Negotiation Strategies & Techniques Flashcards

The 'reverse auction' negotiation format primarily benefits:

Answer: Sellers competing for a buyer's contract by driving prices down

In a reverse auction, multiple sellers compete by offering progressively lower prices, benefiting the buyer.

Which of the following is the best counter-strategy when the other party uses a 'take-it-or-leave-it' ultimatum?

Answer: Test the ultimatum by making a counter-offer while acknowledging their position

Testing an ultimatum often reveals it is not truly final; a calm counter-offer saves face for both parties.

In negotiation theory, 'post-settlement settlements' are used to:

Answer: Explore whether a better deal can be reached after the initial agreement is secured

Post-settlement settlements allow both parties to seek Pareto improvements while the original deal remains the fallback.

A negotiator practicing 'active listening' during a negotiation primarily aims to:

Answer: Uncover the counterpart's underlying interests and build rapport

Active listening surfaces the interests and concerns behind stated positions, enabling more creative solutions.

The concept of 'ZOPA expansion' in integrative negotiation refers to:

Answer: Creating additional value through trades that increase the range of mutually acceptable outcomes

Value-creating trades expand the zone of possible agreement beyond what purely distributive bargaining would allow.

A 'contingent agreement' in negotiation is most useful when:

Answer: Parties disagree about future events and want to bet on their respective predictions

Contingent agreements let each party act on their own forecast; if they're right, the deal rewards them accordingly.

Which ethical standard is MOST critical for maintaining long-term negotiating reputation and repeat business relationships?

Answer: Consistently honoring commitments and avoiding deceptive tactics

Reputation for reliability and honesty reduces friction in future negotiations and attracts better counterparts.