Deck 2: Strategy and Tactics of Distributive Bargaining

Question 1

Central to planning the strategy and tactics for distributive bargaining is effectively locating the other party's resistance point.

Answer 1

True

Question 2

Alternatives are important because they give the negotiator the power to walk away from any negotiation when the emerging deal is not very good.

Answer 2

True

Question 3

The target point is the

A) point at which a negotiator would like to conclude negotiations.
B) first offer a negotiator quotes to his opponent.
C) negotiator's bottom line.
D) initial price set by the seller.

Answer 3

A

Question 4

A positive bargaining zone occurs when the buyer's resistance point is above that of the seller.

Question 5

Many people use distributive bargaining strategies and tactics almost exclusively, negotiators don't need to understand how to counter their effects.

Question 6

Distributive bargaining is basically a competition over who is going to get the most of a limited resource.

Question 7

The objective of both parties in negotiation is to obtain as little of the bargaining zone as possible for themselves.

Question 8

The resistance point is the point at which a negotiator would like to conclude negotiations.

Question 9

Starting points (or initial offers)

A) are not known to the other party.
B) are usually contained in the opening statements each negotiator makes.
C) are given up as concessions are made.
D) are usually learned or inferred as negotiations get under way.

Question 10

Negotiations that begin with a negative bargaining range are likely to stalemate.

Question 11

The objective of both parties in distributive bargaining is to obtain as much of what as possible?

A) Bargaining mix
B) Resistance point
C) Bargaining range
D) Target point

Question 12

The more attractive the other party's alternatives, the more likely he or she will be to maintain a low resistance point.

Question 13

Anything outside the bargaining zone will be summarily rejected by one of the negotiators.

Question 14

The spread between the resistance points is called the bargaining agreement.

Question 15

Distributive bargaining strategies are the only strategies that are effective in interdependent situations.

Question 16

The resistance point is the point beyond which a person will not go and would rather break off negotiations.

Question 17

Each party's resistance point is openly stated at the conclusion of negotiations.

Question 18

Distributive bargaining strategies:

A) are the most efficient negotiating strategies to use.
B) are useful in maintaining long term relationships.
C) can cause negotiators to ignore what the parties have in common.
D) are used in all interdependent relationships.

Question 19

A negative bargaining range occurs when the buyer's resistance point is above the seller's.

Question 20

Whether or not one or both parties in a distributive bargaining situation achieve their objectives will depend upon the strategy and tactics they employ.

Question 21

In some ways, the ultimate weapon in negotiation is to threaten to terminate negotiations.

Question 22

Negotiations with a positive settlement range are obvious from the beginning.

Question 23

Distributive bargaining strategies and tactics are quite useful when a negotiator wants to maximize the value obtained in a single deal.

Question 24

A resistance point will also be influenced by the cost an individual attaches to delay or difficulty in negotiation or in having the negotiations aborted.

Question 25

The less the other party values an issue, the lower his or her resistance point will be.

Question 26

What is expected from a particular outcome when the resistance point is established?

A) Value
B) Importance
C) Timeliness
D) Costs

Question 27

If one side is not prepared to make concessions, the other must capitulate or the negotiations will deadlock.

Question 28

Channelling all communication through a team spokesperson reduces inadvertent revelation of information.

Question 29

A resistance point will be influenced by the cost an individual attaches to delay or difficulty in negotiation.

Question 30

Selective presentation can be used to lead the other party to form the desired impression of your resistance point or to open up new possibilities for agreement that are more favourable to the presenter than those that currently exist.

Question 31

Schedule manipulation can be used to squeeze negotiations into the last remaining minutes of a meeting in order to extract concessions from one party.

Question 32

Although disruptive action tactics can work, they may also produce anger and escalation of conflict.

Question 33

The more you can convince the other party that your costs of delay or aborting negotiations are what, the more modest the other's resistance point will be as well?

A) Extreme
B) High
C) Modest
D) Low

Question 34

The lower the other party's estimate of your cost of delay or impasse, the stronger the other party's resistance point will be.

Question 35

In "calculated incompetence," the negotiator is intentionally given false or misleading information to reveal to the other party.

Question 36

Reticence increases the likelihood of making verbal slips or presenting any clues that the other side could use to draw conclusions.

Question 37

The more you can do to convince the other party that his or her costs of delay or aborting negotiations will be costly, the more likely he or she will be to establish a modest resistance point.

Question 38

The first step for a negotiator is to obtain information about the other party's outcome values and resistance points.

Question 39

Concealment is the most general screening activity.

Question 40

The more you can convince the other that you value a particular outcome outside the other's bargaining range, the more pressure you put on the other party to set what kind of a resistance point?

A) High
B) Low
C) Extreme
D) Modest

Question 41

To communicate the most effective message, a negotiator should try to send a consistent message through both the opening offer and stance.

Question 42

When acting as if the decision to close the deal has already been made, the negotiator is using the "assume-the-close" tactic of closing the agreement.

Question 43

Splitting the difference is perhaps the least popular closing tactic.

Question 44

One way negotiators may convey the message that "this is the last offer" is by making the last concession substantial.

Question 45

The opening stance is:

A) a package of concessions.
B) another name for the first round of concessions.
C) the attitude to adopt during the negotiation.
D) the first price that a buyer quotes to a seller.

