SCM 371 EXAM 3 CH12-16 QUESTIONS WITH
VERIFIED ACCURATE ANSWERS
You might need to negotiate personal situations like what movie to watch. True / False -
Answers - True
The use of a "limited time offer" in a negotiation is an example of . . .?
a. The ding tactic
b. Investment in time
c. Limited authority
d. Ultimatums
e. The power of silence - Answers - b. Investment in time
As you negotiate with a potential employer, you ask for an additional $3,000 in annual
salary. The employer asks why you why you want this increase, and learns that you
need to begin repaying a student loan. The employer states that he cannot increase
your salary, but that his company can assume your loan at a 0% interest rate. In this
example, the employer has identified your . . .?
a. Interest
b. Position
c. Demand
d. Reservation value
e. All of the above - Answers - a. Interest
Supply managers negotiate for many reasons. True / False - Answers - True
The expectation that if one party makes a concession, the other party will make the next
concession is called the . . .?
a. Concession expectation
b. Quid pro quo
c. Multiple concession expectation
d. Norm of reciprocity
e. Serial concession pattern - Answers - d. Norm of reciprocity
Supply management negotiations tend to be more formalized than personal
negotiations. True / False - Answers - True
Which of the following is the best use of an ultimatum, based on the recommendations
presented in the courseware?
a. "The best that I can do is $2.25 per unit with a quality level of 99.9%. Take it or leave
it."
b. "The best that I can do is $2.25 per unit with a quality level of 99.9%. I will give you
until 9:00 am tomorrow to decide."
c. "My last offer was my best offer. Take it or leave it."
,d. "The best that I can do is $2.25 per unit with a quality level of 99.9%, or $2.30 per unit
with a quality level of 99.95%."
e. "I do not want to pay more than $2.25 per unit with a quality level of 99.9%, but I may
be able to go just a little bit higher." - Answers - d. "The best that I can do is $2.25 per
unit with a quality level of 99.9%, or $2.30 per unit with a quality level of 99.95%."
Supply managers are responsible for ensuring that they get the best products and
services from their suppliers. - Answers - True
You might need to negotiate even in the case of mundane situations, such as your
favorite band coming to town. True / False - Answers - True
The most obvious focus of a negotiation is the price that you will pay to a supplier. True
/ False - Answers - True
Under which of he following circumstances is competitive bidding a better option than
negotiating?
a. There is a small dollar volume, making negotiating a less attractive option
b. There are unclear specifications, where negotiating would be confusing to the
supplier
c. There are an adequate number of suppliers that want to compete for your business
d. Suppliers are unwilling to bid
e. There is a very short timeframe, making negotiations less attractive. - Answers - c.
There are an adequate number of suppliers that want to compete for your business
Negotiations often lead to a decreased understanding of a supplier—and as a result,
less cooperation. True / False - Answers - False
If you are unable to make an apples-to-apples comparison, then competitive bidding is a
better option than negotiation. True / False - Answers - False
If suppliers are unwilling to bid, then negotiation is a better option than competitive
bidding. True / False - Answers - True
Competitive bidding and negotiation are appropriate tools to help you achieve your cost
goals for buys that are in the Routine quadrant of the Strategic Sourcing Matrix. True /
False - Answers - False
Negotiations that involve both value creation and value claiming are referred to as . . .?
a. Inter-organizational negotiations
b. Ambassador negotiations
c. Integrative negotiations
d. Delta negotiations
e. Demise negotiations - Answers - c. Integrative negotiations
A negotiation that is arm's length, adversarial, and even confrontational is called a . . .?
, a. Hard place negotiation
b. Hard stop negotiation
c. Integrative negotiation
d. Pareto negotiation
e. Distributive negotiation - Answers - e. Distributive negotiation
Integrative negotiations are also sometimes referred to as:
a. Win-win
b. Win-lose
c. Win-win-win
d. 3D negotiations
e. None of the above - Answers - a. Win-win
If you are involved in an integrative negotiation, you focus on value creation and avoid
value claiming at all costs. True / False - Answers - False
Which of the following is your best approach to creating value in a negotiation?
a. Negotiating to pay a higher price to the supplier
b. Negotiating to pay a lower price to the supplier
c. Introducing more than one issue into the negotiation
d. All of the above
e. None of the above - Answers - c. Introducing more than one issue into the negotiation
The ZOPA is formed by . . .?
a. Your BATNA and the other party's BATNA
b. Your RV and the other party's RV
c. Your target value and the other party's target value
d. All of the above
e. None of the above - Answers - b. Your RV and the other party's RV
The ceiling of the ZOPA is formed by . . .?
a. Your RV
b. The supplier's BATNA
c. The supplier's target value
d. Your BATNA
e. The supplier's BATNA - Answers - a. Your RV
The term BATNA stands for . . .?
a. Best Alternative to a Negotiated Agreement
b. Best Altercation to No Avail
c. Better At True Negotiation Attitude
d. Better Alternative to Negotiating an Agreement
e. None of the Above - Answers - a. Best Alternative to a Negotiated Agreement
Which of the following is NOT a common "process" negotiating mistake?
