MGT 430 UPDATED EXAM TEST PAPER 1 QUESTIONS AND
SOLUTIONS GUARANTEE A+
✔✔Which approach to opening is described by Shell as your own highly favorable
interpretation of some standard or reference point? - ✔✔Optimistic Opening
✔✔We prefer to say yes to the requests of someone we know and like. Psychologist
Robert Cialdini refers to this as: - ✔✔The liking rule
✔✔If you sense that your counterpart is trying to extract concessions from you on the
basis of his or her initial success of establishing rapport, you should: - ✔✔Be alarmed
that you are being conned
✔✔If you have attractive alternatives or good sources of normative leverage or can
easily live without the other party's cooperation, the _______ stage of negotiations is the
time to signal this to the other party. - ✔✔Information Exchange
✔✔According to Shell, the never open rule (that is, do not ever make the first offer) is
always good advice. - ✔✔False
✔✔According to Shell, establishing rapport at the outset of negotiations is a distinct,
separate part of the information exchange process. - ✔✔True
✔✔According to Shell: in which situation do you want to move slowly on your least
important issues first and use the conditional "if...then" formulation for concession
making? - ✔✔Balanced Concerns
✔✔When the relationship counts more than the issue in dispute, the best concession
strategy is accommodation. - ✔✔True
✔✔Research confirms that people receiving concessions often feel better about the
bargaining process than people who get a single firm, "fair" price. In fact, they feel better
even if they end up paying more than they otherwise might. - ✔✔True
✔✔A key difference between integrative and distributive bargaining is that the goals of
the parties in integrative bargaining are not mutually exclusive. - ✔✔True
✔✔Pareto Efficient - ✔✔Optimal settlement point where there is no agreement that will
make one party better off without making the outcome less favorable for another party.
✔✔Abundance Mentality - ✔✔An integrative negotiation attitude where concessions are
not seen as decreasing one's share of the pie, but as enlarging the pie as a whole.
, ✔✔Interests - ✔✔Underlying concerns, needs, desires or fears that motivate a
negotiator to take a particular position.
✔✔Expanding the Pie - ✔✔Increasing available resources in such a way that both
parties can achieve their objectives.
✔✔Position - ✔✔A party's stance on a focal issue in a negotiation, which is likely made
obvious to other party/parties.
✔✔Logroll - ✔✔Agreement to trade off among issues, such that one party achieves a
highly preferred outcome on the first issue and the other party achieves a highly
preferred outcome on the second issue.
✔✔Nonspecific compensation - ✔✔Payoff for the conceding party in exchange for
agreeing to accommodate the other party's interests. Not directly related to the
substantive issues in the negotiation.
✔✔Superordination - ✔✔A type of solution that occurs when the differences in interests
that gave rise to the conflict are superseded or replaced by other interests.
✔✔A negotiator's concern for what is "fair" or "right" is considered which type of
interest? - ✔✔Interest in principle
✔✔According to Shell, the goal of all negotiations is to secure commitment and not
merely agreement. - ✔✔True
✔✔Postsettlement settlement is an innovative closing technique where parties try to
move from good agreements to better deals in which they seek that bit of extra value
they may have left on the table. According to Shell's research, this is hard to implement
in practice. - ✔✔True
✔✔This type of leverage derives from the consistency principle and refers to the party's
relative ability to apply that principle. - ✔✔Normative
✔✔Which of the following is not an example of the scarcity effect tactic for closing a
negotiation? - ✔✔Pointing out that you have invested a great deal of time and want to
see the deal through
✔✔You can assess leverage by asking yourself which of the following questions? -
✔✔Which party has the most to lose from no deal?
✔✔In negotiation situations where the relationship matters, "softer" closing techniques
are the rule instead of scarcity effect closing tactics. - ✔✔True
SOLUTIONS GUARANTEE A+
✔✔Which approach to opening is described by Shell as your own highly favorable
interpretation of some standard or reference point? - ✔✔Optimistic Opening
✔✔We prefer to say yes to the requests of someone we know and like. Psychologist
Robert Cialdini refers to this as: - ✔✔The liking rule
✔✔If you sense that your counterpart is trying to extract concessions from you on the
basis of his or her initial success of establishing rapport, you should: - ✔✔Be alarmed
that you are being conned
✔✔If you have attractive alternatives or good sources of normative leverage or can
easily live without the other party's cooperation, the _______ stage of negotiations is the
time to signal this to the other party. - ✔✔Information Exchange
✔✔According to Shell, the never open rule (that is, do not ever make the first offer) is
always good advice. - ✔✔False
✔✔According to Shell, establishing rapport at the outset of negotiations is a distinct,
separate part of the information exchange process. - ✔✔True
✔✔According to Shell: in which situation do you want to move slowly on your least
important issues first and use the conditional "if...then" formulation for concession
making? - ✔✔Balanced Concerns
✔✔When the relationship counts more than the issue in dispute, the best concession
strategy is accommodation. - ✔✔True
✔✔Research confirms that people receiving concessions often feel better about the
bargaining process than people who get a single firm, "fair" price. In fact, they feel better
even if they end up paying more than they otherwise might. - ✔✔True
✔✔A key difference between integrative and distributive bargaining is that the goals of
the parties in integrative bargaining are not mutually exclusive. - ✔✔True
✔✔Pareto Efficient - ✔✔Optimal settlement point where there is no agreement that will
make one party better off without making the outcome less favorable for another party.
✔✔Abundance Mentality - ✔✔An integrative negotiation attitude where concessions are
not seen as decreasing one's share of the pie, but as enlarging the pie as a whole.
, ✔✔Interests - ✔✔Underlying concerns, needs, desires or fears that motivate a
negotiator to take a particular position.
✔✔Expanding the Pie - ✔✔Increasing available resources in such a way that both
parties can achieve their objectives.
✔✔Position - ✔✔A party's stance on a focal issue in a negotiation, which is likely made
obvious to other party/parties.
✔✔Logroll - ✔✔Agreement to trade off among issues, such that one party achieves a
highly preferred outcome on the first issue and the other party achieves a highly
preferred outcome on the second issue.
✔✔Nonspecific compensation - ✔✔Payoff for the conceding party in exchange for
agreeing to accommodate the other party's interests. Not directly related to the
substantive issues in the negotiation.
✔✔Superordination - ✔✔A type of solution that occurs when the differences in interests
that gave rise to the conflict are superseded or replaced by other interests.
✔✔A negotiator's concern for what is "fair" or "right" is considered which type of
interest? - ✔✔Interest in principle
✔✔According to Shell, the goal of all negotiations is to secure commitment and not
merely agreement. - ✔✔True
✔✔Postsettlement settlement is an innovative closing technique where parties try to
move from good agreements to better deals in which they seek that bit of extra value
they may have left on the table. According to Shell's research, this is hard to implement
in practice. - ✔✔True
✔✔This type of leverage derives from the consistency principle and refers to the party's
relative ability to apply that principle. - ✔✔Normative
✔✔Which of the following is not an example of the scarcity effect tactic for closing a
negotiation? - ✔✔Pointing out that you have invested a great deal of time and want to
see the deal through
✔✔You can assess leverage by asking yourself which of the following questions? -
✔✔Which party has the most to lose from no deal?
✔✔In negotiation situations where the relationship matters, "softer" closing techniques
are the rule instead of scarcity effect closing tactics. - ✔✔True
