CPN CPN Anchoring & Framing Strategies

Question 1

What is 'anchoring' in negotiation?

Accepted Answer

Setting an initial reference point that disproportionately influences subsequent offers and the final outcome

Answer

Locking in a final agreement so it legally cannot be reopened

Answer

Using written contracts to bind both parties from the outset

Answer

Preventing the other party from making counteroffers

Question 2

In negotiation, 'framing' refers to:

Accepted Answer

Presenting information in a way that shapes how the other party perceives and evaluates it

Answer

Creating a legal framework and structure for the agreement

Answer

Setting up the physical environment and seating arrangement for negotiations

Answer

Outlining the timeline and agenda before negotiations begin

Question 3

According to prospect theory, people are generally:

Accepted Answer

More motivated to avoid losses than to achieve equivalent gains

Answer

Equally motivated by gains and losses of the same size

Answer

More motivated by potential gains than by potential losses

Answer

Indifferent to how options are framed as gains or losses

Question 4

A 'gain frame' presents an offer by emphasizing:

Accepted Answer

What the other party stands to benefit from accepting the proposal

Answer

What you are personally willing to sacrifice if no deal is reached

Answer

The total market value of the deal to establish legitimacy

Answer

A guaranteed fixed outcome regardless of external conditions

Question 5

What is a 'loss frame' in negotiation?

Accepted Answer

Emphasizing what the other party will lose or miss out on if they do not accept the offer

Answer

Presenting your total financial exposure if the negotiation fails

Answer

Framing the negotiation explicitly as a zero-sum competition

Answer

Accepting a financial loss to preserve the long-term relationship

Question 6

Which approach best counters an anchor set by the other party?

Accepted Answer

Ignore it and immediately introduce your own strong counter-anchor

Answer

Accept it as the starting point and negotiate incrementally from there

Answer

Immediately leave the negotiation to signal the anchor is unacceptable

Answer

Ask for a recess and return after the anchor's impact has faded