moderate
Analytic
16. All buyer-supplier negotiations are relatively straightforward, only requiring rudimentary preparation and planning.
a.
True
b.
False
False
Easy
Analytic
17. Deciding the physical location of where to negotiate is an unimportant part of any planning process.
a.
True
b.
False
False
Easy
Analytic
18. Excessive formality in negotiation can effectively constrain the parties and restrict the free exchange of ideas and
solutions.
a.
True
b.
False
True
Easy
Analytic
19. Packaging issues together risks undermining an entire negotiation if the parties reach impasse on a single issue within
the linked proposal.
a.
True
b.
False
True
20. Effective negotiators are unwilling to make counterproposals.
a.
True
b.
False
False
Easy
Analytic
21. Good negotiators know that reaching agreement is the end of the negotiation process.
a.
True
b.
False
False
Moderate
Analytic
22. 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.
a.
True
b.
False
True
Easy
Analytic
23. Before actual negotiations begin, the parties need to believe realistically that they can reach an agreement.
a.
True
b.
False
True
Easy
Analytic
24. Experienced negotiators do not need to understand their counterparts through research and experience.
a.
True
b.
False
Easy
Analytic
Chapter 13 — Negotiation and Conflict Management
False
Easy
Analytic
25. 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.
a.
True
b.
False
True
Moderate
Analytic
26. The issues that are most critical to a supplier are likely to be those most critical to a buyer.
a.
True
b.
False
False
Easy
Analytic
27. 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.
a.
True
b.
False
True
Moderate
Analytic
28. A procurement negotiation seldom affects other stakeholders throughout the organization who have an interest in or
will be affected by the negotiation outcomes.
a.
True
b.
False
False
Easy
29. An experienced negotiator does not need to practice or rehearse a complex negotiation before commencing the formal
negotiation.
a.
True
b.
False
False
Easy
Analytic
30. The effective use of information in a negotiation does not necessarily mean open and complete sharing.
a.
True
b.
False
True
Easy
Analytic
31. There is minimal likelihood that retaliation or escalation will occur if the power structure shifts unfavorably in the
future.
a.
True
b.
False
False
Easy
Analytic
32. Referent power is most successful in negotiation when the referents are aware that a counterpart identifies with or has
an attraction to them.
a.
True
b.
False
True
Easy
Analytic
33. For the effective negotiator, it is acceptable to give away any concession without getting something of equal or greater
value in return.
a.
True
b.
False
False
Easy
34. It is unimportant for the negotiator to have adequately prepared and established a thoughtful BATNA for each issue
until after the negotiation has begun.
a.
True
b.
False
False
Easy
Analytic
35. The manner in which a negotiator approaches concession making is an important part of every successful negotiation
strategy.
a.
True
b.
False
True
Easy
Analytic
36. A willingness to offer large concessions is always in the best interests of a buyer.
a.
True
b.
False
False
Easy
Analytic
37. 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.
a.
True
b.
False
True
Moderate
Analytic
38. People seldom show the tendency to fill in the gaps when a discussion encounters silence.
a.
True
Analytic
Chapter 13 — Negotiation and Conflict Management
b.
False
False
Easy
Analytic
39. A tactic used during one negotiation may not be successful or applicable to another negotiation, even with the same
counterpart.
a.
True
b.
False
True
Easy
Analytic
40. In win-win negotiation, if one party gains, it is only at the expense of the other party.
a.
True
b.
False
False
Easy
Analytic
41. 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.
a.
True
b.
False
False
Moderate
Analytic
42. 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.
a.
True
b.
False
True
Moderate
Analytic
43. 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.
a.
True
b.
False
True
Moderate
Analytic
44. There is minimal danger in stereotyping or oversimplifying the cultural characteristics of different countries or
regions.
a.
True
b.
False
False
Easy
Analytic
45. Use of electronic media such as e-mail, texting, and instant messaging, has no measurable impact on the dynamics and
effectiveness of a negotiation.
a.
True
b.
False
False
Easy
Analytic
46. In e-negotiation, status differences are readily apparent, and social norms and behaviors are easier to discern.
a.
True
b.
False
False
Easy
Analytic
47. Parties may behave differently when negotiating electronically than they do in person.
a.
True
b.
False
True
48. According to Karrass, research indicates that e-mail-based negotiations typically take less time to complete than those
conducted face-to-face.
a.
True
b.
False
False
Easy
Analytic
49. E-negotiators generally ask more questions and tend to make fewer assumptions during the negotiation.
a.
True
b.
False
False
Easy
Analytic
50. Negotiators who interact face-to-face are more likely to reach agreement and avoid impasse than their e-negotiation
counterparts.
a.
True
b.
False
True
Easy
Analytic
51. Which of the following is not one of the popular definitions of negotiation as presented in the text?
a.
b.
c.
d.
e.
Moderate
Easy
Analytic
52. 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
Moderate
Analytic
53. 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
Easy
Analytic
54. 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
Easy
Analytic
55. 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
Analytic
Chapter 13 — Negotiation and Conflict Management
b.
need
c.
BATNA
d.
position
e.
interest
Easy
Analytic
56. 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
Easy
Analytic
57. 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.
Easy
Analytic
58. 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
Easy