B2B B2B Pricing Strategy & Contract Negotiation 2

Question 1

What is a Statement of Work (SOW) in a B2B contract?

Accepted Answer

A document specifying deliverables, timelines, and acceptance criteria for a specific engagement

Answer

An SOW defines the specific scope, deliverables, milestones, and acceptance criteria for a particular project under a broader MSA.

Question 2

In B2B pricing, what does 'net 30' payment terms mean?

Accepted Answer

Payment is due within 30 days of invoice date

Answer

Net 30 means the buyer has 30 calendar days from the invoice date to remit full payment, a standard US B2B payment term.

Question 3

What is the purpose of a Service Level Agreement (SLA) in a B2B contract?

Accepted Answer

To establish measurable performance standards and remedies if those standards are not met

Answer

An SLA specifies performance benchmarks such as uptime, response time, and resolution time, along with remedies like credits if benchmarks are missed.

Question 4

Which negotiation tactic involves making a concession in one area to gain advantage in another?

Accepted Answer

Trading concessions or log-rolling

Answer

Log-rolling involves making a concession on a less critical issue to secure agreement on a higher-priority term, creating mutual perceived value.

Question 5

What does BATNA stand for in B2B negotiation?

Accepted Answer

Best Alternative to a Negotiated Agreement

Answer

BATNA is the most favorable outcome a party can achieve if negotiations fail, and knowing it determines how far to concede before walking away.

(B2B) Business-to-Business Marketing certification Practice Test

(B2B) Business-to-Business Marketing certification Practice Test

B2B B2B Pricing Strategy & Contract Negotiation 2