CBN Concession Strategies & Tactics 3

Question 1

What is the primary danger of relying on 'splitting the difference' as a default concession strategy?

Accepted Answer

It rewards inflated opening positions since the outcome depends on the midpoint

Answer

It is prohibited under commercial arbitration rules in most jurisdictions

Answer

It creates excessive goodwill that weakens your bargaining posture

Answer

It requires a neutral mediator to calculate and certify the midpoint

Question 2

What is a 'package concession' or 'package deal' in negotiation?

Accepted Answer

Multiple concessions on various issues bundled together in one comprehensive offer

Answer

A concession that includes free delivery or shipping terms

Answer

A series of sequential single-issue concessions made one at a time

Answer

A concession package reserved for high-priority VIP counterparties

Question 3

Which concession strategy involves setting an extreme initial demand, then making planned concessions toward a pre-determined reasonable target?

Accepted Answer

Highball or lowball opening

Answer

Bogey tactic

Answer

Good cop/bad cop approach

Answer

Deadlock management technique

Question 4

The 'bogey' concession tactic involves which of the following?

Accepted Answer

Claiming a budget or resource constraint to pressure the other party into concessions

Answer

Making a surprise concession specifically to break a deadlock

Answer

Offering a goodwill gift at the start of negotiations to set tone

Answer

Pretending to be uninterested in closing the deal to gain leverage

Question 5

Why should negotiators avoid making 'unilateral concessions' — giving without receiving anything in return?

Accepted Answer

They deplete your negotiating capital without generating reciprocal movement

Answer

They are prohibited under most commercial negotiation codes of conduct

Answer

They always cause the other party to immediately end the negotiation

Answer

They violate ethical standards established by the CBN certification body

Question 6

What is the optimal approach when granting a concession that the other party has explicitly requested?

Accepted Answer

Pause briefly, then grant it with a condition or justification attached

Answer

Grant it immediately to demonstrate goodwill and sincerity

Answer

Wait until all other issues are fully resolved before addressing it

Answer

Refuse it initially, then grant it later without explanation

Question 7

In negotiation theory, what does 'reservation price' mean in the context of concession-making?

Accepted Answer

The point beyond which a negotiator will not concede, preferring no deal to a worse deal

Answer

A price reserved exclusively for preferred or VIP customers

Answer

A preliminary price offered before formal negotiation sessions begin

Answer

The price charged for the venue where negotiation meetings are held