CBN Concession Strategies & Tactics 1 — Questions and Answers
Question 1: What is the primary purpose of making a concession during a negotiation?
- To signal weakness and invite goodwill
- To move negotiations forward and build mutual agreement (Correct answer)
- To establish dominance over the other party
- To avoid any future conflict on the issue
Correct answer: To move negotiations forward and build mutual agreement
Concessions are strategic moves designed to advance negotiations toward a mutually acceptable agreement, not to signal weakness.
Question 2: Which concession pattern most clearly signals to the other party that you are approaching your reservation price?
- Making equal concessions each round
- Making increasing concessions over time
- Making decreasing concessions over time (Correct answer)
- Making random concession amounts
Correct answer: Making decreasing concessions over time
Progressively smaller concessions signal to the other party that you are nearing your walk-away point and have little room left to move.
Question 3: What is a 'token concession' in negotiation?
- A concession tied to cryptocurrency payment terms
- A small, low-cost concession made to demonstrate goodwill (Correct answer)
- A concession that automatically triggers a counter-offer
- A concession that is later withdrawn from the agreement
Correct answer: A small, low-cost concession made to demonstrate goodwill
Token concessions are minor give-aways used to maintain momentum and demonstrate goodwill without sacrificing significant value.
Question 4: When is it most advisable to avoid making the first concession in a negotiation?
- When you are acting as the buyer in the transaction
- When you are negotiating across international borders
- When your opening position is already close to fair market value (Correct answer)
- When the negotiation involves more than two parties
Correct answer: When your opening position is already close to fair market value
If your opening position is already near fair value, conceding first may signal to the other party that your position was inflated, undermining your credibility.
Question 5: The negotiation tactic known as 'nibbling' refers to which of the following?
- Slowly reducing concession size until reaching zero movement
- Requesting small additional concessions after a deal appears finalized (Correct answer)
- Making numerous small concessions simultaneously on one issue
- Delaying responses to create pressure on the other party
Correct answer: Requesting small additional concessions after a deal appears finalized
Nibbling involves asking for small extras after the main agreement is reached, exploiting the other party's strong desire to close the deal.
Question 6: Reciprocal concession-making in negotiation is grounded primarily in which principle?
- The legal requirement that contracts be balanced
- The norm of reciprocity, where a concession invites a counter-concession (Correct answer)
- Competitive market pricing benchmarks
- The principle that both parties must concede equal monetary value
Correct answer: The norm of reciprocity, where a concession invites a counter-concession
The norm of reciprocity creates social and psychological pressure to respond to a concession with a concession of your own, driving negotiation movement.
Question 7: Which of the following best describes a 'conditional concession' in negotiation?
- A concession that depends on external market conditions
- A concession offered only if the other party makes a specific concession in return (Correct answer)
- A concession that can be retracted if circumstances change after signing
- A concession limited to specific product categories within a contract
Correct answer: A concession offered only if the other party makes a specific concession in return
Conditional concessions link movement to reciprocal action ('If you do X, I will do Y'), protecting value while still advancing negotiations.
CBN Concession Strategies & Tactics 1
What is the primary purpose of making a concession during a negotiation?