a. Don't invest time
VERIFIED ACCURATE ANSWERS
You might need to negotiate personal situations like what movie to watch. True / False -
Answers - True
The use of a "limited time offer" in a negotiation is an example of . . .?
a. The ding tactic
b. Investment in time
c. Limited authority
d. Ultimatums
e. The power of silence - Answers - b. Investment in time
As you negotiate with a potential employer, you ask for an additional $3,000 in annual
salary. The employer asks why you why you want this increase, and learns that you
need to begin repaying a student loan. The employer states that he cannot increase
your salary, but that his company can assume your loan at a 0% interest rate. In this
example, the employer has identified your . . .?
a. Interest
b. Position
c. Demand
d. Reservation value
e. All of the above - Answers - a. Interest
Supply managers negotiate for many reasons. True / False - Answers - True
The expectation that if one party makes a concession, the other party will make the next
concession is called the . . .?
a. Concession expectation
b. Quid pro quo
c. Multiple concession expectation
d. Norm of reciprocity
e. Serial concession pattern - Answers - d. Norm of reciprocity
Supply management negotiations tend to be more formalized than personal
negotiations. True / False - Answers - True
Which of the following is the best use of an ultimatum, based on the recommendations
presented in the courseware?
a. "The best that I can do is $2.25 per unit with a quality level of 99.9%. Take it or leave
it."
b. "The best that I can do is $2.25 per unit with a quality level of 99.9%. I will give you
until 9:00 am tomorrow to decide."
c. "My last offer was my best offer. Take it or leave it."
,d. "The best that I can do is $2.25 per unit with a quality level of 99.9%, or $2.30 per unit
with a quality level of 99.95%."
e. "I do not want to pay more than $2.25 per unit with a quality level of 99.9%, but I may
be able to go just a little bit higher." - Answers - d. "The best that I can do is $2.25 per
unit with a quality level of 99.9%, or $2.30 per unit with a quality level of 99.95%."
Supply managers are responsible for ensuring that they get the best products and
services from their suppliers. - Answers - True
You might need to negotiate even in the case of mundane situations, such as your
favorite band coming to town. True / False - Answers - True
The most obvious focus of a negotiation is the price that you will pay to a supplier. True
/ False - Answers - True
Under which of he following circumstances is competitive bidding a better option than
negotiating?
a. There is a small dollar volume, making negotiating a less attractive option
b. There are unclear specifications, where negotiating would be confusing to the
supplier
c. There are an adequate number of suppliers that want to compete for your business
d. Suppliers are unwilling to bid
e. There is a very short timeframe, making negotiations less attractive. - Answers - c.
There are an adequate number of suppliers that want to compete for your business
Negotiations often lead to a decreased understanding of a supplier—and as a result,
less cooperation. True / False - Answers - False
If you are unable to make an apples-to-apples comparison, then competitive bidding is a
better option than negotiation. True / False - Answers - False
If suppliers are unwilling to bid, then negotiation is a better option than competitive
bidding. True / False - Answers - True
Competitive bidding and negotiation are appropriate tools to help you achieve your cost
goals for buys that are in the Routine quadrant of the Strategic Sourcing Matrix. True /
False - Answers - False
Negotiations that involve both value creation and value claiming are referred to as . . .?
a. Inter-organizational negotiations
b. Ambassador negotiations
c. Integrative negotiations
d. Delta negotiations
e. Demise negotiations - Answers - c. Integrative negotiations
A negotiation that is arm's length, adversarial, and even confrontational is called a . . .?
, a. Hard place negotiation
b. Hard stop negotiation
c. Integrative negotiation
d. Pareto negotiation
e. Distributive negotiation - Answers - e. Distributive negotiation
Integrative negotiations are also sometimes referred to as:
a. Win-win
b. Win-lose
c. Win-win-win
d. 3D negotiations
e. None of the above - Answers - a. Win-win
If you are involved in an integrative negotiation, you focus on value creation and avoid
value claiming at all costs. True / False - Answers - False
Which of the following is your best approach to creating value in a negotiation?
a. Negotiating to pay a higher price to the supplier
b. Negotiating to pay a lower price to the supplier
c. Introducing more than one issue into the negotiation
d. All of the above
e. None of the above - Answers - c. Introducing more than one issue into the negotiation
The ZOPA is formed by . . .?
a. Your BATNA and the other party's BATNA
b. Your RV and the other party's RV
c. Your target value and the other party's target value
d. All of the above
e. None of the above - Answers - b. Your RV and the other party's RV
The ceiling of the ZOPA is formed by . . .?
a. Your RV
b. The supplier's BATNA
c. The supplier's target value
d. Your BATNA
e. The supplier's BATNA - Answers - a. Your RV
The term BATNA stands for . . .?
a. Best Alternative to a Negotiated Agreement
b. Best Altercation to No Avail
c. Better At True Negotiation Attitude
d. Better Alternative to Negotiating an Agreement
e. None of the Above - Answers - a. Best Alternative to a Negotiated Agreement
Which of the following is NOT a common "process" negotiating mistake?
a. Don't invest time