Question 46

Parties feel better about a settlement when negotiations involve a(n):

A) progression of concessions.
B) single round of concessions.
C) immediate settlement.
D) fait accompli.

Question 47

Parties feel better about a settlement when negotiations involve a progression of concessions.

Question 48

What statement about concessions is false?

A) Concessions are central to negotiations.
B) Reciprocating concessions is a haphazard process.
C) Concession is another word for adjustments in position.
D) Concession making exposes the concession maker to some risk.

Question 49

Disruptive action tactics can cause all of the following, except:

A) anger
B) mutual satisfaction
C) embarrassment
D) increased costs

Question 50

Studies indicate that negotiators who make low or modest opening offers get higher settlements than do those who make extreme opening offers.

Question 51

A small concession late in negotiations may indicate that there is little room left to move.

Question 52

Good distributive bargainers will:

A) immediately identify the other party's target point.
B) accept an offer that is presented as a fait accompli.
C) begin negotiations with the other party with an opening offer close to their own resistance point.
D) ensure that there is enough room in the bargaining range to make some concessions.

Question 53

Research and practical experience suggest that a large majority of agreements in distributive bargaining are reached when the deadline is:

A) undefined.
B) near.
C) past.
D) flexible.

Question 54

The bargaining range is defined by:

A) the opening stance and the initial concession.
B) the bargaining mix and the opening stance.
C) the initial round of concessions.
D) the opening offer and the counteroffer.

Question 55

All of the following are true regarding the making of concessions in a negotiation, except:

A) Concessions show a movement toward the other's position.
B) Concessions are a statement of the failure to recognize the other party's position.
C) Concessions imply a recognition of the legitimacy of the other party's position.
D) Concessions indicate an acknowledgment of the other party's objectives.

Question 56

To encourage further concessions from the other side, negotiators sometimes link their concessions to a prior concession made by the other.

Question 57

If a major concession has been made on a significant point, it is expected that the return offer will be on the same item or one of similar weight and comparable magnitude.

Question 58

An offer that may have been rejected had it emerged as a result of concession making may be accepted when it is presented as a fait accompli.

Question 59

It is important to signal to the other party with either behaviour or words that the concessions are almost over.

Question 60

All of the following actions are possible after the first round of offers, except:

A) make a revised first round offer
B) hold firm
C) make some concessions
D) insist on the original position

Question 61

The "snow job" tactic occurs when negotiators overwhelm the other party with so much information that they have trouble determining which information is real or important.

Question 62

The "snow job" tactic occurs when:

A) negotiators overwhelm the other party with too much information
B) negotiations refuse to offer concessions
C) it's cold outside
D) the other party acts cool and aloof

Question 63

To respond to hardball tactics, a negotiator must identify the tactic quickly and understand what it is and how it works.

Question 64

Most hardball tactics are designed to either enhance the appearance of the bargaining position of the person using the tactic or to detract from the appearance of the options available to the other party.

Question 65

An effective strategy for dealing with intimidation is to use a team to negotiate with the other party.

Question 66

Aggressive behaviour tactics include all of the following, except:

A) asking for the best offer at the end of negotiations.
B) forcing the other side to make many concessions to reach an agreement.
C) asking the other party to explain and justify their proposals item by item.
D) the relentless push for further concessions.

Question 67

Which of the following hardball tactics pretends that an issue of little or no importance to them is really quite important?

A) Lowball/Highball
B) The Nibble
C) Good Cop/Bad Cop
D) Bogey

Question 68

The most popular closing tactic is:

A) assume the close
B) sweeteners
C) the exploding offer
D) split the difference

Question 69

The "snow job" tactic occurs when negotiators give the other party too little information.

Question 70

Aggressive tactics include pushing for further concessions, asking for the best offer early, and asking the other party to explain and justify his or her proposals item by item.

Question 71

Ignoring a hardball tactic always gives the appearance of a weak response

Question 72

Hardball tactics are designed to:

A) pressure targeted parties to do things they would not otherwise do.
B) eliminate risk for the person using the tactic.
C) clarify the user's adherence to a distributive bargaining approach.
D) be used primarily against powerful negotiators.

Question 73

Hardball tactics work most effectively against powerful, well-prepared negotiators.

Question 74

A(n) contains an extremely tight deadline to pressure the other party to agree quickly.

A) snow job
B) incompetent concession
C) sweet deal
D) exploding offer

Question 75

Aggressive tactics include a relentless push for further concessions.

Question 76

When successive concessions get smaller, the most obvious message is that:

A) the resistance point is being reached.
B) the negotiator has passed the resistance point.
C) the negotiator is reaching the fatigue point.
D) the concession maker's position is weakening.

Question 77

Negotiators using tactic ask for a proportionally small concession on an item that hasn't been discussed previously to close the deal.

A) Lowball/Highball
B) The Nibble
C) Good Cop/Bad Cop
D) Bogey

Question 78

Hardball tactics are infallible if used properly.

Question 79

Hardball tactics can be handled by discussing or ignoring them.

Question 80

Which of the following hardball tactics is based on the theory that the use of extreme offers will cause the other party to re-evaluate his or her own opening offer and move closer to or beyond their resistance point?

A) Bogey
B) Good Cop/Bad Cop
C) Lowball/Highball
D) The Nibble